Louisiana HB 376: TAX/INCOME TAX: Provides for a flat tax rate for purposes of calculating income tax for individuals, estates, and trusts and modifies income tax credits and deductions (EG +$6,900,000 GF RV See Note)

Bill Text

HLS 21RS-138 ENGROSSED
2021 Regular Session
HOUSE BILL NO. 376
BY REPRESENTATIVE IVEY
TAX/INCOME TAX: Provides for a flat tax rate for purposes of calculating income tax for
individuals, estates, and trusts and modifies income tax credits and deductions
1 AN ACT
2 To amend and reenact R.S. 47:32(A), 241, 293(3), (9)(a)(iv), and (10), 294, 295(B), 300.1,
3 300.6(A), and 300.7(A), to enact R.S. 47:293(9)(a)(xx), and to repeal R.S. 47:79(B),
4 293(4) and (9)(a)(ii), 296.1(B)(3)(c), 297(A), 297.8, and 298, relative to income tax;
5 to provide for a flat income tax rate for individuals, estates, and trusts; to provide for
6 the calculation of individual income tax liability; to provide for certain deductions
7 and credits; to reduce certain deductions and credits; to provide with respect to the
8 deduction for excess federal itemized personal deductions; to provide for limitations
9 and restrictions; to repeal the deduction allowed for excess federal itemized personal
10 deductions; to provide for personal exemptions and credits for dependents; to repeal
11 the deductibility of federal income taxes paid for purposes of calculating individual
12 income tax; to repeal the deductibility of federal income taxes paid for purposes of
13 calculating income tax on estates and trusts; to repeal the earned income tax credit;
14 to provide for the rates and brackets for estates and trusts; to provide for
15 applicability; to provide for an effective date; and to provide for related matters.
16 Be it enacted by the Legislature of Louisiana:
17 Section 1. R.S. 47:32(A), 241, 293(3), (9)(a)(iv), and (10), 294, 295(B), 300.1,
18 300.6(A), and 300.7(A) are hereby amended and reenacted and R.S. 47:293(9)(a)(xx) is
19 hereby enacted to read as follows:
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.

HLS 21RS-138 ENGROSSED
HB NO. 376
1 §32. Rates of tax
2 A. On individuals. The tax to be assessed, levied, collected and paid upon
3 the taxable income of an individual shall be computed at the following rates:
4 (1) Two percent on that portion of the first twelve thousand five hundred
5 dollars of net income which is in excess of the credits against net income provided
6 for in R.S. 47:79;
7 (2) Four percent on the next thirty-seven thousand five hundred dollars of
8 net income;
9 (3) Six percent on any amount of net income in excess of fifty thousand
10 dollars of net income rate of four and twenty-five hundredths percent on net income.
11 * * *
12 §241. Net income subject to tax
13 The net income of a nonresident individual or a corporation subject to the tax
14 imposed by this Chapter shall be the sum of the net allocable income earned within
15 or derived from sources within this state, as defined in R.S. 47:243, and the net
16 apportionable income derived from sources in this state, as defined in R.S. 47:244,
17 less the amount of federal income taxes attributable to the net allocable income and
18 net apportionable income derived from sources in this state. The amount of federal
19 income taxes to be so deducted shall be that portion of the total federal income tax
20 which is levied with respect to the particular income derived from sources in this
21 state to be computed in accordance with rules and regulations of the collector of
22 revenue. Proper adjustment shall be made for the actual tax rates applying to
23 different classes of income and for all differences in the computation of net income
24 for purposes of federal income taxation as compared to the computation of net
25 income under this Chapter. Where the allocation of the tax is to be based on a ratio
26 of the amount of net income of a particular class, both the numerator and the
27 denominator of the fraction used in determining the ratio shall be computed on the
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CODING: Words in struck through type are deletions from existing law; words underscored
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HLS 21RS-138 ENGROSSED
HB NO. 376
1 basis that such net income is determined for federal income tax purposes.
2 * * *
3 §293. Definitions
4 The following definitions shall apply throughout this Part, unless the context
5 requires otherwise:
6 * * *
7 (3) "Excess federal itemized personal deductions" for the purposes of this
8 Part, means the following percentages of the amount by which the federal itemized
9 personal deductions exceed the amount of federal standard deductions which is
10 designated for the filing status used for the taxable period on the individual income
11 tax return required to be filed:
12 (a) For tax years beginning during calendar year 2007, fifty-seven and one
13 half percent of such excess federal itemized personal deductions.
14 (b) For tax years beginning during calendar year 2008, sixty-five percent of
15 such excess federal itemized personal deductions.
16 (c) For all tax years beginning on and or after January 1, 2009, but before
17 January 1, 2022, one hundred percent of such excess federal