SLS 17RS-430 ORIGINAL
2017 Regular Session
SENATE BILL NO. 186
BY SENATOR WARD
TAX/TAXATION. Provides a flat rate for purposes of calculating individual income tax
liability and eliminates certain tax credits. (See Act)
1 AN ACT
2 To amend and reenact R.S. 47:32(A) and 295, to enact R.S. 47:12(P), 37(I), 287.755(I), 297
3 (Q), 297.4(C), 297.6(D), 297.7(C), 297.8(C), 297.9(D), 6004(D), 6005(H), 6006(G),
4 6006.1(H), 6008(E), 6009(C), 6012(G), 6014(G), 6017(D), 6018(C), 6019(D),
5 6025(E), 6030(I), 6032(C), 6035(I), 6104(E), 6105(E), 6106(F), 6107(D), and R.S.
6 51:3085(F), relative to taxation; to provide for the calculation of individual income
7 tax liability; to provide for the elimination of certain tax credits; to provide for
8 applicability; to provide for an effective date; and to provide for related matters.
9 Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 47:32(A) and 295 are hereby amended and reenacted and R.S.
11 47:12(P), 37(I), 287.755(I), 297(Q), 297.4(C), 297.6(D), 297.7(C), 297.8(C), 297.9(D),
12 6004(D), 6005(H), 6006(G), 6006.1(H), 6008(E), 6009(C), 6012(G), 6014(G), 6017(D),
13 6018(C), 6019(D), 6025(E), 6030(I), 6032(C), 6035(I), 6104(E), 6105(E), 6106(F), and
14 6107(D) are hereby enacted to read as follows:
15 §12. State low-income housing credit
16 * * *
17 P. The credit provided for pursuant to the provisions of this Section
Page 1 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 186
SLS 17RS-430 ORIGINAL
1 shall terminate and shall have no effect beginning January 1, 2018.
2 * * *
3 §32. Rates of tax
4 A. On individuals. The tax to be assessed, levied, collected and paid upon the
5 taxable income of an individual shall be computed at the following rates: rate of
6 (1) Two four percent on that portion of the first twelve thousand five hundred
7 dollars of net income which is in excess of the credits against net income provided
8 for in R.S. 47:79;
9 (2) Four percent on the next thirty-seven thousand five hundred dollars of net
10 income;
11 (3) Six percent on any amount of net income in excess of fifty thousand
12 dollars of net income.
13 * * *
14 §37. Tax credit for contributions to educational institutions
15 * * *
16 I. The credit provided for pursuant to the provisions of this Section shall
17 terminate and shall have no effect beginning January 1, 2018.
18 * * *
19 §287.755. Tax credit for contributions to educational institutions
20 * * *
21 I. The credit provided for pursuant to the provisions of this Section shall
22 terminate and shall have no effect beginning January 1, 2018.
23 * * *
24 §295. Tax imposed on individuals; administration
25 A. There is imposed an income tax for each taxable year upon the Louisiana
26 income of every individual, whether resident or nonresident. The amount of the tax
27 shall be determined from tax tables imposing the maximum tax allowed under the
28 rates rate of tax and brackets set forth in R.S. 47:32 promulgated by the secretary
29 under authority of this Section in accordance with the Administrative Procedure Act.
Page 2 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 186
SLS 17RS-430 ORIGINAL
1 However, the tax imposed by this Part shall never exceed the rates rate of tax and
2 brackets set forth in R.S. 47:32.
3 B. The secretary shall establish tax tables that calculate the tax owed by
4 taxpayers based upon where their taxable income falls within a range that shall not
5 exceed two hundred fifty dollars. The secretary shall provide in the tax tables that the
6 combined personal exemption, standard deduction, and other exemption deductions
7 in R.S. 47:294 shall be deducted from the two percent bracket. If such combined
8 exemptions and deductions exceed the two percent bracket, the excess shall be
9 deducted from the four percent bracket. If such combined exemptions and deductions
10 exceed the two and four percent brackets, the excess shall be deducted from the six
11 percent bracket.
