RÉSUMÉ DIGEST
ACT 435 (SB 3) 2023 Regular Session Allain
Existing 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.
New law retains existing law.
Existing 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 the existing constitution.
New 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 existing law.
Existing 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.
New law retains existing law.
Existing 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 the existing
constitution.
New 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 existing law.
Effective June 28, 2023.
(Amends R.S. 47:32.1(A)(1) and 601.2(A)(1))