Establishes an individual income tax deduction for contributions made to deductible savings accounts. These accounts are intended to help homeowners cover insurance deductibles and expenses related to retrofitting their roofs to fortified building standards.

Key points:

• Eligible account holders must be Louisiana residents who own and claim a homestead exemption on their primary residence.
• Contributions can be deducted from taxable income, with limits based on the homeowner's insurance deductible:
• Up to $2,000 for deductibles of $1,000 or less.
• Up to twice the deductible amount, capped at $25,000, for higher deductibles.
• Withdrawals for non-qualified expenses are taxable.
• If a non-taxable withdrawal is made in a given year, further contributions are not allowed that year.
• Documentation must be maintained but is not required from financial institutions.
• The law becomes effective on January 1, 2026.

This bill aims to provide financial relief to homeowners by incentivizing savings for insurance-related costs to purchase fortified roofing to help lower insurance rates.

HOUSE floor amendments technical except Amendment 2 [LINK] which states the board of review will only consider timely filed complaints and the means by which they can be timely filed.

Amends Louisiana's ad valorem tax assessment procedures specifically for Calcasieu Parish. The bill prohibits the parish’s board of review from considering tax assessment complaints if the notice of complaint was submitted via facsimile transmission. Currently, taxpayers can notify the board of their complaint in person, by certified mail, or by fax. This change removes fax as an option for notification in Calcasieu Parish while retaining existing rules for all other parishes. The bill takes effect on July 1, 2025.

Amends Louisiana’s tax code by increasing the financial incentives for homeowners who retrofit their homes to meet higher construction safety standards. The key provisions of the bill include:

1. Increased deduction limit: The maximum deduction for construction code retrofitting expenses would increase from $5,000 to $10,000 per residential structure, maintaining the rule that only 50% of qualifying costs can be deducted.
2. Expansion to “fortified home” standards: The bill extends the deduction to cover costs related to compliance with the “fortified home” standards set by the Insurance Institute for Business and Home Safety. This measure aims to encourage homeowners to implement stronger disaster-resistant modifications.
3. Eligibility restrictions: The deduction remains available only to homeowners claiming a homestead exemption, excluding rental properties. Additionally, any financial incentives received from state, municipal, or federal programs must be deducted from the qualifying expenses.
4. Verification requirements: Taxpayers must provide documentation proving compliance with the State Uniform Construction Code or fortified home standards, along with verification of total project costs.
5. Implementation timeline: The changes will apply to taxable periods beginning on or after January 1, 2026.

This bill promotes resilience to natural disasters, potentially reducing future insurance claims and repair costs. By increasing financial incentives, it seeks to encourage more homeowners to invest in structural improvements that align with stricter safety standards to help reduce insurance premium costs over time.

Proposes amendments to Louisiana's tax code to extend sales and use tax exemptions to licensed charter boat fishing guides.

Key Provisions:

• Eligibility Expansion: The bill seeks to amend R.S. 47:305.20(A) to include Louisiana residents with a valid charter boat fishing guide license as eligible for tax exemptions previously reserved for commercial fishermen. This change recognizes charter boat fishing guides as commercial fishermen for tax purposes.
• Tax Exemptions: Qualified individuals would be exempt from sales, use, lease, and service taxes imposed by any taxing authority on materials and supplies necessary for vessel repairs, provided these items are purchased by the owner and become a component part of the vessel.
• Certificate of Exemption: To benefit from these exemptions, vessel owners must obtain a certificate of exemption, confirming that the vessel is used predominantly for commercial fishing ventures.

This legislative effort aims to support Louisiana's charter boat fishing industry by alleviating certain tax burdens, thereby promoting economic growth within the sector.

Proposes an individual income tax deduction for intercollegiate athletes in Louisiana who earn compensation from the use of their name, image, or likeness (NIL). The bill seeks to amend Louisiana's tax code to allow these athletes to deduct the actual amount of NIL compensation from their tax table income.

Key Provisions:

• Definition of Intercollegiate Athlete: The bill defines an "intercollegiate athlete" as a student enrolled in a Louisiana public or nonpublic postsecondary education institution who participates in an athletic program.
• Eligibility for Deduction: Athletes attending these institutions who earn compensation for the use of their NIL are eligible for the deduction.
• Amount of Deduction: The deduction is equal to the actual amount of NIL compensation earned by the athlete.
• Tax Code Amendments: The bill proposes amendments to R.S. 47:293(9)(a) and (10) to include this deduction in the calculation of "tax table income" for both resident and nonresident individuals.

Implications:

If enacted, this legislation would reduce the taxable income of student-athletes in Louisiana who receive NIL compensation, potentially lowering their state income tax liability.

Considerations:

• Fiscal Impact: The bill does not specify the anticipated fiscal impact on state tax revenues.
• Compliance and Administration: The legislation would require mechanisms to verify eligibility and the amounts of NIL compensation to ensure proper application of the deduction.

Dixon McMakin is carrying a similar bill, HB166. This one differs mainly in that it includes a tax deduction for the corporate sponsor capped at $12,500. Both give 100% deduction to the athlete from state income tax for the full amount of the NIL money.

Makes amendments to Louisiana's income tax laws concerning intercollegiate athletes' compensation for the use of their name, image, or likeness (NIL). The bill seeks to authorize specific income tax deductions for both the athletes earning such income and the taxpayers compensating them.

Key Provisions of the Bill:

1. Individual Income Tax Deduction for Athletes:

• The bill introduces a deduction for intercollegiate athletes on income earned from NIL compensation. This deduction would apply to the athlete's adjusted gross income, effectively reducing their taxable income by the amount earned through NIL agreements.

1. Corporate Income Tax Deduction for Payers:

• Taxpayers (such as businesses or individuals) who compensate intercollegiate athletes for the use of their NIL can deduct the compensation amount from their federal gross income for state tax purposes. The deductible amount is capped at the lesser of the actual compensation paid per athlete or $12,500.

1. Definitions:

• "Intercollegiate athlete" refers to a student enrolled in a Louisiana public or qualifying nonpublic postsecondary education institution who participates in an athletic program.
• "Postsecondary education institution" includes Louisiana public institutions and nonpublic institutions that receive or disburse state financial assistance, such as scholarships and grants.

1. Limitations:

• The deductions do not apply to compensation arrangements prohibited under R.S. 17:3703.
• The deductions are only applicable to compensation earned or paid while the athlete is participating in an athletic program at a qualifying postsecondary institution.

1. Regulatory Authority:

• The Secretary of the Department of Revenue is authorized to promulgate rules and regulations necessary to implement these provisions.

Implications:

This bill updates Louisiana’s property tax procedures to clarify how property assessments are reviewed and appealed.

Key changes:

Public Inspection Period

• Assessment lists for real and personal property must be available for public inspection for 15 days between August 15 and September 15 each year.

