As Louisiana lawmakers near the end of a special session aimed at raising more money for next year’s budget through tax changes, The Associated Press has compiled a list of bills that are headed to the governor’s desk and those that have been rejected. The bills sent to the governor would:
- Lessen the tax break for homeowners and renters who are charged an assessment on property insurance to cover debts of the state-run Louisiana Citizens Property Insurance Corp. Currently, the rebate is 72% of the Citizens assessment charged on property insurance bills. That drops to 25%, retroactive to Jan. 1. Estimated revenue raised: $17 million for the financial year that begins July 1 and $139.6 million over five years.
- Change the calculation of interest on tax overpayments. Estimated revenue raised: $16.3 million in state general fund money for the financial year that begins July 1 and $94.3 million over five years.
- Increase the annual tax on certain health care organizations known as HMOs from 2.25% to 5.5%. Estimated revenue raised: $157.4 million in the financial year that begins July 1 and more than $600 million over five years.
- Address a Louisiana Supreme Court ruling that could have manufacturers lessen their state and local tax payments. No revenue is estimated to be raised or lost. The bill is aimed at keeping the status quo in place before the ruling.
- Change the method for calculating corporate income taxes for certain industries. The bill is expected to raise more money, but the amount is uncertain.
- Reduce the individual income tax deduction for net capital gains. The bill is expected to raise more money, but the amount is uncertain.
The bills rejected would have:
- Increased the state individual income tax for the 23% of taxpayers who itemize deductions on their personal income tax forms, by cutting the percentage or type of federal excess itemized deductions they can deduct.
- Increased the state individual income tax on people with taxable income of $17,500 or more, by changing the middle and upper income brackets for calculating the tax.
- Delayed the statewide vote on a proposal to rewrite Louisiana’s corporate tax laws until 2017. Instead, voters will be asked to consider the business tax revamp on the November ballot as initially planned.
See the full rundown of tax bills sent to the governor, as well as those nearing final passage and those rejected.