The effective tax rate in Louisiana is actually lower than it is in Texas, but it's just too complicated for out-of-state employers to realize it, a Republican lawmaker says. Rep. Alan Seabaugh of Shreveport says the Lone Star State is "whipping everybody's butt" in job creation and growth. "The fact of the matter is, four of the nine fastest-growing cities in America are in Texas," he says. "Businesses go where the tax structure is favorable, and the people follow the businesses." But that's a battle Louisiana should be winning, he says. "The problem with our income tax is it's confusing," he says. "We have a high rate of 6 and 8 percent. It's really not real because of all of the exemptions and credits; the effective rate of taxation is about a third of that. But when businesses in Delaware are looking to relocate, they see a 6 and 8 percent top rate and they say, 'Nope, we're out.' " Seabaugh says a lower tax rate with fewer exemptions, similar to the failed plan floated by Gov.
LABI President Dan Juneau and BRAC are among those expressing opposition today to a bipartisan budget proposal that contains $329 million in cuts to tax breaks that largely benefit businesses. The deal, proposed for House floor debate Thursday, would rework the $24.8 billion budget submitted by Gov. Bobby Jindal for the fiscal year that begins July 1. The plan being discussed would cut a number of tax credit programs by 15% each, including those for filmmaking, digital media, angel investing, and research and development, among others. "The move would be severely detrimental to economic development efforts and eliminate the factors that have made the Baton Rouge area, and the whole state, competitive while the rest of the U.S. and much of the world struggled through the recent recession," reads a release from BRAC. Juneau, meanwhile, says in a
Gov. Bobby Jindal refused to declare an income tax repeal dead today, even though House leaders say such a measure has no chance of passing during the current legislative session. Asked repeatedly if plans to repeal the state's income tax were dead, Jindal repeated that the next step was up to lawmakers. "I continue to strongly encourage them to get rid of the income tax, send me that bill so I can sign it into law," was Jindal's response to reporters' questions on the issue, which came shortly after he addressed education leaders at the Leadership for Change conference. Earlier this week, state lawmakers declined to take up tax repeal legislation and the leader of the tax-writing Ways and Means Committee, Rep. Joel Robideaux, R-Lafayette, announced the panel doesn't intend to hear them this session. The decision appeared to kill any chance for Jindal to get passage of his signature legislative agenda item. "If (lawmakers) decide not to act, I think it's a missed opportunity …...
With the state's chemical industry in the midst of a period of growth, expansion and prosperity, does it make sense to change the tax structure, as Gov. Bobby Jindal is proposing? It's a question industry is weighing closely, as it decides whether to support or oppose the governor's recently released plan, which would do away with corporate and personal income taxes but increase state sales taxes. "We're looking at it and running a bunch of models to see how it will affect industry and different segments of industry," says Dan Borne, president of the Louisiana Chemical Association. Borne's remarks came after economist Loren Scott delivered an upbeat economic analysis of the state's chemical industry to the Baton Rouge Press Club. Scott's report, which was funded by an industry-sponsored foundation, contains few surprises, but ultimately underscores the vitality of Louisiana's chemical industry. For example, in 2010 the industry accounted for $22 billion in earnings, $641 million in...
Rep. Stephen Ortego, D-Carencro, says Louisiana doesn’t need to work on tax overhaul, but instead focus on more pressing concerns, such as the dismantling of public hospitals. "It's become a dangerous distraction, more than anything," says Ortego, guest speaker of today's Baton Rouge Press Club luncheon. Ortego notes that LED Secretary Stephen Moret wrote less than a year ago in the Louisiana Economic Quarterly that the Tax Foundation recently ranked Louisiana's state-and-local tax burden as the second-lowest in the United States for new firms, and 10th-lowest for mature firms. "But now it's become a problem," Ortego says sarcastically of the state's need to do away with corporate income taxes to become even more business friendly. Ortego says he's working with fellow lawmakers on new legislation that would help keep charity hospitals solvent and allow LSU to further train doctors and nurses—as it always has—rather than worry about cuts and the implosion of a...
The Louisiana Department of Revenue says it has taken steps to combat an increasing number of tax fraud cases, which it links to rising electronic filing. Federal and state income tax returns are being accepted beginning today, and most early filers will likely take to the Internet to submit theirs. Last year, 80% of federal returns were filed electronically across the United States, according to department figures, and in Louisiana electronic filing has risen by 58% since 2007. "With the increase in electronic filing, tax fraud has skyrocketed," reads an LDR statement released today. "At the federal level, tax fraud remains the third largest theft of federal funds and has risen to a record 1.1 million cases in 2011. … Tax fraud cases in Louisiana directly discovered as a result of current theft protection measures have risen to almost 23,000 cases in 2012." In coordination with the Internal Revenue Service, LDR says it recently developed a new "customized Louisiana-specific...
