Changes

==Details==

==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"|date=January 21, 2003|publisher=revenue.louisiana.gov|accessdate=April 15, 2021}}</ref>

Stelly did not affect local sales taxes on food. Only food requiring preparation at home was covered by the reduction in state sales tax.  Single-use portions or restaurant meals were not affected by the Stelly Plan. Prescription drugs were already exempt from sales taxes, but Stelly placed that exemption in the state Constitution. Louisiana does not exempt over-the-counter drugs from sales tax, but such items are exempt in neighboring [[Texas]]. Stelly also allowed the tax owed by the individual to be distributed over the year 2003. The increase in taxpayer withholding was to have been the same as the savings realized from the elimination of sales taxes under the Stelly Plan. Taxpayers making approximately $80,000 annually saw increases in total state taxes.<ref name=revenue/>

Stelly did not affect local sales taxes on food. Only food requiring preparation at home was covered by the reduction in state sales tax.  Single-use portions or restaurant meals were not affected by the Stelly Plan. Prescription drugs were already exempt from sales taxes, but Stelly placed that exemption in the state Constitution. Louisiana does not exempt over-the-counter drugs from sales tax, but such items are exempt in neighboring [[Texas]]. Stelly also allowed the tax owed by the individual to be distributed over the year 2003. The increase in taxpayer withholding was to have been the same as the savings realized from the elimination of sales taxes under the Stelly Plan. Taxpayers making approximately $80,000 annually saw increases in total state taxes.<ref name=revenue/>

==Repeal==

==Repeal==