HB1122

Louisiana HB1122 establishes a calculation for reducing the state's personal income tax rate if funds are deposited into the Louisiana Income Tax.

Louisiana HB1122 requires the Secretary of the Department of Revenue to calculate a reduction in the personal income tax rate if funds are deposited into the Louisiana Income Tax Elimination Fund. The calculation involves dividing the total amount of funds deposited in the prior fiscal year by the total personal income tax revenue collected in the same fiscal year. The resulting figure is then multiplied by the current tax rate and subtracted from the current rate to determine the new rate. If the calculated reduction is 0.05% or less, no reduction occurs.