Louisiana Amendment 2, Reduction of the Maximum Individual Income Tax Rate Measure (2021)

Louisiana Amendment 2
Election date November 13, 2021
Topic Taxes
Status a Approved
Type Constitutional amendment	Origin State legislature

2021 measures
November 13
Louisiana Amendment 1
Louisiana Amendment 2
Louisiana Amendment 3
Louisiana Amendment 4
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Louisiana Amendment 2, the Reduction of the Maximum Individual Income Tax Rate Measure, was on the ballot in Louisiana as a legislatively referred constitutional amendment on November 13, 2021. It was approved.

A "yes" vote supported amending the state constitution to decrease the maximum allowable individual income tax rate from 6% to 4.75% for tax years beginning in 2022 and providing in state law through House Bill 278 that the tax bracket rates beginning in 2022 for an individual would be 1.75% on the first $12,500 of net income; 3.50% on the next net income up to $50,000; and 4.25% on income above $50,000.

A "no" vote opposed decreasing the maximum individual income tax rates for tax years beginning in 2022, thereby maintaining the maximum individual income tax rates for an individual of 2% on the first $12,500 of net income, 4% on the next net income up to $50,000, and 6% on income above $50,000.

Election results

Louisiana Amendment 2
Result		Votes	Percentage
Yes		223,263	54.03%
No		189,970	45.97%

Results are officially certified.

Source

Overview

What did Amendment 2 do?

See also: Measure design, Ballot language and constitutional changes

The measure amended the constitution to provide that the maximum state individual income tax rate shall not exceed 4.75% for tax years beginning in 2022.

Going into the election, the state constitution required the state to deduct federal income taxes paid when computing state income taxes. The amendment allowed the legislature to provide in state law for deductions of federal income taxes paid.

The state legislature passed implementing legislation, House Bill 278, which the governor signed on June 16, 2021. HB 278 was designed to provide in state law for changes to individual income taxes after the amendment was approved.

HB 278 was designed to remove the ability to deduct federal income taxes paid from the state income taxes owed. It was designed to reduce individual income tax rates from 2%, 4%, and 6% to 1.85%, 3.50, and 4.25%.

It was also designed to provide for an income tax rate reduction trigger on the first of April from 2024 through 2034, which was set to reduce the individual income tax rates the following January if the state meets revenue growth goals and if the Budget Stabilization Fund's balance is at least 2.5% of the state's total revenue from the previous fiscal year. The fiscal impact note for the bill said, "The bill is estimated to result in an aggregate annual tax table liability increase of $6.9 million. In general, filers that itemize on their federal returns will face a tax increase, while filers who do not itemize will face a tax decrease."

Tax rates before amendment vs. under amendment
Income brackets	Current rates	Proposed rates under Amendment 2/House Bill 278
First $12,500	2%	1.85%
Next $37,500	4%	3.50%
Over $50,000	6%	4.25%

What other tax policy bills were on the ballot?

See also: Tax policy changes in Louisiana, 2021

The Louisiana Constitution limits legislation and constitutional amendments in odd-numbered years to matters concerning the state's budget, government finance, and taxation. The Louisiana State Legislature referred four constitutional amendments to the ballot, three of which proposed changes to tax policy. Additionally, the state legislature passed three tax bills in the 2021 legislative session (HB 278, HB 292, and SB 161) to make changes to the state's tax code, which were contingent on the approval of Amendment 2. In addition to Amendment 2, three other constitutional amendments were on the ballot:

• Amendment 1, which was defeated, would have created the State and Local Streamlined Sales and Use Tax Commission tasked to provide streamlined electronic filing and remittance of all sales and use taxes.

• Amendment 3, which was defeated, would have allowed Louisiana levee districts created after 2006 to levy an annual property tax of up to five mills ($5 per $1,000 of assessed value) without voter approval if those districts approved the 2021 constitutional amendment. In districts that did not approve the amendment, voter approval would have continued to be required to levy a property tax.

• Amendment 4, which was defeated, would have increased the amount of funds (from 5% to 10%) that can be redirected to a purpose other than what was originally provided for by law or as stated in the constitution during a projected budget deficit.

How did the amendment get on the ballot?

See also: Path to the ballot

In Louisiana, a two-thirds vote is needed in each chamber of the Louisiana State Legislature to refer a legislatively referred constitutional amendment to the ballot for voter consideration.

