Louisiana Capitol View
Haynie & Associates
October 1, 2024
Budget and Taxes
Louisiana is facing a projected budget shortfall of up to $700 million due to the automatic expiration of the temporary 0.45% sales tax and a 2% business utilities tax which are set to expire in mid-2025, and the possible triggering of the 2021 law that will automatically reduce the rate of the income tax and corporate franchise tax if state collections and the rainy day fund balance reaches a certain level.
Upcoming Special Legislative Session – November 2024
To address this, lawmakers are exploring several options, including expanding the sales tax base to cover new services, removing exemptions, ending tax credits, revising corporate tax structures, and proposing new taxes on digital goods. Additionally, Governor Jeff Landry has suggested constitutional amendments and other reforms aimed at overhauling budget funds, paying down retirement debt, and doubling the standard deduction for seniors, with some of these proposals likely to be voted on during the special session in November 2024 and placed on the March 2025 ballot.
2025 Regular Legislative Session
The 2025 Regular Legislative Session will begin on April 14, 2025, and adjourn by June 12, 2025.
In odd-numbered years, the Louisiana constitution mandates that the legislative session concentrates primarily on fiscal matters, such as taxation, budgeting, and revenue. Lawmakers take this time to assess the state’s financial standing and make crucial decisions about resource allocation for the next fiscal year.
During regular sessions, each lawmaker in Louisiana is allowed to file up to five general bills but has no limit on the number of tax-related bills they can propose. Any reforms that are not passed during the November 2024 special session are likely to be refigured and proposed again in the Regular session ahead of the July 1st shortfall. If revenue is not raised to cover the anticipated shortfall the state budget will need to be cut to satisfy our states balanced budget amendment
2024 Election Dates – GEAUX VOTE
November 5th (early voting 10/18 – 10/29) – President Election / Primary for Congress/locals
December 7th (early voting 11/22 – 11/30) – General Election for Congress / Locals
Find your Ballot/ Polling Location: https://voterportal.sos.la.gov/Home/VoterLogin