So far this fiscal year, Louisiana has collected more in corporate and franchise taxes than it has paid out in tax breaks, according to a report from the Louisiana Department of Treasury.
The department’s September 2016 Net Receipts Report shows that Louisiana has collected $95 million to date in corporate and franchise taxes—an increase of $189 million. Last year at this time, the state had paid out $94 million more in tax breaks than it had collected in corporate and franchise tax revenue.
The state’s repeated budgetary shortfalls have been blamed, in part, on the drop in corporate and franchise tax revenue. Lawmakers worked to correct those issues in legislative sessions earlier this year.
In those same sessions, lawmakers hiked the state’s sales tax. Those efforts have led to increased state sales tax revenue, the treasury department says.
General sales tax receipts thus far have increased to $932 million—$244 million more than this time last year, a jump of 35%. This time last year, the state collected $688 million in sales taxes, $3 million more than the prior year, the department says.
Total state revenue for fiscal year 2016-17 thus far is $2.175 billion—a 25% increase over one year ago, the department says.
The department’s report says gasoline and special fuel tax receipts to date for fiscal year 2016-17 are $160 million, a 1% increase over this time last year.
The report comes on the heels of suggestions that an increase in the state fuel tax could be viable way to finance the state’s future infrastructure needs and megaprojects.
Last month, Ken Naquin, secretary/CEO of Louisiana Associated General Contractors, said that doubling the state fuel tax rate from 20 cents to 40 cents per gallon could raise up to $600 million per year.
Naquin was a guest panelist at the Louisiana’s Chemical Manufacturing Initiative Conference.
