In what many legislative veterans have called one of the toughest and possibly most cantankerous legislative sessions in recent memory, the 2000 Fiscal-only Session ended only to spawn another special session. This special session to start on or about June 19th and run approximately 10 days became necessary due to the legislature not passing a State Budget during the regular session. The agenda for the Special Session should be posted shortly.

Depending on the contents of the agenda we may need to enlist your help if any anti-business legislation surfaces.
No anti-business tax measures passed during this session thanks to a UNITED business community working together as a team. You, our members, were an integral part of this team.

Your phone calls, faxes, e-mails and personal conversations with Legislators made a real difference in the outcome. I would like to thank all the members for getting involved, and some like Eddie Rispone with ISC even willing to testify before the House Ways and Means Committee against the Single Business Tax.

We also would be remiss without acknowledging the time and effort put forth by Don Allison, Pelican Chapter's Legislative Chairman during the special and regular session. Don's involvement in front of and behind the scenes was critical to the success our Association and the business community enjoyed. I also want to personally thank him for his guidance as Legislative Chairman and sharing his vast experience working with the State Legislature. - Angele Howard

The following tax increases passed:
{short description of image} 1. Car Rentals - Renews a State Sales Tax

$ 4 million

{short description of image}  2. Tobacco - Increases tax on cigarettes to 24-cents per pack

$18 million

{short description of image} 3. Itemized Deductions - Removes half the federal Itemized deductions claimed on State Income Tax Forms

$70 million

{short description of image} 4. School Child Tax Credit - Eliminated the $25 education tax credit that parents can claim for each school-age child. The change would be in effect for two years.

$18 million

{short description of image} 5. Sales Tax - Increases from 3 percent to 4 percent the sales tax on food and utility bills. Will be in effect for two years unless a constitutional amendment on the Nov. 7th ballot passes dealing with raising personal income taxes.

$110 million

TOTAL $220 million
Sent To A Vote of the People -Income taxes total net fiscal impact $400 million
- a proposed constitutional amendment to raise income taxes for some and cut State sales tax on Nov. 7th ballot, if passed.

 

Here is a listing of some of the major anti-business tax bills that failed to pass:
1. Business Activity Tax

$1.72 Billion This measure would have taxed the wages and benefits you pay your workers and many other items. A particularly onerous tax on the construction industry! Your company would have owed this tax even if it had lost money.
2. Processing Tax $2 Billion

There were over 10 bills filed taxing this important industry to our state and construction industry.
3. Inventory Tax Credit $70 Billion

There were several bills filed attacking this credit the State provides business for paying this tax to local government. Only a couple of states even have this tax anymore. Since the establishment of the State Tax Credit, small and large businesses alike have been able to expand their business. Our State has even been able to attract large distribution centers that previously were going to other states.
4. LLC's & S Corp.'s

Several bills were filed that if passed would have targeted these legal entities to double taxation.
5. Ten-Year Property Tax Program

Our State's main business incentive program was under attack. Several bills were filed attempting to weaken or eliminate this program that enables our State to attract manufacturing and food or other types of processing facilities. Without this program intact as in currently, irreparable damage would have been done to state's economic development efforts. Again these were several of the many bills filed that were punitive to business and anti-economic development.
Please call our office if you're interested in further specifics concerning the session recently concluded.
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