12 C. The secretary of the Department of Revenue shall administer and enforce
13 this Part. He may adopt, prescribe, and from time to time alter and enforce
14 reasonable rules, orders, and regulations for the purpose of implementing this Part.
15 He may, upon making a record of his reasons therefor, waive, reduce, or compromise
16 any of the taxes, penalties, or interest or other amounts provided by this Part. Until
17 December 31, 2015, in any case when the penalty exceeds twenty-five thousand
18 dollars, it can be waived by the secretary only after approval by the Board of Tax
19 Appeals. Notwithstanding the provisions of R.S. 47:1508, beginning January 1,
20 2016, waivers of all penalties exceeding twenty-five thousand dollars shall be subject
21 to oversight by the House Committee on Ways and Means and the Senate Committee
22 on Revenue and Fiscal Affairs. This provision shall not apply to any penalty the
23 secretary remits or waives in accordance with rules and regulations promulgated
24 pursuant to the Administrative Procedure Act regarding the remittance or waiver of
25 penalties under the department's voluntary disclosure program.
26 D.C. The secretary may require that a complete copy of the taxpayer's federal
27 income tax return, or any part thereof, be filed. When so filed, the federal income tax
28 return, or part thereof, shall constitute and become part of the return required to be
29 filed under this Part.
Page 3 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 186
SLS 17RS-430 ORIGINAL
1 * * *
2 §297. Reduction to tax due
3 * * *
4 Q. The credit provided for pursuant to the provisions of this Section
5 shall terminate and shall have no effect beginning January 1, 2018.
6 * * *
7 §297.4. Reduction to tax due; certain child care expenses
8 * * *
9 C. The credit provided for pursuant to the provisions of this Section
10 shall terminate and shall have no effect beginning January 1, 2018.
11 * * *
12 §297.6. Reduction to tax due; rehabilitation of residential structures
13 * * *
14 D. The credit provided for pursuant to the provisions of this Section
15 shall terminate and shall have no effect beginning January 1, 2018.
16 §297.7. Property insurance tax credit
17 * * *
18 C. The credit provided for pursuant to the provisions of this Section
19 shall terminate and shall have no effect beginning January 1, 2018.
20 §297.8. Earned income tax credit
21 * * *
22 C. The credit provided for pursuant to the provisions of this Section
23 shall terminate and shall have no effect beginning January 1, 2018.
24 §297.9. Reduction to tax due; amounts paid by certain military servicemembers and
25 dependents for certain hunting and fishing licenses
26 * * *
27 D. The credit provided for pursuant to the provisions of this Section
28 shall terminate and shall have no effect beginning January 1, 2018.
29 * * *
Page 4 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 186
SLS 17RS-430 ORIGINAL
1 §6004. Employer credit
2 * * *
3 D. The credit provided for pursuant to the provisions of this Section
4 shall terminate and shall have no effect beginning January 1, 2018.
5 §6005. Qualified new recycling manufacturing or process equipment and service
6 contracts
7 * * *
8 H. The credit provided for pursuant to the provisions of this Section
9 shall terminate and shall have no effect beginning January 1, 2018.
10 §6006. Tax credits for local inventory taxes paid
11 * * *
12 G. The credit provided for pursuant to the provisions of this Section
13 shall terminate and shall have no effect beginning January 1, 2018.
14 * * *
15 §6006.1. Tax credits for taxes paid with respect to vessels in Outer Continental
16 Shelf Lands Act Waters
17 * * *
18 H. The credit provided for pursuant to the provisions of this Section
19 shall terminate and shall have no effect beginning January 1, 2018.
20 * * *
21 §6008. Tax credits for donations made to assist playgrounds in economically
22 depressed areas
23 * * *
24 E. The credit provided for pursuant to the provisions of this Section
25 shall terminate and shall have no effect beginning January 1, 2018.
26 §6009. Louisiana Basic Skills Training Tax Credit
27 * * *
28 C. The credit provided for pursuant to the provisions of this Section
29 shall terminate and shall have no effect beginning January 1, 2018.
