HLS 10RS-4617 ORIGINAL
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Regular Session, 2010
HOUSE CONCURRENT RESOLUTI ON NO. 187 (Substitute for House Concurrent
Resolution No. 103 by Representative
Michael Jackson)
BY REPRESENTATIVE MICHAEL JACKSON
TAX: Urge and request 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
A CONCURRENT RESOLUTI ON1
To urge and request the House Committee on Ways and Means and Senate Committee on2
Revenue and Fiscal Affairs to meet and review the goals and purposes of various3
state tax exemptions, credits, and deductions.4
WHEREAS, the state's revenue base has experienced significant changes over the5
last five years; 6
WHEREAS, the storm recovery resulted in a massive infusion of federal money into7
the state, which in turn led to greatly inflated sales and use tax and corporate income tax8
collections, which collections, along with an unusually high price for oil, contributed to9
substantial, but short lived, state general fund surpluses; and10
WHEREAS, in light of these surpluses, tax relief amounting to over $650 million per11
year was enacted; and12
WHEREAS, this revenue loss is compounded by the overall downturn in revenues13
attributable to the national recession which began in 2007 and continues to hamper economic14
activity, which in turn decreases revenue collections; and15
WHEREAS, material losses to the state's tax base have and will continue to impact16
Louisiana's ability to meet its obligations in areas such as education, health care, roads,17
capital needs, and the unfunded accrued liability of the retirement systems; and 18 HLS 10RS-4617 ORIGINAL
HCR NO. 187
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WHEREAS, the five-year baseline projection of state general fund revenues provided1
by the division of administration to the Joint Legislative Committee on the Budget on May2
19, 2010, indicates an estimated state general fund revenue shortfall of over $2.3 billion for3
Fiscal Year 2011-2012; and4
WHEREAS, tax exemptions, credits and deductions currently offered by the state5
amount to billions of dollars annually in revenue that the state will not collect; and6
WHEREAS, the Department of Revenue in the Fiscal Year 2009-2010 Tax7
Exemption Budget reported that tax exemptions, credits, and other tax benefits for Fiscal8
Year 2008-2009 amounted to forty-six percent of potential state tax collections for that year;9
and10
WHEREAS, there are over 340 different exemptions, deductions, and credits, some11
of them dating back as early as the 1940's, meaning there are policies established decades12
ago which afford preferential treatment for certain taxpayers today in 2010; and13
WHEREAS, a contemporary evaluation of the purposes and goals of various state14
tax exemptions, credits, and deductions would be prudent given the challenges that the15
governor and legislature face in balancing the state's revenue base with provision of services16
which the citizens of Louisiana demand; and 17
WHEREAS, consideration of tax exemptions, credits, and deductions is within the18
allowable subject matter for the 2011 Regular Session of the Legislature of Louisiana.19
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby20
urge and request the House Committee on Ways and Means and the Senate Committee on21
Revenue and Fiscal Affairs to meet and review the goals and purposes of various state tax22
exemptions, credits, and deductions.23
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Michael Jackson HCR No. 187
Urges and requests the House Committee on Ways and Means and the Senate Committee
on Revenue and Fiscal Affairs to meet and review the goals and purposes of various state
tax exemptions, credits, and deductions.