Louisiana ~ Multiple Taxes: Governor Releases Tax Proposals for Second Special Session

Louisiana Gov. John Bel Edwards released his 2016 Second Extraordinary Session legislative package, which includes proposals affecting corporate income, corporate franchise, personal income, sales and use, and insurance premiums taxes. In many cases, the proposals clean up legislation enacted during the 2016 First Extraordinary Session of the Legislature. Specifically, the governor’s proposals concern the following:

(1)    H.B. 5 – Elimination of the corporate income tax deduction for federal income taxes paid (see Acts 30 and 31 of the 2016 First Extraordinary Session);

(2)    H.B. 6 – Establishment of a flat corporate income tax rate (see Act 8 of the 2016 First Extraordinary Session);

(3)    H.B. 8, S.B. 4 – Sales tax exemptions for purchases of fishing vessels, supplies, fuels, lubricants, and repairs for vessels by licensed commercial fishermen;

(4)    H.B. 9, H.B. 29, S.B. 2 – Calculation on interest paid on refunds of tax overpayments;

(5)    H.B. 11, H.B. 38 – Reduction of the personal income tax deduction for excess federal itemized personal deductions;

(6)    H.B. 14, H.B. 15, H.B. 50 – Deductibility of net capital gains in computing state income taxes;

(7)    H.B. 16, H.B. 25, H.B. 37, S.B. 8 – Reduction of the income tax credit for the Louisiana Citizens Property Insurance Corporation Assessment;

(8)    H.B. 19, H.B. 31, H.B. 32, S.B. 7 – Reduction of certain income and corporation franchise tax credits and the amount of certain ad valorem tax credits;

(9)    H.B. 20 – Refundability of excess income tax credit amounts;

(10)  H.B. 21 – Reduction of personal income tax rates;

(11)  H.B. 24 – Annual taxes on the business of issuing health insurance policies and on Health Maintenance Organizations (HMOs);

(12)  H.B. 27 – Sales and use tax exclusions for sales of materials for further processing;

(13)  H.B. 31, H.B. 32, H.B. 34 – Reduction of certain income tax credits, exclusions, and deductions (see Acts 123 and 125 of the 2016 First Extraordinary Session);

(14)  H.B. 35 – Establishment of the annual minimum tax on HMOs;

(15)  H.B. 36, S.B. 3 – Applicability of certain exclusions and exemptions from state sales and use taxes;

(16)  H.B. 40 – Compression of personal income tax brackets; and

(17)  S.B. 5 – Sales taxes on butane, propane, or other liquefied petroleum gases for private, residential consumption.

The governor’s new release can be viewed at http://gov.louisiana.gov/news/gov-edwards-2016-second-special-session-agenda. The text of the governor’s address at the opening of the Second Extraordinary Session can be viewed at http://gov.louisiana.gov/news/second-special-session-of-the-louisiana-legislature.

News Release, Office of the Louisiana Governor, June 6, 2016

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