taxes

Federal taxes are due next week. Loyola University law students are helping people make that filing deadline.

Have you noticed you don’t see “inventory reduction” sales regularly, like you used to? That’s because of Louisiana’s business inventory tax credit, put in place in the 1990s.

“It certainly has been no reason for companies to deplete their inventories at the end of the year,” state Sen. Robert Adley observes.

Businesses still do count their inventory, and pay local taxes on their stock on hand. But when they file their corporate income tax returns with the state, Louisiana reimburses the companies for every penny they paid in inventory tax—even if the amount exceeds the other state taxes the business owes.

Should Louisiana repeal its 20-year-old severance tax exemption for horizontal wells? LSU economist Jim Richardson believes the time for that particular economic incentive has passed.

“In 1994, nobody knew how to do horizontal drilling. Today, everybody knows how to do horizontal drilling,” Richardson says of the tax break implemented to encourage what was then a new technology.

Louisiana Mid-Continent Oil and Gas Association president Chris John says the severance tax exemption for fracking wells keeps Louisiana in the shale production game.

At the state capitol, it seems like everybody is talking about Grover.

No, not Sesame Street’s Grover. They’re talking about Grover Norquist, the Washington, D.C. lobbyist and founder of ATR — Americans for Tax Reform.

State Sen. Robert Adley is not a fan.

“That ATR bunch we’re havin’ to live with? I just found out who they are,” Adley announced at a recent meeting.

Anticipating the coming fiscal year’s massive shortfall, Louisiana’s legislature commissioned a comprehensive analysis of the state’s entire tax structure. That report was delivered Tuesday.

“Do we have the right tax structure for 2015 and on?” LSU economist Jim Richardson said was the main question being considered. “It’s a tax structure we put in place in 1973.”


Chris Potter

Voters across the state will decide whether New Orleans residents get to vote on raising property taxes. House Bill 111 was given final passage Thursday. It would nearly double the portion of property taxes that go to police and fire protection from about 10 mills to 20 mills.

The measure needs a series of approvals before taxes would rise. Voters statewide and in New Orleans would have to approve it in November. And voters in New Orleans would have to approve it again in another vote.

Derek Jensen / Wikimedia

There will be no new taxes on cigarettes in New Orleans. The legislature voted down the 80-cent tax on tobacco products Wednesday morning.

The cigarette tax bill was one of two bills supported by Mayor Mitch Landrieu to shore up the New Orleans city budget.

The second bill, to raise the city’s hotel tax by 1.75 percentage points, was returned to the calendar Wednesday afternoon to be voted on at a later date.

If the hotel tax is passed in the legislature, it still would have to pass muster with Governor Bobby Jindal.

The City of New Orleans has extended the deadline for paying 2014 property taxes to Friday, Feb. 7 due to the closure of City Hall as a result of the winter storm that shut down much of the region this week.

Property owners can make payments in several ways, including in-person, by mail and online:

In person:

Bureau of the Treasury
City Hall, Room 1W40

The City will provide a drop-off lane at the Perdido St. entrance to City Hall on Friday, Jan. 31 and Friday, Feb. 7.

Analysis: La. Budget Needs $200M From Tax Amnesty

Sep 23, 2013

As Louisiana's latest amnesty program for delinquent taxpayers begins Monday, state officials are grappling with dueling concerns as they urge people to pony up what they owe.

Lawmakers and Gov. Bobby Jindal's administration need the program to help drum up $200 million in back-owed taxes to balance this year's budget or face deep cuts in the state's health care programs.

Robert Morton

La. state tax credits aren't just for Hollywood producers any more. This week on Out to Lunch, Peter Loop introduces eTax Credit Exchange where YOU can buy a credit and lower your taxes. Orleans Parish Assessor Eroll Williams will also lower your taxes, if you can convince him. Plus, want everyone in NOLA to send you money? Click here: FundDat.

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