BATON ROUGE, La. (AP) — Gov. John Bel Edwards has signed key pieces of a complicated tax swap plan to disentangle Louisiana’s income tax collections from federal tax payments.
But the proposal still needs voter approval this fall to take effect. The idea awaiting a decision on the October ballot would get rid of personal income tax and corporate tax deductions for federal income taxes paid in exchange for lowering the state’s income tax rates.
Louisiana also would permanently eliminate the corporate franchise tax for small businesses and lower the tax rate for others.
The Democratic governor announced late Monday that he had signed the bills. Now, officials wait for voters to settle the issue.