HLS 13RS-79 ORIGINAL
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Regular Session, 2013
HOUSE BILL NO. 316
BY REPRESENTATIVES KATRINA JACKSON AND JAMES
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TAX/TAXATION: Requires state agencies which administer tax credits and rebates to
report certain information
AN ACT1
To enact R.S. 47:1517.1, relative to tax incentives; to require state agencies which2
administer tax credits and tax rebates to make certain reports; to provide relative to3
the contents of such reports; to provide for certain requirements and limitations; to4
provide for definitions; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 47:1517.1 is hereby enacted to read as follows: 7
ยง1517.1. Tax incentives; state agencies and state offices which administer tax8
incentives; reporting requirements9
A. The Department of Revenue is required to prepare a tax exemption budget10
each year which includes state revenue loss for the preceding three years caused by11
each tax exemption, deduction, exclusion, and credit authorized by law; however, in12
addition to the Department of Revenue, a number of other state agencies administer13
tax credits and rebates. Likewise, the legislative auditor's office has statutory14
authority to conduct performance audits of state agency programs in order to15
evaluate the impact, efficiency, effectiveness, and cost-effectiveness of programs and16
to identify programs that are vital and in the best interests of the citizens of17
Louisiana. In order for the legislature and the legislative auditor's office to get18
accurate and complete information regarding how much tax credits and rebates cost19 HLS 13RS-79 ORIGINAL
HB NO. 316
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the state each year, each state agency which administers tax credits and rebates shall1
annually report the information required by this Section to the legislature.2
B. No later than the first day of March each year, the head of each state3
agency which administers a tax credit or tax rebate, referred to in this Section4
collectively as "tax incentive", shall prepare and submit to the legislature a report5
regarding each tax incentive which the agency administers. The report shall include6
an assessment of each tax incentive based on the following criteria:7
(1) Whether or not each tax incentive has been successful in meeting the8
purpose for which it was enacted, in particular, whether each tax incentive benefits9
those originally intended to be benefited, and if not, those who do benefit.10
(2) Whether or not the state receives a positive return on investment from the11
business or industry for which the tax incentive is intended to benefit.12
(3) Unintended or inadvertent effects, benefits, or harm caused by each tax13
incentive, including whether each tax incentive conflicts with other state laws or14
regulations.15
C.(1) Nothing in this Section shall be construed to require the disclosure of16
proprietary or trade secret information which has been submitted to any state agency17
with respect to a tax credit.18
(2) Nothing in this Section shall be construed to supercede any provision of19
R.S. 47:1508 with respect to the confidentiality of taxpayer records.20
D. Each state agency required to submit a report pursuant to the provisions21
of this Section may request from any other state or local agency or official any22
information necessary to complete the report required by this Section. Any such23
agency or official shall comply with this request.24
E. For purposes of this Section, the term "state agency" shall mean any25
office, department, board, commission, institution, or division within the executive26
branch of state government. Administration of a tax incentive shall be evidenced by27
a legal requirement or authorization to undertake any of the following actions for28
purposes of administration of the tax incentive:29 HLS 13RS-79 ORIGINAL
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(1) Promulgation of rules or regulations; in cases where more than one1
agency has rulemaking authority, the report shall be prepared collaboratively.2
(2) Determination, review, or confirmation of eligibility or qualifications.3
(3) Entering into a contract with an entity for purposes of a tax credit.4
(4) Conducting oversight or substantial administrative functions for a tax5
incentive when the public purpose associated with the tax incentive is within the core6
mission of the agency.7
F. The Department of Revenue shall develop a format for reports required8
by this Section similar to the format used for reporting information contained in the9
annual tax exemption budget provided for in R.S. 47:1517. The format shall be10
made available to all state agencies for use in preparation of their reports pursuant11
to the provisions of this Section.12
G. The House Committee on Ways and Means and the Senate Committee on13
Revenue and Fiscal Affairs, referred to in this Subsection as "committees", shall14
conduct hearings on the reports every odd-numbered year, to be concluded thirty15
days before the beginning of the regular session of the legislature of Louisiana. The16
committees shall analyze and consider tax incentives which have caused revenue loss17
to the state in any one of the three previous fiscal years. From time to time, the18
committees may report to the legislature findings or recommendations developed as19
a result of the hearings.20
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)]
Katrina Jackson HB No. 316
Abstract: Requires state agencies which administer tax credits and rebates (tax incentives)
to report annually, no later than March 1, to the legislature, information regarding
the tax incentives.
Present law requires the Dept. of Revenue (DOR) to annually prepare a tax exemption
budget which includes state revenue loss for the preceding three years caused by each tax
exemption, deduction, exclusion, and credit authorized by law. Further requires the
legislative auditor's office to conduct performance audits of state agency programs in order
to evaluate the impact, efficiency, and cost-effectiveness of programs and to identify HLS 13RS-79 ORIGINAL
HB NO. 316
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programs that are vital and in the best interests of the citizens of La. The DOR, and various
other state agencies, administer the tax credits and rebates authorized by present law.
Proposed law retains present law.
Proposed law requires, in order for the legislature and the legislative auditor's office to get
accurate and complete information regarding how much tax credits and rebates cost the state
each year, no later than March 1 of each year, each state agency which administers a tax
credit or tax rebate, (tax incentives), to prepare and submit a report to the legislature
regarding the tax incentive the agency administers. The report shall include an assessment
of each tax incentive based on the following criteria:
(1)Whether or not each tax incentive has been successful in meeting the purpose for
which it was enacted.
(2)Whether or not the state receives a positive return on investment from the business
or industry for which the tax incentive is intended to benefit.
(3)Unintended or inadvertent effects, benefits, or harm caused by each tax incentive.
Proposed law defines "state agency" as any office, department, board, commission,
institution, or division within the executive branch of state government. Administration of
a tax incentive shall be evidenced by a legal requirement or authorization to undertake any
of the following actions for purposes of administration of the tax incentive:
(1)Promulgate rules or regulations; in cases where more than one agency has
rulemaking authority, the report shall be prepared collaboratively.
(2)Eligibility or qualifications.
(3)Agency contract with an entity for purposes of a tax incentive.
(4)Oversight or substantial administrative functions for a tax incentive when the public
purpose associated with the tax incentive is within the core mission of the agency.
Proposed law requires the DOR to develop a format for such reports similar to the format
used in reporting the annual tax exemption budget required by present law to be made
available to and used by all state agencies and offices in preparation of the report required
by proposed law.
Proposed law requires the House Committee on Ways and Means and the Senate Committee
on Revenue and Fiscal Affairs, hereinafter "committees", to conduct hearings on the reports
every odd-numbered year, to be concluded 30 days before the beginning of the regular
session of the legislature. Further requires the committees to analyze and consider tax
incentives which caused revenue loss to the state and authorizes the committees to report
their findings or recommendations developed as a result of the hearings to the legislature.
(Adds R.S. 47:1517.1)