Louisiana Senate Bill SB33

Louisiana 2017 Regular Session

• Introduced: 3/21/17
• Refer: 3/21/17
• Refer: 4/10/17
• Report Pass: 4/17/17

Caption

Eliminates sunset provision on credit for taxes paid in other states. (gov sig) (EG +$31,300,000 GF RV See Note)

Impact

The permanent nature of the tax credit will have implications for the state budget, as it is projected to increase state revenue by approximately $31.3 million, as indicated in the fiscal notes associated with the bill. By allowing individuals to retain this tax benefit indefinitely, SB 33 aims to promote fairness and aid financial planning for residents who work across state lines. This move also solidifies Louisiana's stance on attracting residents who might otherwise be deterred by the tax burden imposed by neighboring states.

Summary

Senate Bill 33 seeks to amend existing regulations regarding the individual income tax credit for taxes paid to other states. Specifically, the bill eliminates the sunset provision that was set to expire on June 30, 2018, thereby making the tax credit provisions permanent. This change reflects a legislative intent to provide ongoing relief to individuals who earn income in states that impose income taxes, which previously limited the applicability of such credits to a specified timeframe. Repealing the sunset date ensures that individuals continue to benefit from the credit without the uncertainty of a potential expiration.

Sentiment

Sentiment surrounding SB 33 appears largely positive, particularly among proponents who value the continued financial relief it provides to taxpayers engaged in interstate work. Supporters argue that the elimination of the sunset provision enhances certainty and stability in tax policy, making it easier for taxpayers to navigate their obligations. However, there may be opposition from fiscal conservatives who are concerned about the long-term implications of decreased tax revenue, as well as the potential strain on state-funded services.

Contention

While the bill seems to harness general support, it also raises questions about the balance of tax responsibilities between states. Those against the bill may point to the cumulative impact on state resources as it permanently removes a revenue-generating limitation from the tax code. As the state continues to face budgetary challenges, the debate regarding whether such tax credits ultimately benefit the population as a whole versus a segment of the workforce remains a point of contention that warrants further discussion and scrutiny among legislators.