Business leader calls out Louisiana’s tax system

Military museum, fire taxes approved by Terrebonne voters
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Military museum, fire taxes approved by Terrebonne voters
November 25, 2015
Boil water advisory for North Lafourche
November 30, 2015

A Louisiana business leader called for fundamental changes to the state’s tax system in an effort to appeal to more economic investment.

Mike Olivier, executive director of the Committee of 100 for Economic Development, spoke on the topic at the South Central Industrial Association membership meeting last Tuesday.


“It calls for tax reform, and it calls for spending reform, and it calls for fixing the structural budget issues,” he said.

Olivier noted that Louisiana does not have the most onerous tax code in the country, but it is competing with states surrounding it for economic investment.

“We have to sustain our economic growth. And I believe we are in a growth mode. We have more net new jobs that are available in our region today than ever before,” Olivier said.


Olivier cited a study done by the Tax Foundation that ranks all 50 states based on its business tax climate. The study ranked each state based on its corporate tax, individual income tax, sales tax, unemployment insurance tax and property tax. Louisiana ranked 37th in the country overall.

Among states bordering the Gulf of Mexico, Louisiana owned the worst ranking. Both Texas and Florida landed in the top ten, while Mississippi and Alabama were 20th and 29th, respectively. Louisiana’s best category was unemployment insurance taxation, where it ranked 5th in the U.S. Its worst was the state’s sales tax, where it was last in the nation.

Katherine Gilbert-Theriot, business retention and expansion director at the Terrebonne Economic Development Authority, said that her organization does not focus on Louisiana’s tax climate on day-to-day basis, as it is something that is a given that is outside of her organization’s control. However, she said that the tax code does play a role when businesses are considering coming to Terrebonne.


“When it comes down to a recruitment project, and the site selectors or the companies are comparing apples to apples, states to states, communities to communities, the tax code does come into play,” Gilbert-Theriot said.

Olivier mentioned that the state has already removed some exemptions, credits and rebates built into the tax code to shore up the budget.

“The department said, ‘OK, we gave you this last year, but this year we’re only going to give you 80 percent of that.’ Doesn’t sound like a good degree of certainty. And businesses like certainty,” Olivier said.


Gilbert-Theriot said Olivier’s contention about providing a consistent tax base and a level playing field for Louisiana in terms of attracting investment resonates with her. She said that while Texas has income tax advantages over Louisiana, her job is to stress the advantages in the Pelican State, such as lower property taxes and other resources.

“Texas does have some positives over us, but then we have positives over the state of Texas in Louisiana. For us, it’s about trying to make the best case and what fits that company better, and playing to our strengths,” Gilbert-Theriot said.

Olivier also mentioned the Marketplace Fairness Act, proposed legislation that would allow state governments to collect sales and use taxes from online sales. He called on state legislators in Louisiana to act and make the state ready to reap the benefits of the potential bill.


Olivier noted that the state’s budget shortfall would call for tough decisions.

“(Gov.-elect John Bel Edwards) may be a one term governor because this is going to take gumption, it’s going to take leadership, it’s going to take some people in the Legislature that are going to make a difference, make a change,” Olivier said. •