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2017 Regular Session
SENATE BILL NO. 240
BY SENATOR RISER
TAX/INCOME/PERSONAL. Exempts flood or tornado victims from paying state
individual income tax for the 2017 tax year. (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 individual income tax exemptions; to provide for an exemption from
4 individual income tax for certain taxpayers who suffered losses due to a flood or
5 tornado in 2016; to provide for an effective date; and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:293(10) is hereby amended and reenacted and R.S.
8 47:293(9)(a)(xviii) and 297.14 are hereby enacted to read as follows:
9 §293. Definitions
10 The following definitions shall apply throughout this Part, unless the context
11 requires otherwise:
12 * * *
13 (9)(a) "Tax table income", for resident individuals, means adjusted gross
14 income plus interest on obligations of a state or political subdivision thereof, other
15 than Louisiana and its municipalities, title to which obligations vested with the
16 resident individual on or subsequent to January 1, 1980, and less:
17 * * *
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1 (xviii) For tax years beginning during 2017 only, the exemption for
2 taxpayers incurring flood or tornado related casualty losses provided pursuant
3 to R.S. 47:297.14.
4 * * *
5 (10) "Tax table income", for nonresident individuals, means the amount of
6 Louisiana income, as provided in this Part, allocated and apportioned under the
7 provisions of R.S. 47:241 through 247, plus the total amount of the personal
8 exemptions and deductions already included in the tax tables promulgated by the
9 secretary under authority of R.S. 47:295, less the proportionate amount of the federal
10 income tax liability, excess federal itemized personal deductions, the temporary
11 teacher deduction, the recreation volunteer and volunteer firefighter deduction, the
12 construction code retrofitting deduction, any gratuitous grant, loan, or other benefit
13 directly or indirectly provided to a taxpayer by a hurricane recovery entity if such
14 benefit was included in federal adjusted gross income, the exclusion provided for in
15 R.S. 47:297.3 for S Bank shareholders, the deduction for expenses disallowed by
16 I.R.C. Section 280C, the deduction for net capital gains, the 2017 exemption for
17 taxpayers incurring flood or tornado related casualty losses provided pursuant
18 to R.S. 47:297.14, and personal exemptions and deductions provided for in R.S.
19 47:294. The proportionate amount is to be determined by the ratio of Louisiana
20 income to federal adjusted gross income. When federal adjusted gross income is less
21 than Louisiana income, the ratio shall be one hundred percent.
22 * * *
23 §297.14. Exemption from income for 2017; income of taxpayers incurring flood
24 or tornado related casualty losses
25 A. For tax years beginning in 2017 only, there shall be allowed an
26 exemption from income for all individual income taxpayers who incurred ten
27 thousand dollars or more of casualty losses arising from a flood or tornado for
28 which a major disaster was declared in this state in 2016.
29 B. The amount of the exemption from income shall be fifty thousand
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1 dollars. In the case of a joint return, the amount of the exemption from income
2 shall be one hundred thousand dollars.
3 C. Definitions. (1) "Casualty loss" means the difference between the
4 taxpayer's personal use property's value immediately before and immediately
5 after the casualty.
6 (2) "Major disaster" means a flood or tornado in this state declared by
7 the president to be a major disaster under the provisions of the Robert T.
8 Stafford Disaster Relief and Emergency Assistance Act, 42 U.S.C. §§ 5121-5207
9 that occurred on or after January 1, 2016, and before March 1, 2017.
10 (3) "Personal use property" means the taxpayer's principal residence,
11 household goods, and personal use motor vehicles.
12 D. This exemption shall be applicable irrespective of any reimbursement,
13 grant, compensation, or federal tax benefit received by the taxpayer who
14 incurred the flood or tornado related casualty losses.
15 Section 2. This Act shall become effective upon signature by the governor or, if not
16 signed by the governor, upon expiration of the time for bills to become law without signature
17 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
18 vetoed by the governor and subsequently approved by the legislature, this Act shall become
19 effective on the day following such approval.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 240 Engrossed 2017 Regular Session Riser
Present law provides that in any taxable year, individuals domiciled, residing, or having a
permanent place of abode in Louisiana shall be taxed upon all income from whatever source
derived.
Proposed law authorizes an individual income tax exemption for taxpayers who incurred
flood or tornado related disaster losses in 2016 or January or February of 2017 of $10,000
or more.
Proposed law provides that this exemption is only available for the 2017 tax year.
Proposed law provides that the amount of the exemption is $100,000 for married couples
filing a joint income tax return and $50,000 for all other filing statuses.
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Proposed law provides that this exemption is available whether or not the taxpayer received
any type of compensation for the flood or tornado related casualty losses.
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. Adds tornados to the disasters to which the deduction applies.
2. Extends deduction to losses incurred through February 28, 2017.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.