HLS 19RS-682 REENGROSSED
2019 Regular Session
HOUSE BILL NO. 260
BY REPRESENTATIVE STOKES
TAX/INCOME TAX: (Constitutional Amendment) Eliminates the income tax deduction
for federal income taxes paid for purposes of calculating individual and corporate
income taxes and requires the levy of a flat individual income tax rate
1 A JOINT RESOLUTION
2Proposing to amend Article VII, Section 4(A) of the Constitution of Louisiana, relative to
3 income tax; to provide with respect to the rates and brackets for purposes of
4 calculating individual income taxes; to establish a flat rate for purposes of
5 calculating individual income taxes; to provide with respect to the deductibility of
6 federal income taxes paid for purposes of computing state income taxes; to provide
7 for applicability; to provide for effectiveness; to provide for submission of the
8 proposed amendment to the electors; and to provide for related matters.
9 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
10elected to each house concurring, that there shall be submitted to the electors of the state of
11Louisiana, for their approval or rejection in the manner provided by law, a proposal to
12amend Article VII, Section 4(A) of the Constitution of Louisiana, to read as follows:
13 §4. Income Tax; Severance Tax; Political Subdivisions
14 Section 4.(A) Income Tax. Equal and uniform taxes may be levied on net
15 incomes, and these taxes may be graduated according to the amount of net income.
16 However, the state individual and joint income tax schedule of rates and brackets
17 shall never exceed the rates and brackets set forth in Title 47 of the Louisiana
18 Revised Statutes on January 1, 2003. Federal income taxes paid shall be allowed as
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 19RS-682 REENGROSSED
HB NO. 260
1 a deductible item in computing state income taxes for the same period be levied at
2 a flat rate which shall be established in law.
3 * * *
4 Section 2. Be it further resolved that the provisions of the amendment contained in
5this Joint Resolution shall become effective January 1, 2020, and shall be applicable to all
6tax years beginning on and after January 1, 2020.
7 Section 3. Be it further resolved that this proposed amendment shall be submitted
8to the electors of the state of Louisiana at the statewide election to be held on October 12,
92019.
10 Section 4. Be it further resolved that on the official ballot to be used at the election,
11there shall be printed a proposition, upon which the electors of the state shall be permitted
12to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
13follows:
14 Do you support an amendment to establish a flat individual income tax rate
15 which shall be established in law and eliminate the deduction for federal
16 income taxes paid for taxpayers who file state income tax returns? (Effective
17 January 1, 2020) (Amends Article VII, Section 4(A))
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 260 Reengrossed 2019 Regular Session Stokes
Abstract: Eliminates the deduction for federal income taxes paid when computing state
individual, corporate, and estate and trust income taxes and provides for the levy of
a flat individual income tax rate which shall be established in law.
Present constitution authorizes equal and uniform taxes to be levied on net income. Further
authorizes the rates for these taxes to be graduated according to the amount of the taxpayer's
net income; however, the state individual and joint income tax schedule of rates and brackets
are prohibited from exceeding the rates and brackets as they existed on Jan. 1, 2003.
Present constitution authorizes federal income taxes paid to be allowed as a deductible item
in computing state income taxes for the same period.
Proposed constitutional amendment changes present constitution by eliminating the
deductibility of federal income taxes paid when computing individual, corporate, and estate
and trust income tax liability. Further eliminates references to the maximum amount of the
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 19RS-682 REENGROSSED
HB NO. 260
individual income tax rates and brackets from the constitution in favor of the levy of a flat
individual income tax rate which shall be established in law.
Effective Jan. 1, 2020, and applicable to all tax years beginning on and after Jan. 1, 2020.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held October 12, 2019.
(Amends Const. Art. VII, §4(A))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Civil Law and
Procedure to the engrossed bill:
1. Change the ballot language.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.