A proposed constitutional amendment would expand the kinds of new businesses that could be exempt from local property taxes. On its way to the Senate floor are companion bills to add a new category for non-manufacturing commercial investments to those eligible for the 10-year industrial tax exemption. With at least a $25 million investment and 50 percent of company sales out of state, eligible projects would include corporate headquarters, distribution facilities, data services facilities, research-and-development operations, and digital media and software development centers. The legislation also calls for the first $10 million of fair market value (or 10 percent, whichever is greater) invested in the project to be taxed normally.
“This is a very surgically targeted effort,” said Economic Development Secretary Stephen Moret, who said in his four and a half years as economic development secretary he could not think of three projects that would have met the proposed new eligibility. He said Louisiana is at a strong disadvantage competing for such large-scale projects now because local business property taxes are double those in average Southern states.
Participation would be voluntary for local governments and would require the approval of the parish governing authority, sheriff, assessor, school board and municipalities.
The only opposition to HB 674 and 694 came from state assessors, whose counsel Bryan Eddington cited concerns over lawsuits for discriminatory practices, depending on the kinds of businesses approved, and the lack of oversight by local bodies once they opt into a project.
—The state will be back in the business of mailing paper checks as tax refunds under a bill that passed Senate committee today. HB 1092 has become a cause for author Rep. Jim Fannin, D-Jonesboro, after his constituents complained about receiving debit cards containing their refunds. This year, to save money, the Department of Revenue switched to sending refunds by debit card or direct deposit.
“This was just ahead of its time,” Fannin told the Senate Revenue & Fiscal Affairs Committee, citing difficulties in getting cards cashed by non-Chase Banks. He did not have to go far for live examples, as Rep. Bubba Chaney, R-Rayville, told of the card being declined by his own bank and having to make multiple withdrawals from an ATM. “I finally got my money but it was a pain in the rear end,” he said.
From the committee, Sen. John Smith, R-Leesville, chimed in, saying, “I went to my bank—I’m on the board of directors—and I couldn’t get mine cashed,” and added, “Wal-Mart would not take it.
“I learned my lesson,” he concluded. “I should have told my CPA to direct-deposit it.”
Editors note: This story has been changed since its original publication.
