HLS 161ES-168 REENGROSSED
2016 First Extraordinary Session
HOUSE BILL NO. 76
BY REPRESENTATIVES STOKES, ADAMS, CHAD BROWN, DAVIS, GAROFALO,
HILFERTY, HOFFMANN, IVEY, MORENO, PEARSON, THIBAUT, WHITE,
AND WILLMOTT
TAX/INCOME TAX: (Constitutional Amendment) Eliminates the income tax deduction
for federal income taxes paid for purposes of computing individual and corporate
income taxes and references to the maximum amount of individual income tax rates
and brackets (Item #3)
1 A JOINT RESOLUTION
2Proposing to amend Article VII, Section 4(A) of the Constitution of Louisiana, relative to
3 income taxation; to provide with respect to the rates and brackets for purposes of
4 calculating individual income taxes; to establish the maximum rate for purposes of
5 calculating individual income taxes; to provide with respect to the deductibility of
6 federal income taxes paid for purposes of computing state income taxes; to provide
7 for applicability; to provide for submission of the proposed amendment to the
8 electors; and to provide for related matters.
9 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
10elected to each house concurring, that there shall be submitted to the electors of the state of
11Louisiana, for their approval or rejection in the manner provided by law, a proposal to
12amend Article VII, Section 4(A) of the Constitution of Louisiana, to read as follows:
13 §4. Income Tax; Severance Tax; Political Subdivisions
14 Section 4.(A) Income Tax. Equal and uniform taxes may be levied on net
15 incomes, and these taxes may be graduated according to the amount of net income.
16 However, the maximum state individual and joint income tax schedule of rates and
17 brackets rate shall never exceed the rates and brackets set forth in Title 47 of the
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 161ES-168 REENGROSSED
HB NO. 76
1 Louisiana Revised Statutes on January 1, 2003 not exceed four and three-quarters of
2 one percent. Federal income taxes paid shall be allowed as a deductible item in
3 computing state income taxes for the same period.
4 * * *
5 Section 2. Be it further resolved that the provisions of the amendment contained in
6this Joint Resolution shall become effective January 1, 2017, and shall be applicable to all
7tax years beginning on and after January 1, 2017.
8 Section 3. Be it further resolved that this proposed amendment shall be submitted
9to the electors of the state of Louisiana at the statewide election to be held on November 8,
102016.
11 Section 4. Be it further resolved that on the official ballot to be used at the election,
12there shall be printed a proposition, upon which the electors of the state shall be permitted
13to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
14follows:
15 Do you support an amendment to eliminate the deductibility of federal
16 income taxes paid and delete references to the maximum amounts of
17 individual income tax rates and brackets from the constitution in favor of
18 establishing a maximum flat individual income tax rate of four and three-
19 quarters of one percent? (Effective January 1, 2017 - Amends Article VII,
20 Section 4(A))
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
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 161ES-168 REENGROSSED
HB NO. 76
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, §4(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.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.