The following is from the Louisiana Legislative Auditor:
Four of six state agencies either did not submit or submitted incomplete information for 46 of the 79 tax incentive reports they are required to file under Act 191 of the 2013 Regular Session, the Legislative Auditor said in a report released today. Using the Louisiana Department of Revenue’s 2015-2016 Tax Exemption Budget, auditors determined that the revenue loss from these 46 incentives totaled approximately $1.1 billion.
The Act 191 reports, due by March 1 of each year, are intended to provide the Legislature with the information necessary to evaluate the cost of tax incentives, as compared to the benefit the state receives. Because not all agencies are complying with the reporting requirements outlined in state law, the legislative committees that make decisions about whether to change or eliminate the incentives are not receiving the information they need. In particular, the state auditor reports that return on investment information was not consistently reported to the Legislature.
The report released today is a follow-up to a Legislative Auditor’s report issued in May 2015. In that report, auditors found that as of March 23, 2015, the Legislature had only received information on five of the 79 tax incentives for 2015. In addition, 70 of the 79 reports due to the Legislature for 2014 either were not submitted or did not comply with all of the reporting requirements.