Business

New Louisiana laws impact state income taxes, make new form of medical marijuana available

Most taxpayers who don’t itemize on their federal income taxes will see a state tax cut, analysis shows

BATON ROUGE (KSLA/AP) — Louisiana taxpayers who itemize their federal deductions likely will pay more state income taxes under changes that went into effect at the dawn of the new year, according to an analysis by the Louisiana legislative fiscal office.

And most individual income taxpayers who don’t itemize will see a tax cut, the nonpartisan group says.

Those changes, however, might not become evident until people file their 2022 tax returns in 2023, a tax preparer told KSLA News 12′s Tayler Davis.

The tweaks to calculations of state income taxes arise from Act 134, legislation that Louisiana lawmakers approved in the first half of 2021. The matter then was put before voters Nov. 11.

Passage of Constitutional Amendment 2, by a margin of 54% to 46%, means an end to the state deductions for federal income taxes paid by individuals and corporations. In exchange, taxpayers are to get lower income tax rates.

The tax changes are among new laws that went into effect New Year’s Day in Louisiana.

Another new law makes the flower form of medicinal marijuana available to those who are eligible.

Louisiana dispensaries have been selling medical marijuana in liquid and topical forms as well as inhalers and edible gummies. The new law adds raw marijuana in a smokable form that, because it involves less processing, is anticipated to cost less for patients.

Written by Tayler Davis and Staff

Categories: Business, Economy

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