A bill that would repeal the Louisiana’s business inventory taxis the first and only tax measure that the state Senate tax-writing committee will hear on Monday.
State Sen. Neil Riser, R-Columbia, who chairs the Senate Revenue and Fiscal Affairs Committee, said he was acceding to a request by the bill’s sponsor, state Sen. Robert Adley, R-Benton, to hear the measure, Senate Bill 85. It would have to be approved by the state Legislature and the state’s voters as a constitutional amendment.
Eliminating the inventory tax would save the state treasury $452 million because businesses actually receive far more in refunds than they pay in tax liability.
But under a complicated mechanism, the money paid by businesses actually goes to local governments so they would be out $452 million. Adley’s bill will undoubtedly produce great angst among local government officials.
In choosing to repeal the inventory tax, Adley decided not to push – at least for now – an alternative bill sought by Gov. Bobby Jindal that would eliminate the tax refunds that businesses receive for paying the tax. They add up to $376 million per year.
“I know there are some legislators who want to repeal the inventory tax all together. I think that’s a discussion that needs to be had,” Jindal told reporters during a press briefing Thursday.