Three of four proposed constitutional amendments fail
Published 11:05 pm Saturday, November 13, 2021
- Louisiana State Capitol. (American Press Archives)
Louisiana voters decided against three proposed constitutional amendments on Saturday that supporters said would have detangled state income tax collections from federal tax payments and shifted the state to a centralized sales tax collections.
The complex tax proposals, championed by business lobbying groups, were the only issues facing all voters statewide.
The tax amendments were backed overwhelmingly by Republican and Democratic lawmakers and by Democratic Gov. John Bel Edwards.
Supporters called the measures a step toward reform for an unnecessarily complex state tax structure. But outside organizations have criticized the sales tax proposal as a state power grab and the income tax measure as too generous to businesses and the rich at the expense of the poor.
The election was delayed five weeks because of Hurricane Ida.
Constitutional amendment 1 was rejected 209,707-196,537, or by 52 percent of the vote.
The first amendment would have began the process for consolidating sales tax collections through an eight-member commission, rather than through more than 50 local government agencies ranging from sheriffs to school boards.
Local government associations would have been given four seats on the commission. The revenue department, the governor, the House speaker and the Senate president would appoint the other four members.
Constitutional amendment 2 passed 219,364-186,460, or by 54 percent.
The second tax amendment is expected to trigger the enactment of a package of bills getting rid of personal income tax and corporate tax deductions for federal income taxes paid in exchange for lowering income tax rates.
Louisiana will also eliminate the corporate franchise tax for small businesses, lower the rate for others and do away with most excess itemized deductions taken by middle- and upper-income earners.
Supporters said the current system makes Louisiana’s tax collections too volatile and hard to control. When federal income taxes go up, Louisiana collects less in state taxes. When federal income taxes go down, state tax collections rise.
Constitutional amendment 3 was rejected 233,507-169,378, or by 58 percent.
Constitutional amendment 4 was rejected 289,012-111,133, or by 72 percent.
The amendments would have allowed some local levee districts to increase their taxing authority and let lawmakers cut more deeply into protected funds when the state faces a budget deficit.