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Contents ]
The
Revenue Picture
Expiring
Taxes Considered by the Legislature
|
(In Millions of $)
|
|
Revenue
as Introduced
|
Revenue
as Passed
|
Renewal
of 1¢ sales tax on food and utilities (HB169 - Act 22)
|
$116.5
|
$105.8
|
Renewal
of 3¢ sales tax on food and utilities (HB169 - Act 22)
|
$349.5
|
$349.5
|
Auto
rental excise tax (HB166 - Act 20)
|
$4.5
|
$4.5
|
Tobacco
tax revenue 4¢ (HB167 - Act 21)
|
$14.0
|
$14.0
|
1/2
excess itemized deductions (HB171 - Act 24)
|
$90.0
|
$76.4
|
$25
per child income tax credit (HB238 - Act 25)
|
$18.0
|
$18.0
|
TOTAL
|
$592.5
|
$568.2
|
Sales Tax Exemption Suspension Renewals (HB169
- Act 22)
·
In
FY02, taxpayers paid a 4% sales tax on food and utility purchases.
·
This
tax was renewed in the 2002 Regular Session, but with some
changes.
·
One
change was to make one of the pennies permanent.
·
The
other change was to phase down the rate on the one penny over the
course of two fiscal years.
·
Tax rate phased down by 10% for FY03
(Savings to the taxpayers of $10 million)
·
Tax rate phased down by 20% for FY04
(Savings to the taxpayers of $20 million)
·
The
three non-permanent pennies of the renewed tax will expire on June
30, 2004.
Auto
Rental Excise Tax Renewal (HB166 - Act 20)
·
Extends
the levy of the automobile rental excise tax at a rate of 2.5%
until June 30, 2012.
Tobacco
tax revenue 4¢ (HB167 - Act 21)
·
Extends
the increase of the tax on cigarettes from 20 cents per pack to 24
cents until June 30, 2012.
Excess Itemized Deduction Increase (HB171 -
Act 24)
·
In
tax year 2001, taxpayers were limited to deducting 50% of their
excess itemized deductions (the difference between the itemized
deductions included on their federal form and the federal standard
deduction).
·
However,
the new law will permit taxpayers to deduct 57.5% of their excess
itemized deductions in tax year 2002 and 65% in tax year 2003. In tax year 2004, Louisiana tax filers will be able to deduct
100% of their excess itemized deductions, unless new legislation
is introduced to continue the present law.
$25
per child income tax credit (HB238 - Act 25)
·
Delays
the reinstatement of the $25/child in K-12 education income tax
credit until tax year 2005 (FY06).
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