House Bill No. by Representative Bacala proposes modifications to the statutory timelines, penalty calculations, and exceptions for penalties related to the payment of estimated income taxes. The bill amends several sections of the Louisiana Revised Statutes, specifically R.S. 47:118 and R.S. 287.655, changing the deadline for tax installment payments from the 15th day of the fourth month following the close of the taxable year to the 15th day of the fifth month. Additionally, it repeals certain calculations that previously exempted taxpayers from penalties for underpayment, including those based on annualized income calculations.

The bill also retains the existing penalties for underpayment of estimated taxes, which is set at 12% per year on the amount owed. It maintains the exception for taxpayers who pay at least 90% of their tax liability for individuals and 80% for corporations, but removes the requirement for annualized income calculations to qualify for these exceptions. The changes will apply to income tax periods beginning on or after January 1, 2026, and the bill will take effect upon the governor's signature or after the lapse of time for gubernatorial action.

Statutes affected:
HB633 Original: 47:118(C)(1), 47:655(C)(1), 47:656(A)(1), 47:118(D)(1)