Public Notice

• Assessors must publish notice of the inspection period at least twice. The notice must appear in a local newspaper or on the parish government and assessor’s official websites. It must be published no earlier than 21 days and no later than 7 days before the inspection begins. The notice must include dates, times, and locations for inspection, and inform the public that any property valuation information must be submitted before the appeal deadline or it may not be considered later.

Certification to the Board of Review

• After the inspection period ends, assessors have three business days to certify the assessment lists to the board of review. The board will then hold public hearings for anyone contesting their assessment. If no timely complaint is filed, the values set by the assessor become final.

Appeals

• Taxpayers can appeal decisions from the board of review to the Louisiana Tax Commission, and then to the courts, following established procedures.

Provides financial relief to individuals diagnosed with terminal illnesses by allowing them to deduct hardship withdrawals from retirement accounts from their taxable income, thereby reducing their overall tax liability during challenging times.

Key provisions of the bill:

• Tax deduction authorization: The bill seeks to permit a deduction from tax table income for amounts received as hardship distributions from retirement accounts by qualifying taxpayers.
• Definitions:
• Hardship distribution: Defined as a withdrawal from a retirement plan participant's elective deferral account made due to an immediate and serious financial need, in accordance with the plan's policies.
• Qualifying taxpayer: A taxpayer diagnosed with a terminal illness by a licensed physician. For married joint filers, this includes the taxpayer's spouse if they have been similarly diagnosed.
• Terminal illness: As defined in R.S. 40:1169.3, which pertains to the state's Right To Try Act.
• Applicability: The provisions of this bill are set to apply to taxable periods beginning on or after January 1, 2026.
• Effective date: The Act is slated to become effective on January 1, 2026.

Proposes an increase in the excise tax on consumable hemp products in Louisiana. The bill seeks to amend R.S. 47:1693(A) to raise the tax rate from the current 3% to 15% of the retail sales price. This excise tax would be in addition to existing state and local sales and use taxes. If enacted, the new tax rate would apply to taxable periods beginning on or after July 1, 2025.

The bill defines "consumable hemp" as any product derived from industrial hemp that contains cannabinoids, including cannabidiol (CBD) or tetrahydrocannabinol (THC), intended for consumption or topical use. The proposed tax increase reflects a significant policy shift aimed at regulating and potentially discouraging the consumption of hemp-derived products through higher taxation.

The proposed increase from 3% to 15% represents a substantial change that could have notable implications for both consumers and retailers of consumable hemp products in Louisiana. Consumers may experience higher prices, while retailers might face adjustments in sales volume and tax reporting requirements.

Proposes extending the existing state sales and use tax exemption for adaptive driving equipment and motor vehicle modifications to include local sales and use taxes imposed by other taxing authorities. Currently, such equipment and modifications prescribed for personal use by a physician, licensed chiropractor, or state-licensed driver rehabilitation specialist are exempt from state sales tax. This bill seeks to ensure that these items are also exempt from local sales taxes, thereby reducing the financial burden on individuals requiring vehicle adaptations for medical reasons. To implement this change, the bill proposes adding a new provision, R.S. 47:305.2(B)(13), and repealing the existing provision, R.S. 47:305.2(A)(4), to extend the tax exemption uniformly across both state and local levels.

Proposes an income tax deduction for Louisiana residents on overtime compensation. The bill defines "overtime compensation" as pay for hours worked beyond 40 in a workweek, as specified by the Fair Labor Standards Act of 1938. The deduction amount is limited to 20% of the taxpayer's other wages from the same employer within the taxable year. Eligibility is restricted to residents with adjusted gross incomes not exceeding:

• $200,000 for married couples filing jointly or surviving spouses.
• $150,000 for heads of household.
• $100,000 for single filers or married individuals filing separately.

If enacted, this legislation would apply to taxable periods starting on or after January 1, 2026.

Proposes an amendment to Louisiana's individual income tax laws to allow resident taxpayers to deduct certain tip income from their taxable income.

Key Provisions of the Bill:

• Definition of Tip Income: The bill defines "tip income" as the total of the following amounts for any taxable year:

1. The amount reported as "social security tips" on the taxpayer's IRS Form W-2.
2. The amount reported as "allocated tips" on the taxpayer's IRS Form W-2.
3. The amount of cash and charge tips received, less the amount of cash and charge tips reported to all employers, as recorded on the taxpayer's IRS Form 4137.

• Deduction Limit: The deduction for tip income is capped at $25,000 per taxpayer for any taxable year.
• Effective Date: The provisions of this bill are set to apply to taxable periods beginning on or after January 1, 2026.

This proposed legislation aims to provide tax relief to individuals earning income through tips by reducing their taxable income, thereby potentially lowering their overall tax liability. If enacted, it could benefit workers in industries where tipping is prevalent, such as hospitality and service sectors.

Proposes an amendment to Louisiana's individual income tax credit related to the purchase of firearm safety devices. The bill seeks to modify the definition of "eligible transaction" to broaden the scope of purchases that qualify for the tax credit.

Currently, an "eligible transaction" is defined as a purchase made from a federally licensed dealer. The proposed amendment redefines it as a Louisiana sales transaction where the taxpayer buys one or more firearm safety devices from any dealer required to collect sales and use tax on the sale, regardless of federal licensing status. This change aims to include purchases from a wider range of retailers, potentially increasing accessibility to the tax credit for consumers.

The bill maintains the existing exclusion of firearm purchases from qualifying transactions. Additionally, the proposed changes would apply to taxable periods beginning on or after January 1, 2025.

Seeks to amend Louisiana's ad valorem tax assessment method for bank stocks. The bill proposes increasing the deduction for real estate and tangible property owned by banks from 50% to 100% when calculating the taxable value of bank shares. This change aims to prevent double taxation on bank-owned properties and could lead to a reduction in property tax liabilities for banks, potentially influencing their financial strategies and investment decisions. The proposed amendment is set to take effect on January 1, 2026, impacting property taxes for the 2026 tax year.

It's considered by the banks to be double taxation because banks already pay property taxes on their real estate, buildings, furniture, and fixtures. When their shares of stock are assessed for ad valorem tax, the value of these same tangible assets is indirectly included in the bank’s overall valuation—which is used to determine the tax on those shares.

So essentially:

1.    First layer of tax: The bank pays direct property tax on its buildings, land, and equipment.

2.    Second layer of tax: The shareholders are taxed again on the value of the bank’s stock, which reflects (in part) the value of those already-taxed assets.

By allowing banks to deduct 100% of the value of these tangible assets when calculating the taxable value of their stock, the bill aims to eliminate that second, overlapping layer of taxation on the same property.

Several states impose specific taxes on financial institutions, though the methods and rates vary. Here's a comprehensive list:

·       California: Financial corporations are subject to a corporate income tax at a rate of 10.84%, higher than the standard 8.84% for other corporations.

·       Georgia: Imposes an occupation tax on depository financial institutions conducting business or owning property in the state. These institutions are also subject to corporate income and net worth taxes but receive a dollar-for-dollar credit against these taxes based on their occupation tax liability.

