BATON ROUGE — The House Ways and Means Committee on Wednesday continued its pursuit of revenues to help plug a $1.6 billion hole in the fiscal 2015-16 state budget.

Four bills suspending taxes were approved, two were rejected and one was voluntarily deferred for more research. It was the committee’s third day of hearings on tax proposals. Some two dozen measures were discussed at Monday and Tuesday hearings.

The approved measures move to the full House for debate.

Officials with the Louisiana Association of Business and Industry spoke against all of the measures. They said the tax proposals put the state’s economic development efforts in a bad light nationwide. They said they know the committee needs to find additional revenues, but that the measures could prove harmful.

Rep. Katrina Jackson, D-Monroe, is sponsoring House Concurrent Resolution 14, which would suspend exemptions to 1 percent of the state’s 4 percent sales tax for one year. It would raise $177 million. The vote was 11-8.

HCR 8, by Rep. Jack Montoucet, D-Crowley, would suspend 1 percent of the state sales tax exemption for business utilities. It would raise $107.2 million and was approved 10-8.

Montoucet is also sponsoring HCR 15, which would suspend sales tax holidays for one year. It would raise $4.3 million and was approved 17-1.

Rep. Major Thibaut, D-New Roads, is sponsoring House Bill 549, which would modify exemptions, suspensions and special rates on oil and gas severance taxes for two years. It would raise $657,000 to $700,000 and was approved 14-4.

The committee rejected two measures by Rep. Patricia Smith, D-Baton Rouge.

HCR 9, by Smith, would suspend the 4 percent state sales tax exemption for business utilities for one year. It is charged on sales of steam, water, electric power or energy, and natural gas. The suspension would raise $428.2 million. It was rejected 14-3.

H.B. 509, by Smith, would suspend the same tax exemptions for two years and would raise $865 million. The vote against was 12-4.

Montoucet voluntarily deferred a vote on HCR 58, which would suspend all corporate income tax credits, deductions, exclusions and exemptions for one year. It was originally expected to raise $1.4 billion, but it may have been only $600 million. 

The deferral came after it was noted that the measure contains some technical and fiscal issues. Rep. Julie Stokes, R-Kenner, said the resolution was too broad and too complex. It can be reconsidered at another committee hearing.

Rep. Mike Danahay, D-Sulphur and a member of the committee, voted against all of the resolutions except the one suspending the sales tax holidays for one year.

Stephen Waguespack, LABI president, said the state’s economic development efforts have been successful and that its business image is the best it has ever been.

The state is enjoying $62 billion in new capital investments, and that could be affected. The tax measures harm the state’s competitiveness on the world stage, he said.

Jim Patterson of LABI said businesses can move because of the tax situation. “Don’t be fooled. Don’t assume once here, always here,” he said. 

“Businesses across the nation are watching what you are doing. You are looking at so many of these things. I understand the pressure you are under.”

Jackson said higher education in Louisiana is in trouble and that faculty and staff are not trapped in the state either. She said businesses need a good higher education system.

Louisiana Legislature

MSgt Toby M. Valadie