Harlan Kirgan
Taxes are on Rep. Phillip DeVillier’s mind as he prepares for his 17th session as a legislator.
DeVillier, a Republican, is in his sixth year as a legislator representing the 41st District that includes Eunice and much of rural Acadia Parish.
DeVillier supports centralizing sales tax collections in the state and simplifying the income tax structure.
“I’m trying to do what I always do, is try to create a Louisiana that attracts business and retains those that want a good future in Louisiana. It is something that we always hear about, but seems like we never accomplish,” he said in a phone interview.
DeVillier has been touring the state, meeting with other legislators prior to the session. On Tuesday, he was in Metairie.
“I’m going to be focused on business and trying to do good tax reform policy that takes Louisiana in a different direction,” he said.
“Fair, simple and predictable,” he said about the tax reform.
In most rankings, Louisiana is a low-tax state, but DeVillier sees the state’s tax structure as cumbersome, particularly for business.
“I think they are referring to a low-tax burden as far as maybe what you pay. The problem with it is you’ll see what you pay, but you don’t realize how complicated it is to figure those things out,” he said.
A business with sales across the state operates in jungle of tax rates in each parish.
Devillier sees centralized sales tax collection as a way to simplify paying taxes.
“It takes a staff of CPAs or attorneys to figure out what it is you have to do to pay these taxes,” he said.
“If we could just simplify things for businesses and for individuals I think that you would have a Louisiana that is taking the initiative to change our tax landscape and hopefully attract more businesses to want to be here,” he said.
Louisiana and Colorado are the only states without a centralized sales tax collection system.
There is also a focus on the personal income tax, he said. Legislators are looking at a 4% flat tax instead of the three brackets of 2%, 4% and 6%, he said. The path to do that is to remove the federal income tax credit, excess itemized deductions and increase the standard deduction, he stated in an email.
DeVillier said he has a bill to create a 5% corporate income tax rate instead of the system now with five rates topping out at 8%. Eliminating the franchise tax, then cutting corporate credits and exemptions by 50% would help create the 5% flat rate, he stated.
DeVillier is still supporting moves to reduce or cut severance taxes on oil and gas production. He has authored a bill to phase down the severance tax on oil over eight years.
Federal stimulus money is taking the pressure off the state to tax and spend. DeVillier said he is not in favor of increasing the tax on gasoline. Instead he wants the 20 cents per gallon tax that raises about $650 million to be spent on roads and bridges.
Of the $650 million raised by the gas tax only about $50 million ends up being spent on roads and bridges, he said. “Everything else goes on salaries, benefits, debt service, retirement,” he said.
“I’m not saying those things are not important for DOTD ... but we need to spend the gas tax dollars that are collected on roads and bridges,” he said.
There also is a move to shift a 0.45% temporary sales tax from the general fund to infrastructure, he said. The tax, which generates about $450 million a year, will end in 2025.
DeVillier said he will lean on mayors and councils for local issues. Of prime importance is to see that LSUE’s maintenance needs are addressed, he said.