Sales taxes collected in East Baton Rouge Parish were up 6% in October, compared to the same month last year, according to a new report released by the city-parish today. Including taxes collected on vehicle sales, which are often much more volatile than general retail sales, total collections in the city and parish were up 7.5% in October. Sales tax collections were up inside the city limits and in the parish during the month. Less vehicle taxes, collections totaled just less than $7 million in the city, an increase of 3%; while collections in the parish were just below $6 million, up nearly 10%. Year to date, combined sales tax receipts in the city and parish are about 6.7% better than in 2011, at $131.4 million, not including vehicle sales taxes. Including vehicle taxes, combined collections are at $142.2 million, an increase of 7% over collections during the first 10 months of 2011. You can see the entire sales tax report
The new rules governing the state's alternative-fuel vehicle tax credit, which go into effect today and eliminate "flex-fuel" vehicles from eligibility, accurately reflect legislative intent and the wording of the statute, says Tim Barfield, head of the Louisiana Department of Revenue. Rules issued by former Revenue Secretary Cynthia Bridges on April 30 said owners of flex-fuel vehicles, which can burn both alternative fuels and petroleum-based gasoline from the same tank, are eligible for the credit, an interpretation that could have cost the state hundreds of millions of dollars per year, by some estimates. Only owners of vehicles with a standalone alternative fuel tank or battery are eligible under the new rules. Officials say about $7.6 million in tax credits—worth up to $3,000 each—have been paid out under the original rules. Claims for flex-fuel vehicles received by June 14...
Gov. Bobby Jindal's administration is moving ahead with new regulations that spell out limits for the state's alternative fuel vehicle tax credit. The final rule governing the tax credit program is being published today and will take effect this week. The alternative fuel vehicle tax break's cost has grown much larger than estimated and become a headache for the Jindal administration because of differing interpretations about eligibility. The new regulations will definitively eliminate "flex-fuel" cars and trucks—which can burn ethanol but also use gasoline—from qualifying for the credit. Including flex-fuel vehicles could have cost the state an estimated $240 million a year. The program gives buyers a credit of 10% of the cost of an eligible vehicle, or $3,000, whichever is less. Read a recent Daily Report story for more analysis on the tax credit
As Legislators and Gov. Bobby Jindal begin focusing on tax reform, Business Report Executive Editor JR Ball says there's a problem with any reform package that dramatically reduces Louisiana's reliance on regressive sales taxes. "For a great many in Baton Rouge, the best tax is no tax, but if you're going to have a tax, make it a sales tax," Ball writes in his latest column. Ball says most Louisianans prefer sales taxes over others because it's a consumption tax that can, in principle, be regulated by personal behavior; and it's also one that everyone pays—including the poor, who may not be on the hook for income or property taxes. But Ball also suspects few people actually know how much they pay in sales taxes because there's no annual accounting of it. In other words, the sales tax is a "stealth tax," Ball says. "Yes, we know sales taxes exist, but we've come to think of them simply as an added cost for the stuff we want to acquire," he says. "We'll nearly riot in...
Logan Leger, CEO and co-owner of app maker NewAperio, set a goal early this year of reaching $1 million in revenue in 2012. Leger says having his business exempted from paying the 2% sales tax to the city-parish—as other professional services firms must do—would help him reach that goal, grow his business and add an employee. "It's good for economic development in Baton Rouge," Leger says. On Wednesday the Metro Council will introduce an ordinance to exclude custom-built computer software makers like NewAperio from the local 2% sales tax. Louisiana already exempts such businesses from paying a portion of the state sales tax. "It's not really a product for sale over the counter," says Councilman Mike Walker, who introduced the amendment. Walker says Leger approached him about amending the city-parish sales tax when he was campaigning for mayor. Walker is termed out, and the Metro Council has only one regular meeting this month. Councilman-elect Buddy Amoroso is also listed...
Here's the trouble with calling for a tax reform package that dramatically reduces Louisiana's reliance on regressive sales taxes: People tend to actually like sales taxes, preferring them over pretty much all other forms of taxation.
For the second straight month, sales tax collections during September in East Baton Rouge Parish were slightly ahead of collections in the same month last year, according to a new report from the city-parish released today. Combined collections inside and outside the city limits were ahead of last year's September figures by a mere $80,098—or 0.59%. A bit more than $13.6 million was collected in sales taxes in September. Collections inside the city limits accounted for about $6.9 million of the total and were down 1.3% compared to collections in the city in September 2011. In addition, August collections inside the city limits were down 1.1%, and the two months have been the only ones so far in 2012 in which an increase in collections was not recorded. However, as was the case in August, an increase in collections outside the city limits was enough to push September's combined collections into positive territory compared to last year's figures. Outside the city limits,...
Louisiana's lawmakers have spent months combing through $6.8 billion in tax breaks on the state's books with an eye toward getting rid of those deemed unworthy of the spending. But even if they can settle on a list of the poorest-performing tax breaks, state leaders are at odds over what to do with the savings. A struggle is brewing over whether the dollars raised by eliminating a credit or exemption should be used to plug budget holes or to create new tax breaks. Some lawmakers see an opportunity to offset cuts in a state that has been hit with repeated rounds of budget slashing and that faces a $963 million budget shortfall next year. Yet other lawmakers and Gov. Bobby Jindal counter that new tax incentives could help boost the economy. Sen. Francis Thompson, D-Delhi, says the tax break review could help shrink the budget gap by eliminating "some credit or some rebate or something that's not in line with our philosophy." But Jindal, who has said he will make a restructuring of the...
