Expedite Phase-out of Selected Business Taxes in Louisiana
Issue Overview: Two years ago, NFIB helped pass legislation to phase out the state sales tax on manufacturing machinery and equipment and the corporate franchise tax on debt. With the current state budget surplus, bills were offered in the recent special session to speed up these phase-outs. The bills did not pass, but similar bills will likely be introduced in the 2007 regular session.
NFIB Position: NFIB supports eliminating these taxes as soon as possible.
Issue Status: Bills were offered in the special session to speed up the phase-out of these taxes, and similar bills are likely to be offered in the regular session.
What to Do: Contact your legislators and urge them to support bills to get rid of the state sales tax on manufacturing machinery and equipment and the corporate franchise tax on debt as soon as possible. Personal conversations are best, but if that is not feasible, contact them by phone, letter, fax or e-mail.
What to Say:
- These two taxes discourage economic development in Louisiana.
- Quick elimination of these taxes will send an encouraging message to businesses planning to expand or locate in Louisiana.
- This would be an effective way to utilize a small part of the substantial state budget surplus.
