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 7 Original 2016 Second Extraordinary Session Stokes
Abstract: Eliminates the deduction for federal income taxes paid when computing state individual
income taxes and limits the maximum individual income tax rate to 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 individual income tax liability and eliminates references
to the maximum amount of the individual income tax rates and brackets from the constitution in
favor of limiting the maximum individual income tax rate to 4.75%.
Effective Jan. 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))