·       Illinois: Defines "financial organizations" to include entities like small loan companies and investment companies, subjecting them to specific tax regulations.

·       Indiana: Subjects financial institutions to a financial institutions tax, with mandatory combined reporting for unitary groups.

·       Ohio: Imposes a financial institutions tax based on a bank's Ohio equity capital.

·       Pennsylvania: Imposes a Bank and Trust Company Shares Tax on every bank and trust company conducting business in the state. The tax is levied annually based on the value of shares as of January 1, with the taxable value determined by the institution's total bank equity capital, adjusted for certain deductions.

·       South Carolina: Levies a separate income tax on banks operating within the state, with its own income and deduction provisions.

·       Tennessee: Imposes the Hall income tax on interest and dividend income received by residents, which includes dividends from bank stocks.

These examples illustrate that while the taxation of financial institutions is not uniform across the United States, multiple states have implemented specific tax regimes targeting these entities.

Proposes significant changes to the taxation and allocation of revenues from consumable hemp products in Louisiana.

Key Provisions:

1.    Excise Tax Increase: The bill seeks to raise the excise tax on consumable hemp products from the current rate of 3% to 20% of the retail sales price. This tax would be in addition to existing state and local sales taxes. Retailers would be required to report and remit this tax monthly.

2.    Creation of the Consumable Hemp Testing and Regulation Fund: The legislation establishes a special fund in the state treasury dedicated to supporting the operations of university-affiliated laboratories in Louisiana that test consumable hemp products. If no such laboratory is operational and fully approved by the Louisiana Department of Health, the funds would be used to support other approved laboratories or the department's regulatory activities related to consumable hemp products.

3.    Revenue Allocation: After fulfilling obligations to the Bond Security and Redemption Fund, the bill outlines the following distribution of the collected excise tax revenues:

o  15% to the Louisiana Early Childhood Education Fund

o  30% to the Criminal Justice and First Responder Fund

These measures aim to enhance regulatory oversight of consumable hemp products while directing additional funds to education and public safety initiatives within the state.

Proposes an individual income tax deduction for Louisiana residents who pay homeowners' insurance premiums on their primary residences. The deduction would be equal to the actual amount of premiums paid during the taxable year. To qualify, the property must be located in Louisiana, owned by the taxpayer, serve as their primary residence, and be eligible for the homestead exemption. Taxpayers claiming this deduction are required to maintain records of the premiums paid and provide documentation to the Department of Revenue upon request. The Department may establish rules to implement these provisions. If enacted, the law would take effect on January 1, 2026, and apply to premiums paid on or after that date.

HOUSE floor amendment [LINK] clarifies that donation acknowledgments must state whether the donor received anything in return. If goods or services were provided, the acknowledgment must include a description and estimated value, or state they were only intangible religious benefits. Also updates paragraph lettering.

Proposes amendments to Louisiana's income tax laws to enhance support for foster care adoptions and donations to foster care charitable organizations. The key provisions include:

1.    Tax Deduction for Adoption from Foster Care:

The bill seeks to amend R.S. 47:297.20(C) to allow the Secretary of the Department of Revenue to establish rules for claiming tax deductions related to adopting children from foster care. If obtaining a deduction eligibility certification letter is deemed burdensome, the Secretary may implement an alternative certification process, potentially using a standardized form.

2.    Tax Credit for Donations to Foster Care Charitable Organizations:

Amendments to R.S. 47:6042(B), (D), and (F)(4) are proposed to refine the administration of tax credits for donations to qualifying foster care charitable organizations. Notably:

·       Organizations seeking qualification must provide a statement, under penalty of perjury, confirming they meet specified criteria.

·       Qualified organizations are required to issue standardized receipts to donors, detailing the donation amount used for services to qualified individuals and other pertinent information. The Department of Revenue will provide the receipt format.

·       The definition of a "qualifying foster care charitable organization" is expanded to include any nonprofit foster care organization licensed by and in good standing with the Department of Children and Family Services, as well as organizations meeting additional specified criteria.

These proposed changes aim to simplify the process for taxpayers to claim deductions and credits related to foster care, thereby encouraging greater support for adoption and charitable contributions within Louisiana's foster care system.

CONSTITUTIONAL AMENDMENT

Proposes an amendment to Article VII, Section 18(G)(1)(a)(ii) of the Louisiana Constitution.

Proposed constitutional amendment (HB269) would raise the income limit for homeowners to qualify for a property tax freeze on homes with a homestead exemption. Currently, the freeze applies if the homeowner's income is under $100,000, with that amount adjusted for inflation starting in 2026. The amendment would raise the limit to $200,000 and delay inflation adjustments until 2030. It would take effect January 1, 2027, and apply to 2027 property taxes. This change would allow more homeowners—such as seniors and disabled individuals—to qualify for property tax relief. Voters will decide on the amendment in the November 3, 2026 statewide election.

CONSTITUTIONAL AMENDMENT

Proposes a constitutional amendment to modify the distribution of severance tax revenues in Louisiana. Currently, the Louisiana Constitution mandates that 20% of the state severance tax on natural resources—excluding sulphur, lignite, or timber—be remitted to the parish where the extraction occurs. This remittance is subject to a cap, which was initially set at $850,000 annually per parish starting July 1, 2007, with adjustments for inflation each subsequent year.

The proposed amendment seeks to eliminate this cap, allowing parishes to receive the full 20% share of severance tax revenues without any dollar limitation. This change is slated to take effect on July 1, 2027, if approved. The amendment is scheduled to be presented to Louisiana voters during the statewide election on November 3, 2026.

The ballot proposition will read:

"Do you support an amendment to repeal limits on the dollar amount of state severance tax revenues paid to the parishes where the severance or production of natural resources occurs, thereby allowing parishes to keep a percentage of those revenues regardless of the dollar amount? (Effective July 1, 2027)"

HOUSE floor amendment set 3324 [LINK] Concise summary of amendments to HB325 by Representative Bryant:

• Removes a previous set of amendments proposed by Representative Bryant (#3066).
• Changes wording from "Until January" to "Before January" on line 15.
• Sets new cigar tax rates effective January 1, 2026, through December 31, 2027:
• Cigars priced between $120 and $2,500 per thousand taxed at 20% of invoice price.
• Cigars priced at $2,500 or more per thousand taxed at 50 cents per cigar.

HOUSE floor amendment set 3066 rescinded by set 3324 above

HOUSE floor amendment set 3511 technical

HOUSE W&M committee amendments [LINK] temporarily change the tax structure for cigars priced over $120 per thousand. Initially, the tax remains at 20% of the invoice price until January 1, 2026. Then, from January 1, 2026, through December 31, 2027, the tax switches to a fixed amount of fifty cents per cigar. After this period, beginning January 1, 2028, the tax reverts to the original rate of 20% of the invoice price. Additionally, the amendments update the effective dates for inventory reporting and tax remittance deadlines to align with the revised tax structure timeline.

