Connect with us

Louisiana

Louisiana lawmakers not keen to expand sales taxes, putting Landry plan in jeopardy • Louisiana Illuminator

Published

on

Louisiana lawmakers not keen to expand sales taxes, putting Landry plan in jeopardy • Louisiana Illuminator


A central part of Gov. Jeff Landry’s plan to revamp the state’s tax laws is struggling to gain the votes needed to pass, and some lawmakers have said the bill that would expand the sales tax to services and labor is dead in its current form. 

House Bill 9, sponsored by Rep. Neil Riser, R-Columbia, was sidelined for the second day in a row Thursday as he chose not to bring it up for a vote on the House floor. The measure would expand the state sales tax to apply to a list of more than 40 services, including lawn care, massage therapy and various home repair offerings. 

Similar legislation to place sales taxes on online streaming subscriptions and other digital services cleared the House on Wednesday. 

Advertisement

GET THE MORNING HEADLINES.

Riser, who represents a rural area of northeast Louisiana, expressed the precarious nature of the situation in an interview on the House floor as lawmakers adjourned for the day, saying there’s nothing in the bill that could be changed to gain support from one lawmaker without losing support from another. 

Advertisement

“It’s like a ripple in time,” Riser said.

His bill is part of a package Gov. Landry proposed offering lower personal and business income taxes in exchange for more sales taxes and fewer tax credits. Supporters of the plan maintain its measures would bring more business and jobs to the state. 

For a special session that must end by 6 p.m. Nov. 25, the current pace of legislation doesn’t bode well for the original package of bills.

Senate President Cameron Henry, R-Metairie, said in an interview Riser’s proposal has been a particular sticking point for lawmakers.

“The services have been very difficult throughout this whole process because if you kept everybody in, that’s one thing,” Henry said. “But once you start breaking down and picking winners and losers, it became very difficult to justify.”

Advertisement

Tax bills in Louisiana require a two-thirds majority in each legislative chamber to pass.

From the start, a significant number of lawmakers from each political party have expressed reluctance about taxing services and labor. Some fear its impact will land hardest on lower income residents, and others are concerned with the cost and logistical burden placed on small businesses and sole proprietors. 

Rep. Mike Bayham, R-Chalmette. (Allison Allsop)

Rep. Mike Bayham, R-Chalmette, said Riser’s bill would leave many small business owners with no choice but to hire accountants who would likely charge a premium because demand would “go through the roof.”

“Small businesses are going to be stampeding into accountants’ offices,” Bayham said. “And, by the way, whose services does the bill exempt from taxation? The accountants’.” 

He said he hopes the governor will realize parts of his plan could end up favoring large businesses over smaller ones. 

Advertisement

“We cannot be corporatists,” Bayham said. “We must help our small businesses along with our big businesses. Don’t favor one over the other.”

Sen. Gerald Boudreaux of Lafayette, who chairs his chamber’s Democratic Caucus, said the sheer number of new services to be taxed would create collection enforcement issues.

“There’s just so many that have never been taxed before,” Boudreaux said. “… How are we going to regulate that, and how is it going to be done?”

New doubts began to mount Wednesday during a hearing on Riser’s bill in the House Ways & Means Committee when several insurance industry executives testified to how the proposal would force property insurance premiums to increase. 

Rodney Braxton, a lobbyist for the Insurance Council of Louisiana trade association, told lawmakers rates would undoubtedly increase if labor on home repairs is taxed. 

Advertisement

The bill would exempt any property services and repairs as a result of an officially declared disaster and any services considered “capital improvements” that increase the value of a property. However, insurance executives told the committee those exemptions could actually create uncertainty in the underwriting market, ultimately resulting in higher costs for policyholders. 

If enacted, Riser’s bill is estimated to generate $1.9 billion in state revenue over the next five years, according to an analysis released Thursday evening by the nonpartisan Legislative Fiscal Office. Without that potential revenue available, lawmakers would likely have to consider increasing sales taxes on other items. 

The House did manage to pass related legislation that would set the actual sales tax rate to 4.4%, allowing 0.05% of a House Bill 10, sponsored by Rep. Mark Wright, R-Covington, cleared the chamber with a 71-23 vote — just one over the two-thirds needed for tax measures. 

Wright’s bill underwent several floor amendments that tacked on tax exemptions for diapers, church books and other special interests. The legislation heads next to the Senate Committee on Revenue and Fiscal Affairs.

Henry said he would rather not adjust the flat tax bills, which set rates of 3% for personal income and 3.5% for businesses.

Advertisement

“There could be delaying implementation of this to see how much revenue comes in on the other bills …,” Henry said, specifically mentioning the digital services tax bill. “Maybe we don’t have to address it now. We could address it in the future.”

Any such discussions have been put on hold until lawmakers reconvene Monday.

Julie O’Donoghue contributed to this report.

YOU MAKE OUR WORK POSSIBLE.

