HLS 17RS-403 REENGROSSED
2017 Regular Session
HOUSE BILL NO. 356
BY REPRESENTATIVE IVEY
TAX/CORP INCOME: (Constitutional Amendment) Provides for flat income tax rates and
eliminates the income tax deduction for federal income taxes paid for purposes of
calculating corporate income tax liability
1 A JOINT RESOLUTION
2Proposing to amend Article VII, Section 4(A) of the Constitution of Louisiana, relative to
3 income taxes; to provide with respect to the deductibility of federal income taxes
4 paid for purposes of computing state corporate income taxes; to provide for the rates
5 and brackets for purposes of calculating individual income taxes; to provide for the
6 rate of corporate income taxes; to provide for applicability; to provide for an
7 effective date; to provide for submission of the proposed amendment to the electors;
8 and to provide for related matters.
9 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
10elected to each house concurring, that there shall be submitted to the electors of the state of
11Louisiana, for their approval or rejection in the manner provided by law, a proposal to
12amend Article VII, Section 4(A) of the Constitution of Louisiana, to read as follows:
13 §4. Income Tax; Severance Tax; Political Subdivisions
14 Section 4.(A) Income Tax. Equal and uniform taxes may be levied on net incomes
15at flat rates which shall be established by law, and these taxes may be graduated according
16to the amount of net income. However, the state individual and joint income tax schedule
17of rates and brackets shall never exceed the rates and brackets set forth in Title 47 of the
18Louisiana Revised Statutes on January 1, 2003. Federal income taxes paid shall be allowed
Page 1 of 4
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 17RS-403 REENGROSSED
HB NO. 356
1as a deductible item in computing state individual, estate, and trust income taxes for the
2same period.
3 * * *
4 Section 2. Be it further resolved that the provisions of the amendment contained in
5this Joint Resolution shall become effective on January 1, 2018, and shall be applicable for
6all tax years beginning on and after January 1, 2018.
7 Section 3. Be it further resolved that this proposed amendment shall be submitted
8to the electors of the state of Louisiana at the statewide election to be held on October 14,
92017. However, if House Bill No. 119 of the 2017 Regular Session of the Legislature is not
10enacted and if House Concurrent Resolution No. 4 of the 2017 Regular Session of the
11Legislature is not adopted by both houses of the legislature, the provisions of this Joint
12Resolution are hereby repealed in their entirety, the amendment proposed to the constitution
13in this Act is hereby withdrawn, and the secretary of state shall not print the proposition
14contained herein on the ballot of the statewide election to be held on October 14, 2017.
15 Section 4. Be it further resolved that on the official ballot to be used at the election,
16there shall be printed a proposition, upon which the electors of the state shall be permitted
17to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
18follows:
19 Do you support an amendment to provide for flat income tax rates in
20 exchange for eliminating the deduction for federal income taxes paid for
21 taxpayers who file state income tax returns for corporation income?
22 (Effective January 1, 2018) (Amends Article VII, Section 4(A))
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 356 Reengrossed 2017 Regular Session Ivey
Abstract: Requires flat income tax rates and eliminates the deductibility of federal income
taxes paid when computing state income taxes for corporations.
Page 2 of 4
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 17RS-403 REENGROSSED
HB NO. 356
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 law provides for a tax to be assessed, levied, collected, and paid upon the taxable
income of an individual at the following rates and brackets:
(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.
Proposed constitutional amendment deletes the reference to the individual income tax rates
and brackets in existence on Jan. 1, 2003, in favor of specifying that a state tax levied on
individual income shall be levied at a flat rate which shall be established in law.
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 constitutional amendment provides that the state income tax levied on corporations
shall be levied at a flat rate which shall be established in law.
Present constitution authorizes federal income taxes paid to be allowed as a deductible item
in computing state individual and corporate income taxes for the same period.
Proposed constitutional amendment changes present constitution by eliminating the
deductibility of federal income taxes paid when computing corporate income tax liability.
Effective Jan. 1, 2018, and applicable to all tax years beginning on and after Jan. 1, 2018,
if HB No. 119 is enacted and HCR No. 4 of the 2017 R.S. is adopted by both houses of the
legislature.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held Oct. 14, 2017.
(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 on Jan. 1, 2018, for proposed law if HB Nos. 119,
355, 357, and 358 of this 2017 R.S. become effective.
Page 3 of 4
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 17RS-403 REENGROSSED
HB NO. 356
The House Floor Amendments to the engrossed bill:
1. Delete elimination of the deduction for federal income taxes paid for purposes
of computing individual income taxes from proposed constitutional amendment.
2. Delete contingent effectiveness on Jan. 1, 2018, for proposed law if HB Nos.
355, 357, and 358 of this 2017 R.S. become effective.
3. Add contingent effectiveness on Jan. 1, 2018, for proposed law if HCR No. 4
from the 2017 R.S. is adopted by both houses of the legislature.
Page 4 of 4
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.