HLS 162ES-16 ENGROSSED
2016 Second Extraordinary Session
HOUSE BILL NO. 7
BY REPRESENTATIVE STOKES
TAX/INCOME TAX: (Constitutional Amendment) Eliminates the income tax deduction
for federal income taxes paid for purposes of computing individual income taxes and
the references to the maximum amount of individual income tax rates and brackets
(Items #39 & 43)
1 A JOINT RESOLUTION
2Proposing to amend Article VII, Section 4(A) of the Constitution of Louisiana, relative to
3 income provision contained in Act No. 31 of the 2016 First Extraordinary Session
4 of the Legislature; to provide with respect to the rates and brackets for purposes of
5 calculating individual income taxes; to establish the maximum rate for purposes of
6 calculating individual income taxes; to provide with respect to the deductibility of
7 federal income taxes paid for purposes of computing state individual income taxes;
8 to provide for applicability; to provide for submission of the proposed amendment
9 to the electors; and to provide for related matters.
10 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
11elected to each house concurring, that there shall be submitted to the electors of the state of
12Louisiana, for their approval or rejection in the manner provided by law, a proposal to
13amend Article VII, Section 4(A) of the Constitution of Louisiana, to read as follows:
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HB NO. 7
1 §4. Income Tax; Severance Tax; Political Subdivisions
2 Section 4.(A) Income Tax. Equal and uniform taxes may be levied on net
3 incomes, and these taxes may be graduated according to the amount of net income.
4 However, the maximum state individual and joint income tax schedule of rates and
5 brackets rate shall never exceed the rates and brackets set forth in Title 47 of the
6 Louisiana Revised Statutes on January 1, 2003 not exceed four and three-quarters
7 percent. Federal income taxes paid shall not be allowed as a deductible item in
8 computing state individual income taxes for the same period.
9 * * *
10 Section 2. Be it further resolved that the provisions of the amendment contained in
11this Joint Resolution shall become effective January 1, 2017, and shall be applicable to all
12tax years beginning on and after January 1, 2017.
13 Section 3. Be it further resolved that this proposed amendment shall be submitted
14to the electors of the state of Louisiana at the statewide election to be held on November 8,
152016. However, if either House Bill No. 17 or House Bill No. 33 of the 2016 Second
16Extraordinary Session of the Legislature is not enacted, the provisions of this Joint
17Resolution are hereby repealed in their entirety, the amendment to the constitution proposed
18in this Act is hereby withdrawn, and the secretary of state shall not print the proposition
19contained herein on the ballot of the statewide election to be held on November 8, 2016.
20 Section 4. Be it further resolved that on the official ballot to be used at the election,
21there shall be printed a proposition, upon which the electors of the state shall be permitted
22to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
23follows:
24 Do you support an amendment to enact a Louisiana flat tax, eliminate the
25 deductibility of federal individual income taxes paid, and delete references
26 to the maximum amounts of individual income tax rates and brackets from
27 the constitution in favor of establishing a maximum flat individual income
28 tax rate of four and three-quarters percent? (Effective January 1, 2017)
29 (Amends Article VII, Section 4(A))
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HB NO. 7
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 Engrossed 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 if House Bill Nos. 17 and 33 of the 2016 Second Extraordinary Session are enacted into
law.
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 Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Add contingent effectiveness for proposed law based upon enactment of House
Bill Nos. 17 and 33 of the 2016 Second Extraordinary Session.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.