HLS 22RS-533 ENGROSSED
2022 Regular Session
HOUSE CONCURRENT RESOL UTION NO. 72
BY REPRESENTATIVE ROMERO
TAX/TAXATION: Urges and Requests the chairmen of the House Committee on Ways and
Means and the Senate Committee on Revenue and Fiscal Affairs to establish a joint
subcommittee to study state tax incentives and rebates
1 A CONCURRENT RESOL UTION
2To urge and request the chairman of the House Committee on Ways and Means and the
3 chairman of the Senate Committee on Revenue and Fiscal Affairs to establish a joint
4 subcommittee composed of three members of each respective committee to review
5 laws with respect to Louisiana's exemptions, deductions, exclusions, credits, rebates,
6 and other tax preference expenditures, identify the low-performing or antiquated tax
7 preference expenditures, and make recommendations for the temporary or permanent
8 reduction or elimination of such low-performing or antiquated tax preference
9 expenditures and to report its findings and recommendations prior to the Regular
10 Session commencing in 2023.
11 WHEREAS, Louisiana's present revenue raising system includes a myriad of tax
12preference expenditures such as deductions, exclusions, exemptions, suspensions, credits,
13refunds, rebates, and preferential tax calculation methods; and
14 WHEREAS, the state's existing tax preference expenditures, combined with rebate
15programs which provide reimbursement for expenditures unconnected with the existence of
16any tax liability, have a corresponding but unknown impact on the state budget; and
17 WHEREAS, a tenant of sound tax policy is to provide for a broad tax base in
18exchange for lowering tax rates; and
19 WHEREAS, according to estimates included in the Fiscal Year 2020-2021 Tax
20Exemption Budget as published by the Department of Revenue, in Fiscal Year 2019-2020,
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HCR NO. 72
1the state actually collected approximately eight billion seven hundred eighty million dollars
2in revenue from the state's individual and corporate income tax, sales tax, corporation
3franchise tax, severance tax, petroleum products taxes, and other tax categories and granted
4approximately six and one-half billion dollars in tax preferences in the form of exemptions,
5deductions, exclusions, credits, refunds, and rebates; and
6 WHEREAS, individuals and businesses in this state seek equity in Louisiana's laws
7concerning revenue measures and budgetary priorities; and
8 WHEREAS, a current review of state revenue derived from individuals and
9corporations could assist in determining revenue equity and budgetary priorities.
10 THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby
11urge and request the chairman of the House Committee on Ways and Means and the
12chairman of the Senate Committee on Revenue and Fiscal Affairs to establish a joint
13subcommittee composed of three members of each respective committee to do the following:
14 (1) Determine one or more generally accepted, effective economic models to be used
15to determine the economic impact of a tax preference expenditure.
16 (2) Use the economic model or models to establish criteria for the identification of
17low-performing or antiquated tax preference expenditures, based on the cost of the tax
18preference expenditure compared to the revenue gained by the state, the revenue gained by
19local governments, and the overall economic impact of the tax preference expenditure in
20terms of the number of jobs created by recipients of the tax preference expenditure and direct
21economic activity through the economy.
22 (3) Identify the low-performing or antiquated tax preference expenditures.
23 (4) Recommend the temporary or permanent reduction or elimination of the
24identified low-performing or antiquated tax expenditures.
25 BE IT FURTHER RESOLVED that the Senate and House fiscal divisions staffs,
26Legislative Fiscal Office, legislative auditor, the Department of Economic Development,
27and the Department of Revenue shall provide any necessary support to carry out the purpose
28of this Concurrent Resolution.
29 BE IT FURTHER RESOLVED that the joint subcommittee shall convene no later
30than August 1, 2022, and report findings and recommendations to the chairman of the House
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HCR NO. 72
1Committee on Ways and Means, the chairman of the Senate Committee on Revenue and
2Fiscal Affairs, the speaker of the House of Representatives, and the president of the Senate
3no later than February 1, 2023.
4 BE IT FURTHER RESOLVED that the chairman of the House Committee on Ways
5and Means shall call the first meeting of the joint subcommittee, and, at such meeting, the
6members of the joint subcommittee shall select a member of the joint subcommittee to serve
7as its chairman and shall select any other officers deemed necessary by the joint
8subcommittee.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HCR 72 Engrossed 2022 Regular Session Romero
Requests the chairman of the House Committee on Ways and Means and the chairman of
the Senate Committee on Revenue and Fiscal Affairs to establish a joint subcommittee
composed of three members of each respective committee to review laws with respect to
La.'s exemptions, deductions, exclusions, credits, rebates, and other tax preference
expenditures, identify the low-performing or antiquated tax preference expenditures, and
make recommendations for the temporary or permanent reduction or elimination of such
low-performing or antiquated tax preference expenditures, and to report its findings and
recommendations prior to the 2023 R.S.
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