(The Center Square) − During the first days of Louisiana’s special legislative session, lawmakers took significant steps on several high-stakes bills aimed at overhauling the state’s tax code and reforming juvenile prosecution laws.
A total of 31 bills have been introduced, though not all of them relate to Gov. Jeff Landry’s tax reforms.
“The people need our entire tax package, not just a slice. The opportunity before us is significant, and it’s up to all of us to seize it,” Landry said in a post on Facebook. “I urge the Legislature — take this package in its entirety and let’s not squander this chance to make a lasting difference for Louisiana’s future.”
A proposed flat 3% income tax rate, introduced by state Rep. Julie Emerson, R-Lafayette, was reported favorably by the House Ways and Means Committee as well as the Appropriations Committee.
Rep. Mandie Landry, D-New Orleans, challenged Emerson on the proposed expansion of taxed goods and services, a key component of Landry’s broader tax reform plan.
“I thought Republicans didn’t want to [add new taxes],” Landry remarked, voicing Democratic concerns that the plan could raise costs for consumers without clear benefits.
“We like lowering the rates and broadening the base,” Emerson replied.
Landry and Rep. Matthew Willard, D-New Orleans, have been the only two representatives to vote no on any of the proposed bills.
Emerson also presented House Bill 7 to amend Article 7 of the Louisiana Constitution, aiming to streamline tax exemptions, credits and rebates.
Under the bill, a two-thirds legislative vote would be required to introduce or expand tax exemptions, and any new sales tax exemptions would apply uniformly at both state and local levels.
The bill, which also includes a $2,000 teacher pay raise, encountered pushback from business leaders concerned about its potential to limit tax relief.
Richard Nelson, secretary of the Department of Revenue, highlighted the complexity of Louisiana’s fragmented tax code, emphasizing the need for consistency across parishes.
So far, HB1, HB2, HB3, and HB7 were all reported favorably by the Ways & Means committee. HB1, the personal income tax cut, was reported favorably by the Appropriations Committee on Friday.
On Monday, the Appropriations Committee will hear HB2, which proposes lowering the corporate income tax rate, and HB7, which aims to overhaul Article VII of Louisiana’s constitution.
