Louisiana is one of the few states that still fully taxes business inventory, an outdated policy that forces small businesses to pay taxes on goods they haven’t sold. That’s affects their bottom line and makes it harder for them to grow and create jobs.

Voters have a chance to fix that on May 16.

Constitutional Amendment 4 would give communities the option to reduce or eliminate the inventory tax based on what works best for their economy. It’s not a mandate but a tool that puts decisions in the hands of local officials, not Baton Rouge.

For small businesses, that matters. It can help level the playing field, encourage investment, and make Louisiana more competitive.

“This amendment gives communities the flexibility to ease a major burden on small businesses,” NFIB State Director Leah Long said. “When local leaders can make decisions that reflect their local economy, it helps create an environment where small businesses can grow and create jobs.”

As other states move to reduce costs on job creators, Louisiana can’t afford to fall behind. Amendment 4 is a practical step toward a stronger, more competitive economy.

Election Day is May 16, but early voting will run from May 2 to May 9 except for Sunday, May 3.

Meanwhile, the Louisiana Department of Revenue has posted a new bulletin outlining changes to the state’s inventory tax credit (ITC). For many businesses, this credit helps offset the cost of paying taxes on inventory, so any updates are important.

Click here to learn more.