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Regular Session, 2012
SENATE CONCURRENT RESOLUTI ON NO. 103
BY SENATOR DONAHUE
LEGIS POWERS/FUNCTIONS. Provides for a study of credits, exemption, and rebates and
the corresponding impact on the state budget.
A CONCURRENT RESOLUTI ON1
To urge and request the Chairman of the Senate Committee on Finance and two members2
from Finance appointed by the President, the Chairman of the House Appropriations3
Committee and two members from Appropriations appointed by the Speaker, the4
Chairman of the Senate Committee on Revenue and Fiscal Affairs and two members5
from the Senate Committee on Revenue and Fiscal Affairs appointed by the6
President, and the Chairman of the House Committee on Ways and Means and two7
members from the House Committee on Ways and Means, appointed by the Speaker,8
and the President of the Senate and Speaker of the House to meet and to function as9
a commission to study Louisiana revenue laws with respect to Louisiana's10
exemptions, credits, rebates, and other tax preference expenditures, identify the low-11
performing or antiquated tax preference expenditures and recommend their12
temporary or permanent reduction or elimination, and report its findings and13
recommendations.14
WHEREAS, Louisiana's present revenue raising system includes a myriad of tax15
preference expenditures such as exclusions, exemptions, suspensions, deductions, credits,16
refunds, rebates and preferential tax calculation methods; and17
WHEREAS, these many existing tax preference expenditures, combined with the18 SCR NO. 103
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recent expansion of rebate programs which provide reimbursement for expenditures1
unconnected with the existence of any tax liability, have a corresponding large but unknown2
impact on the state budget; and 3
WHEREAS, Louisiana has experienced several years of consecutive budget4
shortfalls, budget reductions, and mid-year budget cuts; and5
WHEREAS, the budgetary crisis continues and the citizens, business interests, and6
other members of the community continue to seek equity in Louisiana's laws concerning7
revenue measures; and8
WHEREAS, a current review of state revenue derived from individuals and9
corporations could assist in determining revenue equity and budgetary priorities.10
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby11
urge and request the Chairman of the Senate Committee on Finance and two members from12
Finance appointed by the President, the Chairman of the House Appropriations Committee13
and two members from Appropriations appointed by the Speaker, the Chairman of the14
Senate Committee on Revenue and Fiscal Affairs and two members from the Senate15
Committee on Revenue and Fiscal Affairs appointed by the President, and the Chairman of16
the House Committee on Ways and Means and two members from the House Committee on17
Ways and Means, appointed by the Speaker, and the President of the Senate and Speaker of18
the House to meet and function as a commission to do the following:19
(1) Determine the generally accepted, most effective economic model or models20
which are used to determine the economic impact of a tax preference expenditure.21
(2) Use the economic model or models to establish criteria for the identification of22
the low-performing or antiquated tax preference expenditures, based on the cost of the tax23
preference expenditure compared to (a) the revenue gained by the state; (b) the revenue24
gained by local governments; (c) and the overall economic impact of the tax preference25
expenditure in terms of the number of jobs created by recipients of the tax preference26
expenditure and by the direct economic activity through the economy.27
(3) Identify the low-performing or antiquated tax preference expenditures.28
(4) Recommend the temporary or permanent reduction or elimination of the29
identified low-performing or antiquated tax exemptions, suspensions, exclusions, deductions,30 SCR NO. 103
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credits, refunds, rebates, and preferential tax calculation methods. 1
BE IT FURTHER RESOLVED that the Senate and House Fiscal Divisions Staffs,2
Legislative Fiscal Office, Legislative Auditor, the Department of Economic Development3
and the Department of Revenue, shall provide any necessary support to carry out the purpose4
of this Senate Concurrent Resolution. 5
BE IT FURTHER RESOL VED that this commission convene no later than6
September 1, 2012, and report findings and recommendations to the President of the Senate7
and the Speaker of the House no later than February 1, 2013. 8
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Sherry Phillips Hymel.
DIGEST
Donahue SCR No. 103
Urges and requests a commission composed of the President of the Senate and the Speaker
of the House and the Chairmen of the Senate Committees of Finance and Revenue and Fiscal
Affairs and the Chairmen of the House Committee on Appropriations and Ways and Means
and other members appointed by the President and Speaker to do the following:
1. Determine the generally accepted, most effective economic model or models which
are used to determine the economic impact of a tax preference expenditure.
2. Use the economic model or models to establish criteria for the identification of the
low-performing or antiquated tax preference expenditures, based on the cost of the
tax preference expenditure compared to (a) the revenue gained by the state; (b) the
revenue gained by local governments; (c) and the overall economic impact of the tax
preference expenditure in terms of the number of jobs created by recipients of the tax
preference expenditure and by the direct economic activity through the economy.
3. Identify the low-performing or antiquated tax preference expenditures.
4. Recommend the temporary or permanent reduction or elimination of the identified
low-performing or antiquated tax exemptions, suspensions, exclusions, deductions,
credits, refunds, rebates, and preferential tax calculation methods.