This amendment was introduced as Senate Bill 159 (SB 159) on April 12, 2021. The bill was adopted by the House on June 9, 2021, in a vote of 95-6 and by the Senate on June 10, 2021, in a vote of 34-3. In the House, the six no votes came from Democratic representatives. The bill was supported in the House by 68 Republicans, 25 Democrats, and two Independent representatives. In the Senate, two Republicans and one Democrat voted against the bill. The bill was supported in the Senate by 24 Republicans and 10 Democratic representatives.

Measure design

The amendment decreased the maximum individual income tax rate from 6% to 4.75% for tax years beginning in 2022. The tax brackets for an individual were set to be 2% on the first $12,500 of net income, 4% on the next net income up to $50,000, and 4.75% on income above $50,000. Going into the election, the state constitution required the state to deduct federal income taxes paid when computing state income taxes. The amendment allowed the legislature to provide in state law for deductions of federal income taxes paid.

Implementing legislation: House Bill 278

The state legislature passed and the governor signed House Bill 278, which provided in state law for changes to individual income taxes after the amendment was approved. HB 278 removed the ability to deduct federal income taxes paid from the state income taxes owed and provided for an income tax rate reduction trigger on the first of April from 2024 through 2034, which was set to reduce the individual income tax rates the following January, if certain conditions are met:

• the prior fiscal year's individual income tax revenues exceed income tax revenues of fiscal year 2018-2019 (adjusted annually by the state's revenue growth factor);
• the prior fiscal year's total tax, license, and fee revenues exceed the total tax, license, and fee revenue of fiscal year 2018-2019 (adjusted annually by the state's revenue growth factor);
• the budget stabilization fund balance is at least 2.5% of the state's total revenue from the previous fiscal year.

The individual income tax rates were set to be reduced by the difference between one and the percentage change in income tax collections in excess of the individual income tax collections for fiscal year 2018-2019 adjusted annually by the growth factor. The state's growth factor, which is set in the Louisiana Constitution, is the average annual percentage rate of change of personal income for Louisiana for the three years prior, which was around 4% as of 2021.

Text of measure

Ballot question

The ballot question for the amendment was as follows:

“

Do you support an amendment to lower the maximum allowable rate of individual income tax and to authorize the legislature to provide by law for a deduction for federal income taxes paid? (Amends Article VII, Section 4(A))

”

Ballot summary

The ballot summary was as follows:

“ Present Constitution provides that the state individual and joint income tax schedule of rates and brackets shall never exceed the rates and brackets on January 1, 2003 as set forth in Title 47 of the Louisiana Revised Statutes. Further provides that federal income taxes paid shall be allowed as a deduction in computing state income taxes for the same period. Proposed Constitutional Amendment provides that the maximum state individual rate shall not exceed four and three-quarters percent for tax years beginning after December 31, 2021. Further provides that federal income taxes paid may be allowed as a deduction in computing state income taxes for the same period as provided by law. ”

Constitutional changes

See also: Article VII, Louisiana Constitution

The measure amended section 4 of Article VII of the state constitution. The following underlined text was added, and struck-through text was deleted:

Text of Section 4: Income Tax; Severance Tax; Political Subdivisions

(A) Income Tax. Equal and uniform taxes may be levied on net incomes, and these taxes may be graduated according to the amount of net income. However, the maximum state individual and joint income tax schedule of rates and brackets shall never exceed the rates and brackets set forth in Title 47 of the Louisiana Revised Statutes on January 1, 2003 rate shall not exceed four and three-quarters percent for tax years beginning after December 31, 2021. Federal income taxes paid shall may be allowed as a deductible item in computing state income taxes for the same period as provided by law.

Readability score

See also: Ballot measure readability scores, 2021

Using the Flesch-Kincaid Grade Level (FKGL and Flesch Reading Ease (FRE) formulas, Ballotpedia scored the readability of the ballot title and summary for this measure. Readability scores are designed to indicate the reading difficulty of text. The Flesch-Kincaid formulas account for the number of words, syllables, and sentences in a text; they do not account for the difficulty of the ideas in the text. The state legislature wrote the ballot language for this measure. The FKGL for the ballot title is grade level 13, and the FRE is 33. The word count for the ballot title is 37, and the estimated reading time is 9 seconds. The FKGL for the ballot summary is grade level 8, and the FRE is 49. The word count for the ballot summary is 107, and the estimated reading time is 28 seconds.

