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 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))