Louisiana House Bill HB771

Louisiana 2015 Regular Session

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

Caption

Establishes an incentive program for development of new tourism infrastructure and assets in exchange for certain sales and use tax revenues (OR DECREASE GF RV See Note)

Impact

Implementing HB 771 could significantly influence state laws regarding economic development by formalizing the process through which tourism development incentives are granted and regulated. The bill creates the Tourism Development Incentives Authority, which will oversee the evaluation and approval of projects applying for benefits under the program. The authority's establishment indicates a move towards a more organized approach to managing tourism incentives, potentially leading to better accountability and evaluation of the fiscal impacts of these projects on state revenues.

Summary

House Bill 771 establishes an incentive program aimed at fostering the development of new tourism infrastructure and assets within Louisiana. The bill introduces sales tax rebates for approved companies engaging in eligible tourism development projects such as tourism attractions, entertainment centers, and lodging facilities. The financial incentives are structured as sales tax rebates granted over a defined period, contingent upon certain conditions being met, including the generation of public demand and minimum operational days per year. By creating a mechanism for financial support, this legislation seeks to enhance the state's appeal as a tourism destination, thereby contributing to economic growth.

Sentiment

The sentiment surrounding HB 771 appears to lean towards support from constituencies interested in increasing tourism and economic growth in the state. Proponents argue that encouraging tourism development through financial incentives could create new jobs and stimulate local economies. Nevertheless, there may also be concerns raised by critics, particularly regarding the potential for misallocation of tax revenues and the sustainability of such incentives. The balance between stimulating tourism and ensuring responsible fiscal governance will likely be a point of contention in discussions of the bill.

Contention

One point of contention linked to HB 771 is the criteria and procedures for determining which projects receive incentives and the volume of sales tax revenue that can be rebated. Issues may arise concerning the effectiveness of these incentives in generating net positive impacts for the state, as well as the decision-making process of the Tourism Development Incentives Authority. Critics may request transparency in how projects are evaluated and express concerns about the long-term sustainability of incentives offered to private entities closely tied to public funds.