HLS 181ES-56 ORIGINAL
2018 First Extraordinary Session
HOUSE BILL NO. 9
BY REPRESENTATIVE LEGER
TAX/INCOME TAX: Compresses the middle and upper individual income tax brackets and
reduces the amount of the individual income tax deduction for excess federal
itemized personal deductions (Items # 1 and 6)
1 AN ACT
2To amend and reenact R.S. 47:32(A) and 293(3)(c) and to enact R.S. 47:293(3)(d), relative
3 to the individual income tax; to provide with respect to the income brackets for
4 purposes of calculating individual income tax; to provide with respect to the
5 deduction for excess federal itemized personal deductions; to reduce the amount of
6 the deduction; to provide for applicability; to provide for an effective date; and to
7 provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 47:32(A) and 293(3)(c) are hereby amended and reenacted and R.S.
1047:293(3)(d) is hereby enacted to read as follows:
11 §32. Rates of tax
12 A. On individuals. The tax to be assessed, levied, collected and paid upon
13 the taxable income of an individual shall be computed at the following rates:
14 (1) Two percent on that portion of the first twelve thousand five hundred
15 dollars of net income which is in excess of the credits against net income provided
16 for in R.S. 47:79;
17 (2) Four percent on the next thirty-seven twelve thousand five hundred
18 dollars of net income;
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CODING: Words in struck through type are deletions from existing law; words underscored
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HB NO. 9
1 (3) Six percent on any amount of net income in excess of fifty twenty-five
2 thousand dollars of net income.
3 * * *
4 §293. Definitions
5 The following definitions shall apply throughout this Part, unless the context
6 requires otherwise:
7 * * *
8 (3) "Excess federal itemized personal deductions" for the purposes of this
9 Part, means the following percentages of the amount by which the federal itemized
10 personal deductions exceed the amount of federal standard deductions which is
11 designated for the filing status used for the taxable period on the individual income
12 tax return required to be filed:
13 * * *
14 (c) For all tax years beginning on and after January 1, 2009, but before
15 January 1, 2018, one hundred percent of such excess federal itemized personal
16 deductions.
17 (d) For all tax years beginning on and after January 1, 2018, fifty percent of
18 such excess federal itemized personal deductions.
19 * * *
20 Section 2. The provisions of this Act shall be applicable to all tax years beginning
21on and after January 1, 2018.
22 Section 3. This Act shall become effective upon signature by the governor or, if not
23signed by the governor, upon expiration of the time for bills to become law without signature
24by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
25vetoed by the governor and subsequently approved by the legislature, this Act shall become
26effective on the day following such approval.
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HB NO. 9
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 9 Original 2018 First Extraordinary Session Leger
Abstract: Changes the middle and upper brackets for purposes of calculating the individual
income tax and reduces the amount of the individual income tax deduction for excess
federal itemized personal deductions from 100% to 50% for all tax years beginning
on and after Jan. 1, 2018.
Present law provides for a tax to be assessed, levied, collected and paid upon the taxable
income of an individual at the following rates:
(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 law compresses the middle and upper income tax brackets as follows:
(1)2% on the first $12,500 of net income;
(2)To 4% on the next $12,500 of net income;
(3)To 6% on net income in excess of $25,000
Present law authorizes a deduction from individual income taxes for excess federal itemized
personal deductions. Excess federal itemized personal deductions is defined to mean 100%
of the amount by which the federal itemized personal deductions exceed the amount of
federal standard deductions designated for the filing status used for the taxable period on the
individual income tax return.
Proposed law reduces the amount of the deduction from 100% to 50% for all tax years
beginning on and after Jan. 1, 2018.
Applicable for all tax years beginning on and after Jan. 1, 2018.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:32(A) and 293(3)(c); Adds R.S. 47:293(3)(d))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.