HLS 19RS-161 ENGROSSED
2019 Regular Session
HOUSE BILL NO. 191
BY REPRESENTATIVE ZERINGUE
TAX/INCOME TAX: Changes the rates and brackets for purposes of calculating individual
income tax liability and eliminates certain deductions and credits
1 AN ACT
2To amend and reenact R.S. 47:32(A), 293(3), (9)(a)(iv), and (10), 294, 295(B), 300.1,
3 300.6(A), and 300.7(A) and to repeal R.S. 47:293(4) and (9)(a)(ii), 296.1(B)(3)(c),
4 297(A), and 298, relative to the individual income tax; to provide for the calculation
5 of individual income tax liability; to provide for the rates and brackets for individual
6 income tax; to provide for the rates and brackets for income on estates and trusts; to
7 provide for certain deductions and credits; to reduce certain deductions and credits;
8 to reduce the amount allowed for personal exemptions and credits for dependents;
9 to repeal the deductibility of federal income taxes paid for purposes of calculating
10 income taxes for individuals, estates, and trusts; to repeal the deduction for excess
11 federal itemized personal deductions; to provide for applicability; to provide for an
12 effective date; and to provide for related matters.
13Be it enacted by the Legislature of Louisiana:
14 Section 1. R.S. 47:32(A), 293(3), (9)(a)(iv), and (10), 294, 295(B), 300.1, 300.6(A),
15and 300.7(A) are hereby amended and reenacted to read as follows:
16 §32. Rates of tax
17 A. On individuals. The tax to be assessed, levied, collected and paid upon
18 the taxable income of an individual shall be computed at the following rates:
19 (1) Two percent No tax shall be assessed on that portion of the first twelve
20 thousand five hundred dollars of net income which is in excess of the credits against
21 net income provided for in R.S. 47:79;
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1 (2) Four percent on the next thirty-seven thousand five hundred dollars of
2 net income;
3 (3) Six percent on any amount of net income in excess of fifty thousand
4 dollars of net income. Four percent on net income in excess of twelve thousand five
5 hundred dollars.
6 * * *
7 §293. Definitions
8 The following definitions shall apply throughout this Part, unless the context
9 requires otherwise:
10 * * *
11 (3) "Excess federal itemized personal deductions" for the purposes of this
12 Part, means the following percentages of the amount by which the federal itemized
13 personal deductions exceed the amount of federal standard deductions which is
14 designated for the filing status used for the taxable period on the individual income
15 tax return required to be filed:
16 (a) For tax years beginning during calendar year 2007, fifty-seven and one
17 half percent of such excess federal itemized personal deductions.
18 (b) For tax years beginning during calendar year 2008, sixty-five percent of
19 such excess federal itemized personal deductions.
20 (c) For all tax years beginning on and after January 1, 2009, but before
21 January 1, 2020, one hundred percent of such excess federal itemized personal
22 deductions.
23 (d) For all tax years beginning on and after January 1, 2020, no excess
24 federal itemized personal deductions pursuant to this Paragraph shall be allowed.
25 * * *
26 (9)(a) "Tax table income", for resident individuals, means adjusted gross
27 income plus interest on obligations of a state or political subdivision thereof, other
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1 than Louisiana and its municipalities, title to which obligations vested with the
2 resident individual on or subsequent to January 1, 1980, and less:
3 * * *
4 (iv) The excess, if any, of the personal exemptions and deductions provided
5 for in R.S. 47:294 over the amount of the personal exemptions and deductions
6 already included in the tax tables promulgated by the secretary under authority of
