Gov. Landry calls Louisiana Legislature in for a third special session on state tax reform
BATON ROUGE, La. (BRPROUD) — Gov. Jeff Landry has officially called the legislature back into Baton Rouge for the third special session of his administration. The call outlines discussions around the governor’s tax reform plan that he has been touting for weeks and includes extra topics for lawmakers to tackle.
“This special session fulfills the promise we made to the people of Louisiana to rebuild our economy and make Louisiana a place where people want to raise a family and create jobs,” said Landry. “Throughout this special session, we have the opportunity to give teachers a permanent pay raise, put more money in every worker’s pocket, eliminate the tax on prescription drugs, and provide much-needed tax relief for seniors. I am eager to enact this new playbook and finally make Louisiana a beacon of hope — inviting families and businesses back home. It’s time we move Louisiana Forward.”
The governor’s tax plan broadly looks to revamp the sales tax to expand the base of goods and services that can be taxed. They will also renew the .45 sales tax set to roll off in 2025. The hope is that it will make up the difference from a proposed income tax reduction, among other plans.
The state is also trying to incentivize parishes to do away with their inventory tax, a move that the river parishes are raising alarm about.
There is a proposed constitutional amendment to move around the state’s Revenue Stabilization Fund to pay down teacher retirement debt to make a pay stipend permanent.
The call allows for these tax topics to be debated and laws to be passed around them:
- The franchise tax, corporate franchise tax, income tax, severance tax – rates, exemptions, deductions, credits and incentives.
- Increase the standard deduction against individual income tax for people 65 and older.
- State sales and use tax and local sales and use tax.
- Ad valorem property taxation, millages, assessments, rates, exemptions and incentives.
- Economic development incentives.
- Taxing digital products, goods and services.
For some lawmakers, parts of the call came as a surprise. While the session was originally dubbed as a tax-only session, other topics included in the call included:
- The state expenditure limit.
- Funding for the fortified roof program for Louisiana Citizens Property Insurance policyholders.
- The Oilfield Site Restoration Fund.
- Incentives to leasing on state lands by revising the authority of the State Mineral and Energy Board.
- Funding for instructional materials for students in vocational agriculture, agribusiness and agriscience courses.
- Amendments to the constitution regarding crimes.
- Amendments to the constitution relative to the judicial branch regarding specialty courts, the Supreme Court’s authority to regulate disciplinary proceedings and unethical practices, vacancies in judgeships and elections for vacancies in judgeships.
- Supplemental funds for the current fiscal year budget.
- Call and fund a special statewide election to vote on constitutional amendments.
The session is outlined to begin the day after the presidential election and last through Nov. 25.
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