During the 2008 Regular Session of the Louisiana Legislature that concluded in June, the legislature passed Senate Bill 87 (Act 396) which repeals the individual income tax increases imposed by the “Stelly Plan” (Act 51 of 2002). The repeal is effective January 1, 2009.
Also in this legislation is a provision that states that the secretary of the Department of Revenue, “shall not amend the withholding tables for the individual income tax until after July 1, 2009.” This provision has been incorrectly interpreted to mean that the tax relief afforded by this legislation will not be available to taxpayers until July, rather than the January effective date of this legislation. Taxpayers may, in fact, take advantage of this beginning in January, 2009.
In order to begin taking advantage of this tax repeal in January, individuals may fill out and give to  their employers a Louisiana Employee Withholding Certificate or L-4. To determine the correct amount of withholding, a withholding calculator is available on the Louisiana Department of Revenue’s web site at www.revenue.louisiana.gov. Once on the site, click on “individuals.” The Withholding Calculator is the second item listed under “File Online Now” which is located in the center of the page. The Withholding Calculator will be updated in the latter part of 2008 to include the legislative changes enacted by Senate Bill 87.
Please go to http://revenue.louisiana.gov/forms/taxforms/1300(4_01).pdf for a copy of the Employee Withholding exemption Certificate (L-4).