Requires that all legislative instruments creating a tax preference include a sunset date.
Impact
The implementation of SCR3 would significantly alter how tax preferences are treated in Louisiana. By enforcing a mandatory review process before the extension of tax preferences, the legislation seeks to control their growth and ensure that such fiscal policies remain beneficial for the state's economy. This could lead to a reduction in the number of preferences in place over time, helping to streamline the tax code and potentially increase revenue for state projects and services.
Summary
SCR3, sponsored by Senator Morrell, proposes a new joint rule that mandates all legislative instruments that create or amend tax preferences to include specific provisions aimed at increasing accountability and transparency. The proposed rule requires that any new tax preference has a sunset date of either two, four, or six years, after which the preference cannot be continued without a formal extension process. This change is intended to ensure that the benefits offered by such tax preferences are examined regularly, ensuring they are justified against the costs they incur to the state’s revenue.
Sentiment
The sentiment surrounding SCR3 appears to be cautiously optimistic, as the bill reflects a trend towards fiscal responsibility and accountable governance. Supporters emphasize the importance of regular evaluations of tax preferences to prevent unnecessary financial burdens on the state. Opponents, however, may express concerns over the potential constraints this rule could impose on economic development, as businesses often rely on tax incentives for growth and investment in the state.
Contention
Notable points of contention in the discussion of SCR3 center on its implications for business interests versus state revenue needs. While proponents advocate for the necessity of accountability in tax legislation, critics might argue that stringent requirements could disincentivize investment in Louisiana. This could lead to a conflict between fostering economic growth through incentivizing industries and ensuring that tax policies are fair and sustainable for state finances.
Relating to economic tax incentives; to amend Section 40-1-50, Code of Alabama 1975; to change the reporting date requirements of state agencies which administer economic tax incentives; to align committee schedules to review state agency reports; to establish sunset dates for tax incentive programs; to establish future sunset dates for extended tax incentive programs; and to provide required guidelines for all new incentive legislation.
Relating to a requirement that the Sunset Advisory Commission conduct a study and make recommendations regarding certain tax preferences that relate to ad valorem taxes and that are required or authorized by the state.
Relating to secondary-level assessment of public school students and the use of individual graduation committees to satisfy certain public high school graduation requirements.