Louisiana
Louisiana lawmakers move ahead with plan to phase out a business tax, but give locals options
A plan to phase out a local tax on business inventory — a critical revenue source for certain parishes — is still alive after a Senate committee on Tuesday gave its approval, but with some key changes.
Parish governments currently have a constitutionally protected right to levy an inventory tax on tangible business assets, which include things ranging from chemicals and natural gas to cars and groceries.
In some parishes, the business inventory tax generates more than $30 million a year. But in others, the tax brings in a meager $1 million or less.
Landry’s Revenue Secretary, Richard Nelson, the tax plan’s principal architect, has said the inventory tax drives away potential business investment in Louisiana. But he also acknowledges eliminating it presents a difficult political problem given local government reliance on it.
The Senate Revenue and Fiscal Affairs committee on Tuesday advanced a plan to incentivize parishes to voluntarily stop collecting the tax. In exchange for a lump-sum payment from the state equal to three years’ worth of parish collections, parishes would agree to forever relinquish their right to levy the tax.
Another factor in play is that while the parishes charge businesses the inventory tax, the state runs a credit program that reimburses those businesses for the amount they pay the local governments. In recent years, that credit program has cost the state more than $280 million annually.
Parishes would have until July 2026 to decide whether to take the buyout. The committee also extended the corresponding inventory tax credit program for corporations through July 2026.
Under a previous version of the plan, the credit would have ended in January.
“It just creates a longer runway for businesses to be able to make choices, for parishes to be able to make choices, and for us as the Legislature to be able to see the impact,” said Sen. Mike Reese, R-Leesville, a member of the Senate tax committee.
The plan would also allow parishes that choose to keep taxing business inventory to do so at a lower rate of their choosing. Right now parishes are required to assess inventory at 15% of its value.
That idea is geared toward moving parishes away from reliance on the revenue stream: It would allow them to lower their collections from the tax while also staying somewhat competitive with neighbors that totally opt out of collections.
“It’s a careful balance that we don’t place parishes in a bad position here and that we don’t put businesses in a worse position if they have to be in a parish that does not opt out and they don’t receive the credit back from the state,” said Reese.
Reese called the tax “convoluted,” noting it’s assessed and paid at the local level but then refunded back to businesses by the state.
“It’s the desire of this administration and this Legislature to hopefully put us in more competitive position nationally,” he said.
Keeping local governments whole
On Tuesday, another piece of a plan to keep local governments whole amid business inventory tax changes emerged: the Local Revenue Fund.
The fund, which would be set out in the Constitution, would be used to pay parishes that opt out of collecting the business inventory tax.
It would be set up in the state treasury and administered by the Uniform Local Sales Tax Board.
Lawmakers would have to decide where the funds come from.
Said Reese: “That’s the question mark: where the revenue comes from.”
It’s an open question amid ongoing negotiations over income tax rate cuts and new sales tax measures.
Rep. Daryl Deshotel, R-Marksville, said Monday that the Local Revenue Fund would work only if the revenue for it comes from an expanded sales tax on services.
But the plan to tax more consumer services is stagnating in the House and doesn’t currently have the support it needs to pass.
Deshotel said he’s “vehemently against” increasing Louisiana’s sales tax rate as part of the overall tax package.
“We’re already tied for the highest sales tax in the country, and if we would increase this, we would be the highest,” he said. “To double down on a tax that I know is bad for the people, I just can’t support that.”
Prescription Drugs
Another part of the plan approved by the Senate committee Tuesday allows locals governments to continue collecting tax on prescription drugs, which the state does not do.
As it tries to streamline the state tax code, the Landry administration has been pushing to get rid of the local tax on pharmaceuticals.
Committee chair Sen. Franklin Foil, R-Baton Rouge, said Tuesday he would prefer to see an end to the local tax on prescription drugs and would continue to work toward that goal.
Asked after the hearing about the decision to maintain the prescription drug tax, Foil said it was a necessary part of the negotiations.
“In trying to get rid of the inventory tax and doing some things that we’re trying to do to make all of this work, it gave more revenue to locals,” he said.
Louisiana
Louisiana considers opening recreational alligator hunting season
Massive alligator causes chaos, attempts to avoid capture
Officers wrangled and released an alligator after it was spotted near a home in Livingston Parish, Louisiana.
Louisiana may expand its wild alligator harvesting opportunities to recreational hunters if the Legislature passes a bill that secured unanimous approval in a committee hearing March 11.
Franklin state Sen. Robert Allain’s Senate Bill 244 would authorize the Louisiana Wildlife Commission to create a recreational season that would be open to 5,000 hunters annually, each with a two-gator limit.
The state already has a commercial hunting season for alligators, which is chronicled in the popular “Swamp People” TV reality series.
“We think the time is right,” Louisiana Department of Wildlife and Fisheries Secretary Tyler Bosworth testified during the Senate Natural Resources Committee hearing. “We want to provide a recreational opportunity for the common folk of Louisiana.”
Louisiana’s alligator population has exploded in the past 50 years from fewer than 100,000 to more than 3 million today. Of those, about 2 million are wild with another 1 million farmed.
That’s at least twice the population in Florida, the state with the second most number of alligators.
And their Louisiana numbers have grown throughout the state where they can be commonly spotted from Lake Martin in Breaux Bridge to Caddo and Cross lakes in Shreveport to Caldwell Parish in northeastern Louisiana.