Page 5 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 186
SLS 17RS-430 ORIGINAL
1 * * *
2 §6012. Employer tax credits for donations of materials, equipment, advisors, or
3 instructors
4 * * *
5 G. The credit provided for pursuant to the provisions of this Section
6 shall terminate and shall have no effect beginning January 1, 2018.
7 * * *
8 §6014. Credit for property taxes paid by certain telephone companies; fund
9 * * *
10 G. The credit provided for pursuant to the provisions of this Section
11 shall terminate and shall have no effect beginning January 1, 2018.
12 * * *
13 §6017. Tax credits for certain expenses paid by economic development corporations
14 * * *
15 D. The credit provided for pursuant to the provisions of this Section
16 shall terminate and shall have no effect beginning January 1, 2018.
17 §6018. Tax credits for purchasers from "PIE contractors"
18 * * *
19 C. The credit provided for pursuant to the provisions of this Section
20 shall terminate and shall have no effect beginning January 1, 2018.
21 §6019. Tax credit; rehabilitation of historic structures
22 * * *
23 D. The credit provided for pursuant to the provisions of this Section
24 shall terminate and shall have no effect beginning January 1, 2018.
25 * * *
26 §6025. Tax credit for Louisiana Citizens Property Insurance Corporation assessment
27 * * *
28 E. The credit provided for pursuant to the provisions of this Section
29 shall terminate and shall have no effect beginning January 1, 2018.
Page 6 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 186
SLS 17RS-430 ORIGINAL
1 * * *
2 §6030. Solar energy systems tax credit
3 * * *
4 I. The credit provided for pursuant to the provisions of this Section shall
5 terminate and shall have no effect beginning January 1, 2018.
6 * * *
7 §6032. Tax credit for certain milk producers
8 * * *
9 C. The credit provided for pursuant to the provisions of this Section
10 shall terminate and shall have no effect beginning January 1, 2018.
11 * * *
12 §6035. Tax credit for conversion of vehicles to alternative fuel usage
13 * * *
14 I. The credit provided for pursuant to the provisions of this Section shall
15 terminate and shall have no effect beginning January 1, 2018.
16 * * *
17 §6104. Child care expense tax credit
18 * * *
19 E. The credit provided for pursuant to the provisions of this Section
20 shall terminate and shall have no effect beginning January 1, 2018.
21 §6105. Child care provider tax credit
22 * * *
23 E. The credit provided for pursuant to the provisions of this Section
24 shall terminate and shall have no effect beginning January 1, 2018.
25 §6106. Credit for child care directors and staff
26 * * *
27 F. The credit provided for pursuant to the provisions of this Section
28 shall terminate and shall have no effect beginning January 1, 2018.
29 §6107. Business-supported child care
Page 7 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 186
SLS 17RS-430 ORIGINAL
1 * * *
2 D. The credit provided for pursuant to the provisions of this Section
3 shall terminate and shall have no effect beginning January 1, 2018.
4 Section 2. R.S. 51:3085(F) is hereby enacted to read as follows:
5 §3085. Tax credit
6 * * *
7 F. The credit provided for pursuant to the provisions of this Section
8 shall terminate and shall have no effect beginning January 1, 2018.
9 Section 3. The provisions of this Act amending and reenacting R.S. 47:32 shall be
10 applicable to all taxable periods beginning on and after January 1, 2018.
11 Section 4. This Act shall take effect and become operative if and when the Act
12 which originated as House Bill No. ____ of this 2017 Regular Session of the Legislature is
13 enacted and becomes effective.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by James Benton.
DIGEST
SB 186 Original 2017 Regular Session Ward
Present law provides that the tax to be assessed, levied, collected and paid upon the taxable
income of an individual shall be computed at the following rates:
(1)2% on that portion of the first $12,500 of net income which is in excess of the credits
against net income provided for in present law.
(2)4% on the next $37,500 of net income.
(3)6% on any amount of net income in excess of $50,000 of net income.
Proposed law changes present law to provide a flat rate of 4% against the net income which
is in excess of the credits against net income provided for in present law.
