Louisiana House Bill HB583

Louisiana 2015 Regular Session

• Introduced: 4/3/15
• Refer: 4/3/15
• Refer: 4/13/15

Caption

Establishes a program to provide rebates to attract major events to the state

Impact

Through HB 583, the state establishes a systematic method to entice large-scale events that promise positive economic impact, thus enhancing state tourism and related industries. The rebates will be calculated based on incremental tax receipts derived from the events and can reach up to 70% of those additional revenues. This financial mechanism presents a potential increase in state revenue while supporting local economies, assuming the successful recruitment of high-profile events.

Summary

House Bill 583, known as the Major Events Incentive Program, is designed to enable Louisiana to attract significant events by offering financial incentives. The bill authorizes the Department of Economic Development (DED) to enter into contracts with local organizing committees, parishes, or municipalities, allowing them to solicit and acquire noteworthy events under specific conditions. These events could include major sports championships and political conventions that are expected to generate substantial economic benefits to the state. The program operates through rebate incentives contingent on the anticipated sales and excise taxes collected by the state as a direct result of these events.

Sentiment

The general sentiment regarding HB 583 is cautiously optimistic among supporters who recognize the potential for economic growth. Advocates emphasize the necessity of such incentives to compete with other states for major events, viewing them as vital for Louisiana's economic strategy. Critics, however, may express concerns over whether the tax rebates are worth the financial commitment, questioning the nature of the economic benefits and the appropriate use of public funds to support private events.

Contention

Notable points of contention surrounding HB 583 involve the definition of eligible events and the criteria for site selection. Ensuring that events considered eligible provide substantial economic value is a critical area of focus. There are also discussions about how such programs could impact local governance and the distribution of resources, as some stakeholders may feel that the emphasis on attracting major events might detract from nurturing local cultural and community events that may also need support.