House Bill No. by Representative McMakin proposes significant changes to the individual income tax structure in Louisiana. The bill amends R.S. 47:32(A) to reduce the current income tax rate of 3% on net income incrementally over a 15-year period, ultimately eliminating the tax entirely by January 1, 2040. The proposed law outlines specific tax rates for each year, starting with a reduction to 2.8% in 2026 and decreasing by 0.2% each subsequent year until reaching 0% in 2040.

Additionally, the bill introduces the title "Banish All Nonproductivity to Delete Income Tax Act" or "BANDIT Act" and specifies that these changes will apply to taxable years beginning on or after January 1, 2026. The effective date for the implementation of these changes is also set for January 1, 2026. This legislation aims to gradually phase out the individual income tax, promoting a more favorable tax environment for residents.

Statutes affected:
HB333 Original: 47:32(A)