Who will pay? A look at tax bills approved by lawmakers
BATON ROUGE - Louisiana lawmakers were nearing the Thursday 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 (revenue figures are estimates):
SENT TO THE GOVERNOR:
-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 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. 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: $157.4 million in the financial year that begins July 1 and more than $600 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.
-Address a Louisiana Supreme Court ruling that could have manufacturers lessen their state and local tax payments. No revenue estimated to be raised or lost. The bill is aimed at keeping the status quo in place before the ruling. House Bill 27.
-Change the method for calculating corporate income taxes for certain industries. Revenue raised: The bill is expected to raise more money, but the amount was uncertain. House Bill 20.
-Reduce the individual income tax deduction for net capital gains. Revenue raised: The bill is expected to raise more money, but the amount was uncertain. House Bill 50.
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: $12 million in the financial year that begins July 1 and $60 million over five years. Senate Bill 6.
-End the unintentional charging of state sales taxes on items like school lunches, tickets to school athletic events, firefighting equipment and prosthetic devices. The cleanup bill was aimed at sales tax increases passed in a special session earlier this year that swept in items that weren't meant to be taxed. House Bill 51.
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, House Fiscal Division and Senate Fiscal Services.
Desktop NewsClick to open Continuous News in a sidebar that updates in real-time.
Dozens of La. bars, including several in capital area, have licenses pulled...
East Baton Rouge formally requests state approval to reopen bars this week
Former La. Governor Mike Foster enters hospice care
Sunday Journal: 2020 Teacher of the Year
Sen Cleo Fields on special session to address Gov's power during emergencies,...