Lawmakers were told today that Louisiana's budget shortfall for next year is $963 million, in their first detailed glimpse of the problems they'll face in crafting the state's next set of spending plans. The figure, outlined by Gov. Bobby Jindal's budget advisers, is the gap between state government's projected income and the costs to continue all its existing programs and services and account for inflationary growth in the 2013-14 budget year that begins July 1. Barry Dussé, director of the Office of Planning and Budget, described the estimate as the "cost of doing tomorrow what you are doing today." He says more than one-third of the gap, about $355 million, was tied to a drop in federal Medicaid financing that also created a deficit this year after Congress made the cut. Another $250 million involves the loss of one-time dollars that Jindal and lawmakers used to pay for continuing programs, nearly all of it for health care services. Meanwhile, the cost of Louisiana's free college...
Those looking to buy or sell some of the roughly $300 million in tradable state tax credits issued in Louisiana each year have a new resource for connecting with one another. The Online Incentives Exchange was launched today, with its operators calling it the first national online exchange for tax credits of its kind. Initially the OIX will only be trading Louisiana state tax credits, but says it has plans to extend the exchange to the other 45 states across the country that offer tradable/transferable tax credits, beginning with Georgia and California next month. OIX says its platform will allow individuals as well as businesses of all sizes get involved in tax credit deals. "The U.S. market for monetizeable credits exceeds $5 billion annually," reads a press release announcing the OIX launch. "Currently, tax credits trade via direct brokerage in an opaque and often illiquid manner. The OIX provides a transparent marketplace that connects buyers and sellers of state tax credits to...
After a false start in August thanks to Hurricane Isaac, the Smart Growth Summit is gearing up for three days of panels and discussions this month on everything from greenways to redeveloping vacant land to transportation and even how to reduce crime. But the bigger message for this year’s event? Smart growth is smart business. “A lot of the sessions talk about the role smart business can play in growing a community,” says Phillip LaFargue, director of communications for the event’s organizer, Center for Planning Excellence (CPEX).
The Louisiana Department of Revenue and LED this morning released a primer on Louisiana's tax structure that the agencies say is intended to inform deliberations on tax reform leading up to the 2013 legislative session. Gov. Bobby Jindal has indicated reforming the state's tax structure will be his top legislative priority next year, and he has tapped Tim Barfield at LDR as the administration's tax reform leader. The primer provides an overview of Louisiana's tax structure for individuals, families and businesses while detailing the various rankings of Louisiana's tax competitiveness relative to other states. The document also summarizes the more than 460 state tax exemptions used by individuals, families and businesses. "Tax reform represents a major opportunity for us to improve the reality and national perception of our business climate in a budget-neutral fashion, which will enable us to better support the retention and growth of our existing businesses as well as to more easily...
Louisiana paid as much as $7 million for a two-month expansion of a tax credit designed to encourage the purchase of alternative fuel vehicles. The Department of Revenue issued a little-noticed rule in April governing the state's alternative fuel tax credit, which enlarged the list of qualifying vehicles. Jindal scrapped the rule in June amid complaints it could wreck the state's budget. But it appears hundreds of people took advantage of the expanded list while it was on the books. More than 2,500 claims for the alternative fuel tax credit—totaling $7.4 million—were paid when the rule was in effect, according to the department. Revenue spokesman Byron Henderson says the department doesn't know how many credits involved car and truck models from the expanded list.
Retail sales in East Baton Rouge Parish netted the city-parish $13.9 million in sales taxes in July, an increase of about $1 million, or 8.2%, from the same month a year ago, according to a Finance Department report released this morning. July sales were strong within city limits and outside them, the report says. The 2% sales tax netted $6.9 million inside the city, an increase of 5.7%, while roughly $6 million was collected in the parish, an increase of 10.4%. A strong July helped push year-to-date collections through the first seven months of 2012 to $100.5 million, which is 9.1% better than the same period a year ago. July was the final month in which Baton Rouge received a boost in collections from the U.S. Bowling Congress Open Championships, Mayor Kip Holden notes in a prepared statement. The bowling tournament began Feb. 11 and concluded July 10 at the River Center downtown. The 151-day national bowling tournament drew 58,704 bowlers and 11,496 guests from across the country,...
Halfway through 2012, sales tax collections in East Baton Rouge Parish are 9.2% ahead of 2011 year-to-date figures, according to the city-parish finance department. That increase was boosted by a strong June, in which taxes collected on retail spending were 9.4% better than last June. Collections on the 2% sales tax benefiting the city-parish coffers totaled $15.1 million in June, up from $13.8 million last year. Year-to-date, collections stand at $86.6 million, up from $79.3 million six months into 2011. You can check out the complete year-to-date and June figures in a single document here.
Thousands of taxpayers across Louisiana have yet to claim their state income tax refunds, and the state's revenue agency says millions of dollars will become unclaimed property if they aren't claimed soon. The Louisiana Department of Revenue says it has notified more than 7,000 taxpayers that they have until Friday, Aug. 24, to claim their state income tax refund. Officials say there is $4.4 million in unclaimed refunds. Money not claimed by the deadline will transfer to the Unclaimed Property Division of the state treasurer's office. Taxpayers wanting to claim their refunds must submit a voucher requesting a replacement of their uncashed state income tax refund checks. Vouchers were issued with letters notifying each of them of the impending deadline for claiming refunds.
