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. 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, ยง4(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.
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.