RDCSB3 416 3404
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)]
SB 3 Engrossed 2023 Regular Session Allain
Present law provides for individual income tax rates as follows:
(1)1.85% on the first $12,500 of net income.
(2)3.5% on the next $37,500 of net income.
(3)4.25% on net income in excess of $50,000.
Proposed law retains present law.
Present law requires an automatic rate reduction in each individual income tax rate if,
beginning April 1, 2024, and each April first thereafter through 2034, the prior fiscal year's
actual individual income tax collections as reported in the state's accounting system exceed
the actual individual income tax collections for the fiscal year ending June 30, 2019, adjusted
annually by the growth factor provided for in existing constitution.
Proposed law changes the month for the annual determination of an automatic rate reduction
from April 1, 2024, and each April first thereafter through 2034 to January 1, 2024, and each
January first thereafter through 2034, and otherwise retains present law.
Present law levies a corporation franchise tax at the rate of 2.75% per $1,000 on taxable
capital above $300,000 beginning Jan. 1, 2023.
Proposed law retains present law.
Present law requires an automatic corporation franchise tax rate reduction beginning
April 1, 2024, and each April first thereafter, if in any year that corporation income and
franchise tax collections exceed the Fiscal Year 2018-19 corporation income and franchise
tax collections, adjusted annually by the growth factor provided for in existing constitution.
Proposed law changes the month for the annual determination of an automatic rate reduction
from April 1, 2024, and each April first thereafter to January 1, 2024, and each January first
thereafter, and otherwise retains present law.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:32.1(A)(1) and 601.2(A)(1))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
engrossed bill:
1. Change the effective date of proposed law from August 1, 2023, to upon
signature of the governor.
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