What's the latest on effort to repeal, reduce Louisiana state income tax?

Republican Gov. Jeff Landry's goal to repeal or reduce the Louisiana income tax and simplify the state's convoluted tax code will have to wait until at least next year after Legislative leaders said the complexity of the effort requires more study and planning.

Republican Senate President Cameron Henry and House Speaker Phillip DeVillier said the Legislature won't call lawmakers into a Special Session this summer but will continue to hold public meetings to "refine" plans to overhaul the state tax code.

"Since adjourning in June, talks have continued with Revenue Secretary Richard Nelson and others to discuss what comprehensive tax reform would look like in Louisiana,” Henry said. "We’ve made a lot of progress, but it’s a very complicated issue that requires continued discussion. The public deserves time to see our plans and understand the implications for their families and their businesses. We want to get this right."

"The House is committed to tackling tax reform and plans to meet in the interim as often as it can on a number of issues including insurance, transportation, and several others to keep a spotlight on the needs of the state and develop solutions that can be brought forward next session," DeVillier said. "We have a group of legislators this term who know we have to think differently if we’re going to make Louisiana more competitive and prosperous, and we are committed to reaching that goal in due time."

Nelson has previously told USA Today Network the goal remains to lower the income tax rate initially with "revenue triggers in place that will reduce it to zero."

"There are significant challenges that require big changes to fix," Nelson said during a summer hearing of the tax-writing House Ways and Means Committee.

And that planning will have to factor in three years of annual budget forecast shortfalls of $600 million to $700 million, which could require cuts to higher education and healthcare.

The biggest culprits creating what Nelson has described as the "fiscal cliff" are the expiration of a 0.45% temporary sales tax that generates $455 million in annual revenue and the expiration of a temporary 2% sales tax on business utilities that generates $211 million in annual revenue.

Nelson has said addressing the "huge problem" will require "comprehensive changes" including the reduction of billions of dollars in tax exemptions, exclusions and credits that will allow Louisiana to reduce its personal and business tax rates.

That will make Louisiana more competitive with its southern peers like Florida, Tennessee and Texas, which have no state income tax and have seen their populations and economies enjoy explosive growth, he said.

More: Report ranks Louisiana last for at risk youth, citing unemployment, poverty, health, education

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

This article originally appeared on Shreveport Times: What's the latest on effort to repeal, reduce Louisiana state income tax?