Two years ago, Louisiana Governor John Bel Edwards ordered changes in the state’s industrial tax exemption program that tied the tax break to jobs creation.
Now the governor is proposing new modifications.
Under the latest plan, manufacturers would get a tax break of only 80 percent of the taxes owed. Companies would have to pay the remaining 20 percent of taxes based on their property’s assessed value.
Despite the cut, experts say Louisiana still will have the most generous industrial tax exemption in the nation.
Companies seeking the industrial tax exemption are currently required to get approval from local taxing districts, including:
The governing Parish Council
The new plan simplifies the process by requiring the state to present the proposed tax break to local authorities, who would approve or reject the offer. This ends the confusion of each tax district setting its own rate and requiring assessors to juggle a bunch of different exemptions for the same property.
The proposal was presented to the Louisiana Board of Commerce and Industry. Following a series of public hearings, the Board will vote on the governor’s recommended changes.