Gov. Jeff Landry and others in Louisiana are advocating for the removal of the tax on business inventory imposed by local government to help boost business growth. However, a proposal to eliminate constitutional protections on the power to levy this tax has sparked concerns among some local officials. The business inventory tax generates revenue for parish governments, sheriffs’ offices, and school boards, varying significantly in value from parish to parish.
St. Charles Parish Assessor Tab Troxler expressed fears that removing the tax could shift the burden elsewhere, potentially leading to higher tax rates or budget cuts. Despite this, Department of Revenue Secretary Richard Nelson argues that the tax is discouraging business investment in the state and hindering economic growth. Louisiana Association of Business and Industry President Will Green supports efforts to eliminate the inventory tax, aiming to make Louisiana more competitive for businesses.
Nelson’s proposal, part of a larger tax package, aims to transfer the tax from the state constitution to state statute, allowing for changes or elimination more easily. Under the plan, parishes can opt-out of collecting the tax in exchange for a lump sum payment. Nelson also proposes phasing out the tax over five years. Additionally, a plan to end an inventory tax credit program is included in the package.
Landry has promised to ensure local governments are supported financially throughout these changes. Adjustments to the inventory tax plan are being worked on to address concerns about potential revenue losses for local municipalities. Overall, the goal is to make Louisiana more appealing for businesses and increase its economic competitiveness.
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