Proposes changes to Louisiana's tobacco tax structure. Specifically, it seeks to amend the tax on cigars invoiced by manufacturers at more than $120 per 1,000 units. Currently, these cigars are taxed at 20% of the invoice price; the bill proposes changing this to a flat rate of 50 cents per cigar.

If enacted, this tax adjustment would apply to cigar products purchased by retail and wholesale dealers on or after July 1, 2025. It would not affect stamped products or unused tax stamps held by wholesale dealers before this date. Additionally, wholesale and retail dealers must file an inventory of cigars on hand before July 1, 2025, with the Department of Revenue by August 1, 2025. The Department is authorized to establish rules regarding these inventory reports.

The bill is set to become effective on July 1, 2025.

Proposes an individual income tax credit for Louisiana residents who pay homeowners' insurance premiums on properties for which they claim the homestead exemption. The credit is calculated as the lesser of:

1.    The amount of qualifying homeowners' insurance premiums paid exceeding $3,000 in a taxable year.

2.    $5,000.

If the credit exceeds the taxpayer's total tax liability for the year, the unused portion can be carried forward for up to five years. This credit applies to taxable periods beginning on or after January 1, 2026, and cannot be claimed for taxable years starting after December 31, 2031. Taxpayers must maintain records to verify eligibility and the amount claimed. The Department of Revenue is tasked with promulgating necessary implementation rules.

Proposes an individual income tax credit for Louisiana residents who pay high motor vehicle insurance premiums. Specifically, the bill offers a tax credit for insurance premiums exceeding $2,500 per vehicle, applicable to up to two vehicles per taxpayer. The maximum credit is capped at $5,000 per vehicle. If the credit surpasses the taxpayer's total tax liability for the year, the unused portion can be carried forward for up to five years. The proposed credit would be effective for taxable periods beginning on or after January 1, 2026, and would not be available for taxable years starting after December 31, 2031.

Proposes the gradual reduction of Louisiana's individual income tax rate over 15 years, leading to its elimination by 2040. Currently, the tax rate stands at 3% on net income. Starting January 1, 2026, the bill outlines an annual decrease of 0.2 percentage points, culminating in a zero percent rate from January 1, 2040, onward. This legislation is titled the "Banish All Nonproductivity to Delete Income Tax Act" or "BANDIT Act" and is set to take effect on January 1, 2026.

Proposes two primary changes to Louisiana's tax code:

1.    Reduction of Individual Income Tax Rate: The bill seeks to lower the state individual income tax rate from the current 3% to 2.75%, effective January 1, 2027.

2.    Termination of the Motion Picture Production Tax Credit: It would end the motion picture production tax credit program by stopping the acceptance of applications beginning July 1, 2025.

The bill would become effective upon the governor's signature or automatically if unsigned within the period allowed by the Louisiana Constitution.

HOUSE floor amendment 1 set 2275 [LINK] Adds a new subcategory to the property tax assessment schedule: public service property, excluding land, limited to barge line and towing vessels, assessed at 15%.

Other HOUSE floor amendments technical

CONSTITUTIONAL AMENDMENT

Proposes a constitutional amendment affecting ad valorem taxation of business inventory in Louisiana.

Specifically, the bill seeks to authorize individual parishes to:

1.    Exempt business inventory from ad valorem taxes: Parishes would have the option to fully exempt business inventory from local property taxes.

2.    Adjust assessment percentages: Parishes could reduce the percentage of fair market value used to assess business inventory for taxation purposes.

To support parishes implementing the full exemption, the bill allows the state to provide a one-time payment to these parishes. This payment would be distributed to local taxing authorities within the parish, with the amount and distribution process defined by subsequent legislation.

Additionally, the bill prohibits the state legislature from mandating local taxing authorities to exempt business inventory from ad valorem taxes, ensuring decisions remain at the parish level.

If approved, the provisions of this amendment would take effect on January 1, 2027, and apply to tax years beginning on or after that date.

Amends Louisiana's sales and use tax laws by including "accommodations intermediaries" within the definition of "marketplace facilitators." An "accommodations intermediary" is defined as a person, other than the owner, operator, or manager of a lodging facility, who facilitates the furnishing of accommodations to transient guests through a marketplace they control.

An example of an accommodations intermediary is Airbnb. Airbnb operates an online platform that facilitates short-term lodging rentals by connecting property owners with potential guests. In this role, Airbnb collects payments from guests and, after deducting service fees, remits the remaining amount to the property owners. This model classifies Airbnb as an accommodations intermediary, as it facilitates the booking and payment process between hosts and guests.

This change would make such intermediaries responsible for collecting and remitting state and local sales and use taxes on remote sales, similar to other marketplace facilitators. The act is set to become effective on July 1, 2025.

Proposes an additional tax on cigarettes in Louisiana. The bill seeks to increase the tax by 1-13/20 cents per cigarette, equating to an extra 33 cents per pack of 20 cigarettes. This adjustment would raise the total tax from $1.08 to $1.41 per pack.

The proposed tax would apply to cigarette products purchased by retail and wholesale dealers starting July 1, 2025. However, it would not affect stamped products and unused tax stamps held by wholesale dealers before this date. Additionally, all wholesale and retail dealers are required to file an inventory of their cigarette stock as of June 30, 2025, with the Department of Revenue by August 1, 2025. The bill grants the department authority to establish rules regarding the submission of these inventory reports.

If enacted, this legislation would take effect on July 1, 2025.

Increases smokeless tobacco tax from 20% to 33%. Creates a Youth Cessation and Prevention Fund, distributing revenue to cancer research and health programs.

·       Tax Increase: Raises the tax on smokeless tobacco from 20% to 33% of the invoice price.

·       Youth Cessation and Prevention Fund: Establishes a special fund in the state treasury funded by 20% of the smokeless tobacco tax avails.

·       Funding Distribution: Allocates fund monies as follows:

o  40% to Louisiana Cancer Research Center.

o  40% to Louisiana Dept. of Health (Well-Ahead Louisiana Program).

o  10% to LSU Health Sciences Center in Shreveport.

o  10% to Mary Bird Perkins Cancer Center in Gonzales.

·       Prohibition: Prevents fund allocations from replacing existing state general fund appropriations.

·       Implementation Date: Effective July 1, 2025, with required inventory filing by August 1, 2025.

HOUSE committee amendments technical

Implications:

This bill makes several changes to Louisiana’s tax administration laws.

Key aspects of the bill include:

1. Alcoholic Beverage Tax Administration: 

The bill allows the Secretary of the Department of Revenue to prescribe the method by which out-of-state alcoholic beverage shippers submit their shipment notices, replacing the previous requirement for mailed notices.

2. Sales and Use Tax Overpayments: 

Taxpayers holding Direct Payment Numbers (DP Numbers) would no longer be entitled to interest on refunds resulting from overpayment of sales and use taxes on exempt purchases.

