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 Original 2017 Regular Session Ivey
Abstract: Requires a flat individual income tax rate and a flat business income tax rate and
eliminates the deductibility of federal income taxes paid when computing state income taxes
for both individuals and corporations.
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 business earnings 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 both individual and corporate income tax liability.
Effective Jan. 1, 2018, and applicable to all tax years beginning on and after Jan. 1, 2018.
Provides for submission of the proposed amendment to the voters at the statewide election to be held
Oct. 14, 2017.
(Amends Const. Art. VII, ยง4(A))