“This is a conservation success story on the highest level,” LDWF general counsel Garrett Cole said during the hearing. “This would create a true recreational opportunity outside our commercial season.”
Garrett said hunters would compete for hunting tags through a lottery will statewide opportunities. Recreational hunters would be limited to hook and line harvesting from land. No gators could be taken by boat as commercial hunters are allowed to do.
If approved, the first season could take place beginning Oct. 1.
Greg Hilburn covers state politics for the USA TODAY Network of Louisiana. Follow him on Twitter @GregHilburn1.
Louisiana
How a sinkhole caused a whirlpool and formed Louisiana’s deepest lake
Responsible Anglers United, LDWF release bass into Lake Bouef
Responsible Anglers United team up with Louisiana Department of Wildlife and Fisheries to release more than 3,000 Florida bass into Lake Bouef on Oct. 17.
While Louisiana’s largest lake, the Toledo Bend Reservoir, spans 1,200 miles of shoreline, the state’s deepest lake only spans 1,125 acres.
Lake Peigneur is the deepest lake in Louisiana, with a depth measuring approximately 200 feet.
Lake Peigneur is a brackish lake, meaning it contains saltwater but has less salinity than seawater, located in New Iberia Parish in South Louisiana.
How did Lake Peigneur become the deepest lake in Louisiana?
Lake Peigneur was not always considered the deepest lake in Louisiana, as it was only a 10-foot-deep freshwater lake 40 years ago.
On Nov. 20, 1980, an oil rig crew was attempting to free a 14-inch drill bit when they heard popping noises and the rig began to tilt. Shortly after the crew abandoned the rig and headed for shore, the crew watched the 150-foot oil rig disappear into the 10-foot-deep lake.
Soon, a whirlpool formed in place of the oil rig. The whirlpool grew rapidly until it was able to suck up nearby boats, barges, trees, a house and half an island.
At the same location of the oil drilling site, there was also a salt mine, and when the whirlpool formed after the oil rig collapsed, the mine began to fill with water. As the whirlpool grew, water was able to enter the mine at such a force that it caused a geyser to spew out of the mine’s opening for hours until the lake was drained.
After the lake was emptied, the Delcambre Canal began to flow backward, marking the only time in history that the Gulf of Mexico flowed into the continental U.S. This backflow continued until the entire mine and lake were filled with water, except now the lake was filled with saltwater, according to an article published on Louisiana Tech Digital Commons.
Can you swim in Lake Peigneur?
Before the oil rig and salt mine accident, Lake Peigneur was a popular spot for fishing and recreational activities. However, since the lake is almost entirely surrounded by private property, visitors will have to enter the nearby Rip Van Winkle Gardens in order to get a closer look, according to Atlas Obscura.
While there are no reports indicating the lake is unsafe, the lake is not exactly developed for public access. However, there are things to do around Lake Peigneur, like visiting Rip Van Winkle Gardens on Jefferson Island, or visiting Avery Island to tour the Tabasco Factory.
Presley Bo Tyler is a reporter for the Louisiana Deep South Connect Team for USA Today. Find her on X @PresleyTyler02 and email at PTyler@Gannett.com
Louisiana
Officials confirm Pensacola Beach residue is algae, not oil from Louisiana spill
PENSACOLA BEACH, Fla. — A local fisherman raised concerns about the substance now coating Opal Beach, citing a recent oil spill off the coast of Louisiana.
WEAR News went to officials with the Gulf Islands National Seashore and Escambia County to find out the cause.
They say it’s not related to an oil spill, but is in fact algae.
The Marine Resources Division says they can understand beachgoers’ concerns, and hope to raise awareness.
“You don’t even want to get near it because it’s so gooey and sticky,” local fisherman Larry Grossman said. “It was accumulating on my beach cart wheels yesterday, and it felt like an oil product.”
Grossman messaged WEAR News on Monday after noticing something brown and oozy in the sand. He says it started showing up by Fort Pickens and stretched down to Opal Beach.
Grossman said a park service employee told him it could be oil from a recent spill in Louisiana. So he took a message to social media, sparking some reactions and raising questions.
“it certainly didn’t seem like an algae bloom because I was in the water, I caught a fish and I put some water in the cooler to keep my fish cool and it almost looked like oil in it,” Grossman said. “I know some people think it’s an algae bloom, but it certainly smelled and felt and looked like oil.”
A Gulf Islands National Seashore spokesperson confirmed to WEAR News on Tuesday that the substance is algae.
WEAR News crews were at the beach as officials with the Escambia County Marines Resources Division came out take samples.
“What I found here washed up on the beach is some algae — filamentous algae, single celled algae — that washed ashore in some onshore winds,” said Robert Turpin, Escambia County Marines Resources Division manager. “This is the spring season, so with additional sunlight, our plants, they grow in warmer waters, with plenty of sunlight.”
Turpin says this algae is not harmful.
He also addressed the concerns that this could be oil, saying he’s familiar with what oil spills look like.
He says he appreciates when people like Grossman raise the concerns.
“The last thing in the world we want is something to gain traction on social media that is faults in nature that could harm our tourism,” Turpin said. “Our tourism is very important to our economy, and we want to give the right information out to the public so we all enjoy the beaches and enjoy them safely.”
Turpin says if you see something or suspect something may be harmful on the beach, avoid it and contact Escambia County Marine Resources.
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