DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 76 Reengrossed 2016 First Extraordinary Session Stokes
Abstract: Eliminates the deduction for federal income taxes paid when computing state corporate
and individual income taxes and establishes a maximum individual income tax rate of
4.75%.
Present constitution authorizes equal and uniform taxes to be levied on net income. Further
authorizes the rates for these taxes to be graduated according to the amount of the taxpayer's net
income; however, the state individual and joint income tax schedule of rates and brackets are
prohibited from exceeding the rates and brackets as they existed on Jan. 1, 2003.
Present constitution authorizes federal income taxes paid to be allowed as a deductible item in
computing state income taxes for the same period.
Proposed constitutional amendment changes present constitution by eliminating the deductibility of
federal income taxes paid when computing both individual and corporate income tax liability and
eliminates references to the maximum amount of the individual income tax rates and brackets from
the constitution in favor of establishing a maximum individual income tax rate of 4.75%.
Effective January 1, 2017, and applicable to all tax years beginning on and after the effective date.
Provides for submission of the proposed amendment to the voters at the statewide election to be held
Nov. 8, 2016.
(Amends Const. Art. VII, ยง4(A))
Summary of Amendments Adopted by House
The House Floor Amendments to the engrossed bill:
1. Establish a maximum rate of 4.75% for purposes of calculating individual income taxes.
2. Add an effective date of January 1, 2017.