By LED's count, Louisiana recorded nearly $6.8 billion in tax expenditures in the 2010-11 fiscal year. Some analysts have called this motley collection of 468 credits, rebates and exemptions the state's "hidden budget." While often described as "tax breaks," many tax expenditures are perhaps better understood as spending: You do something government likes, and government writes you a check. In flush times, the state's hidden budget seldom is debated by lawmakers or scrutinized by the media. But in the world we live in today, it's hard to sacrifice nearly $7 billion without anyone complaining. While few tax expenditures get as much attention as the now infamous 2009 credit for vehicles that burn "alternative fuel"—which has since been rescinded by Gov. Bobby Jindal, but could still end up costing the state as much as $200 million a year—they all mean something to someone. But what they mean to the state, good or bad, is often hard to measure. Nonetheless, that's what a...
The Louisiana Budget Project, a left-leaning advocacy group, says in a paper released today that the state should make the film business tax credit incentives less generous over time. "People are getting rich on this deal, and it isn't Louisiana taxpayers," says Budget Project Director Jan Moller. "Louisiana needs to limit the cost to taxpayers without pulling the rug out from under the industry." The program cost $231 million in the just-ended fiscal year and more than $1 billion in the decade since the program was expanded in 2002, LBP says. The group offers multiple recommendations for "reining in the uncontrolled growth of this program, while still giving filmmakers an incentive to choose Louisiana." Suggestions include lowering the value of the tax credits over a number of years, capping the total amount of tax credits that can be claimed in a fiscal...
The Capital Region real estate was distorted by underassessed homes a decade ago. Every neighborhood had them, says appraiser Tom Cook, and they were often assessed at just 50% of real value.
A bill that former Rep. Jane Smith co-authored in 2009 cost the job of one Jindal Cabinet member. It might also end up costing the state more than $200 million a year.
In a region rich with historic buildings, incentives that encourage maintaining such structures for future generations are especially attractive. That's why some Baton Rouge-area developers sing the praises of historic restoration tax credits.
A legislative commission formed to review Louisiana's tax credits, exemptions, exclusions and rebates will meet for the first time Monday. While often described generally as "tax breaks," many of these measures have nothing to do with a recipient's tax liability and are officially known by the Legislature as "tax preference expenditures." Some legislators say the review is long overdue, arguing that the state gives away too much money that could be used for higher education and health care. The Jindal administration says, "Any changes that are made must be budget neutral and not an attempt to just raise revenue." LED Secretary Stephen Moret says state exemptions total about $6.8 billion, but says nearly 95% of that cost is unrelated to economic development programs managed by LED. Sen. Dan Claitor, R-Baton Rouge, a commission member, says a review to determine if the state is getting a decent return from its tax expenditure investments makes sense no matter what the state's budget...
Even after announcing $523 million in health care cuts, Gov. Bobby Jindal's administration has slashed only two-thirds of the spending needed to close the entire gap in Louisiana's Medicaid budget. The administration is banking on better-than-expected revenue projections to close the remaining budget hole. If that doesn't pan out in the next few months, more reductions are on the horizon. Commissioner of Administration Paul Rainwater, the governor's top budget adviser, says state economists believe there's a "strong likelihood" the state brought in more tax revenue for the fiscal year that ended June 30 than was expected or budgeted. Rainwater says the state should know if there was surplus cash—and how much—by August or September. If the funding does show up, questions remain about possible legal hurdles to accessing the cash to fill the Medicaid budget for the fiscal year that began July 1. The Jindal administration announced $523 million in cuts to state health care...
A top official in Gov. Bobby Jindal's administration was notified shortly after the Louisiana revenue department issued a controversial ruling to expand an alternative fuel vehicle tax credit, The Associated Press has uncovered. Since the controversy over the tax credit came to light, a Jindal spokesman has said the governor didn't know of the ruling until mid-June. But a review of Department of Revenue e-mails by the AP shows Jindal's natural resources secretary and chief legislative lobbyist, Scott Angelle, was told about the ruling on May 1—the day after it was issued. Jindal rescinded the tax credit expansion June 14 after lawmakers complained it could blow a hole in the budget, potentially costing upwards of $100 million per year. However, the internal emails, obtained through a public records request, also suggest the actual cost of the credit expansion hadn't been determined, and that Revenue Secretary Cynthia Bridges left her job because of the controversy. The credit...
BREC is considering a proposal to raise taxes, without a vote of the people, during a meeting at 5 p.m. today, reports Business Report Executive Editor JR Ball. The officials at BREC will argue this is not a tax increase; instead, they will suggest that tonight's vote to roll forward the property tax millage to 14.463 mills, from 14.038 mills, is simply a way to generate more revenue from taxes already approved by voters. If approved by a two-thirds vote of commissioners, the millage hike will generate an additional $1.488 million for BREC's budget next fiscal year. BREC Superintendent Carolyn McKnight says the increase is necessary due to increasing costs and inflation. The easy response to McKnight's position is that all of us, including taxpayers, are struggling to keep our financial books balanced, and perhaps BREC should look to cut expenses—and eliminate money-losing programs—rather than forcing taxpayers to dig deeper into their own pockets. The more probing...
Officials with BREC will meet this afternoon to consider raising taxes without a vote of the people. If this matters to you, then it would be wise to attend the commission meeting at 5 p.m. at BREC's headquarters on Florida Boulevard.
