Tax laws

New Medical Marijuana and Income Tax Laws Take Effect in Louisiana Early in the New Year | Legislature

Louisiana’s medical marijuana program will offer raw, smokable cannabis to its patients, and the state will change its calculations for state income taxes as more than two dozen new laws go into effect Saturday with the start of the new year.

Most of the new laws were passed during the regular legislative session that lawmakers concluded in June. Voters approved income tax changes in the fall after lawmakers sent the measure to the ballot for consideration.

MEDICAL CANNABIS

The expansion of Louisiana’s medical marijuana program under the law sponsored by Houma Rep. Tanner Magee, the second House Republican, is expected to offer state residents a cheaper form of cannabis to treat their medical conditions.

State dispensaries sell medical marijuana in the form of liquids, topical applications, inhalers, and edible gummies. Legislation that will take effect in January adds raw marijuana in smokable form to this list of products already available for sale. Because it involves less processing, raw marijuana should be cheaper for patients.

Lawmakers have steadily expanded the rules for Louisiana’s medical marijuana program since enacting the distribution framework in 2015.

INCOME TAX CHANGES

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Louisiana taxpayers will see changes to their income tax rates and deductions in taxable periods beginning in 2022, as part of a package of bills passed by the Legislature and approved by lawmakers. voters when they agreed in the November elections to the constitutional changes involved.

The amendments will eliminate personal income tax and corporate tax deductions for federal income tax paid in exchange for lower income tax rates. Most excess itemized deductions taken by middle and upper income earners will disappear.

An economic analysis of the changes – by the nonpartisan Legislative Tax Office – said most individual income taxpayers who don’t itemize will see a tax reduction while those who do itemize are likely to pay more, and estimate less than 2 % of those who file a business tax return will see tax bills increase.

The tax changes may not be obvious until people file their tax returns for the year 2022.

OTHER NEW LAWS

Other new provisions taking effect include tax credits and deductions for families after delivery of a stillborn child, for funeral and burial expenses associated with a pregnancy-related death. and for the adoption of a foster child.

Meanwhile, some training policies required by lawmakers to address police misconduct in Louisiana go into effect Saturday. Additionally, law enforcement agencies should have detailed policies in place on when body cameras and dash cams should be turned on by officers who have them.