3. Interest Rates on Delinquent Taxes: 

Effective July 1, 2025, the interest rate on unpaid taxes would be adjusted to align with the judicial interest rate specified in R.S. 9:3500(B)(1).

4. Sales Transaction Sourcing Rules: 

The bill introduces a definition for "drop shipment sale" and specifies that such sales are to be sourced to the location where the transfer of title or possession first occurs.

5. Tax Exemption Budget Reporting: 

Revisions are proposed for the content and assessment criteria of the annual tax exemption budget, including the requirement for a comprehensive return on investment analysis for tax incentives exceeding one million dollars in revenue loss in the previous fiscal year.

6. Office of Debt Recovery Functions: 

The bill extends the authority of the Office of Debt Recovery to withhold, offset, levy, garnish, or seize payments from progressive slot machine annuities and cash gaming winnings, contingent upon the availability of a single-point inquiry system for debt information.

Exempts overtime pay and tip income from Louisiana state income tax for resident individuals starting January 1, 2026.

Key Provisions: 

1. Overtime Pay Deduction (R.S. 47:297.26): 

  - Deducts actual overtime earnings beyond a 40-hour workweek. 

  - Requires documentation for deduction claims. 

2. Tip Income Deduction (R.S. 47:297.27): 

  - Deducts actual tip income reported via IRS Forms W-2 and 4137. 

  - Requires documentation for deduction claims. 

3. Rulemaking Authority: 

  - Allows the Department of Revenue to set implementation rules. 

Aims to prohibit class action lawsuits against the Louisiana Department of Revenue (DOR) and the office of debt recovery within the DOR. It applies to lawsuits related to tax law administration and debt collection. 

Key Provisions: 

1. Jurisdiction Limits: 

  - The Board of Tax Appeals (BTA) cannot hear class action lawsuits against the DOR. 

  - Class action suits cannot be filed in any state or federal court against the DOR or its debt recovery office regarding tax law administration or debt recovery. 

2. New Prohibitions: 

  - Explicitly prevents class action lawsuits from being brought or maintained against the DOR or the office of debt recovery, regardless of the court. 

3. Retroactive & Prospective Application: 

  - The bill applies both retroactively and prospectively. 

4. Effective Date: 

  - It becomes effective upon the governor’s signature or lapse of time for gubernatorial action. 

Impact: 

- Limits taxpayers' ability to pursue collective legal actions against the DOR or debt recovery office. 

- Strengthens the state's control over tax and debt collection processes by removing class action litigation as a potential challenge.

Creates a new injection tax on carbon dioxide (CO₂) used in geologic sequestration via Class VI wells.

Key Provisions: 

- Tax Amount: $3 per metric ton of CO₂ injected. 

- Reporting & Payment: 

 - Monthly electronic filing and payment to the Louisiana Department of Revenue (LDR). 

 - Operators must submit injection data to both LDR and the Department of Energy and Natural Resources (DENR). 

- Verification: DENR certifies reported injection volumes. 

- Revenue Allocation: 

 - After state constitutional obligations, revenue is allocated to parishes where CO₂ is stored. 

 - If storage spans multiple parishes, distribution is proportional to the surface area over the storage site. 

- Data Access: 

 - Operators must maintain relevant data. 

 - DENR can share this data with affected parishes. 

- Parish Use of Funds: Revenue may be used for any lawful purpose.

Impact Summary: 

This bill establishes a new revenue stream for local governments hosting CO₂ storage projects, introduces administrative responsibilities for operators, and ensures local oversight through data transparency.

HOUSE floor amendment technical

Implications: Reduces the state’s retirement debt by liquidating education-related trust funds and using those assets to pay down liabilities in the Teachers’ Retirement System of Louisiana, lowering future required contributions in part due to reductions in interest due to early payoff of balances resulting in reduction of payments to the fund including those required at the parish level.

CONSTITUTIONAL AMENDMENT 

Eliminates three existing education-related funds and uses their assets toward the unfunded accrued liability (UAL) of the Teachers’ Retirement System of Louisiana.

Key Provisions: 

1. Fund Eliminations: 

- Repeals the Louisiana Education Quality Trust Fund (LEQTF), the Louisiana Quality Education Support Fund, and the Education Excellence Fund (EEF). 

- These funds currently support some K-12 and higher education programs.

2. Transfer of Funds: 

- By April 1, 2027, the state treasurer must transfer the liquidated fair market value of the three repealed funds to TRSL. 

- TRSL must apply the funds to the oldest existing positive amortization bases first to reduce UAL.

3. Overcollections Fund Use: 

- The Department of Education, BESE, and the Board of Regents will certify remaining balances from repealed funds. 

- These amounts will be transferred to the Overcollections Fund and used without appropriation for approved instructional purposes such as early childhood education, remedial support, and academic intervention. 

- Prohibited uses include building maintenance, capital projects, and salary increases.

4. Transition Measures: 

- Balances needed for FY 2026-2027 appropriations will be held back. 

- Unspent balances in the repealed funds will be transferred to the general fund on July 1, 2027. 

- Starting in 2027, revenue previously dedicated to the repealed funds will go to the state general fund unless redirected by law.

5. TOPS and Health Excellence Funds: 

- These funds remain but receive a larger share of investment earnings (increased from one-third to one-half). 

- All other rules and limitations remain in effect.

6. Effective Date: 

- January 1, 2027

7. Ballot Language: 

- Voters will decide in the November 3, 2026, election whether to approve the repeal of the three education funds and redirect their assets to reduce the TRSL UAL.

Increases the maximum insurance premium tax credits for retaliatory taxes paid by certain Louisiana domestic insurers and extends the credit’s sunset date.

Key Provisions: 

- Raises the annual cap on tax credits from $9 million to $25 million. 

- Maintains pro rata refund distribution if total claims exceed the cap. 

- Extends the credit’s expiration from December 31, 2029 to December 31, 2034. 

- Applies to domestic insurers writing in Louisiana and at least one other state.

Effective Date: Upon governor's signature or lapse of time for gubernatorial action.

Purpose: Provides greater tax relief for Louisiana-based insurers paying retaliatory taxes in other states, aiming to support their competitiveness and stability.

MORE TAX CREDITS: Expands eligibility for the School Tuition Organization (STO) tax credit program by including laboratory schools operated by public colleges or universities as "qualified schools." This allows these schools to receive scholarship funds generated through taxpayer donations to STOs.

Key Provisions: 

- Adds public university-operated lab schools to the definition of "qualified schools" under the STO program. 

- Requires these lab schools to conduct criminal background checks on employees, same as nonpublic schools. 

- Effective January 1, 2026, for donations funding scholarships for the 2026-2027 school year and after.

TAX CREDITS EXPANSION

Expands eligibility for the student tuition organization (STO) tax credit program by adding students with disabilities as “qualified students,” regardless of household income.

