New economic development districts in Jeff Davis launch Jan. 1

Published 4:13 pm Friday, December 29, 2023

There will be two new economic development districts within Jeff Davis Parish collecting additional sales taxes in designated zones beginning Jan. 1.

The city of Jennings Economic Development No. 1 and the town of Welsh Economic Development District No. 1 were created earlier this year to allow the municipalities to collect additional sales taxes within designated zones for dedicated purposes.

Voter approval was not required for the collection of the additional sales taxes because the boundaries of the districts do not include any registered voters.

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The Jennings City Council voted in March to designate 1.7 acres at the corner of La. 26 and Interstate Drive as the city’s first economic development district so that it could tack on an extra one-cent sales tax from the sales at the Hebert’s Boudin and Cracklins once the business opens. The additional sales tax will bring the overall local sales tax rate to 6.5 percent within the district.

Mayor Henry Guinn said revenues generated from the extra sales tax will be dedicated revenue and placed in the city’s utility fund to cover the cost of relocating a sewer lift station to accommodate construction of the new business. It is expected to take six years for Hebert’s Boudin and Cracklins to reimburse the city for the project, he said.

The city can vote to remove the district and the additional sales tax after six years or they can keep the district in place.

Guinn said the additional sales tax will not affect any other businesses and will have a minimum impact on local residents who purchase items from Hebert’s Boudin and Cracklins.

Officials in Welsh approved a similar measure in November creating a new economic development district that will help fund infrastructure improvements for a new truck stop and convenience store currently under construction, as well as upgrades for future economic growth.

The district includes a six-acre site on the West Frontage Road, just north of Interstate 10, where the truck stop is being built. It will also include nearly seven acres to the north of the site for any future economic development, according to Mayor Karl Arceneaux.

The economic development district will allow the town to levy an additional two-cents sales tax on inside sales made at the truck stop and convenience store. The sales tax will not apply to fuel sales or affect any other businesses in Welsh, Arceneaux said.

The extra revenues will pay the town back for a sewer project and a Frontage Road turning lane improvement project.

The additional two-cents sales tax will bring the overall local sales tax rate within the designated district to 7 percent.

Collection of the sales tax will begin once the new truck stop and convenience store is open. Construction is expected to be completed by mid-2024.

Questions concerning the boundaries and rates of the newly created economic development districts should be directed to the Jeff Davis Parish Sales Tax Department at 337-824-2744.

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