GREEN SHEET REDIGEST
HB 75 2016 First Extraordinary Session Stokes
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
TAX/INCOME TAX: Changes the rates and brackets for purposes of calculating
individual income tax liability and eliminates certain deductions (Item #3)
DIGEST
Present law provides for a tax to be assessed, levied, collected, and paid upon the taxable
income of an individual at the following rates:
(1)2% on the first $12,500 of net income;
(2)4% on the next $37,500 of net income;
(3)6% on net income in excess of $50,000.
Proposed law changes individual income tax rates as follows:
(1)From 2% on the first $12,500 of net income to 0% on the first $12,500 of net income.
(2)From 4% on the next $37,500 of net income and 6% on net income in excess of
$50,000 to 3.8% on net income in excess of $25,000.
Present law authorizes a deduction from individual income taxes for excess federal itemized
personal deductions. The term "excess federal itemized personal deductions" is defined to
mean the amount by which the federal itemized personal deductions exceed the amount of
federal standard deduction designated for the filing status used for the taxable period on the
individual income tax return.
Proposed law repeals present law that allows taxpayers to deduct excess federal itemized
personal deductions on their state individual income tax returns beginning Jan. 1, 2016.
Present law provides that all personal exemptions and deductions for dependents allowed in
determining federal income tax liability shall be allowed in determining La. tax liability.
Further provides for a combined personal exemption of $4,500 for single, individual filers,
$9,000 for married, joint filers, $4,500 for married, separate filers, and $9,000 for filers who
are the head of household.
Proposed law repeals present law.
Present law authorizes a credit of $400 for each dependent who meets certain criteria.
Proposed law repeals present law in favor of a $1,000 deduction for each dependent as
defined in present law.
Present law authorizes an additional deduction of $1,000 for each allowable exemption in
excess of those required to qualify for the exemption allowable under R.S. 47:294(A).
Present law requires the secretary to establish tax tables that calculate the tax owed by
taxpayers based upon where their taxable income falls within a range that does not exceed
$250. Further requires the secretary to provide in the tax tables the combined personal
exemption, standard deduction, and other exemption deductions in present law which is
deducted from the 2% bracket. If the combined exemptions and deductions exceed the 2%
bracket, the excess is deducted from the 4% bracket, and then the 6% bracket.
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Prepared by James Benton. Proposed law deletes the provisions authorizing the combined personal exemption, standard
deduction, and other exemption deductions to be deducted from the income tax brackets.
Provides that Section 3 of the Act which originated as House Bill No. 29 of the 2016 First
E.S. Session of the Legislature shall be effective if and when the proposed amendment of
Article VII of the Constitution of La. contained in the Act which originated as House Bill
No.31 of this 2016 1
st
E.S. of the Legislature is adopted at a statewide election and becomes
effective.
Sections 2 and 5 of this Act shall become effective upon signature by the governor or, if not
signed by the governor, upon expiration of the time for bills to become law without signature
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
vetoed by the governor and subsequently approved by the legislature, this Act shall become
effective on the day following such approval.
Sections 1, 3, 4, and 6 of this Act shall take effect on Jan. 1, 2017.
Effective if and when the proposed amendment of Article VII of the Constitution of La.
contained in the Act which originated as House Bill No.76 of this 2016 1
st
E.S. of the
Legislature is adopted at a statewide election and becomes effective.
(Amends R.S. 47:32(A), 79, 293(10), and 295(B), and Section 3 of the Act which originated
as House Bill No. 29 of the 2016 First E.S.; repeals R.S. 47:293(3) and (9)(a)(xi) and 294)
Summary of Amendments Adopted by House
The House Floor Amendments to the engrossed bill:
1. Reduce the maximum rate from 4.25% to 3.8%.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs
to the reengrossed bill
1. Makes technical changes regarding election ballots and effective dates.
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Prepared by James Benton.