Key Provisions: 

- Adds students with disabilities to the list of eligible recipients 

- Waives the 250% federal poverty limit for students with disabilities 

- Allows eligible students to receive scholarships from multiple STOs, up to 80% of the state average per-pupil MFP amount (K-8) or 90% (9-12) 

- Clarifies that students can receive STO scholarships along with other public scholarships or vouchers for nonpublic school attendance

Effective Date: 

January 1, 2026; applies to donations funding scholarships for the 2025-2026 school year and beyond

Impact: 

Broadens access to TAX CREDIT

MORE TAX CREDITS

Creates a state income tax deduction for 50% of net capital gains from the sale or exchange of an equity interest in, or substantially all assets of, a nonpublicly traded business domiciled in Louisiana. To qualify, the taxpayer must have held the interest or assets for at least five years. Applies to transactions on or after January 1, 2025. Requires the Department of Revenue to issue rules to reduce administrative burdens and limit abuse. Effective upon governor’s signature or lapse of time.

The only good NEW TAX CREDIT is one that helps kill carbon capture.

Establishes a first come first paid tax credit for costs of developing carbon sequestration wells where carbon sequestration is later prohibited by local ordinance 

Creates an income tax credit for entities that invested in Class V carbon sequestration well testing but are later prevented from completing a Class VI sequestration project due to a local ordinance enacted after March 27, 2025. The credit helps recover total costs up to $5 million per taxpayer in documented testing and development costs, allocated over five years. The program is capped at $25 million in total credits awarded per year.

- Covers costs related to Class V well testing (drilling, labor, equipment, assessments) incurred before the effective date of a local ban. 

- Available only if a local ordinance enacted after March 27, 2025, prohibits carbon sequestration. 

- Tax credit equals total eligible costs, up to $5 million per taxpayer. 

- Credits are allocated in equal portions over five years. 

- Total annual program cap: $25 million. 

- Applications must be submitted within 180 days of the local ordinance’s effective date. 

- Credits awarded on a first-come, first-served basis; pro rata allocation if requests exceed the cap. 

- Unused credits may be carried forward up to five years. 

- No double-dipping: cannot combine this credit with other state tax incentives for the same activity. 

- No credits may be earned for tax years beginning after December 31, 2031. 

- Applies to tax years starting on or after January 1, 2026.

Carbon sequestration is a sham and what we can reasonably do to end this dangerous and toxic boondoggle should be done NOW.

HOUSE floor amendment technical in nature

Expands an existing property tax exemption for certain aircraft. Current law exempts aircraft under 6,000 pounds owned by private individuals and not used for commercial or profit-making purposes. This bill extends the exemption to include aircraft of the same type owned by limited liability companies (LLCs), provided they are also not used for commercial or profit-making purposes. 

Key Provisions: 

- Expands exemption to include LLC-owned aircraft under 6,000 pounds 

- Maintains non-commercial, non-profit use requirement 

- Repeals obsolete statutory language 

- Applies to taxable periods beginning on or after January 1, 2026 

- Effective January 1, 2026 

Provides equal property tax treatment for private individuals and LLCs that own small, non-commercial aircraft. May slightly reduce local tax revenue depending on the number of qualifying LLC-owned aircraft.

Reduces the severance tax exemption period for gas produced from horizontally drilled wells from 24 months to 6 months or until payout of the well cost, whichever comes first. The 24-month exemption for oil remains unchanged.

Current Law: 

Horizontally drilled oil and gas wells are exempt from severance tax for 24 months or until well cost payout.

Proposed Change: 

Limits severance tax exemption for gas from horizontally drilled wells to 6 months or until well cost payout.

Effective Date: 

Applies to taxable periods starting July 1, 2025.

HOUSE committee amendments [LINK] revise the timing and terms for gubernatorial appointments to the Board of Tax Appeals. Specifically, they clarify that one new member shall be appointed shortly after the bill's effective date, serving an initial partial term, followed by a standard six-year term for successors. Additionally, the amendments add a provision stating the Act will only take effect upon the legislature appropriating specific funds for its implementation. If no appropriation occurs, the changes will not be implemented.

Expands administrative options for resolving state and local tax disputes. It authorizes mediation between taxpayers and tax collectors, allows the Louisiana Uniform Local Sales Tax Board (LULSTB) to issue binding policy advice and private letter rulings (PLRs), and modifies the structure and procedures of the Board of Tax Appeals (BTA). 

Key Provisions: 

Mediation: 

 - Taxpayers and collectors may agree in writing to mediate disputes within 15 days of receiving a tax assessment notice. 

 - Mediation must be completed within 45 days. 

 - Mediation is nonbinding unless otherwise agreed and may be terminated at any time by either party. 

 - After mediation ends, the taxpayer has 30 days to appeal or pay, but retains at least 60 days total from the original notice date. 

Policy Advice & Private Letter Rulings (PLRs): 

- LULSTB’s post-Jan. 1, 2025 policy advice becomes binding on local collectors unless challenged within 20 days via the BTA’s Local Tax Division. 

 - PLRs are binding on local collectors and subject to de novo review if appealed. 

 - Removes a provision allowing a single local collector to opt out of the PLR process. 

Board of Tax Appeals (BTA): 

 - Expands BTA membership from 3 to 4, with members required to have tax law credentials. 

 - Establishes random judicial panels and formalizes roles for judges in the Local Tax Division. 

 - Requires appointments from a list of 2–4 nominees, increases terms for new members, and designates a chief judge for the Local Tax Division. 

Intent: 

To streamline tax dispute resolution, improve clarity and consistency in local sales tax administration, and enhance the functionality and capacity of the BTA.

HOUSE floor amendments [LINK] establish the "Youth Cessation and Prevention Fund," a special fund in the state treasury, to receive 20% of tobacco tax revenues annually. The fund will support statewide programs addressing tobacco prevention and cessation targeting youth and young adults. Specifically, 40% is directed to the Louisiana Cancer Research Center, 40% to the Louisiana Department of Health for tobacco cessation initiatives, 10% to LSU Health Sciences Center in Shreveport, and 10% to Mary Bird Perkins Cancer Center in Gonzales. The amendments prohibit replacing existing general fund appropriations with monies from this fund.

HOUSE committee amendments technical

Changes the excise tax on vapor products and electronic cigarettes from 15 cents per milliliter of nicotine solution to 33% of the invoice price of these products. 

The new tax rate applies to all vapor products and electronic cigarettes purchased by retailers and wholesalers on or after July 1, 2025. It does not apply to products already stamped or unused tax stamps held by wholesalers before this date.

All wholesale and retail dealers must submit an inventory of existing stock to the Department of Revenue by August 1, 2025.

Effective date: July 1, 2025.

Reorganizes and clarifies Louisiana’s severance tax statute (R.S. 47:633) without changing tax rates or exemptions. It makes technical corrections and updates language for consistency.

Key Provisions: 

- Retains existing tax rates on oil, gas, timber, and other resources 

- Preserves exemptions for incapable, stripper, horizontal, deep, inactive, and orphan wells 

- Updates administrative procedures and definitions 

- Corrects cross-references and aligns law with current practice

Purpose: 

To improve clarity and administration without fiscal impact.