Regardless of whatever stats, rankings or carefully shaded reports the Jindal administration puts out regarding job creation or the state of the state's economy, Business Report Executive Editor JR Ball says, in truth, Louisiana is on a high-speed-rail collision course with global economic irrelevance. "Make no mistake, it's fabulous that Louisiana, under Gov. Bobby Jindal, has spent hundreds of millions of economic development dollars to sustain chicken farmers, enable the manufacturing of high-end toilet paper, land international industrial companies, leverage cheap natural gas to attract manufacturing facilities, and provide any incentive necessary to develop the movie and nascent digital media industries," Ball writes in his latest column. "It's also wonderful that Louisiana, under Jindal, has moved hundreds of millions of dollars from the state treasury to personal bank accounts and corporate balance sheets thanks to an unprecedented level of tax cuts over the past five...
Louisiana is ranked 49th in the United States for its 1.2% growth rate of state tax collections from 2010 to 2011, according to a new report from the U.S. Census Bureau. Hawaii came in 50th with 0.40% growth. Moreover, Louisiana ranked 43rd for its overall growth rate of 3% in collections between 1997 and 2011. North Dakota ranked first for growth between 2010 and 2011, at 44.5%, and its 9.6% growth in collections between 1997 and 2011 also earned it the top spot among all states. Across the nation, state tax collections reached $764 billion in 2011, an increase of 8.9% over 2010 and the second-highest ever collected, behind the $781 billion collected in 2008. Even accounting for the recession of recent years, state taxes have grown by 4% since 1997. Among states levying an individual income tax, Louisiana's top rate of 6%—kicking in at an income level of $50,000, among the three brackets—ranks 21st highest nationally, according to the Taxfoundation.org. For 2010,...
More questions than answers surround Wednesday's state attorney general opinion that the homestead exemption will apply after all to the recently passed CATS tax. Among them: How does the CATS board plan to make up for the shortfall that will occur as a result of factoring the homestead exemption into the 10.6-mill property tax increase? For that matter, how much will the shortfall actually be? Advocates of the tax, who campaigned for it in the special election last month, said at the time if the tax didn't pass, the transit agency faced a possible summer shutdown. Now that the tax will generate millions less than planned, how will daily operations be affected? Moreover, what does it mean for the massive overhaul of the system that voters were promised? For now, all CATS officials can say is that they're trying to assess what the decision will mean. "I think we're still trying to analyze the numbers and what the real impact will be," says CATS CEO Brian Marshall. "But we're committed...
A package of tax breaks sought by Gov. Bobby Jindal is nearing final legislative passage in the Louisiana House but with more usage restrictions than when it was proposed. Lawmakers in the Senate added several hurdles before the tax breaks could be used, with senators saying they want to make sure the tax breaks generate new jobs rather than just give money away to businesses that would have come to Louisiana anyway. The bills by Rep. Joel Robideaux, R-Lafayette, would give the state's economic development chief limited ability to offer three new tax breaks to businesses that are considering whether to relocate or expand in Louisiana. Those include rebates for payroll, relocation costs, and corporate income and franchise taxes.
State historic tax credits will allow for the restoration of five houses considered to be contributing elements to the historic Spanish Town neighborhood. Developer Lance Bennett says he paid about $100,000 each for the houses—three on North Seventh Street, and two along South Capitol Drive—and expects to spend about $50,000 gutting and renovating each one. The sale closed last week. State historic tax credits will make the numbers on the deal feasible, says Bennett, who will get back from the state's incentive program about 45 cents for every $1 he spends renovating the houses. "You really couldn't do this project without them," says Bennett. "I've done many projects in Spanish Town, and this is what makes them all work." Richard Preis, who sold the houses to Bennett, owns other rental houses and a 47,000-square-foot vacant lot on the block. Preis says the sale to Bennett represents an "olive branch" to Spanish Town residents who opposed Preis' plans in 2009 to sell...
Confusing tax code hindering La. competitiveness
The effective tax rate in Louisiana is actually lower than it is in Texas, but it's just too complicated for out-of-state employers to realize it, a Republican lawmaker says. Rep. Alan Seabaugh of Shreveport says the Lone Star State is "whipping everybody's butt" in job creation and growth. "The fact of the matter is, four of the nine fastest-growing cities in America are in Texas," he says. "Businesses go where the tax structure is favorable, and the people follow the businesses." But that's a battle Louisiana should be winning, he says. "The problem with our income tax is it's confusing," he says. "We have a high rate of 6 and 8 percent. It's really not real because of all of the exemptions and credits; the effective rate of taxation is about a third of that. But when businesses in Delaware are looking to relocate, they see a 6 and 8 percent top rate and they say, 'Nope, we're out.' " Seabaugh says a lower tax rate with fewer exemptions, similar to the failed plan floated by Gov.
Business groups oppose cuts to tax credits
LABI President Dan Juneau and BRAC are among those expressing opposition today to a bipartisan budget proposal that contains $329 million in cuts to tax breaks that largely benefit businesses. The deal, proposed for House floor debate Thursday, would rework the $24.8 billion budget submitted by Gov. Bobby Jindal for the fiscal year that begins July 1. The plan being discussed would cut a number of tax credit programs by 15% each, including those for filmmaking, digital media, angel investing, and research and development, among others. "The move would be severely detrimental to economic development efforts and eliminate the factors that have made the Baton Rouge area, and the whole state, competitive while the rest of the U.S. and much of the world struggled through the recent recession," reads a release from BRAC. Juneau, meanwhile, says in a
Jindal still urging lawmakers to eliminate income taxes
Gov. Bobby Jindal refused to declare an income tax repeal dead today, even though House leaders say such a measure has no chance of passing during the current legislative session. Asked repeatedly if plans to repeal the state's income tax were dead, Jindal repeated that the next step was up to lawmakers. "I continue to strongly encourage them to get rid of the income tax, send me that bill so I can sign it into law," was Jindal's response to reporters' questions on the issue, which came shortly after he addressed education leaders at the Leadership for Change conference. Earlier this week, state lawmakers declined to take up tax repeal legislation and the leader of the tax-writing Ways and Means Committee, Rep. Joel Robideaux, R-Lafayette, announced the panel doesn't intend to hear them this session. The decision appeared to kill any chance for Jindal to get passage of his signature legislative agenda item. "If (lawmakers) decide not to act, I think it's a missed opportunity …...
