When will Louisiana abolish state income tax like southern peers Texas, Florida, Tennessee?

Greg Hilburn
Shreveport Times

Louisiana taxpayers will have to wait at least another year before lawmakers consider eliminating the state's $4.5 billion income tax again.

Republican Columbia state Rep. Neil Riser's House Bill 844 to abolish the state income tax stalled in the House Ways and Means Committee on Monday, though Republican Committee Chair Julie Emerson of Lafayette promised action as soon as 2025.

Riser, who spend 12 years in the state Senate and is now serving his second term in the House, said the revenue can be replaced by paring billions of dollars in tax credits and exemptions that he says primarily benefits wealthy individuals, businesses and special interests.

"Ten out of 10 taxpayers will say that's what they prioritize more than this," said Riser, pointing to a book of exemptions and credits. "How many people in your district are getting benefit from these (exemptions)?"

Riser's bill would have taken effect in 2026.

The statue of former Gov. Huey Long overlooks the Louisiana State Capitol that he built. Pictured here Spring 2023.

"Are we going to set a date that we're actually going to do it?" he said.

While Riser's bill didn't advance, Emerson said she supports abolishing the income tax along with Republican Gov. Jeff Landry and his Secretary of Revenue Richard Nelson, who ran an unsuccessful campaign for governor based on eliminating the income tax.

"I do think we can accomplish this in 2026," Emerson said.

But she said details and offsets must be worked out during the 2025 Legislative Session, where lawmakers can consider making changes to any tax law because it's an odd year.

"There's a tremendous amount of will to get this accomplished," Emerson said. "It will make us more competitive with the states around us."

Neighboring Texas doesn't have an income tax. Neither do Florida or Tennessee. All through of those states' economies have boomed, while Louisiana's has lagged its southern peers.

More:Louisiana tax writing committee chair talks about future of lucrative business tax breaks

Greg Hilburn covers state politics for the USA TODAY Network of Louisiana. Follow him on Twitter @GregHilburn1.