Louisiana House Bill HB805

Louisiana 2018 Regular Session

• Introduced: 4/3/18
• Refer: 4/4/18

Caption

Requires the Department of Revenue to annually report certain tax expenditure information (OR NO IMPACT GF EX See Note)

Impact

If enacted, HB 805 would significantly alter state tax policy by promoting visibility into tax expenditures. It lifts some confidentiality protections surrounding tax information, requiring the Department of Revenue to disclose taxpayer identity alongside substantial claims for tax benefits. This transparency could influence how tax expenditures are viewed by the public and could prompt reevaluation of various tax incentives administered by the state. The heightened scrutiny is seen as a move toward better fiscal accountability and might lead to subsequent reforms in tax legislation based on the findings of these annual reports.

Summary

House Bill 805 mandates the Louisiana Department of Revenue to produce an annual report detailing tax expenditures that are claimed on income and franchise tax returns. This report must include taxpayer names and the amount of tax expenditures users claim, specifically for amounts exceeding $250,000. The bill aims to enhance transparency regarding taxpayer benefits from state resources and is expected to offer legislators insights into how tax incentives are utilized within the state, potentially fostering more informed budgeting and fiscal policies.

Sentiment

Overall sentiment surrounding HB 805 appears to be positive among those advocating for greater government transparency and accountability. Proponents argue that such measures are necessary for informed legislative decision-making regarding state budgets and resource allocations. However, there may be concerns from taxpayers regarding privacy, as the requirement to disclose the names of beneficiaries and details of significant tax expenditures may raise issues about confidentiality and the potential misuse of this information.

Contention

Notably, opposition may arise from those in favour of preserving taxpayer privacy, who argue that revealing taxpayer identities could deter beneficial tax claims and create a chilling effect on those considering legitimate tax incentives. There may also be concerns that this bill could lead to public backlash against individuals or companies benefiting from tax incentives. The legislative debate may focus on balancing the goals of transparency and accountability with the rights of individuals to keep their financial information confidential.