The Louisiana Department of Revenue released a bulletin today relating to state treatment of Hurricane Katrina related federal tax relief.
For example, according to the bulletin, qualified disaster relief payments are not income and are not subject to federal individual income tax. Therefore, according to the bulletin, because these funds will not be included in the recipients’ federal gross income, they will not be subject to Louisiana individual income tax. You can read the bulletin in its entirety here: bulletin
The attentive reader will note the Department’s disclaimer:
“A RIB is an informal statement of information issued for the public and employees that is general in nature. A RIB does not have the force and effect of law and is not binding on the public or the Department.”