Changes

'''The Stelly Plan''' is a since repealed 2002 tax measure in [[Louisiana]] designed to shift certain state sales taxes on food for home consumption and utilities to increases in state income taxes. Narrowly approved by voters, the proposal soon ran into  criticism as middle-class taxpayers complained of paying much more in state income taxes than the amount of reduced sales taxes. The plan is named for former state Representative]] [[Vic Stelly|Victor T. "Vic" Stelly]], then a [[Lake Charles]]  [[Republican Party|Republican]] and later an [[Independent voter|Independent]] who served in the House from 1988 to 2004. Removal of the Stelly income tax tables began in calendar year 2009.

'''The Stelly Plan''' is a since repealed 2002 tax measure in [[Louisiana]] designed to shift certain state sales taxes on food for home consumption and utilities to increases in state income taxes. Narrowly approved by voters, the proposal soon ran into  criticism as middle-class taxpayers complained of paying much more in state income taxes than the amount of reduced sales taxes. The plan is named for former state Representative [[Vic Stelly|Victor T. "Vic" Stelly]], then a [[Lake Charles]]  [[Republican Party|Republican]] and later an [[Independent voter|Independent]] who served in the House from 1988 to 2004. Removal of the Stelly income tax tables began in calendar year 2009.

In the November 5, 2002, [[general election]], Louisiana voters approved the Stelly Plan, listed on the ballot as Act 88-2002, actually a constitutional amendment. The tabulation was 534,989 (51 percent) to 506,938 (49 percent).<ref>Louisiana Secretary of State, General election Returns, November 5, 2002.</ref>

In the November 5, 2002, [[general election]], Louisiana voters approved the Stelly Plan, listed on the ballot as Act 88-2002, actually a constitutional amendment. The tabulation was 534,989 (51 percent) to 506,938 (49 percent).<ref>Louisiana Secretary of State, General election Returns, November 5, 2002.</ref>

==Details of Stelly Plan==

==Details==

Under the Stelly Plan, the state sales tax on food for home consumption and the sales tax on [[natural gas]], [[electricity]], and water for residential use was lowered on January 1, 2003, from 3.9 cents to 2 cents per dollar. Taxes on those items were then eliminated on July 1, 2003. To replace revenue lost through Stelly, individual income tax brackets were adjusted upward. Because individual tax returns for taxable year 2003 were not filed until after January 1, 2004, the withholding tax tables were revised, and the new rates went into effect on January 1, 2003.<ref name=revenue>{{cite web|url=http://revenue.louisiana.gov/sections/publications/viewrelease.aspx?id=108|title="Information Available on Recent Tax Changes", January 21, 2003|publisher=revenue.louisiana.gov|accessdate=October 27, 2009}}</ref>

Under the Stelly Plan, the state sales tax on food for home consumption and the sales tax on [[natural gas]], [[electricity]], and water for residential use was lowered on January 1, 2003, from 3.9 cents to 2 cents per dollar. Taxes on those items were then eliminated on July 1, 2003. To replace revenue lost through Stelly, individual income tax brackets were adjusted upward. Because individual tax returns for taxable year 2003 were not filed until after January 1, 2004, the withholding tax tables were revised, and the new rates went into effect on January 1, 2003.<ref name=revenue>{{cite web|url=http://revenue.louisiana.gov/sections/publications/viewrelease.aspx?id=108|title="Information Available on Recent Tax Changes", January 21, 2003|publisher=revenue.louisiana.gov|accessdate=October 27, 2009}}</ref>