Louisiana House Bill HB772

Louisiana 2016 Regular Session

• Introduced: 3/4/16
• Refer: 3/4/16
• Refer: 3/14/16
• Report Pass: 3/29/16
• Engrossed: 4/14/16
• Refer: 4/18/16
• Report Pass: 5/23/16

Caption

Provides relative to contracts for procurement processing company rebates (EG1 NO IMPACT GF RV See Note)

Impact

The modification legalizes contracts under which procurement processing companies can be compensated with rebates from the state sales taxes that are generated through new taxable sales. This is expected to enhance the state's ability to attract businesses, stimulate economic growth, and ultimately increase revenue for state programs and services. The potential long-term contracts can last up to twenty years, indicating a substantial commitment to fostering economic relationships.

Summary

House Bill 772 amends existing Louisiana law regarding contracts for procurement processing company rebates. The bill shifts the authority for entering into these contracts from the secretary of the Department of Economic Development (DED) to the secretary of the Department of Revenue (DOR). This change aims to streamline the process of providing tax incentives to procurement processing companies that bring purchasing companies to Louisiana, thereby generating new state sales tax revenue.

Sentiment

The sentiment surrounding HB 772 appears to be generally positive among its supporters, primarily those in favor of increased economic development and job creation in the state. The shift in authority to the DOR is viewed as a necessary strategic adjustment to better manage these vital economic contracts. However, the absence of vocal opposition in the documents suggests that there may not have been significant contention regarding this bill, as evidenced by the unanimous support during the House vote.

Contention

While there is a lack of prominent points of contention noted in the legislative history, the bill does open up discussion on the implications of long-term tax rebate programs and how they may affect the state's budget and financial health over time. The potential for disagreement could arise around the allocation of state funds and whether such rebate programs actually yield beneficial returns in terms of economic growth.