Chemical industry still undecided on Jindal tax proposals
With the state's chemical industry in the midst of a period of growth, expansion and prosperity, does it make sense to change the tax structure, as Gov. Bobby Jindal is proposing? It's a question industry is weighing closely, as it decides whether to support or oppose the governor's recently released plan, which would do away with corporate and personal income taxes but increase state sales taxes. "We're looking at it and running a bunch of models to see how it will affect industry and different segments of industry," says Dan Borne, president of the Louisiana Chemical Association. Borne's remarks came after economist Loren Scott delivered an upbeat economic analysis of the state's chemical industry to the Baton Rouge Press Club. Scott's report, which was funded by an industry-sponsored foundation, contains few surprises, but ultimately underscores the vitality of Louisiana's chemical industry. For example, in 2010 the industry accounted for $22 billion in earnings, $641 million in...
Ortego proposes taxing districts to keep public hospitals solvent
Rep. Stephen Ortego, D-Carencro, says Louisiana doesn’t need to work on tax overhaul, but instead focus on more pressing concerns, such as the dismantling of public hospitals. "It's become a dangerous distraction, more than anything," says Ortego, guest speaker of today's Baton Rouge Press Club luncheon. Ortego notes that LED Secretary Stephen Moret wrote less than a year ago in the Louisiana Economic Quarterly that the Tax Foundation recently ranked Louisiana's state-and-local tax burden as the second-lowest in the United States for new firms, and 10th-lowest for mature firms. "But now it's become a problem," Ortego says sarcastically of the state's need to do away with corporate income taxes to become even more business friendly. Ortego says he's working with fellow lawmakers on new legislation that would help keep charity hospitals solvent and allow LSU to further train doctors and nurses—as it always has—rather than worry about cuts and the implosion of a...
State updates software in attempt to stem rising tax fraud
The Louisiana Department of Revenue says it has taken steps to combat an increasing number of tax fraud cases, which it links to rising electronic filing. Federal and state income tax returns are being accepted beginning today, and most early filers will likely take to the Internet to submit theirs. Last year, 80% of federal returns were filed electronically across the United States, according to department figures, and in Louisiana electronic filing has risen by 58% since 2007. "With the increase in electronic filing, tax fraud has skyrocketed," reads an LDR statement released today. "At the federal level, tax fraud remains the third largest theft of federal funds and has risen to a record 1.1 million cases in 2011. … Tax fraud cases in Louisiana directly discovered as a result of current theft protection measures have risen to almost 23,000 cases in 2012." In coordination with the Internal Revenue Service, LDR says it recently developed a new "customized Louisiana-specific...
EBR October sales tax collections rise 6%
Sales taxes collected in East Baton Rouge Parish were up 6% in October, compared to the same month last year, according to a new report released by the city-parish today. Including taxes collected on vehicle sales, which are often much more volatile than general retail sales, total collections in the city and parish were up 7.5% in October. Sales tax collections were up inside the city limits and in the parish during the month. Less vehicle taxes, collections totaled just less than $7 million in the city, an increase of 3%; while collections in the parish were just below $6 million, up nearly 10%. Year to date, combined sales tax receipts in the city and parish are about 6.7% better than in 2011, at $131.4 million, not including vehicle sales taxes. Including vehicle taxes, combined collections are at $142.2 million, an increase of 7% over collections during the first 10 months of 2011. You can see the entire sales tax report
Revenue's Barfield says new alt-fuel rules will hold up in court
The new rules governing the state's alternative-fuel vehicle tax credit, which go into effect today and eliminate "flex-fuel" vehicles from eligibility, accurately reflect legislative intent and the wording of the statute, says Tim Barfield, head of the Louisiana Department of Revenue. Rules issued by former Revenue Secretary Cynthia Bridges on April 30 said owners of flex-fuel vehicles, which can burn both alternative fuels and petroleum-based gasoline from the same tank, are eligible for the credit, an interpretation that could have cost the state hundreds of millions of dollars per year, by some estimates. Only owners of vehicles with a standalone alternative fuel tank or battery are eligible under the new rules. Officials say about $7.6 million in tax credits—worth up to $3,000 each—have been paid out under the original rules. Claims for flex-fuel vehicles received by June 14...
