Louisiana Senate Bill SB254

Louisiana 2013 Regular Session

• Introduced: 4/17/13
• Refer: 4/18/13

Caption

Repeals the Procurement Processing Company Rebate Program. (gov sig) (OR NO IMPACT See Note)

Impact

The repeal of the Procurement Processing Company Rebate Program could have significant financial implications for the state of Louisiana. By removing the rebates, the state is signaling a shift away from incentivizing procurement activities through tax credits. The lack of these incentives may affect business decisions regarding the establishment and operation of procurement companies in Louisiana. Additionally, public funds that would have been allocated for these rebates may instead be redirected to other state priorities, possibly impacting public services or educational institutions funded through the sales tax revenue previously collected.

Summary

Senate Bill 254 aims to repeal the Procurement Processing Company Rebate Program, which allowed the state to enter into contracts with procurement companies that facilitated tax rebates based on newly generated sales tax revenue. The program was designed to incentivize procurement companies to operate within Louisiana, contributing to state revenue through new taxable sales that would not have occurred without their presence. This bill specifically removes the previously established rebates, thereby eliminating financial incentives that were provided to such companies operating in the state.

Sentiment

The sentiment surrounding SB 254 appears to lean towards fiscal responsibility from a sector of the legislature, as proponents argue that repealing the rebate program is necessary to ensure that state resources are utilized effectively. However, there are also concerns about the potential negative consequences on business investment and job creation in the procurement sector. This sentiment reflects a broader debate on the role of state incentives in driving economic growth versus maintaining a sustainable fiscal budget.

Contention

Operators and advocates of procurement companies may express contention over the repeal of the rebate program, arguing that such measures could discourage investment and lead to job losses. They may assert that the program was pivotal in attracting businesses to Louisiana and that its repeal could create a less favorable economic environment. This discussion is rooted in tensions between fostering a competitive business climate and ensuring prudent management of public funds.