Alert: Zombie Tax Reform in LouisianaRead Time: 1 min
The tax reform legislation promoted by Governor Jindal has found new life but in ways that the Governor is now actively working against. Despite testimony in opposition from both the Departments of Revenue and Economic Development, the Louisiana House Ways and Means Committee has advanced a package of bills that have the potential to create, according to some sources, a $329 million tax increase, primarily from business taxpayers and, particularly, from manufacturers. Certain bills, originally part of Governor Jindal’s plan, are being advanced with an eye to amending them to impose a 15 percent across-the-board cut for tax incentive programs including credits for the movie industry, research and development, historic preservation and the Enterprise Zone program, reductions to vendor’s compensation allowed for collecting Louisiana sales and use taxes, reduced tax exemptions and benefits for manufacturing and equipment investment, for business utilities as well as certain oil and gas exemptions. At this point, there is strong opposition to what is perceived as a significant tax increase on business. We are continuing to monitor the situation for our clients and will provide information and analysis as the situation develops.