Advertisement



Source link

Advertisement

Louisiana

How a sinkhole caused a whirlpool and formed Louisiana’s deepest lake

Published

on

How a sinkhole caused a whirlpool and formed Louisiana’s deepest lake


play

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.

Advertisement

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.

Advertisement

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.

Advertisement

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



Source link

Continue Reading

Louisiana

Officials confirm Pensacola Beach residue is algae, not oil from Louisiana spill

Published

on

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.

Advertisement

“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.

Advertisement

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.

Advertisement

“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.



Source link

Continue Reading

Louisiana

Louisiana Gov. Jeff Landry calls for amendment for teacher pay raises

Published

on

Louisiana Gov. Jeff Landry calls for amendment for teacher pay raises


play

  • Louisiana Governor Jeff Landry proposed a constitutional amendment for permanent teacher pay raises.
  • Landry’s address also supported an eventual elimination of the state income tax.
  • The governor’s budget includes an $82 million increase for corrections services following recent tough-on-crime laws.
  • Landry advocated for doubling the funding for his LA Gator school choice program.

BATON ROUGE — Gov. Jeff Landry advocated for a constitutional amendment that would create a permanent teacher pay raise as well as an eventual elimination of the state income tax in an opening address to the Louisiana Legislature on Monday.

Landry pushed for the passage of Proposed Amendment 3 on the May 2026 ballot to free up money for teacher pay raises.

Advertisement

He said the amendment would pay down longstanding debt within the Teachers’ Retirement System of Louisiana and enable the state to afford a permanent increase in teacher income. The proposed increases are $2,250 for teachers and $1,125 for support staff.

“With a ‘yes’ vote, we can strengthen the retirement system, improve their take-home pay, and guess what? We can do it without raising taxes,” Landry said.

A bill proposing the elimination of the state income tax, which takes in about $4 billion annually, was pre-filed earlier in the year by Rep. Danny McCormick, R-Oil City. Where the money will come from to supplement the loss is currently unclear.

McCormick said in an interview with the LSU Manship School News Service that to encourage more young adults to stay in Louisiana, “we need to do away with the state income tax.”

Advertisement

“This is a conversation piece that hopefully we can figure out where to make cuts in the government so we can get the people their money back,” McCormick said.

But Senate President Cameron Henry, R-Metairie, said at a luncheon at the Baton Rouge Press Club that if the Legislature “can be disciplined” this session, residents could anticipate a 0.5% decrease in state income tax during next year’s session. He also said bigger tax cuts have to be planned over a longer budget cycle.

Within education changes, Landry commended the placing of the Ten Commandments in classrooms, approved by the Louisiana Supreme Court in a decision handed down last week.

“You have staked the flag of morality by recognizing that the Ten Commandments are not a bad way to live your life,” Landry said. “Students who don’t read them will likely read the criminal code.”

Advertisement

Landry’s budget proposed an $82 million increase for corrections services following 2024 tough-on-crime legislation that eliminated parole and probation, increased sentencing and encouraged harsher punishments.

Landry directed his criticism toward the New Orleans criminal justice system, which he feels is lacking accountability, especially in courtrooms.

“Judges hold enormous power, but they are not social workers with a gavel,” he said. “They are the final gatekeepers of public safety.”

The Orleans Parish criminal justice system relies on state and local funding stemming from revenues from fees imposed on those arrested, according to the Vera Institute. Landry said the state spends twice as much on the Orleans system as it does in East Baton Rouge Parish, the largest parish in the state.

“Being special does not mean being exempt from accountability,” Landry said.

Advertisement

Overall, Landry pushed for fewer and different ideas compared to the sweeping agenda he laid out at the start of previous legislative sessions. Henry mentioned at the Baton Rouge Press Club that the governor would like for this session to be a “member-driven session instead of an administrative session.”

Landry spoke only in general terms about his proposal for more funding for LA Gator, his program to let parents use state money to send their children to private schools.

“We must find a path so that the hard-earned money of parents follow their child to the education of their choice,” he said.

He has proposed doubling funding for the LA Gator program from $44 million a year to $88.2 million. The likelihood of this occurring is yet to be seen, as prominent lawmakers such as Sen. Henry are hesitant to approve an increase in funding.

Landry similarly did not mention carbon capture projects, despite the issue gaining traction from affected parish residents and lawmakers.

Advertisement

House Speaker Phillip DeVillier, R-Eunice, told the Baton Rouge Press Club last week that 22 bills have been filed in the House that he would consider “anti-carbon capture.”

Landry also cited data centers and other giant industrial development projects and touted his administration’s success in bringing more jobs to Louisiana and in helping to lower insurance premiums over the past year.

“May we continue to employ courage over comfort, and if we do, there is really no limit to what we can do for Louisiana,” Landry said.



Source link

Advertisement
Continue Reading
Advertisement

Trending