HLS 21RS-730 ORIGINAL
2021 Regular Session
HOUSE BILL NO. 488
BY REPRESENTATIVE PRESSLY
TAX/INCOME TAX: (Constitutional Amendment) Establishes the maximum rate for
purposes of calculating individual income taxes and repeals the mandatory 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 tax; to provide with respect to the rates and brackets for purposes of
4 calculating individual income taxes; to establish the maximum individual income tax
5 rate; to eliminate the limitation on individual income tax brackets; to provide with
6 respect to the mandatory deductibility of federal income taxes paid for purposes of
7 calculating state income taxes; to provide for applicability; to provide for an
8 effective date; to provide for submission of the proposed amendment to the electors;
9 and to provide for related matters.
10 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
11elected to each house concurring, that there shall be submitted to the electors of the state of
12Louisiana, for their approval or rejection in the manner provided by law, a proposal to
13amend Article VII, Section 4(A) of the Constitution of Louisiana, to read as follows:
14 §4. Income Tax; Severance Tax; Political Subdivisions
15 Section 4.(A) Income Tax. Equal and uniform taxes may be levied on net
16 incomes, and these taxes may be graduated according to the amount of net income.
17 However, the The state individual and joint income tax schedule of rates and
18 brackets shall never exceed the rates and brackets set forth in Title 47 of the
19 Louisiana Revised Statutes on January 1, 2003. Federal income taxes paid shall be
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 21RS-730 ORIGINAL
HB NO. 488
1 allowed as a deductible item in computing state income taxes for the same period be
2 provided for in law; however, the maximum rate for individual income tax shall not
3 exceed four percent on net income.
4 * * *
5 Section 2. Be it further resolved that the provision of the amendment contained in
6this Joint Resolution shall become effective January 1, 2023, and shall be applicable to tax
7years beginning on or after January 1, 2023.
8 Section 3. Be it further resolved that this proposed amendment shall be submitted
9to the electors of the state of Louisiana at the statewide election to be held on November 8,
102022.
11 Section 4. Be it further resolved that on the official ballot to be used at the election,
12there shall be printed a proposition, upon which the electors of the state shall be permitted
13to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
14follows:
15 Do you support an amendment to establish the maximum individual income
16 tax rate of four percent on net income, to eliminate the current limitation on
17 individual income tax brackets, and to eliminate the mandatory deduction for
18 federal income taxes paid in computing state income taxes? (January 1, 2023)
19 (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 488 Original 2021 Regular Session Pressly
Abstract: Establishes the maximum individual income tax rate of 4% on net income,
eliminates the current limitation on individual income tax brackets, and eliminates
the mandatory deduction of federal income taxes paid when computing state income
taxes.
Present constitution authorizes equal and uniform taxes to be levied on net individual and
corporate 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.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 21RS-730 ORIGINAL
HB NO. 488
Present constitution requires 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 providing for the
establishment of income tax rates and brackets in law but limiting the maximum individual
income tax rate at 4% on net income.
Proposed constitutional amendment eliminates the mandatory deduction of federal income
taxes paid when computing state 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.