House Bill No. by Representative Wyble proposes significant changes to the state income tax structure in Louisiana, titled "The Pelican Promise: Zero in Ten Income Tax Freedom Act." The bill amends R.S. 47:32(A) to gradually reduce the tax rate on individual net income from the current rate of 3% to 0% over a ten-year period, starting from January 1, 2028, and concluding on January 1, 2039. The new tax rates will decrease incrementally each year, with specific rates outlined for each year, ultimately leading to the complete repeal of the income tax by 2039.

The bill retains the current 3% tax rate for taxable years ending before January 1, 2028, while establishing a clear timeline for the reduction of the tax rate in subsequent years. The provisions of this act will apply to all taxable periods beginning on or after January 1, 2027, and it is set to take effect on January 1, 2027. This legislative change aims to provide tax relief to individuals in Louisiana by phasing out the state income tax over the specified period.

Statutes affected:
HB411 Original: 47:32(A)