Support

Supporters

Officials

• State Senator and measure sponsor R.L. Allain II (R)

Organizations

• Advantous Consoluting
• Council for a Better Louisiana
• Louisiana Association of Business and Industry
• One Acadiana

Individuals

• Jason DeCuir - Chair of the Centralized Sales and Use Tax Administration Study Group

Arguments

• Daniel Erspamer, chief executive officer of the Pelican Institute for Public Policy: According to The Advocate, Erspamer said the lower income tax rates would make Louisiana "a more attractive place to live and invest."
• Measure sponsor Sen. Bret Allain (R): According to The Advocate, measure sponsor Sen. Bret Allain (R) said his proposal "is a good first step to cleaning up the state's tax code," and noted that Louisiana ranks #42 in the Tax Foundation's State Tax Business Climate Index.
• Jason DeCuir, Chair of the Centralized Sales and Use Tax Administration Study Group: DeCuir said, under the proposed amendment, the state would "no longer be tied to the federal system so every time Congress makes changes, our budget is not impacted. ... we still have three rates of tax, but they all have been lowered a little bit, but it sets it up for the legislature to now make more changes just by legislative action."

Opposition

Opponents

Organizations

• Louisiana Budget Project

Arguments

• Louisiana Budget Project: "The tax swap would trade a longstanding federal income-tax deduction for lower tax rates on people and corporations, with the biggest rate cuts going to those with the highest incomes. The package could also dramatically harm the state budget through mandatory income tax rate reductions if and when the economy does better than expected, leaving less money for education, health care and transportation."

Media editorials

See also: 2021 ballot measure media endorsements

Ballotpedia lists the positions of media editorial boards that support or oppose ballot measures. This does not include opinion pieces from individuals or groups that do not represent the official position of a newspaper or media outlet. Ballotpedia includes editorials from newspapers and outlets based on circulation and readership, political coverage within a state, and length of publication. You can share media editorial board endorsements with us at editor@ballotpedia.org.

Support

• The Advocate Editorial Board: "Just as with sales taxes, income taxes — corporate and personal — are too complex a system in Louisiana. The many changes caused by adoption of this amendment would lower the top rate of personal income tax and should make Louisiana more competitive for new businesses."

Opposition

You can share campaign information or arguments, along with source links for this information, at editor@ballotpedia.org.

Background

Individual income tax in Louisiana

The current Louisiana individual income tax rates have been in effect since 2009.

Rate	2008 and prior	2009 and after
Single, married filing separately, or head of household
2%	First $12,500	First $12,500
4%	Next $12,500	Next $37,500
6%	Over $25,000	Over $50,000
Married filing jointly or qualified surviving spouse
2%	First $25,000	First $25,000
4%	Next $25,000	Next $75,000
6%	Over $50,000	Over $100,000

Tax policy changes in Louisiana, 2021

The Louisiana Constitution limits legislation and constitutional amendments in odd-numbered years to matters concerning the state's budget, government finance, and taxation. The Louisiana State Legislature referred four constitutional amendments to the ballot, three of which proposed changes to tax policy. Additionally, the state legislature passed three tax bills in the 2021 legislative session (HB 278, HB 292, and SB 161) to make changes to the state's tax code, which were contingent on the approval of Amendment 2.

2021 constitutional amendments

• Amendment 1, which was defeated, would have created the State and Local Streamlined Sales and Use Tax Commission tasked to provide streamlined electronic filing and remittance of all sales and use taxes.

• Amendment 2, which was approved, amended the state constitution to decrease the maximum allowable individual income tax rate from 6% to 4.75%.

• Amendment 3, which was defeated, would have allowed Louisiana levee districts created after 2006 to levy an annual property tax of up to five mills ($5 per $1,000 of assessed value) without voter approval if those districts approved the 2021 constitutional amendment. In districts that did not approve the amendment, voter approval would have continued to be required to levy a property tax

• Amendment 4, which was defeated, would have increased the amount of funds (from 5% to 10%) that can be redirected to a purpose other than what was originally provided for by law or as stated in the constitution during a projected budget deficit.

Bills changing tax policy contingent on approval of Amendment 2

The Louisiana State Legislature also passed three tax bills in the 2021 legislative session (HB 278, HB 292, and SB 161) to make changes to the state's tax code, which were contingent on the the approval of Amendment 2.

House Bill 278: HB 278 removed the ability to deduct federal income taxes paid from the state income taxes owed and provides for an income tax rate reduction trigger on the first of April from 2024 through 2034, which was set to reduce the individual income tax rates the following January, if the state meets revenue growth goals and the Budget Stabilization Fund Balance is 2.5% of total state revenue receipts from the previous fiscal year. The fiscal impact note for the bill said, "The bill is estimated to result in an aggregate annual tax table liability increase of $6.9 million. In general, filers that itemize on their federal returns will face a tax increase, while filers who do not itemize will face a tax decrease."

