HLS 21RS-487 ENGROSSED
2021 Regular Session
HOUSE BILL NO. 275
BY REPRESENTATIVE RISER
TAX/INCOME TAX: (Constitutional Amendment) Eliminates the mandate for the
corporation income tax deduction for federal income taxes paid
1 A JOINT RESOLUTION
2Proposing to amend Article VII, Section 4(A) of the Constitution of Louisiana, relative to
3 income taxation; to provide with respect to the deductibility of federal income taxes
4 paid for purposes of computing state corporate income taxes; to provide for
5 applicability; to provide for an effective date; to provide for submission of the
6 proposed amendment to the electors; and to provide for related matters.
7 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
8elected to each house concurring, that there shall be submitted to the electors of the state of
9Louisiana, for their approval or rejection in the manner provided by law, a proposal to
10amend Article VII, Section 4(A) of the Constitution of Louisiana, to read as follows:
11 §4. Income Tax; Severance Tax; Political Subdivisions
12 Section 4.(A) Income Tax. Equal and uniform taxes may be levied on net
13 incomes, and these taxes may be graduated according to the amount of net income.
14 However, the state individual and joint income tax schedule of rates and brackets
15 shall never exceed the rates and brackets set forth in Title 47 of the Louisiana
16 Revised Statutes on January 1, 2003. Federal income taxes paid shall be allowed as
17 a deductible item in computing state individual income taxes for the same period.
18 * * *
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 21RS-487 ENGROSSED
HB NO. 275
1 Section 2. Be it further resolved that the provisions of the amendment contained in
2this Joint Resolution shall become effective on January 1, 2023, and shall be applicable for
3tax years beginning on or after January 1, 2023.
4 Section 3. Be it further resolved that this proposed amendment shall be submitted
5to the electors of the state of Louisiana at the statewide election to be held on November 8,
62022.
7 Section 4. Be it further resolved that on the official ballot to be used at the election,
8there shall be printed a proposition, upon which the electors of the state shall be permitted
9to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
10follows:
11 Do you support an amendment to eliminate the mandatory deductibility of
12 federal income taxes paid in computing state corporate income taxes?
13 (Effective January 1, 2023) (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 275 Engrossed 2021 Regular Session Riser
Abstract: Eliminates the mandatory deductibility of federal income taxes paid when
computing state corporate income taxes.
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
mandatory deductibility of federal income taxes paid when computing corporate income tax
liability.
Effective Jan. 1, 2023, and applicable to tax years beginning on or after Jan. 1, 2023.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held Nov. 8, 2022.
(Amends Const. Art. VII, §4(A))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.