Committee advances senior standard-deduction increase and contingent income-tax cut amendment
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
House Bill 667, as amended April 28, would double the standard deduction for taxpayers age 65 and older and include a contingent reduction in the top personal income tax rate to 2.75% if a companion constitutional amendment freeing recurring revenue (HB 472) is adopted. The committee adopted amendment set 17-37 and reported the bill favorably.
House Bill 667 was presented April 28 as a measure to create a tax benefit for Louisiana residents age 65 and older by doubling the standard deduction for taxpayers 65 and over. The author said the item is contingent on the passage of the constitutional amendment contained in HB 472 that would free recurring revenue into the State General Fund.
The bill was amended (set 17-37) to add a personal income tax rate reduction from 3.00% to 2.75% that would take effect only if the constitutional amendment in HB 472 is approved and the related revenues are available. Chair Emerson and the author framed the amendment as a statement of fiscal intent: use some of the recurring revenue freed by the constitutional change to lower rates and reduce taxpayers' burdens.
Members asked for clarity on timing, fiscal exposure, and the size of the fiscal note. The author said the doubling of the standard deduction for taxpayers 65 and older was estimated by the fiscal note at roughly $74,000,000 annually; adding the proposed top-rate reduction was roughly estimated by the author to be on the order of $250,000,000 annually (transcript figures, pending LFO verification). The committee adopted the amendment set 17-37 and the bill as amended was moved forward favorably.
Procedural outcome: representatives conducted a roll-call on amendment set 17-37; the amendment was adopted and the committee reported HB 667 favorably as amended. The author said the measure is intended to be contingent on HB 472 (Article 7 rewrite) and to be coordinated with appropriations for sales-tax rate changes later in the session.
Context: supporters framed the measure as an affordability step for seniors and a signal to voters that the legislature intends to lower income tax rates as recurring revenue becomes available; critics on the committee expressed concern about reducing recurring revenue before LFO and appropriations could determine a firm fiscal picture. The bill will continue through committee and appropriations.