New vehicle tax break regulations take effect this week
Gov. Bobby Jindal's administration is moving ahead with new regulations that spell out limits for the state's alternative fuel vehicle tax credit. The final rule governing the tax credit program is being published today and will take effect this week. The alternative fuel vehicle tax break's cost has grown much larger than estimated and become a headache for the Jindal administration because of differing interpretations about eligibility. The new regulations will definitively eliminate "flex-fuel" cars and trucks—which can burn ethanol but also use gasoline—from qualifying for the credit. Including flex-fuel vehicles could have cost the state an estimated $240 million a year. The program gives buyers a credit of 10% of the cost of an eligible vehicle, or $3,000, whichever is less. Read a recent Daily Report story for more analysis on the tax credit
Editor: Baton Rouge's strange love affair with sales taxes
As Legislators and Gov. Bobby Jindal begin focusing on tax reform, Business Report Executive Editor JR Ball says there's a problem with any reform package that dramatically reduces Louisiana's reliance on regressive sales taxes. "For a great many in Baton Rouge, the best tax is no tax, but if you're going to have a tax, make it a sales tax," Ball writes in his latest column. Ball says most Louisianans prefer sales taxes over others because it's a consumption tax that can, in principle, be regulated by personal behavior; and it's also one that everyone pays—including the poor, who may not be on the hook for income or property taxes. But Ball also suspects few people actually know how much they pay in sales taxes because there's no annual accounting of it. In other words, the sales tax is a "stealth tax," Ball says. "Yes, we know sales taxes exist, but we've come to think of them simply as an added cost for the stuff we want to acquire," he says. "We'll nearly riot in...
Tax exemption proposed for B.R. software developers
Logan Leger, CEO and co-owner of app maker NewAperio, set a goal early this year of reaching $1 million in revenue in 2012. Leger says having his business exempted from paying the 2% sales tax to the city-parish—as other professional services firms must do—would help him reach that goal, grow his business and add an employee. "It's good for economic development in Baton Rouge," Leger says. On Wednesday the Metro Council will introduce an ordinance to exclude custom-built computer software makers like NewAperio from the local 2% sales tax. Louisiana already exempts such businesses from paying a portion of the state sales tax. "It's not really a product for sale over the counter," says Councilman Mike Walker, who introduced the amendment. Walker says Leger approached him about amending the city-parish sales tax when he was campaigning for mayor. Walker is termed out, and the Metro Council has only one regular meeting this month. Councilman-elect Buddy Amoroso is also listed...
Sales taxes 'R' us
Here's the trouble with calling for a tax reform package that dramatically reduces Louisiana's reliance on regressive sales taxes: People tend to actually like sales taxes, preferring them over pretty much all other forms of taxation.
EBR sales tax collections hold steady in September
For the second straight month, sales tax collections during September in East Baton Rouge Parish were slightly ahead of collections in the same month last year, according to a new report from the city-parish released today. Combined collections inside and outside the city limits were ahead of last year's September figures by a mere $80,098—or 0.59%. A bit more than $13.6 million was collected in sales taxes in September. Collections inside the city limits accounted for about $6.9 million of the total and were down 1.3% compared to collections in the city in September 2011. In addition, August collections inside the city limits were down 1.1%, and the two months have been the only ones so far in 2012 in which an increase in collections was not recorded. However, as was the case in August, an increase in collections outside the city limits was enough to push September's combined collections into positive territory compared to last year's figures. Outside the city limits,...
Lawmakers differ on purpose of Louisiana tax break review
Louisiana's lawmakers have spent months combing through $6.8 billion in tax breaks on the state's books with an eye toward getting rid of those deemed unworthy of the spending. But even if they can settle on a list of the poorest-performing tax breaks, state leaders are at odds over what to do with the savings. A struggle is brewing over whether the dollars raised by eliminating a credit or exemption should be used to plug budget holes or to create new tax breaks. Some lawmakers see an opportunity to offset cuts in a state that has been hit with repeated rounds of budget slashing and that faces a $963 million budget shortfall next year. Yet other lawmakers and Gov. Bobby Jindal counter that new tax incentives could help boost the economy. Sen. Francis Thompson, D-Delhi, says the tax break review could help shrink the budget gap by eliminating "some credit or some rebate or something that's not in line with our philosophy." But Jindal, who has said he will make a restructuring of the...
Next year's state budget gap pegged at $963 million
Lawmakers were told today that Louisiana's budget shortfall for next year is $963 million, in their first detailed glimpse of the problems they'll face in crafting the state's next set of spending plans. The figure, outlined by Gov. Bobby Jindal's budget advisers, is the gap between state government's projected income and the costs to continue all its existing programs and services and account for inflationary growth in the 2013-14 budget year that begins July 1. Barry Dussé, director of the Office of Planning and Budget, described the estimate as the "cost of doing tomorrow what you are doing today." He says more than one-third of the gap, about $355 million, was tied to a drop in federal Medicaid financing that also created a deficit this year after Congress made the cut. Another $250 million involves the loss of one-time dollars that Jindal and lawmakers used to pay for continuing programs, nearly all of it for health care services. Meanwhile, the cost of Louisiana's free college...
Tax credit exchange launched for Louisiana
Those looking to buy or sell some of the roughly $300 million in tradable state tax credits issued in Louisiana each year have a new resource for connecting with one another. The Online Incentives Exchange was launched today, with its operators calling it the first national online exchange for tax credits of its kind. Initially the OIX will only be trading Louisiana state tax credits, but says it has plans to extend the exchange to the other 45 states across the country that offer tradable/transferable tax credits, beginning with Georgia and California next month. OIX says its platform will allow individuals as well as businesses of all sizes get involved in tax credit deals. "The U.S. market for monetizeable credits exceeds $5 billion annually," reads a press release announcing the OIX launch. "Currently, tax credits trade via direct brokerage in an opaque and often illiquid manner. The OIX provides a transparent marketplace that connects buyers and sellers of state tax credits to...
