John Bel Edwards’ signature tax proposal killed in Louisiana House
LOUISIANA REALTORS • April 26, 2017
Source: The Times-Picayune • New Orleans, La • April 25, 2017
By: Julia O’Donoghue
The lynchpin of Gov. John Bel Edwards' plan to overhaul Louisiana's tax system was killed in a Louisiana House committee Tuesday (April 25). Edwards couldn't muster enough votes for his commercial activity tax, contained in House Bill 628, even after significantly lowering the amount of money businesses would actually have to pay as a result of the measure.
Rep. Sam Jones, who was sponsoring the bill for the governor, asked that the legislation be "voluntarily deferred" -- rather than having a vote that would kill it. The move allowed Democrats and others on the committee -- who might not want to choose between supporting the Democratic governor and the business community -- to avoid having to make a decision on the bill at all.
When Edwards initially announced his plan for the commercial activity tax, it was supposed to raise between $800 million and $900 million annually. By the time it came before the committee Tuesday, it was only expected to generate $288 million annually. The House Ways and Means Committee, which oversees tax policy for the Legislature, still wasn't willing to vote for it.
The commercial activity tax was essentially a gross receipts tax on the sales of goods and services. It acts like a sales tax except the seller, not the buyer, pays it. It also applies to many more transactions than the sales tax in Louisiana.
Over the 24 hours before it came up in committee, the Edwards administration made significant changes to the bill to try to generate more support for it. They removed S-corporations -- such as limited liability companies and partnerships -- from being subjected to it in an effort to answer the concerns of smaller businesses. They also lowered the amount of tax many of the remaining entities subjected to it would have had to pay.
Still, representatives from the oil and gas industry, homebuilders, paper mills, a local restaurant chain and the state's small business association testified that it would devastate them Tuesday. "This bill is going to kill the very industry we depend on," said Chris John, of the Louisiana Mid-Continent Oil and Gas Association.
Donny Rouse, representing Rouses Supermarkets, also said his business would be significantly affected by the commercial activity tax -- even though the governor's team had tried to amend it to ease the concerns of grocery stores. Rouse said he operates on too tight a profit margin to pay a tax on every item he sells in his 45 stores in Louisiana.
"This would double what we pay the state in taxes currently," he said in an interview. "This would be a tax, whether we make a profit or not."
Edwards had proposed the commercial activity tax as a replacement to the higher sales tax rate that is set to expire on July 1, 2018. When the state sales tax rate drops from five percent to four percent, it will create a $880 million hole in the state budget. The governor and House Republican leadership have not reached an agreement on how to close that budget gap yet.
2025 Extraordinary Legislative Session Wrap-up
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Louisiana REALTORS® wraps up 2025 and looks forward to 2026! Louisiana REALTORS® gathered in Baton Rouge from October 7–8 for the 2025 Fall Governance Meetings, a dynamic two-day event filled with professional development, strategic planning and member engagement. The day before the conference offered the conclusion to the 2025 LR Leadership Program with participants graduated from the yearlong program after a half-day session. The 2025 graduates include: Torri Byrd, Shawn Carter, Bradley Cook, Stefany Deroche, Mignon Richard Díaz, Alfra Dixon, Thaddeus Dixon, Glen Elliott, Yvonne Graham, Charlotte Johnson, Michelle LaBanca, Slagle McGuffee, Ellen Monroe, Matt Noel, Ros Pack, Tiffany Pellerin, Latonia Riggs, Shannon Rodi Nash, Trish Skellham, Rebecca Slone and Charlotte St. Romain. Additionally, a sold-out, full-day AI-Powered Real Estate Professional Certification course led by industry expert Matthew Rathbun blew away attendees and had them leaving the session with such invigoration. The first official day of the conference held focus on professional development and networking. Tuesday opened with an informative session entitled Professional Liability 101 from Rice Insurance Services Center, offering critical insights into E&O and risk management. RPR's session brought a wealth information to attendees and offered a hands-on learning experience for the tools offered online. Targeted sessions like the Local AE Meeting and the YPN Advisory Council Open Meeting provided space for peer exchange and innovation. The day concluded with a festive Opening Reception sponsored by Louisiana YPN, bringing members together to celebrate and connect. The next day offered collaboration and celebration with Closing the Affordability Gap, presented by the Louisiana Housing Corporation, equipping REALTORS® with tools to better serve clients in today’s market. Regional caucuses followed, allowing members from across Louisiana to discuss local issues and share best practices. The Board of Directors Meeting brought the governance portion of the event to a close with strategic decisions for the year ahead. At the Board Meeting, Chris Brock, Northeast REALTORS® of Louisiana; Trish Leleux, Greater Central LA REALTORS® Association; Synde Devillier, Bayou Board of REALTORS®; Scott McCubbin, Bayou Board of REALTORS®; Amber Morrow, Greater Fort Polk Area REALTORS®; and David Moses, Greater Central LA REALTORS® Association; were elected as 2026 At-Large Directors. The grand finale? A spirited LSU Pregame Fan Experience and the highly anticipated Installation Ceremony, where new leadership was formally welcomed in a celebration of community and commitment. Louisiana REALTORS® looks forward to hosting REALTORS® from around the state at the Winter Leadership Conference, March 3-4, 2026, at the Live! Casino & Hotel in Bossier City. We would like to thank our sponsors Greater Baton Rouge Association of REALTORS® (GBRAR) , Zillow , Dax Roy Appraisals, Supra, American Home Shield, Guard Home Warranty fo r their generous support in helping make this conference happen!
