Tax reform bills to be heard by La. Senate committee

Published 11:26 am Sunday, May 30, 2021

Jim Beam

Three tax reform bills that have cleared the Louisiana House will be heard Monday by the Senate Revenue and Fiscal Affairs Committee. Two measures lower individual income tax levels and end federal tax deductions and the third ends the ability of corporations to deduct federal taxes paid on state income tax forms.

Legislation dealing with property insurance claims, domestic abuse and marijuana possession is listed on the Senate daily digest for Tuesday. The House will debate House Concurrent Resolution 90 that sets criterion for reapportionment of the state’s election districts.

Rep. Stuart Bishop, R-Lafayette, and chairman of the House Ways and Means Committee is sponsor of House Bills 278 and 274 that propose to lower individual income tax levels. One of them sets up a public vote on ending the deduction of federal income taxes paid on state income tax forms.

The current tax levels are 2 percent on the first $12,500 of net income, 4 percent on the next $37,500 of net income and 6 percent of net income in excess of $50,000. Those income levels are doubled for joint filers.

HB 278 would lower those percentages to 1.85 percent, 3.5 percent and 4.25 percent. Those lower rates would take effect Nov. 1, 2024. HB 274 is the proposed constitutional amendment that provides for a Nov. 8, 2022, public vote on eliminating the federal deductions.

The House voted 99-2 for HB 274 and 70-24 for HB 278, which was the exact 70 votes (twothirds) needed.

Rep. Neil Riser, R-Columbia, is sponsor of HB 292 that repeals the deductibility of federal income taxes paid for calculating state corporate income taxes. It was approved 77-20 in the House.

Riser’s HB 275 is the proposed constitutional amendment that eliminates those deductions. Voters will decide its fate on Nov. 8, 2022. It hasn’t come up for a final vote in the House.

Two bills by Sen. Mark Abraham, R-Lake Charles, are scheduled for concurrence on Tuesday after being returned from the House with changes. Sponsors can agree to changes made by the other chamber or reject them and send the legislation to a conference committee made up of members of the House and Senate that would come up with a compromise.

Senate Bill 29 gives the state insurance commissioner authority to issue certain emergency rules and regulations during state and public health emergencies.SB 70 says commercial establishments would have only one insurance deductible in any given year. Residential property owner already have that limit.

Rep. Gabe Firment, R-Pollock, has HB 591 that is on the Senate digest to be discussed and debated Tuesday. The legislation sets up property insurance settlement practices that should be followed by companies after emergencies like last year’s Hurricanes Laura and Delta.

Property owners in Southwest Louisiana have faced many problems in trying to get insurance claims settled after those hurricanes.

Also on the Senate digest are HB 159 by Rep. Malinda White, D-Bogalusa, and HB 652 by Rep. Cedric Glover, D-Shreveport.

White’s measure provides for a single civil definition of domestic abuse, updates terminology and provides for the granting of a divorce upon proof of domestic abuse. It passed the House unanimously.

Glover’s bill reduces the criminal penalties for a first conviction of marijuana to a fine of up to $100 and no jail time when the offender possesses 14 grams or less. It passed the House 68-25.

The House Commerce Committee on Tuesday will hear SB 43 by Sen. Barrow Peacock, R-Bossier City, that deals with rules for advertisement of certain legal services. It cleared the Senate 28-8.

The House Appropriations Committee will hear SB 220 by Sen. Heather Cloud, R-Turkey Creek, that outlines how election records should be kept. It also gets the state’s legislative auditor involved in auditing local, state and federal elections. The bill cleared the Senate 27-10.

The Senate Natural Resources Committee will hear HB 691 by Rep. Tony Bacala, R-Prairieville, that restructures the hunting and fishing licensing system for the state Department of Wildlife and Fisheries. The goal is to provides additional operating expenses because of the loss of oil and gas revenues that helped finance the department. The House approved the bill, 79-20.

House Bill 591 sets up property insurance settlement practices that should be followed by companies after emergencies like Hurricanes Laura and Delta.

 
 

””

Louisiana State Capital