
Chamber members attending our recent breakfast on Louisiana’s Tax Reform Update heard from Secretary of Revenue Richard Nelson and State Representative Mark Wright. Secretary Nelson played a key role in developing Governor Landry’s comprehensive tax plan, which was the focus of the November 2024 special legislative session. Representative Wright authored House Bill 10 (on tax/sales and use), which was signed by Governor Landry on December 4, 2024.
They provided insights on enacted tax reforms, upcoming legislative efforts and the Louisiana State Taxation Policy Amendment on the March 29 ballot, while also addressing questions from attendees.
Tax reform accomplishments discussed included:
- Income Tax Relief: Starting January 1, 2025, Louisiana’s 3% income tax will be the second lowest in the country and the lowest in the South among states that have an individual income tax.
- Protecting Low-Income Taxpayers: The standard deduction nearly triples to $12,500, eliminating income tax for the poorest 20% of taxpayers while maintaining state sales tax exemptions for necessities like groceries, residential utilities, prescription drugs and diapers.
- Boosting Business Competitiveness: The corporate franchise tax is eliminated, and the corporate income tax is reduced to a flat 5.5%, meaning Louisiana will no longer have the highest corporate tax rate in the South.