HOUSE committee amendments [LINK] increase the minimum age requirement from twenty-five to thirty-five years to qualify, and clarify that using the vehicle in the production of a motion picture does not count as "used for commercial purposes."

Creates a state and local sales and use tax exemption for antique motor vehicles that: 

- Are at least 25 years old 

- Are not used commercially 

- Are valued at $10,000 or more

The bill increases the one-time special license plate fee for these qualifying vehicles from $25 to $1,000. Vehicles valued under $10,000 are not exempt from sales tax and keep the $25 plate fee.

Effective Date: July 1, 2025 

Applies to sales, registration, or transfer of antique vehicles on or after this date.

Fiscal Impact: Likely reduction in tax revenue, partially offset by increased plate fees.

Exempts sales made through coin-operated vending machines from state and local sales and use taxes. However, dealers must pay sales and use tax when purchasing goods for resale through vending machines. 

Key Points: 

- Exempts consumer purchases from vending machines from sales tax 

- Requires dealers to pay tax when buying inventory for vending machines 

- Shifts tax burden from consumer to vending machine operator 

- Effective July 1, 2025 

Intent: 

Simplifies tax collection by requiring operators to remit tax at the point of purchase rather than at each consumer transaction.

FISCAL NOTE

Establishes an annual sales tax holiday for certain purchases on the first Saturday of August.

Key Provisions: 

- Exempts from state and local sales and use taxes the purchase of back-to-school items on the first Saturday of August. 

- Eligible items include computers (including laptops and tablets), clothing, footwear, school supplies, backpacks, instructional materials, learning aids (e.g., software, puzzles), and books (including e-books). 

- Computers must be priced under $500 to qualify; all other eligible items must be under $50. 

- Applies to taxable periods beginning on or after August 1, 2025. 

- Act may be cited as the "Annual Louisiana Believes in Education Act".

Reclassifies barge line and towing vessels for ad valorem tax purposes.

Key Provisions: 

- Amends definitions in R.S. 47:1851 to remove barge line and towing vessels from "major movable property" and include them in "other movable property." 

- Clarifies that for ad valorem classification, these vessels are no longer treated like rolling stock or aircraft. 

- Updates the definition of "public service properties" to reflect this reclassification, limiting public service treatment to major movable property used in interstate or interparish operations. 

- Applies to tax years beginning on or after January 1, 2026.

Imposes a progressive tax on sports wagering and increases funding for early childhood education. 

Key Provisions: 

- Replaces flat tax rates on sports wagering with a progressive structure: 

 (1) 20% on net proceeds up to $30M 

 (2) 25% on proceeds $30M–$50M 

 (3) 30% on proceeds $50M–$100M 

 (4) 35% on proceeds $100M–$200M 

 (5) 40% on proceeds over $200M 

- Applies rates to both onsite and online sports wagering. 

- Maintains 15% rate on some electronic wagering not covered by main provisions. 

- Increases dedicated sports wagering revenue to the Louisiana Early Childhood Education Fund from 25% to 40%, and raises the cap from $20M to $30M annually.

HOUSE floor amendments technical except Amendments 2 & 3 [LINK] which amend statute references.

Allows political subdivisions to sell adjudicated property to the highest bidder without requiring a minimum bid or appraisal and extends cost recovery provisions for terminating tax lien certificates to include adjudicated property.

Key Provisions:

- Authorizes local governments to sell adjudicated property at public sale without setting a minimum bid or requiring an appraisal, as an alternative to current law.

- Requires individuals terminating a tax lien certificate on adjudicated property to pay the termination price plus all actual costs incurred by the political subdivision (e.g., notice, publication, certified mail).

- Supersedes provisions of Acts 2024, No. 774 concerning R.S. 47:2202(A)(1) and 2247(A).

- Applies to all taxable periods beginning on or after January 1, 2026.

- Effective January 1, 2026.

HOUSE floor amendments [LINK] delay the start of premium tax reductions from 2026 to 2029 and phase them in gradually through 2032 with increasing percentage reductions each year. They cap the tax reduction for 2026–2028 so that no business can claim more than it received in 2024. The amendments also redefine what counts as a "qualifying Louisiana investment," including Louisiana-based bonds, property, loans, stocks, and certain in-state bank deposits. For HMOs to count these investments, they must be domiciled and operating in Louisiana, maintain their corporate office in the state, and keep at least 70% of their employees and core functions in Louisiana. The amendments also revise wording related to how premium taxes apply to surplus lines policies.

HOUSE approps committee amendments [LINK] introduce a gradual reduction mechanism for the insurance premium tax rate beginning July 1, 2027, contingent on exceeding specific revenue thresholds. They also adjust the criteria and calculation method for qualifying Louisiana investments, implementing a phased schedule that gradually increases the payable tax percentages over multiple years. Additionally, the amendments include new reporting requirements and clarify eligibility standards for tax reductions. Starting January 1, 2034, the amendments eliminate these investment-based tax reductions entirely.

HOUSE W&M committee Amendments [LINK] keeps the insurance premium tax credit, tightens rules so only insurers with strong Louisiana presence qualify, defines eligible in-state investments, and sets up automatic tax rate cuts starting in 2027 if collections rise.

Establishes a flat 1.6% insurance premium tax rate and repeals multiple insurance tax credits and exemptions, including the Louisiana Capital Companies Tax Credit Program. Applies to taxable periods beginning January 1, 2026.

Key Provisions:

- Replaces the current tiered insurance premium tax structure with a flat 1.6% tax on gross annual premiums for all applicable insurance types.

- Repeals several tax credits and exemptions, including:

 - The insurance premium investment tax credit (R.S. 22:832)

 - The credit for retaliatory taxes paid by certain domestic insurers (R.S. 22:836(B))

 - The Louisiana Capital Companies Tax Credit Program (R.S. 51:1921–1935)

- Requires insurers to separately state premium and tax amounts on policy declarations.

- Retains local tax exemptions tied to "qualifying Louisiana investments" and standardizes the investment definition across relevant statutes.

- Effective January 1, 2026.

Reduces the severance tax rate on oil produced from newly completed wells and modifies special tax rates for oil produced from limited-production wells, including incapable, stripper, inactive, and orphan wells.

Key Provisions: 

- Lowers the severance tax on oil from wells completed on or after July 1, 2025, from 12.5% to 6.5%. 

- Sets a flat 6.25% tax rate for oil from incapable wells (wells producing 25 barrels/day or less and 50% or more salt water). 

- Sets a flat 3.125% tax rate for oil from stripper wells (wells producing 10 barrels/day or less). 

