Oct 24, 2024
BATON ROUGE, La. (BRPROUD) — The governor’s cabinet continues to pitch his tax reform plan to legislators in hopes of them passing it in a special session next month. As projected numbers from the impacts of his plan trickle out, some local governments are starting to question it. The public and lawmakers are slowly learning more about what the impacts of Gov. Jeff Landry’s tax reform plan will be. Some of the key points include a flat income tax rate reduction, broadening the sales tax base and reducing the number of tax credits that are given out. What is gaining attention is how the sales tax expansion, inventory tax changes and the alteration to the manufacturing sales tax exemption will affect the button dollar for parish and municipal budgets. “We could make the state and local bases uniform. Part of that is the money disparity and then allow them to make up the difference in some of that money costs by having those recurring expenses,” said Department of Revenue Secretary Richard Nelson about the manufacturing sales tax exemption changes. PART 2: Meet Kemlyn Bailey Lomas and Harold Stewart, who are running for mayor in the city of Gonzales One example of the projections from the Department of Revenue, shows a loss of $42 million a year for Ascension Parish with the changes to severance tax and sales tax. The river parishes see the largest impact from this part of the plan. The loss of that local sales tax is said to be made up with increasing sales taxes on online sales, more goods and services and repairs. Legislators are skeptical of whether the projections will be the true money brought into the parish. “That's a substantial amount of money when you're looking at $42 million, $600,000 a year,” said state Sen. Eddie Lambert, R-Gonzales. Nelson said their numbers are a very conservative approach to the calculations. “It is something that we're actively trying to solve. And if it turns out that we can't figure that problem out so there's not that huge deficit, then it's just a piece that will come out of the package,” Nelson said. Close Thanks for signing up! Watch for us in your inbox. Subscribe Now BRProud Daily News SIGN UP NOW State Sen. Jay Luneau, D-Alexandria, also brought up that removing the local sales tax on prescription drugs will be a big hit to some areas. The Legislative Fiscal Office stated they may not be able to make a true projection of how much the parishes will gain or lose in the overall plan. The state is facing a projected $700 million shortfall, which is the impetus for having this special session. If voters do not approve the constitutional amendment portion of the plan, it will mean that teachers won’t see the stipend become permanent and other parts of the plan will have to be let go. There's still not an official date of when this special session will take place, but the discussion is still around having it in November between Election Day and Thanksgiving.  Details about the draft bills can be found on the Department of Revenue’s website. Latest News Oregon school district calls on Cruz to take down transgender ads Ascension Parish Sheriff's Office to sell jambalaya plates, help dispatcher diagnosed with breast cancer Vince McMahon, WWE accused of ignoring sexual abuse of boys CDC updates COVID-19 vaccine recommendations for older adults Ride Along: Zachary football coach talks 5A showdown with Woodlawn
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