Business tax break bills advance
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Proposed tax breaks for businesses quickly advanced through House and Senate committees Monday.
The biggest tax relief measures — House Bill 1 and Senate Bill 13 — only deal with a penny in utility taxes but would add up to millions of dollars in savings for businesses.
The Jindal administration-backed bills would eliminate 1 cent of the sales tax that businesses pay for electricity and natural gas.
The penny is what would otherwise remain after phasing out the rest of the tax.
State economist Greg Albrecht told the House Committee on Ways and Means that most other states do not collect utility taxes from businesses.
In Louisiana, the chemical industry is responsible for about 20 percent of the utility taxes collected each year, he said.
Eliminating a penny of the tax would cause annual state government revenue to drop by an estimated $68 million.
Rep. Damon Baldone, D-Houma, asked what businesses would do with those savings.
Albrecht said the possibilities include hiring more people or buying new equipment.
Rep. Harold Ritchie, D-Franklinton, asked about including propane in the tax break.
He said the rural parts of the state would welcome the tax relief.
“I’m one of those rednecks that need that help,” Ritchie said.
The bill’s author, Rep. Hunter Greene, R-Baton Rouge, said he is willing to look at including propane.
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