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Prepared by Danielle Doiron.
K. Jackson HB No. 316
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
TAX/TAXATION: Requires state agencies which administer tax credits and rebates
to report certain information
DIGEST
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 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 unless the tax incentive sunsets on or
before July 1, 2009. 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 and any other economic
benefits.
(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 Page 2 of 2
Prepared by Danielle Doiron.
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)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the reengrossed bill
1. Excludes from the report tax incentives with a sunset date on or before July
1, 2009.
2. Adds economic benefits produced by tax incentive to report requirements.