Amendment 1 good for state’s economy
Published 6:00 pm Tuesday, September 24, 2019
Amendment 1 on the Oct. 12 statewide election ballot is designed to protect business property stored in Louisiana that is headed offshore from being taxed by local parish tax assessors. The American Press recommends a yes vote on the amendment.
The U.S. Constitution prohibits states from regulating interstate commerce, but some parish tax assessors have started taxing property destined for the Outer Continental Shelf (OCS).
The Public Affairs Research Council of Louisiana (PAR) in its Guide to the 2019 Constitutional Amendments said those local assessors are taxing that property based on their interpretation of the state constitution and interstate rulings. However, PAR said neither the Louisiana Supreme Court nor the U.S. Supreme Court has ruled in the issue.
The amendment would prohibit property taxes on raw materials, goods, commodities and articles stored for maintenance if destined for the OCS. That is the area in U.S. waters that is 200 miles beyond the state jurisdiction, which for Louisiana is three miles.
Southwest Louisiana knows all too well how important these offshore operations are to Louisiana and the rest of the country. It is the nation’s fastest-growing economic area with some $117 billion in capital investment projects coming in 2020.
PAR said the number of parishes immediately affected by this amendment would be relatively small and mostly confined to areas near the Gulf of Mexico. It says the amendment offers necessary clarification so as not to cause a shift in storage or repair of materials to other states.
Arguments against the amendment are that it would further clutter the constitution with another tax exemption and restrict the local tax base. Opponents also say some equipment from inactive oil rigs is already exempt under another section of the state constitution and we don’t need more tax breaks.
A Baton Rouge spokeswoman for the Consumer Energy Alliance advocates support for Amendment 1, and makes an excellent argument. She said a vote for the amendment means Louisiana and the nation can continue to support energy as an industry that supports us every day.
PAR said approval of Amendment 1 would help avoid lengthy and expensive battles in state and federal courts that would create uncertainty for businesses for many years.
Louisiana voters have no reason to change a procedure that has served this state well, Southwest Louisiana knows what that means better than any other region of the country. The American Press believes a vote for this amendment will help continue this area’s unprecedented economic boom.
This editorial was written by a member of the American Press Editorial Board. Its content reflects the collaborative opinion of the Board, whose members include Crystal Stevenson, John Guidroz, retired editor Jim Beam and retired staff writer Mike Jones.