Present law provides that the secretary shall establish tax tables that calculate the tax owed
by taxpayers based upon where their taxable income falls within a range that shall not
exceed $250. The secretary shall provide in the tax tables that the combined personal
exemption, standard deduction, and other exemption deductions in present law will be
deducted from the 2% bracket. If such combined exemptions and deductions exceed the 2%
bracket, the excess shall be deducted from the 4% bracket. If such combined exemptions and
deductions exceed the 2% and 4% brackets, the excess will be deducted from the 6%
bracket.
Proposed law deletes present law.
Proposed law eliminates the following tax credits beginning January 1, 2018:
Page 8 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 186
SLS 17RS-430 ORIGINAL
(1)R.S. 47:12-State low- income housing credit
(2)R.S. 47:37- Tax credit for contributions to educational institutions
(3)R.S. 47:287.755- Tax credit for contributions to educational institutions
(4)R.S. 47:297- Reduction to tax for taxpayer, spouse, or dependent who is deaf, blind,
mentally incapacitated or has lost the use of one limb
(5)R.S. 47:297.4- Credit for certain child care expenses
(6)R.S. 47:297.6- Reduction to tax due; rehabilitation of residential structures
(7)R.S. 47:297.7- Property insurance tax credit
(8)R.S. 47:297.8- Earned income tax credit
(9)R.S. 47:297.9-Reduction to tax due; amounts paid by certain military
servicemembers and dependents for certain hunting and fishing licenses
(10)R.S. 47:6004-Employer Credit when employing recipients of FITAP payments
participating in certain work programs
(11)R.S. 47:6005-Qualified new recycling manufacturing equipment and service
contracts
(12)R.S. 47:6006- Credits for local inventory taxes paid
(13)R.S. 47:6006.1- Credits for taxes paid with respect to vessels in Outer Continental
Shelf Lands Act Waters
(14)R.S. 47:6008- Credits for donations to assist playgrounds in economically depressed
areas
(15)R.S. 47:6009- La. Basic Skills Training Tax Credit
(16)R.S. 47:6012- Employer tax credits for donations of materials, equipment, advisors,
or instructors
(17)R.S. 47:6014- Credit for property taxes paid by certain telephone companies
(18)R.S. 47:6017- Credits for expenses paid by economic development corporations
(19)R.S. 47:6018- Credits for purchasers from "PIE contractors"
(20)R.S. 47:6019- Tax credit; rehabilitation of historic structures
(21)R.S. 47:6025- Credit for La. Citizens Property Insurance Corp. assessment
(22)R.S. 47:6030- Solar energy systems tax credit
(23)R.S. 47:6032- Credit for certain milk producers
(24)R.S. 47:6035- Credit for conversion of vehicles to alternative fuel usage
(25)R.S. 47:6104- Child care expense tax credit
(26)R.S. 47:6105- Child care provider tax credit
Page 9 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 186
SLS 17RS-430 ORIGINAL
(27)R.S. 47:6106- Credit for child care directors and staff
(28)R.S. 47:6107- Business-supported child care
(29)R.S. 51:3085- La. Community Development Financial Institution Act tax credit
Provides that the provisions of the Act amending and reenacting R.S. 47:32 shall be
applicable to all taxable periods beginning on and after January 1, 2018.
Provides that this Act shall take effect and become operative if and when the Act which
originated as HB. ____ of this 2017 R.S. is enacted and becomes effective.
(Amends R.S. 47:32(A) and 295; adds R.S. 47:12(P), 37(I), 287.755(I), 297(Q), 297.4(C),
297.6(D), 297.7(C), 297.8(C), 297.9(D), 6004(D), 6005(H), 6006(G), 6006.1(H), 6008(E),
6009(C), 6012(G), 6014(G), 6017(D), 6018(C), 6019(D), 6025(E), 6030(I), 6032(C),
6035(I), 6104(E), 6105(E), 6106(F), 6107(D), and R.S. 51:3085(F))
Page 10 of 10
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.