TAX/INCOME TAX: Repeals the state tax levied on the net income of individuals and estates and trusts (OR DECREASE GF RV See Note)

HLS 26RS-286 ORIGINAL
2026 Regular Session
HOUSE BILL NO. 253
BY REPRESENTATIVE MCCORMICK
TAX/INCOME TAX: Repeals the state tax levied on the net income of individuals and
estates and trusts
1 AN ACT
2 To amend and reenact R.S. 47:31 and 241 and to repeal R.S. 47:32(A), 295(A), 300.1, and
3 300.2, relative to income tax; to repeal the tax levied on the income of individuals
4 and estates and trusts; to provide for applicability; to provide for an effective date;
5 and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:31 and 241 are hereby amended and reenacted to read as follows:
8 §31. Individuals, corporations, Corporations and trusts subject to tax
9 There shall be levied, collected, and paid for each taxable year a tax upon the
10 net income of residents and nonresidents, estates, trusts, and corporations, as
11 hereinafter provided.
12 (1) Resident individuals. Every person residing within the state, or the
13 personal representative in the event of death, shall pay a tax on net income from
14 whatever source derived, except as hereinafter exempted.
15 Every natural person domiciled in the state, and every other natural person
16 who maintains a permanent place of abode within the state or who spends in the
17 aggregate more than six months of the taxable year within the state, shall be deemed
18 to be a resident of this state for the purpose of determining liability for income taxes
19 under this Chapter.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
HLS 26RS-286 ORIGINAL
HB NO. 253
1 (2) Nonresident individuals. Every nonresident shall pay a tax upon such net
2 income as is derived from property located, or from services rendered, or from
3 business transacted within the state, or from sources within the state, except as
4 hereinafter exempted.
5 (3) Corporations. Corporations shall be taxed on net income from sources
6 within the state, as hereinafter set out.
7 (4) (2) Domestic real estate investment trusts. Trusts shall be taxed on net
8 income from whatever source derived, except as otherwise exempted.
9 (5) (3) Foreign real estate investment trusts. Foreign real estate investment
10 trusts shall be taxed on net income from sources within the state, as hereinafter set
11 out.
12 (6) (4) For state income tax purposes, capital construction funds, created in
13 accordance with 46 U.S.C. App. 1177 and 26 U.S.C. 7518, and all related items of
14 income, gain, deduction, loss, credit, adjustment, and basis shall be taxed in the same
15 manner as those items are taxed pursuant to 26 U.S.C. 7518 and applicable federal
16 regulations.
17 * * *
18 SUBPART F. NONRESIDENT INDIVIDUALS
19 AND CORPORATIONS
20 §241. Net income subject to tax
21 The net income of a nonresident individual or a corporation subject to the tax
22 imposed by this Chapter shall be the sum of the net allocable income earned within
23 or derived from sources within this state, as defined in R.S. 47:243, and the net
24 apportionable income derived from sources in this state, as defined in R.S. 47:244.
25 * * *
26 Section 2. R.S. 47:32(A), 295(A), 300.1, and 300.2 are hereby repealed in their
27 entirety.
28 Section 3. The provisions of this Act shall apply to taxable years beginning on or
29 after January 1, 2027.
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HLS 26RS-286 ORIGINAL
HB NO. 253
1 Section 4. This Act shall become effective on January 1, 2027.
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 253 Original 2026 Regular Session McCormick
Abstract: Repeals the state tax levied on the net income of individuals and estates and
trusts.
Present law imposes a tax on the net income of individuals and estates and trusts at a rate of
3% and provides for the administration of the tax.
Proposed law repeals present law.
Proposed law applies to taxable years beginning on or after Jan. 1, 2027.
Effective Jan. 1, 2027.
(Amends R.S. 47:31 and 241; Repeals R.S. 47:32(A), 295(A), 300.1, and 300.2)
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.