House Bill No. by Representative McCormick proposes the repeal of the state tax on the net income of individuals, estates, and trusts in Louisiana. The bill amends and reenacts R.S. 47:31 and 241, while repealing R.S. 47:32(A), 295(A), 300.1, and 300.2. The current law imposes a tax rate of 3% on the net income of individuals and estates and trusts, which the proposed law seeks to eliminate entirely. The bill specifies that the changes will take effect for taxable years beginning on or after January 1, 2027.

In the amendments, the language regarding the taxation of individuals and nonresident individuals has been removed, while the provisions for corporations and trusts remain. The bill clarifies that corporations will still be taxed on net income from sources within the state, and it retains the taxation framework for domestic and foreign real estate investment trusts. Overall, the bill aims to simplify the tax structure by removing the income tax for individuals and estates, effective January 1, 2027.

Statutes affected:
HB253 Original: 47:32(A), 47:295(A)