7 R.S. 47:295. The personal and dependent deductions provided for in R.S. 47:294.
8 * * *
9 (10) "Tax table income", for nonresident individuals, means the amount of
10 Louisiana income, as provided in this Part, allocated and apportioned under the
11 provisions of R.S. 47:241 through 247, plus the total amount of the personal
12 exemptions and deductions already included in the tax tables promulgated by the
13 secretary under authority of R.S. 47:295, less the proportionate amount of the
14 federal income tax liability, excess federal itemized personal deductions, the
15 temporary teacher deduction, the recreation volunteer and volunteer firefighter
16 deduction, the construction code retrofitting deduction, any gratuitous grant, loan,
17 or other benefit directly or indirectly provided to a taxpayer by a hurricane recovery
18 entity if such benefit was included in federal adjusted gross income, the exclusion
19 provided for in R.S. 47:297.3 for S Bank shareholders, the deduction for expenses
20 disallowed by I.R.C. Section 280C, salaries, wages or other compensation received
21 for disaster or emergency-related work rendered during a declared state disaster or
22 emergency, the deduction for net capital gains, and personal exemptions and
23 deductions provided for in R.S. 47:294. The proportionate amount is to be
24 determined by the ratio of Louisiana income to federal adjusted gross income. When
25 federal adjusted gross income is less than Louisiana income, the ratio shall be one
26 hundred percent.
27 * * *
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1 §294. Personal Filing status; personal exemptions; and credit for dependents
2 All personal exemptions and deductions for dependents allowed in
3 determining federal income tax liability, including the extra exemption for the blind
4 and aged, will be allowed in determining the tax liability in this Part. Taxpayers are
5 required to use the same filing status and claim the same exemptions on their return
6 required to be filed under this Part as they used on their federal income tax return.
7 The amounts to be taken into consideration shall be as follows:
8 A. A combined personal exemption and standard deduction in the following
9 amounts:
10 a. Single Individual $ 4500.00
11 b. Married-Joint Return and a Qualified Surviving Spouse$ 9000.00
12 c. Married-Separate $ 4500.00
13 d. Head of Household $ 9000.00
14 B. An additional deduction of one thousand dollars shall be allowed for each
15 allowable exemption in excess of those required to qualify for the exemption
16 allowable under R.S. 47:294(A).
17 A. Personal Exemption. An exemption of one thousand dollars shall be
18 allowed for the taxpayer who is blind or who has sustained the loss of one or more
19 limbs or who has an intellectual disability or who is deaf. As used in this Section,
20 the term "blind" shall mean and refer to a person who, after examination by a
21 licensed physician skilled in diseases of the eye or by a licensed optometrist, has
22 been determined to have not more than 20/200 central visual acuity in the better eye
23 with correcting lenses, or an equally disabling loss of the visual field as evidenced
24 by a limitation to the field of vision in the better eye to such a degree that its widest
25 diameter subtends an angle of no greater than twenty degrees. The term "deaf" shall
26 be defined as in Subsection B of this Section. Each person claiming an exemption
27 under the provisions of this Section shall provide proof of a claim by providing a
28 certificate from a qualified physician or optometrist.
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1 B. Deductions for dependents. (1) A deduction of one thousand dollars shall
2 be allowed for each dependent allowed, in determining federal income tax liability,
3 who is blind or deaf or who has sustained the loss of one or more limbs or who has
4 an intellectual disability. For purposes of this Section, the word "deaf" shall mean
5 and refer to persons whose hearing is so impaired that it is insufficient for use in an
6 occupation or activity for which hearing is essential. The term "blind" shall be
7 defined as in Subsection A of this Section. The taxpayer claiming the deduction
8 authorized in this Subsection shall provide proof of a claim by providing a certificate
9 from a qualified physician or optometrist issued for each dependent for which a
10 deduction is claimed.
11 (2) In addition to the deduction authorized in Paragraph (1) of this
12 Subsection, an additional deduction of one thousand dollars shall be allowed for each
13 dependent as allowed in determining federal income tax liability.
14 §295. Tax imposed on individuals; administration
15 * * *
16 B. The secretary shall establish tax tables that calculate the tax owed by
17 taxpayers based upon where their taxable income falls within a range that shall not
18 exceed two hundred fifty dollars. The secretary shall provide in the tax tables that
19 the combined personal exemption, standard deduction, and other exemption
20 deductions in R.S. 47:294 shall be deducted from the two percent bracket. If such
21 combined exemptions and deductions exceed the two percent bracket, the excess
22 shall be deducted from the four percent bracket. If such combined exemptions and
23 deductions exceed the two and four percent brackets, the excess shall be deducted
24 from the six percent bracket.
