Requires reporting of tax dollars not collected each fiscal year due to tax credits and exemptions as a line item in the annual General Appropriations Bill. (8/15/11) (OR NO IMPACT GF EX See Note)
The passage of SB 221 is expected to have significant implications for state laws regarding budgetary practices. By formally incorporating the loss of tax revenue from tax credits and exemptions into the General Appropriations Bill, the bill will compel legislators to consider the fiscal ramifications of such tax policies more seriously. This could lead to a more informed debate during budget discussions and possibly influence future decisions about tax incentives and their effectiveness in generating state revenue.
Senate Bill 221 seeks to enhance the transparency of Louisiana's state budget by mandating the reporting of tax dollars not collected due to existing tax credits and exemptions. Specifically, the bill requires that these figures be clearly displayed as a line item in the annual General Appropriations Bill. This initiative is aimed at providing lawmakers and the public with a clearer understanding of the financial impact that tax credits and exemptions have on the state's revenues and budgetary allocations.
The general sentiment surrounding SB 221 appears to be positive, particularly among advocates of fiscal accountability and transparency in government. Supporters argue that making tax revenue losses visible will encourage a more prudent approach to tax policy and reinforce the need for legislative scrutiny over tax expenditures. Critics, however, may raise concerns regarding the potential administrative burden of tracking and reporting these figures or challenge the efficacy of tax credits overall.
Notable points of contention regarding SB 221 revolve around the debate over tax credits and their role in economic development. While proponents of the bill believe that greater transparency will lead to better governance, opponents may argue that more stringent reporting could hinder the ability of the state to attract businesses through incentive programs. The discussion reflects broader themes of fiscal responsibility, government accountability, and the balancing of incentives versus revenue generation.