Earlier this year, The Louisiana legislature established a task force to address the state’s tax structure and waning economic health. The Louisiana Task Force on structural Changes in Budget and Tax Policy was established in early 2016 and met throughout the year to identify vulnerabilities in the current tax structure and identify areas for change. This committee was comprised of such notable contributors as an Economics professor, a community business leader, and a representative from the Department of Revenue. Also among the committee members was William C. Potter, CPA, JD, and a Senior Tax Director at P&N.
The Louisiana Task Force on structural changes in budget and tax policy has now presented its report outlining proposed changes to the Louisiana tax system. To download the report (PDF), click this link or visit www.revenue.louisiana.gov/taskforce.
Among other items, these changes include revamping:
Generally, these provisions call for broadening tax bases and reducing tax states. Attempts were made to ease compliance and to be competitive with other states.
Significant changes are proposed to individual income tax. The recommendations include:
The adjustments can impact specific Louisiana taxpayers differently. In order for individuals to see how the modifications impact them personally, P&N has developed an online tool that will help individuals understand how these changes in tax will affect them. Using this tool, Louisiana residents will be able to apply these proposed changes to their real 2015 income taxes, and better understand how the changes impact them.
Bill Potter, along with Associate Tax Director, Kathryn Pittman, JD, and the P&N application development team have created a navigable web tool designed to reflect these proposed changes to individual income tax. The Louisiana Income Tax Assessment and Calculator has been created to allow each person to take their actual 2015 Louisiana individual income tax return and recalculate it with these changes and a comparison of the actual to the proposed model can be made.
The Louisiana Income Tax Assessment and Calculator are now available at www.louisianataxreform.com.
This online tool was developed by our firm to reflect the impact on individuals of potential changes in tax regulation and is intended to be useful and informative; however, if you are in need of tax advisory services, please contact your tax advisor for further information regarding potential changes to Louisiana taxes.