Reduces the rate of individual income tax incrementally over a period of time before ultimately eliminating the tax (OR DECREASE GF RV See Note)
Summary
HB 333 would amend Louisiana’s individual income tax law to phase down the current 3% flat rate over 15 years and then eliminate the tax entirely beginning January 1, 2040. Starting with taxable years on or after January 1, 2026, the bill reduces the rate by 0.2 percentage points each year until it reaches 0.2% for 2039, after which no individual income tax would be assessed, levied, collected, or paid.
The bill also creates a formal citation name, the “Banish All Nonproductivity to Delete Income Tax Act” or “BANDIT Act,” and applies the changes to taxable years beginning on or after January 1, 2026. Its practical effect would be a long-term, automatic reduction in state income tax liability for individual taxpayers, with the final repeal of the tax occurring in 2040 under the bill’s schedule.
Impact
HB 333 would amend R.S. 47:32(A), the statute governing Louisiana’s individual income tax rates, by replacing the existing 3% rate with a scheduled annual reduction and eventual elimination. This would directly affect individual taxpayers, the Department of Revenue’s tax administration, and state general fund revenues, since the individual income tax is a major source of state revenue. The bill’s digest notes a decrease in general fund revenue, and the phaseout would progressively reduce collections over time before fully removing the tax on individual income beginning in 2040.
Sentiment
Based on the available materials, the bill appears to be presented in a strongly pro-tax-cut posture, with no recorded committee debate or votes in the provided context. The bill’s title and branding suggest an intent to promote tax elimination as a policy goal, and the digest frames the measure as a gradual reduction leading to repeal. Because there are no transcripts or vote records included, there is no documented opposition or support in the supplied context beyond the bill’s own text and fiscal characterization.
Contention
The main point of contention likely concerns the fiscal impact of eliminating the individual income tax, especially the resulting loss of general fund revenue and how the state would replace it. That issue would matter to lawmakers concerned about funding for public services, while supporters would likely emphasize tax relief and economic competitiveness. The bill’s long phase-in may be intended to soften immediate budget effects, but the eventual full repeal is the central policy dispute.