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2017 Regular Session
SENATE BILL NO. 175
BY SENATOR MORRELL
TAX/INCOME/PERSONAL. Provides for a deduction for certain casualty losses arising
from a major disaster. (gov sig)
1 AN ACT
2 To amend and reenact R.S. 47:293(10), and to enact R.S. 47:293(9)(a)(xviii) and 297.14,
3 relative to income tax deductions; to provide for a deduction for unreimbursed
4 disaster related casualty losses not allowed as deductions for federal income tax
5 purposes; to provide for a transition rule; to provide for an effective date; and to
6 provide for related matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:293(10) is hereby amended and reenacted and R.S.
9 47:293(9)(a)(xviii) and 297.14 are hereby enacted to read as follows:
10 §293. Definitions
11 The following definitions shall apply throughout this Part, unless the context
12 requires otherwise:
13 * * *
14 (9)(a) "Tax table income", for resident individuals, means adjusted gross
15 income plus interest on obligations of a state or political subdivision thereof, other
16 than Louisiana and its municipalities, title to which obligations vested with the
17 resident individual on or subsequent to January 1, 1980, and less:
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1 * * *
2 (xviii) The disaster loss deduction as provided in R.S. 47:297.14.
3 * * *
4 (10) "Tax table income", for nonresident individuals, means the amount of
5 Louisiana income, as provided in this Part, allocated and apportioned under the
6 provisions of R.S. 47:241 through 247, plus the total amount of the personal
7 exemptions and deductions already included in the tax tables promulgated by the
8 secretary under authority of R.S. 47:295, less the proportionate amount of the federal
9 income tax liability, excess federal itemized personal deductions, the temporary
10 teacher deduction, the recreation volunteer and volunteer firefighter deduction, the
11 construction code retrofitting deduction, any gratuitous grant, loan, or other benefit
12 directly or indirectly provided to a taxpayer by a hurricane recovery entity if such
13 benefit was included in federal adjusted gross income, the exclusion provided for in
14 R.S. 47:297.3 for S Bank shareholders, the deduction for expenses disallowed by
15 I.R.C. Section 280C, the deduction for net capital gains, the disaster loss deduction,
16 and personal exemptions and deductions provided for in R.S. 47:294. The
17 proportionate amount is to be determined by the ratio of Louisiana income to federal
18 adjusted gross income. When federal adjusted gross income is less than Louisiana
19 income, the ratio shall be one hundred percent.
20 * * *
21 §297.14. Disaster loss deduction
22 A. Beginning January 1, 2016, there shall be allowed a deduction from
23 tax table income for a taxpayer's unreimbursed losses arising from a major
24 disaster declared in this state. The deduction authorized by this Section shall be
25 equal to the actual amount of the taxpayer's unreimbursed losses, but no more
26 than ten thousand dollars of deduction may be allowed to a taxpayer per taxable
27 year. Unreimbursed losses in excess of ten thousand dollars shall not be eligible
28 for this deduction. The amount of the deduction authorized in this Section shall
29 not exceed the total taxable income of the individual.
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1 B. Definitions.
2 (1) "Casualty loss" means the difference between the taxpayer's personal
3 use property's value immediately before and immediately after the casualty.
4 (2) "Major disaster" means a natural disaster in this state declared by
5 the president to be a major disaster under the provisions of the Robert T.
6 Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. §§ 5121-5207.
7 (3) "Personal use property" means the taxpayer's personal residence,
8 household goods, and personal use motor vehicles.
9 (4) "Unreimbursed loss" means a casualty loss for which the taxpayer
10 did not receive reimbursement from a grant or insurance, or that was not
11 covered by insurance and that federal law prevented the taxpayer from
12 including in the taxpayer's federal itemized deductions.
13 C. Unreimbursed losses attributable to a major disaster in this state
14 occurring in 2016 or 2017, may only be claimed on the 2017 individual income
15 tax return. If a taxpayer incurred unreimbursed losses attributable to a major
16 disaster in both 2016 and 2017, the allowable deduction shall be ten thousand
17 dollars for each year.
18 D. If the taxpayer receives any reimbursement in a subsequent year for
19 a loss for which the deduction provided by this Subsection was claimed, the
20 taxpayer shall file an amended individual income tax return for the year in
21 which the deduction was claimed reducing the deduction by the amount of the
22 reimbursement.
23 Section 2. This Act shall become effective upon signature by the governor or, if not
24 signed by the governor, upon expiration of the time for bills to become law without signature
25 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
26 vetoed by the governor and subsequently approved by the legislature, this Act shall become
27 effective on the day following such approval.
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The original instrument was prepared by Leonore F. Heavey. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by James Benton.
DIGEST
SB 175 Engrossed 2017 Regular Session Morrell
Present law authorizes a deduction from state individual income tax for excess federal
itemized deductions in excess of the federal standard deduction. Casualty losses resulting
from a disaster are included in federal itemized deduction.
Proposed law authorizes a deduction of up to $10,000 for disaster losses for taxpayers whose
losses were not reimbursed, who were not able to itemize deductions on their federal income
tax returns, or who were not able to deduct all of their disaster losses on their federal income
tax return due to certain casualty loss limitations.
Proposed law provides that taxpayers who incurred unreimbursed losses due to a major
disaster in 2016 or 2017 may only claim this deduction on their 2017 income tax return, and
allows a taxpayer who incurred unreimbursed disaster losses in both years to claim up to
$10,000 per year.
Proposed law provides that if the taxpayer receives any reimbursement in a subsequent year
for a loss for which the deduction provided by proposed law was claimed, the taxpayer shall
file an amended individual income tax return for the year in which the deduction was
claimed reducing the deduction by the amount of the reimbursement.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 47:293(10); adds R.S. 47:293(9)(a)(xviii) and 297.14)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the original bill
1. Provides for a reduction of the deduction in the event of a reimbursement in
a subsequent year related to the previous claimed deduction.
2. Makes technical changes.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.