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Started By
Message
Is this corporatism in Louisiana?
Posted on 2/22/17 at 8:22 am
Posted on 2/22/17 at 8:22 am
LINK
I think the biases of the paper and the group releasing the report are obvious enough, but is this really something we should be doing? Those numbers seems pretty staggering in light of our perpetual budget shortfalls.
And a little more context from The Advocate:
LINK
quote:
Late last spring, Together Louisiana released a scathing report titled “Costly & Unusual” detailing how the un-elected Commerce & Industry Board has forgiven roughly $16.7 billion in local governments’ property tax revenue — all in the name of job creation — for a cost of about $535,000 per job created. The kicker: local governments have no say in the matter.
quote:
Last year, in 2016, the Commerce and Industry Board approved more in industrial tax exemptions than ever before, approving $4.9 BILLION in exemptions. That’s just last year.
That’s more in exemptions than has EVER been approved, under Governor Jindal or under any other governor in Louisiana’s history. That is more than 4 times the annual average over the prior 15 years. It’s actually 7 times the rate approved during Governor Jindal’s first term in office 8 years ago.
[O]ur state currently faces a $304 million budget deficit for 2016. In the same year that we have a $304 million budget deficit, our state approved $4.9 BILLION in new tax exemptions — 16 times the amount of the deficit.
I think the biases of the paper and the group releasing the report are obvious enough, but is this really something we should be doing? Those numbers seems pretty staggering in light of our perpetual budget shortfalls.
And a little more context from The Advocate:
quote:
Most states have an industrial tax exemption, but Louisiana is the only one that handles the grants without the approval of local governments, which otherwise would be in charge of collecting property taxes. Also unique is that state government pays about half the costs for everyday services – police, fire, schools, etc. – usually handled on the local level elsewhere.
LINK
This post was edited on 2/22/17 at 8:25 am
3
Posted on 2/22/17 at 8:28 am to boosiebadazz
quote:
Late last spring, Together Louisiana released a scathing report titled “Costly & Unusual” detailing how the un-elected Commerce & Industry Board has forgiven roughly $16.7 billion in local governments’ property tax revenue — all in the name of job creation — for a cost of about $535,000 per job created. The kicker: local governments have no say in the matter.
I'm not saying I necessarily disagree with this entirely, but property taxes are a function of the value of the property, which is underpinned by the business climate. So the more commerce we have, the more inflated these numbers appear to be. Louisiana is in a tough spot... they kind of have to do all they can to attract business IMO. New Orleans is too much of a cess pool in too many categories to justify moving there, and there is not much else going for the state elsewhere (schools, etc.).
Posted on 2/22/17 at 8:30 am to boosiebadazz
Doesn't affect state budget. These are local property taxes.
Posted on 2/22/17 at 8:31 am to Lou Pai
Seems like a vicious cycle. Our population is so uneducated, unhealthy, and borderline criminal that we have to give away massive amounts of government money to attract industry so we can't spend any of that money on healthcare or education so we just get dumber and more unhealthy.
Yikes.
Yikes.
Posted on 2/22/17 at 8:32 am to BigJim
quote:
Doesn't affect state budget. These are local property taxes.
It does when the state picks up half the tab for fire and police and schools.
Huey wanted everyone to have to travel to Baton Rouge to kiss the ring so he kept the money consolidated, but there are a lot of things in the state budget that should be farmed out to the localities, but what politician has ever willingly ceded power of the purse?
This post was edited on 2/22/17 at 8:34 am
Posted on 2/22/17 at 8:34 am to boosiebadazz
Show me where someone is proposing to turn those costs back to the locals?
Posted on 2/22/17 at 8:38 am to BigJim
quote:
Show me where someone is proposing to turn those costs back to the locals?
Not to derail my own thread, but I don't know that anyone is. But again, what politician do you know has ever voluntarily ceded power?
Posted on 2/22/17 at 8:42 am to boosiebadazz
I was just focusing on your statement that this is somehow related to the budget issues in the state. It's not.
So as to not derail your thread, what's your main point again?
So as to not derail your thread, what's your main point again?
Posted on 2/22/17 at 8:45 am to boosiebadazz
quote:
It does when the state picks up half the tab for fire and police and schools.
