A bill to change the way multistate corporations calculate state income tax—and favor some companies over others—is now in the hands of the full Louisiana Senate.
The Manship News Services reports the Senate Revenue and Fiscal Affairs Committee on Wednesday unanimously advanced House Bill 20, by Rep. Gene Reynolds.
Under current law, certain business sectors, like manufacturing and retail, are governed by different rules for calculating what they owe to the Louisiana Department of Revenue.
But Reynolds’ bill would force every company in the state, regardless of industry, to calculate their taxes on the amount of sales generated in Louisiana.
Reynolds said oil and gas lobbyists and Gov. John Bel Edwards’ administration were on board with the bill before he proposed it.
Prior to arriving to the Senate committee, the House passed the bill with an amendment by Rep. Jim Morris, R-Oil City.
Morris’ amendment is said to help oil and gas companies. It permits integrated oil companies, such as ExxonMobil and Shell, to use the amount of property and payroll in the state, along with sales, to calculate taxes.
Reynolds said he doesn’t care for the oil and gas amendment, but wants the bill to pass.
“I want everybody to do their share,” Reynolds said. “It seems like everybody pays for the band while the rich dance.”
The committee’s chairman, Rep. JP Morrell, D-New Orleans, said the Edwards’ administration indicated it is worried the bill would not make it to the governor’s desk if the Senate stripped the language from the bill.
