Inventory tax proposal could leave EP $1 million short

On Wednesday night, the Evangeline Parish School Board briefly discussed a proposal from the senate that would repeal business inventory taxes and leave the parish with over $1 million less in tax collections.
The measure, which is reportedly meant to save the state nearly $500 million per year, is being proposed as a way to deal with a $1.6 billion shortfall in the state’s budget. However, those speaking out against the proposal are saying it will be devastating to local school boards, sheriff’s offices and other local taxing bodies who are relying on this portion of the tax collections.
“It would be a huge hit,” Superintendent Toni Hamlin said Wednesday night.
The tax, which is collected as part of ad valorem taxes, would immediately leave the parish over $1 million short on its local tax collections, according to the school board’s Chief Financial Officer Amy Lafleur.
Where this will reportedly save money for the state is that many businesses get a “dollar for dollar” credit from the state for these taxes. In short, local governments collect and use these inventory taxes, and the state credits businesses which pay it.
This proposal is expected to hit the senate floor sometime next week.
In other business, the board:
•Learned that the committee formed last year to discuss salary adjustments for employees will finally have a proposal for the board next month (May). Hamlin said the committee meetings have been productive and salary proposals for teachers, support personnel and other staff will be presented to the school board for a vote in May.
•Learned that sales/use tax collections took a small nose dive in the month of March, with collections totalling $528,417.92, which is $11,842.01 less than the same month last year. However, the school system’s collections remain nearly $300,000 above last year’s with the fiscal year end quickly approaching.