25 * * *
26 §300.1. Tax imposed
27 There is imposed an income tax for each taxable year upon the Louisiana
28 taxable income of every estate or trust, whether resident or nonresident. The tax to
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1 be assessed, levied, collected, and paid upon the Louisiana taxable income of an
2 estate or trust shall be computed at the following rates:
3 (1) Two percent on the first ten thousand dollars No tax shall be assessed on
4 the first twelve thousand five hundred dollars of Louisiana taxable income.
5 (2) Four percent on the next forty thousand dollars of Louisiana taxable
6 income.
7 (3) Six percent on Louisiana taxable income in excess of fifty thousand
8 dollars. Four percent on Louisiana taxable income in excess of twelve thousand five
9 hundred dollars.
10 * * *
11 §300.6. Louisiana taxable income of resident estate or trust
12 A. Definition. "Louisiana taxable income" of a resident estate or trust means
13 the taxable income of the estate or trust determined in accordance with federal law
14 for the same taxable year, as specifically modified by the provisions contained in
15 Subsection B of this Section, less a federal income tax deduction to be computed
16 following the provisions of R.S. 47:287.83 and 287.85. in accordance with the
17 following provisions:
18 (1) In computing Louisiana taxable income, no federal income tax deduction
19 shall be allowed on net income upon which no Louisiana income tax has been
20 incurred, or upon which, for any reason whatsoever, no Louisiana income tax will
21 be paid. When computing Louisiana taxable income, the secretary may consider
22 reductions to the federal income tax deduction in accordance with the provisions of
23 this Paragraph.
24 (2) The alternative minimum tax is a federal income tax deductible to the
25 extent that it is applicable to regular federal taxable income. Any alternative
26 minimum tax paid on tax preference items shall not be deductible. In accordance
27 with the provisions of this Paragraph, the secretary may determine the deductible
28 portion of the alternative minimum tax.
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1 (3) For purposes of this Section, federal income taxes shall include taxes
2 based on net income, accumulated earnings, war profits, excess profits, personal
3 holding company income, and tax from recomputation of investment credit. For
4 purposes of federal income taxation as compared to the computation of net income
5 under this Part, proper adjustment shall be made for the actual tax rates as applied
6 to different classes of income and for all differences in the computation of net
7 income. The amount of the federal income tax deduction shall be that portion of the
8 total federal income tax, after application of all credits, which is levied on income
9 derived solely from sources in this state as computed under the rules and regulations
10 prescribed by the secretary.
11 (4) As used in this Subsection, the term "credits" shall not include
12 overpayments of prior year taxes allowed as a credit, estimated tax payments or
13 similar prepayments, credit for prior year alternative minimum tax that is allowed as
14 a credit against the current regular federal income tax, or federal income tax credits
15 determined by the secretary to be presidential disaster area disaster relief credits.
16 * * *
17 §300.7. Louisiana taxable income of nonresident estate or trust
18 A. Definition. "Louisiana taxable income" of a nonresident estate or trust
19 means such the portion of the taxable income of the nonresident estate or trust
20 determined in accordance with federal law for the same taxable year, as specifically
21 modified by the provisions contained in Subsection C of this Section, that was earned
22 within or derived from sources within this state, less a federal income tax deduction
23 to be computed following the provisions of R.S. 47:287.83 and 287.85 R.S. 47:300.6.
24 * * *
25 Section 2. R.S. 47:293(4) and (9)(a)(ii), 296.1(B)(3)(c), 297(A), and 298 are hereby
26repealed in their entirety.
27 Section 3. The provisions of this Act shall be applicable to all taxable periods
28beginning on and after January 1, 2020.
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1 Section 4. This Act shall take effect and become operative if and when the proposed
2amendment of Article VII of the Constitution of Louisiana contained in the Act which
3originated as House Bill No. of this 2019 Regular Session of the Legislature is adopted
4at a statewide election and becomes effective.
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 191 Engrossed 2019 Regular Session Zeringue
Abstract: Changes the rates and brackets for purposes of calculating individual income tax
liability and estates and trusts income tax liability, and eliminates the standard and
certain dependency deductions, the deduction for excess federal itemized personal
deductions, and the deduction for federal income taxes paid for individuals, estates,
and trusts.
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 reduces individual income tax rates as follows:
(1)From 2% on the first $12,500 of net income to 0% on the first $12,500 of net
income.
