BATON ROUGE, La. (AP) — Louisiana lawmakers are nearing the end of a special session aimed at raising more money for next year's budget through tax changes. Here's a look at bills that passed and those that failed to win support:
BILLS SENT TO THE GOVERNOR:
—Lessen the tax break for homeowners and renters who are charged an assessment on their property insurance to cover debts of the state-run Louisiana Citizens Property Insurance Corp. Currently, the rebate is 72 percent of the Citizens assessment charged on property insurance bills. That drops to 25 percent, retroactive to Jan. 1. Revenue raised: $17 million for the financial year that begins July 1 and $139.6 million over five years. House Bill 25.
—Change the calculation of interest on tax overpayments, beginning with refunds claimed on or after July 1. 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. House Bill 29.
—Increase the annual tax on certain health care organizations known as HMOs from 2.25 percent to 5.5 percent. Revenue raised: More than $180 million in the financial year that begins July 1 and as much as $680 million over five years. House Bill 35.
—Increase a tax credit for HMOs. Revenue lost: $1.3 million in the financial year that begins July 1 and another $1.3 million the following year. House Bill 24.
BILLS NEARING FINAL PASSAGE:
—Place new limits on the inventory tax credit for businesses that also get an exemption from paying local property taxes on their facilities. Those businesses wouldn't be able to get a rebate check, but instead would only be able to apply the inventory tax credit to their actual tax liabilities. The change would affect large manufacturers. Revenue raised: $57 million for the financial year that begins July 1 and $285 million over five years. Senate Bill 10.
—Rework the inventory tax credit in a way that favors small businesses, but also lessens its cost to the state. Revenue raised: $13 million in the financial year that begins July 1 and $65 million over five years. Senate Bill 6.
BILLS THAT FAILED TO WIN SUPPORT:
—Increase the state individual income tax for the 23 percent 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. House Bills 11 and 38.
—Increase 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. House Bill 40.
—Make across-the-board cuts to a list of tax break programs. House Bills 31, 32 and 34.
—Delay 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. House Bill 5.
—Increase the amount of a state tax credit for the working poor, called the Earned Income Tax Credit. Senate Bill 7.
—Eliminate the state tax deduction for federal income taxes in exchange for a lower, flat individual tax rate. House Bills 7, 17 and 33.
Revenue estimates sources: Legislative Fiscal Office and House Fiscal Division.
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Posted on Wed, June 22, 2016
by The Lafourche Gazette