Exempts flood or tornado victims from paying state individual income tax for the 2017 tax year. (gov sig) (EG DECREASE GF RV See Note)
Impact
Should SB 240 be enacted, it will specifically impact the Louisiana state income tax system by allowing certain taxpayers to exclude substantial amounts from their taxable income in 2017. The exemption provided by this bill is applicable irrespective of any financial compensation, grants, or federal tax benefits received by the individuals affected by the disasters, ensuring they benefit fully from the relief aimed at alleviating the financial strain caused by their losses. With such provisions in place, this bill seeks to facilitate recovery efforts for the residents adversely affected by the natural disasters mentioned.
Summary
Senate Bill 240 aims to provide a significant tax relief measure for individuals affected by natural disasters, particularly floods and tornadoes, during the tax year 2017. The proposed legislation grants an income tax exemption for taxpayers who incurred casualty losses of $10,000 or more due to declared disasters in Louisiana. This bill offers a substantial exemption amounting to $100,000 for married couples filing jointly and $50,000 for all other individual filing statuses. The framework of this bill indicates its focused intent to relieve financial burdens on those affected by natural calamities in a timely manner.
Sentiment
The sentiment surrounding SB 240 appears to be positive among legislators, particularly those representing areas impacted by floods and tornadoes. The bill is generally viewed as a proactive measure that underscores the state’s commitment to providing financial support and assistance to its residents during challenging times. By focusing on disaster relief, SB 240 reflects a shared concern for public welfare and the swift revitalization of affected communities. However, some caution may be observed regarding the fiscal implications of such exemptions on state revenue, which could prompt discussions among fiscal conservatives.
Contention
Despite its largely favorable reception, there are potential points of contention regarding SB 240. Some policymakers may raise concerns about the sustainability of such tax exemptions on the state’s budget and how it might affect funding for other critical services. Additionally, while the bill provides much-needed immediate relief, discussions could emerge around better long-term strategies for disaster preparedness that could mitigate future impacts on taxpayers. The balance between necessary disaster relief and fiscal responsibility represents an ongoing dialogue within state legislative discussions.
Changes the rates and brackets for purposes of calculating individual income tax liability and eliminates or modifies certain deductions, exemptions, and credits (EG DECREASE GF RV See Note)
Phases-out the taxes levied on the income of individuals and estates and trusts and reduces the amount of exemptions, deductions, and credits that may be claimed to reduce income tax liability (EG DECREASE GF RV See Note)