Louisiana legislature approves Jindal tax cuts

CROWLEY – The legislature seems to be in agreement with Gov. Bobby Jindal’s plans to lower business taxes.

On Wednesday, the House and Senate unanimously approved bills that would lower a tax on Louisiana businesses, and speed up the planned elimination of two other taxes.

Jindal and his leaders in the legislature have said burdensome taxes on businesses, such as one on utility use, contribute to the state’s struggles to attract new jobs.

“We are uncompetitive as far as business taxes are concerned in this area, and we are trying to get more in line with other states and get more competitive,” said Rep. Hunter Greene, R-Baton Rouge, speaking in support of the bill to cut the utility tax by 1 percent.

Members of the House approved the measure 101-0, before sending it to the Senate.

The Senate approved two bills that would accelerate the gradual elimination of other business taxes. A House committee is set to take up those measures on Thursday.

One would speed up by one year the planned elimination of the “corporate franchise tax,” levied on borrowed capital. Phase-out of the tax began in 2006, planned to eliminate it entirely in 2012. Jindal proposal would eliminate the tax in 2011 instead. The change would cost the state $26 million, but not until 2011, according to the Legislative Fiscal Office.

Another bill would accelerate planned elimination of the state sales tax on manufacturer machinery and equipment purchases. The bill would eliminate the tax, at a cost to the state of $4 million, next year instead of in 2010.