Katrina Jackson (HB 316) Act No. 191
Existing 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.
New 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.
New law requires DOR to develop a format for such reports similar to the format used in
reporting the annual tax exemption budget to be made available to and used by all state
agencies and offices in preparation of the report required by new law.
New 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.
Effective August 1, 2013.
(Adds R.S. 47:1517.1)