Louisiana Senate Bill SB75

Louisiana 2015 Regular Session

• Introduced: 3/31/15
• Refer: 3/31/15
• Refer: 4/13/15
• Report Pass: 5/18/15
• Refer: 5/19/15

Caption

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.