Corporate tax rates will be 3.5 percent for the first $50,000 of taxable income, 5.5 percent for income between $50,000 and $100,000 and 7 percent for income in excess of $150,000.
The third corresponding statute, Act 389, applies to the state’s franchise tax, which is levied against earnings and investment capital rather than income. Act 389 eliminates any franchise tax on capital below $300,000 and reduces the rate to 2.75 percent on capital above $300,000.
Both Gov. John Bel Edwards, a Democrat, the GOP-controlled Legislature and Louisiana’s business community supported Amendment 2.
After voters approved the measure, 54-46, Edwards said, “Tax bills are not going to be higher.”
According to the Public Affairs Research Council, voters have considered 293 ballot amendments since the Louisiana Constitution was revised in 1974, with 202 being approved. More than half dealt with tax and budget items.