Details remain scarce on state tax reform

During his public remarks at LABI’s annual meeting today, Tim Barfield of the state Department of Revenue said “nothing’s off the table” as Gov. Bobby Jindal’s tax overhaul package comes together. But there are a few “parameters,” he says. “Property taxes right now are not on the table,” he says. Barfield says the administration would listen if a legislator brought forward a state property tax proposal, but says he doesn’t sense any “political viability” for such a proposal. He says severance taxes are not being seriously discussed right now—a reference to a media report that suggested eliminating oil and gas extraction taxes might be part of the package. Barfield says it’s “generally true” that economic development incentives will be protected “on a targeted basis,” although tweaks will be considered. Benefits currently offered as income tax breaks might still be delivered in some form, he says. As for sales tax exemptions, the administration wants to maintain constitutionally protected exemptions and “business-to-business” exemptions that would result in “double taxation” if removed. Barfield says the administration’s final package won’t be ready until shortly before the session, but the process will be “very open.” A request for proposals for an outside consultant to help refine the plan has been issued, he says. Jindal wants to eliminate personal and corporate income taxes as part of “revenue-neutral” tax reform. —David Jacobs