Business Makes objects to the accusatory tone of the current editorial printed by The Advocate relating to Louisiana’s Industrial Property Tax Exemption Program and the declare that trade has “some explaining to do.”
To place that objection in context, some temporary historical past: Louisiana has one of many highest homestead exemptions within the nation at $75,000 per family. With an exemption that enormous (which residential property homeowners get pleasure from yearly with out having to reapply), property taxes fall disproportionally on Louisiana companies.
In recognition of this, in 1936, Louisiana created the Industrial Property Tax Exemption Program for producers to quickly alleviate a few of the tax burden. This permits enterprise to reinvest that cash to develop and broaden in Louisiana. Louisiana’s producers have labored tirelessly and successfully with the state of Louisiana to remain compliant and to realize a renewal, for a complete of the total 10-year eligibility (because the ITEP was initially written), in addition to navigate the brand new ITEP guidelines included in Gov. John Bel Edwards’ 2016 government order.
The ITEP isn’t “giving freely different folks’s cash.” You can not give away what you shouldn’t have.
An ITEP exemption offers native taxing authorities 20% of property tax income at the moment and 100% property tax income on the finish of the 10-year abatement. If the native taxing authority chooses to not grant an ITEP exemption, then it’ll obtain zero p.c at the moment and nil p.c after 10 years.
The aim of Louisiana’s tax incentives is to draw tasks, which generate long-term advantages for the area people, area and the state. ITEP offers Louisiana a bonus in company board rooms. Business Makes will proceed to work exhausting guaranteeing that Louisiana retains that benefit.
DESIREE LEMOINE
Baton Rouge