SLS 23RS-349 ORIGINAL
2023 Regular Session
SENATE BILL NO. 176
BY SENATOR STINE
TAX/INCOME/PERSONAL. Increases the individual income tax combined personal
exemption and standard deduction. (8/1/23)
1 AN ACT
2 To amend and reenact R.S. 47:293(9)(a)(iv), 294, and 295(C), relative to increasing the
3 individual income tax combined personal exemption and personal deduction; to
4 increase the individual income tax combined personal exemption and personal
5 deduction for all filing statuses; to provide for inflation adjustments for the combined
6 personal exemption and standard deduction; to provide for applicability; and to
7 provide for related matters.
8 Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 47:293(9)(a)(iv), 294, and 295(C) are hereby amended and reenacted
10 to read as follows:
11 §293. Definitions
12 The following definitions shall apply throughout this Part, unless the context
13 requires otherwise:
14 * * *
15 (9)(a) "Tax table income", for resident individuals, means adjusted gross
16 income plus interest on obligations of a state or political subdivision thereof, other
17 than Louisiana and its municipalities, title to which obligations vested with the
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1 resident individual on or subsequent to January 1, 1980, and less:
2 * * *
3 (iv) The excess, if any, of the personal exemptions and deductions provided
4 for in R.S. 47:294 over the amount of the personal exemptions and deductions
5 already included in the tax tables in promulgated by the secretary under authority of
6 R.S. 47:295.
7 * * *
8 §294. Personal exemptions and credit deduction for dependents
9 A. All personal exemptions and deductions for dependents allowed in
10 determining federal income tax liability, including the extra exemption for the blind
11 and aged, will be allowed in determining the tax liability in this Part. Taxpayers are
12 required to use the same filing status and claim the same exemptions on their return
13 required to be filed under this Part as they used on their federal income tax return.
14 The amounts to be taken into consideration shall be as follows:
15 A. B. A combined personal exemption and standard deduction shall be
16 allowed in the following amounts:
17 a. (1) Single Individual $ 4500.00 13,500.00
18 b. (2) Married-Joint Return and a Qualified Surviving Spouse$ 9000.00
19 27,000.00
20 c. (3) Married-Separate$ 4500.00 13,500.00
21 d. (4) Head of Household$ 9000.00 27,000.00
22 C. Annual inflation adjustment.
23 (1) For calendar years beginning on and after January 1, 2027, the
24 amounts provided for in Subsection B of this Section shall be adjusted annually
25 for each calendar year by the percentage increase in the Consumer Price Index
26 United States city average for all urban consumers (CPI-U), as prepared by the
27 United States Department of Labor, Bureau of Labor Statistics, as determined
28 by the secretary of the Department of Revenue on December first of the
29 preceding calendar year.
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1 (2) If any increase pursuant to this Subsection is not a multiple of fifty
2 dollars, the increase shall be rounded to the next lowest multiple of fifty dollars,
3 provided the amount applicable to the married-joint filing status shall not be
4 less than double the amount applicable to the single filing status.
5 B. D. An additional deduction of one thousand dollars shall be allowed for
6 each allowable exemption in excess of those required to qualify for the exemption
7 allowable under R.S. 47:294(A).
8 §295. Tax imposed on individuals; administration
9 * * *
10 B. The secretary shall establish tax tables that calculate the tax owed by
11 taxpayers based upon where their taxable income falls within a range that shall not
12 exceed two hundred fifty dollars. The secretary shall provide in the tax tables that the
13 combined personal exemption, standard deduction, and other exemption deductions
14 in R.S. 47:294 shall be deducted from the lowest bracket. If the combined
15 exemptions and deductions exceed the lowest bracket, the excess shall be deducted
16 from the next lowest bracket. If the combined exemptions and deductions exceed the
17 two lowest brackets, the excess shall be deducted from the next lowest bracket.
18 * * *
19 Section 2. This Act shall be applicable to all tax periods beginning on or after
20 January 1, 2026.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Curry Lann.
DIGEST
SB 176 Original 2023 Regular Session Stine
Present law authorizes a combined personal exemption and standard deduction to be
subtracted from federal adjusted gross income when determining an individual income
taxpayer's Louisiana taxable income.
Proposed law increases the amounts of the combined personal exemption and standard
deduction for those individuals using a single or married filing separate filing status from
$4,500 to $13,500. Proposed law increases the amounts of the combined personal exemption
and standard deduction for those individuals using a married-joint, qualifying surviving
spouse, or head of household filing status from $9,000 to $27,000.
Proposed law provides for an annual inflation adjustment for the combined personal
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exemption and standard deduction for all filing statuses by applying the percentage increase
in the Consumer Price Index United States city average for all urban consumers (CPI-U) for
the preceding year.
Proposed law required the Department of Revenue to round down to the nearest $50
increment when applying the inflation adjustment provided that the combined personal
exemption and standard deduction for married-joint filers is never less than double that for
single filers.
Present law requires the applicable personal exemptions and deductions to be incorporated
into the tax tables prepared by the Department of Revenue.
Proposed law removes this requirement and requires the applicable personal exemptions and
deductions to be directly subtracted from adjusted gross income to determine the amount of
income subject to the individual income tax.
Applicable to all tax periods beginning on or after January 1, 2026.
Effective August 1, 2023.
(Amends R.S. 47:293(9)(a)(iv), 294, and 295(C))
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.