SLS 162ES-32 ORIGINAL
2016 Second Extraordinary Session
SENATE BILL NO. 13
BY SENATOR MORRELL
TAX/TAXATION. Legislates with regard to the net capital gains deduction. (gov sig) (Item
No. 41)
1 AN ACT
2 To amend and reenact R.S. 47:293(9)(a)(xvii), relative to the individual income tax
3 deduction for net capital gains; to provide for nonseverability; to provide for an
4 effective date; and to provide for related matters.
5 Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 47:293(9)(a)(xvii) is hereby amended and reenacted to read as
7 follows:
8 ยง293. Definitions
9 The following definitions shall apply throughout this Part, unless the context
10 requires otherwise:
11 * * *
12 (9)(a) "Tax table income", for resident individuals, means adjusted gross
13 income plus interest on obligations of a state or political subdivision thereof, other
14 than Louisiana and its municipalities, title to which obligations vested with the
15 resident individual on or subsequent to January 1, 1980, and less:
16 * * *
17 (xvii) Income from net capital gains, which shall be limited to gains
Page 1 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 13
SLS 162ES-32 ORIGINAL
1 recognized and treated for federal income tax purposes as arising from the sale or
2 exchange of an equity interest in or substantially all of the assets of a nonpublicly
3 traded corporation, partnership, limited liability company, or other business
4 organization commercially domiciled in this state. The provisions of the deduction
5 for income from net capital gains as provided in this Item are nonseverable and
6 if any provision of the deduction or its application to any person or entity is held
7 invalid under the constitution of this state or of the United States by a final and
8 nonappealable judgment, then such invalidity shall invalidate the entire
9 deduction.
10 * * *
11 Section 2. This Act shall become effective upon signature by the governor or, if not
12 signed by the governor, upon expiration of the time for bills to become law without signature
13 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
14 vetoed by the governor and subsequently approved by the legislature, this Act shall become
15 effective on the day following such approval.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 13 Original 2016 Second Extraordinary Session Morrell
Present law provides for an individual income tax deduction for net capital gains attributable
to the sale or exchange of an equity interest in or the assets of a privately held business
commercially domiciled in this state.
Present law provides that acts of the legislature are severable and that the invalidity of one
provision of the act does not invalidate other provisions of the act that can be given effect
without the invalid provision.
Proposed law retains the capital gains deduction provided in present law.
Proposed law adds a nonseverability provision to the capital gains deduction that will
invalidate the entire deduction if any provision of the deduction is determined to be invalid
under the state or federal constitution by a final nonappealable judgment.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 47:293(9)(a)(xvii) )
Page 2 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.