With the state suffers with a $1.6B budget deficit, there are ideas proposed by the Jindal administration and by members of both the House and Senate, however, all of them are facing opposition, to date.
One of those proposals involve the inventory tax credit rebate and the removal of the inventory tax.
Businesses are assessed an inventory tax, which proceeds go to the local governments. However, they are then awarded a tax credit which in many cases reimburses them for the tax payment.
Governor Jindal wants to reduce the tax credit to the extent that reimbursements are not made beyond the businesses’ Louisiana tax liability.
The business community, particularly, the Louisiana Association of Business and Industry oppose this move. They, instead favor the removal of the inventory tax altogether.
Obviously, the local governments are hardly enthralled with that idea since the revenues go to the local governments.
On Friday, we interviewed Lawrence Chehardy about this and other matters.
Chehardy was Jefferson Parish Assessor for 34 years. During this time, he has dealt with many of these issues such as generating revenues for local governments.
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Watch part one of the interview with Chehardy as he describes the session to date and explains the pros and cons of removing the inventory tax credit rebate and the inventory tax altogether.
