LA’s Fiscal Session: What might we expect in a tax package?

Plank #1

Personal and Corporate Income Taxes:

"Our goal is to lower the rate as much as we can and add stability," Allain says. "For me, this is the top issue in the tax package."

Plank #2

Inventory Tax Credit:

While local governments have long opposed any changes to the inventory tax credit, many lawmakers want to reform the convoluted system that necessitates such a credit without impacting local coffers. At the same time, many local officials would like to see the governor’s executive order on industrial tax exemptions made permanent. "Maybe we can come together and marry those issues," Allain says, "where everyone gets what they want."

Plank #3

Franchise Tax:

"We’re taking a look at how we can phase out and replace it," Bishop says. "The idea of us taxing people on the amount of capital in this state isn’t doing us any favors."

Plank #4

Tax Administration:

This category has bills that will probably be the easiest for the chairmen to pass. For example, they want the state aligned with the new IRS partnership audit provisions and they’re exploring different options for people who work in Louisiana on a temporary basis.

Plank #5

Severance Taxes:

This conversation with the oil and gas industry began in earnest this week when Allain and Bishop asked representatives to help them come up with a compromise to make severance taxes, and other elements of tax law, fair to both industry and the state.

Southern Strategy Group will provide developments of this tax package as well as further information on bills that may pique your interest.

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