Read the full stored bill text
HLS 26RS-2662 ORIGINAL
2026 Regular Session
HOUSE BILL NO. 1122
BY REPRESENTATIVE BEAULLIEU
TAX/INCOME TAX: Establishes a calculation to be used for reducing the rate of the state
tax levied on individuals
1 AN ACT
2 To enact R.S. 47:32.1, relative to individual income tax; to provide for the reduction of the
3 individual income tax rate under certain circumstances; to provide for requirements
4 and limitations; to require the publication of certain information; to provide relative
5 to the powers and duties of the secretary of the Department of Revenue; to provide
6 for an effective date; and to provide for related matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:32.1 is hereby enacted to read as follows:
9 §32.1. Individual income tax rate reduction; requirements and limitations
10 A. If monies are deposited into the Louisiana Income Tax Elimination Fund
11 prior to June thirtieth of any fiscal year, then no later than the September thirtieth
12 immediately following such deposit, the secretary of the Department of Revenue
13 shall perform the calculation provided in Subsection B of this Section and the
14 individual income tax rate provided for in R.S. 47:32 shall be reduced accordingly
15 for the tax year beginning the following January first.
16 B.(1) The individual income tax rate shall be reduced in accordance with a
17 calculation performed as follows:
18 (a) The total amount of monies transferred into the Louisiana Income Tax
19 Elimination Fund in the prior fiscal year shall be divided by the total amount of
Page 1 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
HLS 26RS-2662 ORIGINAL
HB NO. 1122
1 personal income tax revenue collected in the same fiscal year as the year in which
2 the monies were deposited into the Louisiana Income Tax Elimination Fund.
3 (b) This figure shall be multiplied by the personal income tax rate in effect
4 at the time the calculation is performed.
5 (c) The product shall be subtracted from the personal income tax rate in
6 effect at the time the calculation is performed.
7 (d) The resulting figure shall be the new personal income tax rate for the
8 immediately following tax year.
9 (2) Notwithstanding any provision of Paragraph (1) of this Subsection, if the
10 individual income tax rate reduction as calculated by the secretary of the Department
11 of Revenue would result in a reduction of five-hundredths of one percent or less,
12 then no rate reduction shall occur.
13 C. When the provisions of Subsection B of this Section require a reduction
14 in the individual income tax rate, the secretary of the Department of Revenue shall
15 publish the reduced rate on the department's website and shall include the reduced
16 rate when publishing the tax tables pursuant to R.S. 47:295 and the withholding
17 tables pursuant to R.S. 47:112.
18 Section 2. This Act shall take effect and become operative if and when the proposed
19 amendment of Article VII of the Constitution of Louisiana contained in the Act which
20 originated as House Bill No. 646 of this 2026 Regular Session of the Legislature is adopted
21 at a statewide election and becomes effective.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 1122 Original 2026 Regular Session Beaullieu
Abstract: Requires a calculation to be performed each year after monies are deposited into
the La. Income Tax Elimination Fund (LITE Fund) that will reduce the personal
income tax rate for the ensuing tax year.
Present law requires a state tax to be assessed, levied, collected, and paid upon the net
income of individuals at the rate of 3%.
Page 2 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
HLS 26RS-2662 ORIGINAL
HB NO. 1122
Proposed law retains present law but, as more fully described below, requires the individual
income tax rate to be reduced if monies are deposited into the LITE Fund.
Proposed law requires the secretary of the Dept. of Revenue (DOR) to calculate the rate
reduction as follows:
(1) The total amount of monies deposited into LITE Fund in the prior fiscal year shall
be divided by the total amount of personal income tax revenue collected in the fiscal
year in which the deposit was made into the LITE Fund.
(2) Multiplying the resulting quotient from step 1, above, by the personal income tax
rate in effect at the time the calculation is performed.
(3) Subtracting the product from step 2, above, from the personal income tax rate in
effect at the time the calculation is performed.
(4) The result is the new personal income tax rate for the immediately following tax
year.
Proposed law further provides that if the calculation results in a reduction of .05% or less,
then no rate reduction shall occur.
Proposed law requires the secretary of DOR to publish the reduced rate on the department's
website and to include the reduced rate when publishing the tax tables and the withholding
tables pursuant to present law.
Effective if and when the proposed amendment of Article VII of the Constitution of La.
contained in the Act which originated as House Bill No. 646 of this 2026 R.S. of the
Legislature is adopted at a statewide election and becomes effective.
(Adds R.S. 47:32.1)
Page 3 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.