Establishes a task force to study ad valorem taxes that are offset by state tax credits.
Impact
If enacted, the task force is expected to provide recommendations for reforming local government funding derived from ad valorem taxes, which could ultimately influence state budgeting practices. With the expected continued rise of the inventory tax credit to over one billion dollars annually within the next eight years, the task force will assess long-term impacts on the fiscal health of both state and local governments. The emphasis is on ensuring that essential services are funded without placing an undue tax burden on businesses.
Summary
Senate Concurrent Resolution No. 6 aims to address structural issues in Louisiana's taxation system by establishing a task force to study local and state taxation related to ad valorem taxes on inventory and vessels. The bill highlights the growing financial burden imposed by the inventory tax credit, which has seen significant growth alongside the state's economy. The resolution advocates for a comprehensive analysis of funding sources for local government while seeking to maintain Louisiana's competitiveness in business operations.
Sentiment
The sentiment around SCR6 appears to be cautious but optimistic regarding the potential for necessary tax reforms. Supporters believe that analyzing and potentially restructuring the tax system could lead to improved funding solutions for local governments and ultimately benefit the state's economic landscape. However, there remains apprehension about the implications of potential tax increases or budget cuts if comprehensive solutions are not effectively identified.
Contention
Notable points of contention within the discussions revolve around the implications of both exempting inventory from taxation and eliminating the tax credit. Critics argue that removing these tax measures could undermine local government funding capabilities, leading to significant cuts in essential services. Conversely, proponents maintain that unchecked growth of the inventory tax credit poses a substantial threat to the state’s budget, necessitating a thorough examination and recalibration of the existing tax structure.
Provides for carry forward rather than a refund of tax credits from ad valorem taxes paid to local governments. (gov sig) (OR +$40,000,000 GF RV See Note)
Provides for the reduction of the amount of certain ad valorem tax credits and provides for the carryforward rather than the refund of a certain portion of excess credit amounts. (gov sig) (EG +$253,000,000 GF RV See Note)
Provides for the reduction of the amount of certain ad valorem tax credits and for carryforward rather than the refund of certain portion of excess credit amount. (gov sig) (OR +$294,000,000 GF RV See Note)
Provides for an optional exemption of business inventory from ad valorem taxes and to authorize the reduction of the fair market value percentage of business inventory under certain circumstances (EN SEE FISC NOTE GF EX See Note)
Provides for the confidentiality of tax records, the definition of manufacturer for purposes of the tax credits for ad valorem taxes paid to local governments, and certain limitations. (gov sig) (Item #47) (EN +$57,000,000 GF RV See Note)
Reduces the amount of certain ad valorem tax credits and provides for the carryforward rather than the refund of a certain portion of excess credit amounts (Item #31) (EG +$48,000,000 GF RV See Note)
Constitutional amendment to phase-in over a four-year period an exemption from ad valorem property taxes for inventory held by manufacturers, distributors, and retailers, and natural gas held, used, or consumed in providing natural gas storage services or operating natural gas storage facilities. (2/3 - CA13s1(A)) (1/1/16)
Reduces the amount of certain ad valorem tax credits and provides for the carry forward rather than the refund of a certain portion of excess credit amounts (Item #31) (EG +$48,000,000 GF RV See Note)
Provides for the reduction of the amount of certain ad valorem tax credits and provides for the carryforward rather than the refund of a certain portion of excess credit amounts. (gov sig) (EG +$253,000,000 GF RV See Note)