- Applies a 6.25% or 3.125% rate to oil from inactive wells, depending on production start date: 

 - 6.25% if production begins on or after October 1, 2028 

 - 3.125% if production begins before October 1, 2028 

- Applies a 3.125% or 1.565% rate to oil from orphan wells, depending on production start date: 

 - 3.125% if production begins on or after October 1, 2028 

 - 1.565% if production begins before October 1, 2028 

- Effective for taxable periods beginning on or after July 1, 2025.

Extends the existing sales and use tax exemption for ships and ships' supplies to include digital products attached to or used in the operation or maintenance of vessels over 50 tons.

Key Provisions: 

- Expands the current exemption to cover digital products, including prewritten computer software access services and information services. 

- Applies to digital products that are incorporated into, attached to, or used in the operation or maintenance of vessels over 50 tons operating in foreign or interstate coastwise commerce. 

- Updates statutory language to replace "materials and supplies" with "tangible personal property or digital products." 

- Effective July 1, 2025.

Imposes a 15% excise tax on wholesale cannabis sales and dedicates the revenue to K-12 public school employee salary increases.

Key Provisions: 

- Applies a 15% excise tax on the wholesale sale of cannabis by licensed production facilities 

- Tax is calculated based on average market rates for different cannabis product categories (buds, leaves, seeds, plants, etc.) 

- Department of Revenue oversees rate determination, collection, and enforcement 

- Revenues are deposited into the state general fund, then annually appropriated to the Minimum Foundation Program (MFP) 

- Funds must be used for salary increases for public school teachers and support personnel 

- Effective January 1, 2026

Makes it harder to get rid of something that you're taxing.

Summary: Imposes a 30% excise tax on proceeds from geologic storage of carbon dioxide.

Key Provisions:

• Levies a 30% tax on gross proceeds earned by carbon storage operators in Louisiana.
• Tax applies in addition to all other state and local taxes.
• Paid quarterly to the Department of Revenue.
• Effective July 1, 2025.

HOUSE committee amendments technical

Requires all new sales and use tax exemptions, exclusions, credits, rebates, or refunds enacted after January 1, 2026, to apply to both state and local sales tax bases.

Key Provisions:

• Applies only to tax incentives created on or after January 1, 2026
• Prohibits the Legislature from enacting new exemptions or incentives that apply only to the state sales tax
• Mandates that any new tax incentive must apply uniformly across all taxing authorities, including local governments

Creates the Fortify Coastal Homes Fund to help strengthen residential roofs in Louisiana’s coastal zone. Starting July 1, 2026, the fund will collect money from two sources: legislative appropriations and a portion of state sales and use taxes (up to 5% or $60 million, whichever is less) collected in the coastal zone during the two months following a declared natural disaster. The coastal zone includes parishes along and below the boundary line set by a 2012 law. The money will be used exclusively for grants to fortify homes in this area. The Department of Revenue must submit an annual report by February 1 to the legislature and the Department of Insurance, detailing collections and methods. The Department of Revenue and the Insurance Commissioner can make rules to implement the law.

HOUSE floor amendments technical

HOUSE committee amendments [LINK] expand the bill to include a statewide individual income tax rate reduction from 3.00% to 2.75%, effective January 1, 2027, and make both the new senior deduction and the rate cut contingent on voter approval of a constitutional amendment in HB472. The bill’s effective date is pushed to 2027 and now applies more broadly to all individual taxpayers, not just those age 65 and older.

Authorizes an individual income tax deduction for Louisiana residents aged 65 and older, equal to the standard deduction for single filers.

Key Provisions:

• Creates a new deduction from tax table income for taxpayers age 65 and older.
• Deduction amount equals the standard deduction for single filers ($12,500, indexed for inflation after 2026).
• This deduction is in addition to the regular standard deduction.
• Taxpayers must retain records verifying eligibility and provide them to the Department of Revenue upon request.
• Applies to taxable periods beginning on or after January 1, 2026.
• Department of Revenue may adopt rules to implement the deduction.

Continues statutory cigarette tax rate and authorizes reduced rates for certain tobacco products.

Key Provisions:

• Codifies the 4¢ per cigarette excise tax (previously constitutional) in statute, maintaining total cigarette tax at $1.08 per pack.
• Authorizes a 60% excise tax reduction for "modified risk tobacco products" with FDA risk modification orders under 21 U.S.C. 387k(g)(1).
• Authorizes a 25% reduction for those with FDA exposure modification orders under 21 U.S.C. 387k(g)(2).
• Adds and revises definitions for invoice pricing, promotional incentives, and cigarettes to support tax administration.
• Applies to taxable periods beginning July 1, 2025.
• Effective upon governor's signature.

CHECK WITH GABE FIRMENT ON THIS ONE

Authorizes the State Bond Commission to issue catastrophe bonds to fund a new Catastrophe Reinsurance Program aimed at stabilizing the homeowners insurance market in high-risk areas.

Key Provisions:

• Establishes the Catastrophe Reinsurance Program to offer reinsurance alternatives for property insurers.
• Authorizes issuance of catastrophe revenue bonds, backed by fees/assessments on insurance policies—not state credit or taxes.
• Bonds are tax-exempt, do not count toward net state tax-supported debt, and may be sold via public or negotiated sale.
• Proceeds go to a dedicated Catastrophe Reinsurance Fund held outside the state treasury but managed by a trustee.
• Requires participating insurers to offer more coverage in high-risk areas at reduced premiums.
• Bonds and fund administration are exempt from most state limitations and taxes.
• Program sunsets when all bonds are repaid.

HOUSE W&M committee amendment [LINK]

• Requires (rather than provides for) the legislative auditor's involvement.
• Clarifies that the legislative auditor may recommend, rather than mandate, revoking a company's eligibility for tax incentives if conditions aren't met.
• Specifies that administering agencies must respond in writing to the auditor's evaluation, including proposed remedies if needed, and simultaneously transmit this response to both the auditor and the company.

HOUSE H&G committee amendment [LINK] require the legislative auditor to evaluate each state tax incentive at least every four years, including job creation, income impact, and cost-benefit analysis. Companies that fail to provide data or meet incentive terms lose eligibility. The auditor must notify the administering agency, which then informs the company within 90 days. The auditor may also recommend specific reforms based on findings.

Requires the Louisiana Legislative Auditor (LLA) to regularly evaluate state tax incentives and report findings to the Legislature. Grants the LLA enforcement authority, including the ability to recapture funds from companies that do not comply with data or performance requirements.

Key Provisions: 

- Requires LLA to evaluate all state tax incentives, with discretion to exempt those with minimal fiscal impact. 

- Permits contracting with third-party entities to assist with evaluations. 

- Mandates cost-benefit analyses including impacts on job creation, personal income, and GDP. 

- Requires assessments of fiscal protections, administrative efficiency, and recipient goal achievement. 

- Authorizes LLA to compel participation and data submission from incentive recipients. 

- Grants authority to recapture incentive funds for noncompliance or unmet obligations. 

- Recovered funds may be used for evaluations, economic development, or general expenses. 

- Requires biennial reports to the Legislature with recommendations to retain, reform, or repeal incentives.