(2)From 4% on the next $37,500 of net income and 6% in excess of $50,000 to 4% on
net income in excess of $12,500.
Present law provides that all personal exemptions and deductions for dependents allowed in
determining federal income tax liability shall be allowed in determining La. tax liability.
Further provides for a combined personal exemption of $4,500 for single, individual filers,
$9,000 for married, joint filers, $4,500 for married, separate filers, and $9,000 for filers who
are the head of household.
Proposed law repeals present law.
Present law authorizes a credit of $400 for each dependent who meets certain criteria.
Proposed law repeals present law in favor of a $1,000 deduction for each dependent as
defined in present law.
Present law authorizes an additional deduction of $1,000 for each allowable exemption in
excess of those required to qualify for the exemption allowable under present law (R.S.
47:294(A)). Further authorizes a personal exemption of $1,000 for each taxpayer who is
blind or deaf, who has an intellectual disability, or who has sustained the loss of one or more
limbs.
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Proposed law retains present law but further defines the terms "blind" and "deaf" for
purposes of claiming the personal exemption provided for in present law.
Present law requires the secretary to establish tax tables that calculate the tax owed by
taxpayers based upon where their taxable income falls within a range that does not exceed
$250. Further requires the secretary to provide in the tax tables the combined personal
exemption, standard deduction, and other exemption deductions in present law which is
deducted from the 2% bracket. If the combined exemptions and deductions exceed the 2%
bracket, the excess is deducted from the 4% bracket, and then the 6% bracket.
Proposed law deletes the provisions authorizing the combined personal exemption, standard
deduction, and other exemption deductions to be deducted from the income tax brackets.
Present law authorizes a deduction from individual income taxes for excess federal itemized
personal deductions. The term "excess federal itemized personal deductions" is defined to
mean the amount by which the federal itemized personal deductions exceed the amount of
federal standard deduction designated for the filing status used for the taxable period on the
individual income tax return.
Proposed law repeals present law that allows taxpayers to deduct excess federal itemized
personal deductions on their state individual income tax returns beginning Jan. 1, 2020.
Present constitution and present law authorize a state deduction for federal income taxes paid
for purposes of computing income taxes for the same period.
Proposed law repeals the present law provisions that authorize a state deduction for federal
income taxes paid for purposes of calculating individual income taxes.
Present law provides for the computation of La. taxable income for a resident estate or trust,
including provisions for the federal income tax deduction, limitations of deductions for net
income, provisions for the federal deduction for alternative minimum tax, and the authority
of the secretary of the Dept. of Revenue to consider reductions to the federal income tax
deduction and the determination of the deductible portion of an alternative minimum tax.
Proposed law retains present law except as it applies to the deductibility of federal income
taxes.
Present law provides for a tax to be assessed, levied, collected, and paid on the La. taxable
income of an estate or trust at the following rates:
(1)2% on the first $10,000 of La. taxable income.
(2)4% on the next $40,000 of La. taxable income.
(3)6% on La. taxable income in excess of $50,000.
Proposed law changes income tax rates on estates and trusts as follows:
(1)From 2% on the first $10,000 of La. taxable income to 0% on the first $12,500 of La.
taxable income.
(2)From 4% on the next $40,000 of La. taxable income and 6% in excess of $50,000 to
4% on La. taxable income in excess of $12,500.
Applicable to all taxable periods beginning on and after Jan. 1, 2020.
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Effective on Jan. 1, 2020, if and when the proposed amendment of Article VII of the
Constitution of La. contained in the Act which originated as House Bill No. ___ of this 2019
R.S. of the Legislature is adopted at a statewide election and becomes effective.
(Amends R.S. 47:32(A), 293(3), (9)(a)(iv), and (10), 294, 295(B), 300.1, 300.6(A), and
300.7(A); Repeals R.S. 47:293(4) and (9)(a)(ii), 296.1(B)(3)(c), 297(A), and 298)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Technical amendments to delete repetitive provisions regarding the personal
exemption and dependency deductions that were superceded by the enactment
of newer provisions in present law.
2. Technical amendments to clarify the elimination of the deductibility of federal
income taxes paid.
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