Alert: More Louisiana State Tax Reform Draft Legislation ReleasedRead Time: 1 min
The Louisiana Department of Revenue is saying that Governor Jindal’s tax swap proposal would require a state sales tax rate of 6.25 percent, up from the previous proposal to increase the rate from 4 percent to 5.88 percent.
The files listed above include two more drafts of tax bills released earlier this week in connection with state legislative Ways and Means Committee hearings. Included is a draft of legislation repealing the state corporation income and franchise tax, but not repealing the tax on individuals, members of partnerships, estates and trusts. Presumably the draft of the legislation that would be required to repeal the tax on individuals and other non-corporate entities is forthcoming because, included in the documents released this week is an individual impact chart and details of the plan to rebate or provide cash stipends to low income individuals, retirees, military and a host of other governmental pension plans and other governmental entities that would not otherwise benefit from income tax repeal.
Also released this week are lists of income and franchise tax credits to be retained as well as a list of improvements to those programs that will be continued which are administered by the Louisiana Department of Economic Development. Under draft legislation found here, these programs will provide their benefits through a rebate program outlined in the draft.
The Governor is proposing the elimination of all state personal and corporate income taxes, as well as the state franchise tax. The draft legislation proposes to broaden the tax base to include services not previously taxed and to eliminate a number of exemptions.
We are continuing to monitor the situation for our clients and will provide information and analysis on key provisions as they evolve.