Lawmakers started sending their cornerstone revenue bills to conference committee Tuesday, setting the stage for what should be a round of frantic, last-minute negotiations before the session adjourns at 6 p.m. Thursday.
There’s still no agreement in place for how the Legislature will pass a balanced budget that’s revenue neutral, thus meeting Gov. Bobby Jindal’s directive against any net increase in taxes. The threat of a veto, possibly several, looms as a result.
The proposed cigarette tax and a bill that suspends an exemption on business utilities were among the first key bills sent earlier in the day to conference committee—where representatives from each body are charged with working out differences on bills the House and Senate cannot agree on.
The meetings between lawmakers are often held behind closed doors before they issue compromise reports to the Legislature for final approval. The reports can sometimes be several pages long, with lawmakers casting votes without fully digesting the information and with mere days or hours remaining in the session. That’s all to say, the session may go down to the wire.
The 11th-hour forecast includes the budget, according to House Appropriations Chairman Jim Fannin, R-Jonesboro. Fannin, the author of House Bill 1, which contains the $24 billion spending plan, said he may not move the budget until Wednesday. He said in a brief interview that he first wanted to get a better handle on the various revenue bills being thrown into conference committee that are needed to balance the budget.
The House voted to reject amendments on five important revenue bills Monday, among others, that had been previously approved by the Senate. The business lobby is already negotiating with lawmakers and the administration on the bills, although no apparent deal is on the table.
The day’s longest debate was over HB 119 by Rep. Harold Ritchie, D-Bogalusa, which, as it left the Senate, would increase Louisiana’s cigarette tax to $1.08 and increase taxes for other tobacco products and vapor devices. That’s a 72 cent increase over Louisiana’s current 36 cent rate. It’s also much higher than what many conservatives in the House want to see. Lawmakers in the lower chamber sent the legislation to the Senate with just a 32 cent increase.
Ritchie encouraged the House to approve the bill as it was returned by the Senate, but the body eventually voted to send it to conference committee. Rep. Lance Harris of Alexandria, the chairman of the House GOP Delegation, warned his colleagues against improving what he described as a 200% increase.
“It’s not fair to put it on the backs of a small segment of society,” said Harris, the owner of convenience stores.
Ritchie, replying later in the debate, said, “Give me a break.”
Other revenue bills, as of mid-afternoon Tuesday, headed to conference committees include:
- House Concurrent Resolution 8 by Rep. Jack Montoucet, D-Crowley, which would suspend the exemption for business utilities as it pertains to the 0.97% state sales and use tax. The Louisiana Chemical Association and others have dug in their opposition, and Mountoucet said in an interview he doubted a compromise was possible.
- HB 624 by Rep. Katrina Jackson, D-Monroe, which would reduce the amount of certain corporate income tax exclusions and deductions.
- HB 629 by Jackson, which would reduce income and corporation franchise tax credits.
- HB 635 by Jackson, which would reduce all tax rebates.
- HB 805 by Rep. Bryan Adams, R-Gretna, which recalculates the way the inventory tax credit is granted by the state.
Jeremy Alford and Jeremy Harper will publish a daily update throughout the legislative session on Daily Report PM. Alford reports on Louisiana politics at LaPolitics.com. Follow him on Twitter or on Facebook. He can be reached at JJA@LaPolitics.com.
