Table 4--Key provisions of State income tax laws in the South (1) 
Federal Proportion of 
adjusted gross Federal long-term 
income used as income tax capital gainsi2) 
State tax basis deductible taxable Comments 
Percent 
Alabama No Yes 100 Federal income tax deductible if itemizing. 
Arkansas No No 40 For years prior to 1987, 100 percent of long-term 
gains are taxable. 
Florida - - - No income tax. 
Georgia Yes No 100 
Kentucky Yes Yes 100 
Louisiana Yes Yes 100 Allowable tax credit equal to 10 percent of Federal 
credits. 
Mississippi No No 100 
Missouri Yes Yes 100 
North Carolinas) No No 100 
Oklahoma Yes Yes 100 Deduction of Federal income tax optional-those who 
deduct are subject to higher rates. 
South Carolina Yes No 100 
Tennessee - - - Income tax on interest and dividend income only. 
Texas - - - No income tax. 
Virginia Yes No 100 
West Virginia Yes No 100 
(1) As of 1985. 
(2) As of 1987. 
(3) Timber income may be reported in the year received or in equal installments over a 3-year period at the taxpayer's election. 
Reforestation expenses may be deducted currently or amortized over a period of 60 months at taxpayer's election. 
109 
