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 21 Original 2016 Second Extraordinary Session Reynolds
Abstract: Reduces the individual income tax rates from 2%, 4%, and 6% to 1.5%, 3.5%, and 5.5%
respectively.
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 reduces the individual income tax rates as follows:
(1)From 2% on the first $12,500 of net income to 1.5% on the first $12,500 of net income;
(2)From 4% on the next $37,500 of net income to 3.5% on the next $37,500 of net income;
(3)From 6% on net income in excess of $50,000 to 5.5% on net income in excess of $50,000.
Present law requires the secretary of the Dept. of Revenue to establish tax tables that calculate the
tax owed by taxpayers based upon where their taxable income falls within a range that shall not
exceed $250. Further requires the secretary to provide for the deduction of certain exemptions and
deductions from income that falls within certain brackets.
Proposed law retains present law but updates the bracket references in light of changes in proposed
law.
Applicable to all taxable periods beginning on and after Jan. 1, 2018.
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 the First E.S. of 2016 of the Legislature is
adopted at a statewide election and becomes effective.
(Amends R.S. 47:32(A) and 295(B))