Thirteen of the Louisiana Economic Recovery Task Force’s recommendations will be discussed during the upcoming special session of the state Legislature, which begins Monday at 6:01 p.m.
Overall, the group’s recommendations comprise nearly one-third of the Legislature’s 41 identified discussion items.
Among recommended items up for discussion: Suspending the corporate franchise tax, currently pending on the Senate floor as House Concurrent Resolution 66 by state Rep. Stuart Bishop, R-Lafayette. In its existing form, the resolution would suspend the lower tier of the franchise tax levied on domestic and foreign corporations and the initial tax levied on certain business entities subject to the tax.
However, legislators and task force members are now weighing whether to convert the resolution to a bill reserved for the special session. Still, Jason DeCuir, who chairs the pro-business task force, says he isn’t sure “how the word ‘suspension’ got in there,” emphasizing the group’s desire to eliminate the tax altogether.
Several weeks ago, the task force—formed by legislative leaders in April to prioritize measures for restarting the state’s economy—presented lawmakers with its set of short-term recommendations, identifying liability related to the virus as one of the greatest obstacles companies face as they return to work.
But members also pushed for some common business lobby targets, such as corporate severance taxes, tougher rules restricting tax abatements under the Industrial Tax Exemption Program and tort reform.
Ahead of the upcoming special session, lawmakers have agreed to discuss another dozen items prioritized by the group, including:
- The Louisiana Workforce Investment Council and Workforce Training;
- Eligibility requirements for Enterprise Zone incentives, Quality Jobs Program and the Competitive Projects Payroll Incentive Program;
- Rehabilitation for various state tax credits including the Historic Structures Tax Credit;
- Net operating loss carryback provisions of corporate income tax deductions;
- Administration and collection of sales taxes;
- ITEP and payments in lieu of tax (PILOTs);
- Extension of filing all state and local tax returns, penalties and interest for businesses due to the public health emergency;
- Collection of sales tax by dealers and vendor’s compensation;
- Expansion of broadband coverage;
- Collection of withholding taxes from unemployment benefits;
- The creation of a Streamlining Government Commission and to provide for its authority, duties and powers;
- Civil liability and motor vehicle liability coverage, general prescriptive periods for delictual actions, collateral source, prescription, jury trials, jury trial thresholds, direct actions against insurers, evidence regarding seat belts, annual rate filings by the insurance commissioner and mandatory rate reductions.
Read more about today’s task force meeting in Daily Report AM.
