|
|
[ The Revenue Picture Expiring Taxes Considered by the Legislature
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). |
|||||||||||||||||||||||||||