House Bill 292: HB 292 eliminated the ability to deduct federal income taxes paid from the corporate state income tax liability. It made the five corporate income tax brackets into three. Under the three brackets, the corporate income tax rate was set to be 3.5% on the first $50,000 of income; 5.5% on $50,000-$100,000 of income; and 7.5% on income over $150,000. The fiscal impact note for the bill said, "The current estimate of the corporate income tax liability change resulting from the elimination of the deduction for federal taxes paid, combined with the bill’s proposed rate and bracket structure, is calculated by the Department of Revenue to result in a $29.2 million net increase in corporate income tax liabilities."

Senate Bill 161: SB 161 made permanent the exemption of the corporate franchise tax on the first $300,000 of taxable capital. The bill also reduced the tax rate of $3 per $1,000 in income above $300,00 to $2.75 per $1,000 in income above $300,000. The fiscal note for the bill said the exemption and rate reduction would result in "an aggregate tax year franchise tax liability reduction of $55.9 million."

A fiscal impact statement for the tax bills said, "From the aggregate state fiscal perspective, the individual income tax changes (HB 278) are closely revenue neutral. The combined corporate tax impact of HB 292 (corporate income tax) and SB 161 (franchise tax) is also closely revenue neutral in FY22 -$2.2M and FY23 +$1.1M, and then becomes a net revenue decrease in each subsequent year; FY24 -$21.1M, FY25 -$26.7M, FY26 and beyond -$26.7M. Over the five-year fiscal note horizon, the two bills result in a $75.6M revenue decrease."

Income tax rates by state

As of 2021, forty-two states levied an individual income tax on wages and salaries. One state—New Hampshire— taxed only dividend and interest income. Of those 42 states, nine had a flat tax on taxable income. A flat tax is a type of income tax that is assessed on income for all taxpayers. Louisiana is one of 32 states with graduated income tax brackets. A graduated (also called progressive) income tax rate assesses tiered tax rates such that lower portions of income are taxed at lower rates and income in higher levels is taxed higher. Eight states did not have an individual income tax.

The following data from the Tax Foundation shows income tax brackets and rates by state.

Referred amendments in Louisiana during odd years

A total of 52 constitutional amendments appeared on the statewide ballot in Louisiana during odd-numbered years during the 20-year period from 1999 through 2019. Of the 52 amendments, 36 (69.23%) were approved and 16 (30.77%) were defeated.

Legislatively-referred constitutional amendments, 1999-2019
Total number	Approved	Percent approved	Defeated	Percent defeated	Odd-year average	Odd-year median	Odd-year minimum	Odd-year maximum
52	36	69.23%	16	30.77%	5	4	0	16

Campaign finance

See also: Campaign finance requirements for Louisiana ballot measures

Reform Louisiana PAC registered to support Amendments 1 and 2 on the 2021 ballot. The committee's chairperson was Republican State Sen. R.L. Allain II (also known as Bret) and the treasurer is Republican Senate President Patrick Cortez (also known as Page). The committee reported $69,000 in cash contributions, $5,000 in in-kind contributions, and $38,302 in cash expenditures.

	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Support	$64,000.00	$5,000.00	$69,000.00	$38,301.59	$43,301.59
Oppose	$0.00	$0.00	$0.00	$0.00	$0.00
Total	$64,000.00	$5,000.00	$69,000.00	$38,301.59	$43,301.59

Support

The following table includes contribution and expenditure totals for the committee in support of Amendments 1 and 2.

Committees in support of Amendment 2
Committee	Cash Contributions	In-Kind Contributions	Total Contributions	Cash Expenditures	Total Expenditures
Reform Louisiana PAC	$64,000.00	$5,000.00	$69,000.00	$38,301.59	$43,301.59
Total	$64,000.00	$5,000.00	$69,000.00	$38,301.59	$43,301.59

Donors

Donors who gave $5,000 or more to the committee were as follows:

Donor	Cash Contributions	In-Kind Contributions	Total Contributions
Louisiana Realtors PAC	$10,000.00	$0.00	$10,000.00
Bayou Leadership PAC	$2,000.00	$5,000.00	$7,000.00
Acadian Ambulance Service	$5,000.00	$0.00	$5,000.00
Bold	$5,000.00	$0.00	$5,000.00
Committee of 100 for Economic Development, Inc.	$5,000.00	$0.00	$5,000.00
LHA Management	$5,000.00	$0.00	$5,000.00
Royal Engineers & Consultants, LLC	$5,000.00	$0.00	$5,000.00

Opposition

If you are aware of a committee registered to oppose this measure, please email editor@ballotpedia.org.