JBE's LED secretary said businesses still pay 70% of property taxes in LA, thanks to a pretty generous homestead exemption + not very-high property values LINK
This post was edited on 2/22/17 at 8:47 am
Posted on 2/22/17 at 9:35 am to boosiebadazz
They do for the schools and often subsidize the police.
Posted on 2/22/17 at 10:17 am to boosiebadazz
quote:
Seems like a vicious cycle
To add to that cycle, with approval happening at the state level and not local, how can the lower levels of government differentiate themselves from each other? Why not give portions of LA who want to attract business from outside and within the state one more variable to use when competing for business?
Posted on 2/22/17 at 10:29 am to boosiebadazz
We need property tax reforms too.
I favor abolishing the industrial tax exemption, the homestead exemption, the inventory tax refunds and redefining the taxation of timber and farm land WHILE holding property tax collection constant allowing millages to dramatically decline.
I favor abolishing the industrial tax exemption, the homestead exemption, the inventory tax refunds and redefining the taxation of timber and farm land WHILE holding property tax collection constant allowing millages to dramatically decline.
This post was edited on 2/22/17 at 10:35 am
Posted on 2/22/17 at 10:32 am to I B Freeman
quote:
We need property tax reforms too.
I favor abolishing the industrial tax exemption, the home stead exemption, the inventory tax refunds and redefining the taxation of timber and farm land WHILE holding property tax collection constant allowing millages to dramatically decline.
100000% in favor of as well.
But the single largest welfare recipients are non-profits whose property taxes are exempt from property taxes.
This post was edited on 2/22/17 at 10:33 am
Posted on 2/22/17 at 10:41 am to Foch
quote:
To add to that cycle, with approval happening at the state level and not local, how can the lower levels of government differentiate themselves from each other? Why not give portions of LA who want to attract business from outside and within the state one more variable to use when competing for business?
I am OK if you move it to the local level. However JBE now has it so you need state, local school, local parish, local sheriff and if appropriate, local municipal approval.
That's a garbage system.
Posted on 2/22/17 at 10:42 am to I B Freeman
quote:
We need property tax reforms too.
I favor abolishing the industrial tax exemption, the homestead exemption, the inventory tax refunds and redefining the taxation of timber and farm land WHILE holding property tax collection constant allowing millages to dramatically decline.
That would work policy-wise, but you will hear some screaming from citizens so it won't work politically.
Posted on 2/22/17 at 10:42 am to I B Freeman
You do know why the homestead exemption exists, right? Because of Huey P. Long and the corrupt practice of the state government repo'ing homes and farms during the Great Depression over clerical errors and miniscule amounts of unpaid taxes. The state did this to get at the oil, much of that land eventually winding up in the hands of the Long Land Company. To stop this process, amendments were passed stripping the government of the power to repo those properties and granting the homestead exemption.
Posted on 2/22/17 at 10:47 am to ihometiger
quote:
But the single largest welfare recipients are non-profits whose property taxes are exempt from property taxes.
That's only true in New Orleans, though it is a major issue there.
Not sure I agree that it is welfare though. I think you, like a lot of people, are just throwing that term out there. You basically mean "a tax policy I don't like."
I am not really sure letting people keep their tax dollars qualifies as "welfare." That is not analogous at all to giving a subsidy to an individual to buy food or receive medical care who could not otherwise afford needed services.
I guess that is really a topic for another thread though.
Posted on 2/22/17 at 11:06 am to BigJim
quote:
That's only true in New Orleans, though it is a major issue there.
are you saying the nonprofit exemption only applies in Orleans?
Posted on 2/22/17 at 11:09 am to boosiebadazz
quote:
. Our population is so uneducated, unhealthy, and borderline criminal that we have to give away massive amounts of government money to attract industry so we can't spend any of that money on healthcare or education so we just get dumber and more unhealthy.
Spending money wouldn't help education or healthcare for large segments of our population. You probably get the same kick I do when posters here blame plaintiff's attorneys for chasing business away. Businesses stay away for far different reasons than that.
Posted on 2/22/17 at 11:11 am to ThisWayChad
quote:
are you saying the nonprofit exemption only applies in Orleans?
No.
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