Tax exemption proposed for B.R. software developers

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Logan Leger, CEO and co-owner of app maker NewAperio, set a goal early this year of reaching $1 million in revenue in 2012. Leger says having his business exempted from paying the 2% sales tax to the city-parish—as other professional services firms must do—would help him reach that goal, grow his business and add an employee. “It’s good for economic development in Baton Rouge,” Leger says. On Wednesday the Metro Council will introduce an ordinance to exclude custom-built computer software makers like NewAperio from the local 2% sales tax. Louisiana already exempts such businesses from paying a portion of the state sales tax. “It’s not really a product for sale over the counter,” says Councilman Mike Walker, who introduced the amendment. Walker says Leger approached him about amending the city-parish sales tax when he was campaigning for mayor. Walker is termed out, and the Metro Council has only one regular meeting this month. Councilman-elect Buddy Amoroso is also listed as a supporter of the amendment, which will likely go to a vote in January. Joseph Scott, a legislative section chief in the city-parish attorney’s office, says the tax amendment will not extend to software or computers bought in a store. “This is strictly for custom-built software,” Scott says. He adds that it isn’t yet clear whether the amendment will extend to website developers but that the council has the option of ensuring that it does so. The council meets at 4 p.m. on the third floor of City Hall, 222 St. Louis St. The full agenda for Wednesday’s meeting is here. —Adam Pearson

Today’s poll question: Do you think providing a 2% sales tax exemption to custom-software makers is a good way to spur local growth of the industry?

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