Methodology

To read Ballotpedia's methodology for covering ballot measure campaign finance information, click here.

Path to the ballot

See also: Amending the Louisiana Constitution

In Louisiana, a two-thirds vote is needed in each chamber of the Louisiana State Legislature to refer a legislatively referred constitutional amendment to the ballot for voter consideration.

This amendment was introduced as Senate Bill 159 (SB 159) on April 12, 2021. On April 20, 2021, the state Senate passed SB 159 in a vote of 36-3. The House passed the measure with amendments on May 20, 2021, in a vote of 94-1. The Senate rejected the House's amendments on May 24, 2021. A conference committee was convened and the bill was adopted by the House on June 9, 2021, in a vote of 95-6 and by the Senate on June 10, 2021, in a vote of 34-3.

Vote in the Louisiana House of Representatives June 9, 2021
Requirement: Two-thirds (66.67 percent) vote of all members in each chamber
Number of yes votes required: 70  a
	Yes	No	Not voting
Total	95	6	4
Total percent	90.48%	5.71%	3.81%
Democrat	25	6	4
Republican	68	0	0
Independent	2	0	0

Vote in the Louisiana State Senate June 10, 2021
Requirement: Two-thirds (66.67 percent) vote of all members in each chamber
Number of yes votes required: 26  a
	Yes	No	Not voting
Total	34	3	1
Total percent	89.47%	7.89%	2.63%
Democrat	10	1	0
Republican	24	2	1

How to cast a vote

See also: Voting in Louisiana

Click "Show" to learn more about voter registration, identification requirements, and poll times in Louisiana.

How to cast a vote in Louisiana

Poll times In Louisiana, polls are open from 6:00 a.m. to 8:00 p.m. Central time for Tuesday elections. For Saturday elections, polls open at 7:00 a.m. If the polls close while a voter is in line, he or she will still be permitted to vote. Registration requirements Check your voter registration status here. To vote in Louisiana, one must provide documentary proof of United States citizenship and be a resident of the state and parish in which they register. A voter must be at least 18 years old by Election Day. Registration completed via mail or in person must occur at least 30 days before Election Day. Registration completed online must occur at least 20 days before Election Day. Registrants must present a valid form of identification to register. Pre-registration is available beginning at age 16. Voters may register in person at any Registrar of Voters office or any of the following places: Louisiana Office of Motor Vehicles Louisiana Department of Social Services WIC offices Food stamp offices Medicaid offices Offices and agencies serving people with disabilities Military recruitment offices Automatic registration Louisiana does not practice automatic voter registration. Online registration See also: Online voter registration Louisiana has implemented an online voter registration system. Residents can register to vote by visiting this website. Same-day registration Louisiana does not allow same-day voter registration. Residency requirements Louisiana law requires 20 days of residency in the state before a person may vote. Verification of citizenship See also: Laws permitting noncitizens to vote in the United States Louisiana state law requires a voter registration applicant to provide proof of citizenship to register to vote. As of June 2025, the state had not implemented the requirement. All 49 states with voter registration systems require applicants to declare that they are U.S. citizens in order to register to vote in state and federal elections, under penalty of perjury or other punishment. Seven states — Alabama, Arizona, Georgia, Kansas, Louisiana, New Hampshire, and Wyoming — have laws requiring verification of citizenship at the time of voter registration, whether in effect or not. In three states — California, Maryland, and Vermont — at least one local jurisdiction allows noncitizens to vote in some local elections. Noncitizens registering to vote in those elections must complete a voter registration application provided by the local jurisdiction and are not eligible to register as state or federal voters. Verifying your registration The site Geaux Vote, run by the Louisiana Secretary of State office, allows residents to check their voter registration status online. Voter ID requirements Louisiana requires voters to present photo identification while voting. Voters can present the following forms of identification. This list was current as of August 14, 2024. Click here to ensure you have the most current information. Louisiana driver's license Louisiana special identification card LA Wallet digital driver's license Military ID or other generally recognized picture identification card that contains the name and signature of the voter Voters who do not have accepted ID may vote by completing a voter identification affidavit. By law, voters who sign an affidavit may be challenged. Registered voters can bring their voter information card to the Office of Motor Vehicles to receive a free Louisiana special identification card.

See also

2021 measures

• 2021 ballot measures
• Taxes on the ballot

Louisiana

• Louisiana ballot measures
• Louisiana ballot measure laws

News and analysis

• Ballot measure lawsuits
• Ballot measure readability
• Ballot measure polls

External links

• Louisiana Senate Bill 159
• Louisiana House Bill 278