State Tax Reform, 2024
Individual Income Tax and General Sales Tax
Prepared by Greg Albrecht, Economist 1 October 2024
The administration has announced that it intends to call the legislature into a special session in early November 2024 to consider a multi faceted package of changes to the state tax system. The proposal is composed of constitutional and statutory changes that address various aspects of the state and local sales tax, individual income tax, property tax, corporate income and franchise tax, severance tax, certain special treasury funds, and procedures of the Department of Economic Development. In preparation for that session, RESET Louisiana, a collaboration of the Council for A Better Louisiana, the Public Affairs Research Council of Louisiana, and the Committee of 100, has commissioned an analysis of the potential implications of the proposed changes to the individual income tax and general sales tax on Louisiana households. This analysis will assess the impact of the major changes proposed to those two taxes by various income cohorts of state individuals and households. This analysis is primarily intended to inform policymakers and the public as to the estimated tax liability consequences to households of the proposed changes to state income and sales taxation. In addition, some commentary regarding the aggregate state fiscal aspects of these components of the package will be made. This analysis does not address the impact on households of the other components of the package, and is in no way an alternative estimate or assessment of the aggregate state fiscal budgetary consequences of personal income and sales tax components of the package or of the package as a whole. It should be noted that the specific provisions of the proposal included in this analysis are those provided by the Department of Revenue (LDR) on September 30, 2024, and do not incorporate any changes to the proposal that may have been made after that date.
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