LABI takes stance on tax bills

The Louisiana Association of Business and Industry is trying to draw attention to two pending tax-related bills. LABI supports Senate Bill 268, which would overturn a law that allows attorneys working for a tax collector to collect up to 10% of the taxes, penalties and interest due in attorney fees when the collector wins a dispute against a taxpayer. If the taxpayer wins, the taxpayer can’t collect attorney fees. SB 268 started out saying the loser should pay; as amended, it would leave each party to pay their own counsel. In a 2007 report, the Council on State Taxation graded Louisiana’s tax administration a “D,” among the worst in the country, in part because of taxpayer liability for attorney fees. SB 268 breezed through the Senate and will be heard by the House Ways and Means Committee, although it was not on the committee’s posted agenda this morning. LABI opposes House Bill 316, which it says would expand the property tax special assessment for seniors, thereby shifting the tax burden onto other property owners. The bill is scheduled for debate on the House floor today; if passed, voters could approve the change as a constitutional amendment next year.