Matt Mantle, a partner on the firm’s State & Local Tax Team in the New Orleans office, was recently quoted in a Tax Notes article about Louisiana’s budget shortfalls and the special legislative session. The article, “Louisiana Special Session Will Focus on Spending Cuts to Close Budget Hole” Matt comments,
The governor has said he is not going to request any new fees or increases in fees, but he’s opened the door for other legislators to do so. One key take away from that will be whether or not the Legislature attempts to create fees which are really disguised taxes, and there are some clear constitutional problems with that in Louisiana.
He also mentions proposed changes to the local property tax on inventory and corresponding state credits for corporate income and franchise tax purposes as additional items to monitor moving into the regular legislative session. Few jurisdictions across the nation impose a property tax on inventory, and there has been a push in Louisiana to eliminate or scale back the tax, as well as the state’s “subsidy” of the tax by way of the inventory tax credit, he added.