Constitutional amendment to establish the Exemption Review Conference and provide for the review of and recommendation concerning tax exemption, exclusion, deduction and credit instruments filed for certain regular sessions and to establish procedures for such instruments. (2/3-CA13s1(A)) (See Act) (EG INCREASE GF EX See Note)
Impact
The introduction of the Exemption Review Conference denotes a proactive measure in fiscal responsibility pertaining to tax legislation. By instituting a process that mandates official analysis and recommendations for tax exemptions, the state seeks to maintain robust revenues while also ensuring that any potential reductions in tax income through exemptions are justified and necessary. This change in procedure is anticipated to reshape how tax laws are crafted, holding legislators accountable and encouraging transparency in the legislative process.
Summary
Senate Bill 75 proposes a significant amendment to the Louisiana Constitution that establishes the Exemption Review Conference, a new body designed to review and recommend about tax exemptions, exclusions, deductions, and credits during specific legislative sessions. This bill stipulates that any tax exemption instrument must be prefiled 45 days prior to the legislative session, accompanied by an Exemption Explanatory Note detailing its fiscal impact. The passage of this bill aims to ensure that tax exemptions are subject to thorough scrutiny before they’re approved, potentially impacting state revenue significantly.
Sentiment
The sentiment surrounding SB 75 reflects a mixture of support and concern. Proponents argue that this bill will lead to more informed decision-making about tax policies, preventing arbitrary tax breaks that could inhibit state funding for essential services. Conversely, some stakeholders fear that the rigorous review process may hinder efforts to attract businesses and could delay essential fiscal improvements. This polarization illustrates the challenge of balancing economic growth with the need for careful fiscal oversight.
Contention
Notable points of contention include the newly introduced requirement that any tax exemption that does not satisfy the review procedures is deemed null and void. Critics raise concerns over the implications of such provisions, suggesting this could lead to undue complications in the legislative process and potentially restrict local governments from enacting needed tax relief measures. The bill's requirement for two-thirds legislative approval for any amendments to the newly established law may also create barriers to responsive governance.
Provides the information to be submitted to the legislative fiscal information for the review of instruments relative to tax exemptions, exclusions, deductions, and credits. (RE SEE FISC NOTE GF EX)
Provides for a swap of refundable tax credits by establishing a system to terminate certain existing exemptions, exclusions, deductions, and credits to fund refundable credits for donations to higher education and health care. (7/1/15)
Constitutional amendment to phase out the tax on inventory and establish the maximum allowable exemption for the industrial property tax exemption program. (2/3 - CA13s1(A)) (EG SEE FISC NOTE GF RV See Note)
Constitutional amendment to provide, with certain exemptions, for a state minimum wage effective August 1, 2019. (2/3 - CA13sl(A)) (EG INCREASE GF EX See Note)
Provides the information to be submitted to the legislative fiscal information for the review of instruments relative to tax exemptions, exclusions, deductions, and credits. (RE SEE FISC NOTE GF EX)
Provides relative to economic and financial reports for projects submitted in conjunction with the request for the review or approval of the Joint Legislative Committee on the Budget. (7/1/14) (EN INCREASE GF EX See Note)
Requests the Louisiana State University Center for Energy Studies, Louisiana State University Public Administration Institute, and the Louisiana Tax Institute to analyze mineral revenues, taxes, and exemptions and to submit a written report of its findings to the legislature.
Requests the Louisiana State University Center for Energy Studies, Louisiana State University Public Administration Institute, and the Louisiana Tax Institute to analyze mineral revenues, taxes, and exemptions and submit a written report of its findings to the legislature.
Requests the Louisiana State University Center for Energy Studies, Louisiana State University Public Administration Institute, and the Louisiana Tax Institute to analyze mineral revenues, taxes, and exemptions and to submit a written report of its findings to the legislature. (EG NO IMPACT GF EX See Note)