Louisiana House Bill HCR187

Louisiana 2010 Regular Session

• Introduced: 5/24/10
• Refer: 5/24/10
• Report Pass: 6/8/10
• Engrossed: 6/15/10
• Passed: 6/21/10

Caption

Urges and requests the House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs to review the goals and purposes of various tax exemptions, credits, and deductions

Impact

The impact of HCR187 is significant as it aligns with ongoing discussions about the state’s budgetary challenges and the need for fiscal responsibility. With projections indicating a substantial revenue shortfall exceeding $2.3 billion for fiscal year 2011-2012, the resolution implies that a reevaluation of tax exemptions could help identify potential areas for revenue recovery. The measure highlights the overwhelming presence of exemptions, which amount to billions in lost revenue and have increasingly become unsustainable in light of economic pressures.

Summary

HCR187, presented by Representative Michael Jackson, urges the House Committee on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs to review the various state tax exemptions, credits, and deductions. This resolution comes amid significant changes to the state's revenue base due to factors like federal disaster recovery funds and fluctuating oil prices. It emphasizes the need for a thorough evaluation of longstanding tax policies that have not been assessed comprehensively in years, many of which date back to the 1940s.

Sentiment

The general sentiment around HCR187 appears to be one of cautious optimism, with many lawmakers recognizing the necessity of reviewing tax expenditures to better balance the state's budget. While some members may view this action as a prudent pursuit of fiscal responsibility, others may express concerns about the potential implications for groups benefiting from the existing tax structures. Nonetheless, there is an understanding that a meticulous assessment could ultimately lead to improved revenue consistency and integrity.

Contention

Notably, there may be contention regarding which tax exemptions, credits, and deductions are a priority for review. As many exemptions serve specific interests or historical contexts, stakeholders benefiting from these fiscal policies might resist changes. Additionally, balancing the need for revenue generation with the support of taxpayers who rely on these exemptions is likely to create a contentious atmosphere as various perspectives vie for attention during legislative discussions.