CROWLEY — If there was a central theme at Friday morning’s Legislative Breakfast, it’s that Louisiana needs a centralized sales tax collection system.
Sen. Mark Abraham, Rep. John Stefanski and Rep. Phillip DeVillier addressed a gathering of local and parish business leaders at the Crowley Town Club Friday morning during the annual event hosted by the Acadia Parish Chamber of Commerce and sponsored by Acadia Parish Farm Bureau Insurance.
All three agreed that a central collection agency would benefit Louisiana businesses as well as state coffers, a sentiment that was echoed by at least one member of the audience.
Scott Soileau, a local CPA, explained that a firm he represents does business in all 64 Louisiana parishes and across Texas. “We have to file tax returns for each of the 64 parishes and one for the state of Louisiana — that’s 65 tax returns,” he said. “Texas has 200 counties and we file one tax return for the entire state.”
DeVillier, as a member of the House Ways and Means Committee, is leading the charge for a centralized system.
“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.
“What we are trying to do is to put the state on the right path to have a commission set up. That would make Louisiana businesses more competitive with out-of-state businesses,” DeVillier said.
Abraham pointed out that it will take a two-thirds vote of the legislature to pass a proposal and send it to a vote. “But if you don’t have the sheriffs and the parishes behind you, it’s dead,” he said.
Stefanski agreed. “Change is extremely difficult in Louisiana.” Each of the lawmak
Each of the lawmakers spoke about personal goals for the upcoming Legislative Session which kicks off Monday.
Stefanski, a Crowley Republican, was recently moved from the House Ways and Means Committee to the chairmanship of the House and Governmental Affairs Committee.
“Since then I’ve spent about 75% of my time in Baton Rouge,” he said. “I’ve met with 96 of the 104 members of the House to start the redistricting process.”
He said that process “will probably dominate my time for the next year or so.”
But he promised he would continue to work for Crowley and Acadia Parish.
“I’m passionate about capital outlay,” he said. “I believe that if we don’t fight to make sure we get our dollars back here we won’t get any. That’s my No. 1 or No. 2 priority ... to get our fair share for Acadia Parish and Crowley.”
He said he and DeVillier are working on securing funding for rehabilitation of La. 35 from Rayne to Branch and for La. 13 from Crowley to Vermilion Parish.
“I’m optimistic about these project with the federal (stimulus) money coming in,” he added.
Abraham spoke extensively about Louisiana’s $5 billion share of the $1.9 trillion federal COVID relief package.
The Lake Charles Republican said the funding will go a long way toward balancing this year’s state budget. “But we have to be very careful not to use any of that money on recurring expenses,” he added.
Abraham said he would like to see the money used to replenish the state’s unemployment trust fund and pay back some of the federal money used for coastal infrastructure.
“After that, it’s a free-for-all for anything else,” he said.
DeVillier, who has been touring the state meeting with other legislators, said he is “going to be focused on business and trying to do good tax reform policy that takes Louisiana in a different direction.
“That’s nothing new for the legislature. We talk about it all the time but it never happens.”
The Eunice Republican pointed out that, while the state will be “flush with money” this year, the 2025 roll-off of the 0.45% sales tax is going cost the state about $450 million. He added that he ex
He added that he expects the federal income tax cut implemented during the Trump administration will likely be reversed and, since federal income tax is tied directly to state income tax in Louisiana, that will cost the state between $500 million and $600 million.
DeVillier also has a plan focusing on personal income tax. He is looking at a 4% flat tax instead of the three brackets of 2%, 4% and 6%.
The path to do that, he said, is to remove the federal income tax credit, excess itemized deductions and increase the standard deduction, he stated in an email.
DeVillier said he also 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.
Each of the legislators urged those present to “stay in touch” during the upcoming session.
“What we are trying to do is to put the state on the right path to have a commission set up. That would make Louisiana businesses more competitive with out-of-state businesses.”
— Rep. Phillip DeVillier
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