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 6 Engrossed 2016 Second Extraordinary Session Leger
Abstract: Changes the applicability and effectiveness of Act No. 8 of 2016 1
st
E.S., which
established a flat rate of 6.5% for purposes of calculating corporate income tax liability.
Present law provides that the tax to be assessed, levied, collected, and paid on the La. taxable income
of every corporation shall be computed at the following rates:
(1)4% on the first $25,000 of La. taxable income.
(2)5% on La. taxable income above $25,000 but not in excess of $50,000.
(3)6% on La. taxable income above $50,000 but not in excess of $100,000.
(4)7% on La. taxable income above $100,000 but not in excess of $200,000.
(5)8% on all La. taxable income in excess of $200,000.
Proposed law (Act No. 8) changes present law by deleting the graduated schedule of rates dependant
on the amount of taxable income of the taxpayer in favor of a flat 6.5% corporate income tax rate.
Proposed law (Act No. 8) is applicable to all tax years beginning on and after Jan. 1, 2017, and
becomes effective Jan. 1, 2017, if the proposed amendment of Article VII of the Constitution of La.
contained in the Act which originated as House Bill No. 31 of the 2016 1
st
E.S. of the Legislature
is adopted at a statewide election and becomes effective.
Proposed law changes the effective date of proposed law (Act No. 8) from Jan. 1, 2017, to Jan. 1,
2018, subject to adoption of the proposed constitutional amendment at a statewide election.
Proposed law additionally changes the applicability provisions from all tax years beginning on and
after Jan.1, 2017, to all tax years beginning on and after Jan. 1, 2018.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends ยงยง2 and 3 of Act No. 8 of 2016 1
st
E.S.)