HLS 162ES-37 ORIGINAL
2016 Second Extraordinary Session
HOUSE BILL NO. 21
BY REPRESENTATIVE REYNOLDS
TAX/INCOME TAX: Reduces the rates for purposes of calculating the tax on the taxable
income of individuals (Item #43)
1 AN ACT
2To amend and reenact R.S. 47:32(A) and 295(B), relative to individual income tax; to
3 reduce certain rates for purposes of calculating individual income tax; to provide for
4 the administration of the rate reductions; to provide for applicability; to provide for
5 an effective date; and to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:32(A) and 295(B) are hereby amended and reenacted to read as
8follows:
9 §32. Rates of tax
10 A. On individuals. The tax to be assessed, levied, collected and paid upon
11 the taxable income of an individual shall be computed at the following rates:
12 (1) Two One and one-half percent on that portion of the first twelve thousand
13 five hundred dollars of net income which is in excess of the credits against net
14 income provided for in R.S. 47:79;
15 (2) Four Three and one-half percent on the next thirty-seven thousand five
16 hundred dollars of net income;
17 (3) Six Five and one-half percent on any amount of net income in excess of
18 fifty thousand dollars of net income.
19 * * *
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 162ES-37 ORIGINAL
HB NO. 21
1 §295. Tax imposed on individuals; administration
2 * * *
3 B. The secretary shall establish tax tables that calculate the tax owed by
4 taxpayers based upon where their taxable income falls within a range that shall not
5 exceed two hundred fifty dollars. The secretary shall provide in the tax tables that
6 the combined personal exemption, standard deduction, and other exemption
7 deductions in R.S. 47:294 shall be deducted from the two percent lowest bracket.
8 If such combined exemptions and deductions exceed the two percent lowest bracket,
9 the excess shall be deducted from the four percent middle bracket. If such combined
10 exemptions and deductions exceed the two and four percent lowest two brackets, the
11 excess shall be deducted from the six percent highest bracket.
12 * * *
13 Section 2. The provisions of this Act shall be applicable to all taxable periods
14beginning on and after January 1, 2018.
15 Section 3. This Act shall take effect and become operative on January 1, 2018, if the
16proposed amendment of Article VII of the Constitution of Louisiana contained in the Act
17which originated as House Bill No. 31 of the First Extraordinary Session of 2016 of the
18Legislature is adopted at a statewide election and becomes effective.
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.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 162ES-37 ORIGINAL
HB NO. 21
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))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.