Plan for the future
After a false start in August thanks to Hurricane Isaac, the Smart Growth Summit is gearing up for three days of panels and discussions this month on everything from greenways to redeveloping vacant land to transportation and even how to reduce crime.
But the bigger message for this year’s event? Smart growth is smart business. “A lot of the sessions talk about the role smart business can play in growing a community,” says Phillip LaFargue, director of communications for the event’s organizer, Center for Planning Excellence (CPEX).
Primer on Louisiana tax structure released by state agencies
The Louisiana Department of Revenue and LED this morning released a primer on Louisiana's tax structure that the agencies say is intended to inform deliberations on tax reform leading up to the 2013 legislative session. Gov. Bobby Jindal has indicated reforming the state's tax structure will be his top legislative priority next year, and he has tapped Tim Barfield at LDR as the administration's tax reform leader. The primer provides an overview of Louisiana's tax structure for individuals, families and businesses while detailing the various rankings of Louisiana's tax competitiveness relative to other states. The document also summarizes the more than 460 state tax exemptions used by individuals, families and businesses. "Tax reform represents a major opportunity for us to improve the reality and national perception of our business climate in a budget-neutral fashion, which will enable us to better support the retention and growth of our existing businesses as well as to more easily...
Rain on the budget
These days, Louisiana's budget is shaping up to be one of those good news-bad news scenarios.
Price tag for tax break expansion could top $7M
Louisiana paid as much as $7 million for a two-month expansion of a tax credit designed to encourage the purchase of alternative fuel vehicles. The Department of Revenue issued a little-noticed rule in April governing the state's alternative fuel tax credit, which enlarged the list of qualifying vehicles. Jindal scrapped the rule in June amid complaints it could wreck the state's budget. But it appears hundreds of people took advantage of the expanded list while it was on the books. More than 2,500 claims for the alternative fuel tax credit—totaling $7.4 million—were paid when the rule was in effect, according to the department. Revenue spokesman Byron Henderson says the department doesn't know how many credits involved car and truck models from the expanded list.
EBR sales tax collections up 8.2% in July
Retail sales in East Baton Rouge Parish netted the city-parish $13.9 million in sales taxes in July, an increase of about $1 million, or 8.2%, from the same month a year ago, according to a Finance Department report released this morning. July sales were strong within city limits and outside them, the report says. The 2% sales tax netted $6.9 million inside the city, an increase of 5.7%, while roughly $6 million was collected in the parish, an increase of 10.4%. A strong July helped push year-to-date collections through the first seven months of 2012 to $100.5 million, which is 9.1% better than the same period a year ago. July was the final month in which Baton Rouge received a boost in collections from the U.S. Bowling Congress Open Championships, Mayor Kip Holden notes in a prepared statement. The bowling tournament began Feb. 11 and concluded July 10 at the River Center downtown. The 151-day national bowling tournament drew 58,704 bowlers and 11,496 guests from across the country,...
June EBR sales tax collections up 9.4%
Halfway through 2012, sales tax collections in East Baton Rouge Parish are 9.2% ahead of 2011 year-to-date figures, according to the city-parish finance department. That increase was boosted by a strong June, in which taxes collected on retail spending were 9.4% better than last June. Collections on the 2% sales tax benefiting the city-parish coffers totaled $15.1 million in June, up from $13.8 million last year. Year-to-date, collections stand at $86.6 million, up from $79.3 million six months into 2011. You can check out the complete year-to-date and June figures in a single document here.
La. taxpayers have 10 days to claim income tax refunds
Thousands of taxpayers across Louisiana have yet to claim their state income tax refunds, and the state's revenue agency says millions of dollars will become unclaimed property if they aren't claimed soon. The Louisiana Department of Revenue says it has notified more than 7,000 taxpayers that they have until Friday, Aug. 24, to claim their state income tax refund. Officials say there is $4.4 million in unclaimed refunds. Money not claimed by the deadline will transfer to the Unclaimed Property Division of the state treasurer's office. Taxpayers wanting to claim their refunds must submit a voucher requesting a replacement of their uncashed state income tax refund checks. Vouchers were issued with letters notifying each of them of the impending deadline for claiming refunds.
La. legislators begin measuring ROI of $6.8 billion 'hidden budget'
By LED's count, Louisiana recorded nearly $6.8 billion in tax expenditures in the 2010-11 fiscal year. Some analysts have called this motley collection of 468 credits, rebates and exemptions the state's "hidden budget." While often described as "tax breaks," many tax expenditures are perhaps better understood as spending: You do something government likes, and government writes you a check. In flush times, the state's hidden budget seldom is debated by lawmakers or scrutinized by the media. But in the world we live in today, it's hard to sacrifice nearly $7 billion without anyone complaining. While few tax expenditures get as much attention as the now infamous 2009 credit for vehicles that burn "alternative fuel"—which has since been rescinded by Gov. Bobby Jindal, but could still end up costing the state as much as $200 million a year—they all mean something to someone. But what they mean to the state, good or bad, is often hard to measure. Nonetheless, that's what a...
La. Budget Project recommends scaling back film incentives
The Louisiana Budget Project, a left-leaning advocacy group, says in a paper released today that the state should make the film business tax credit incentives less generous over time. "People are getting rich on this deal, and it isn't Louisiana taxpayers," says Budget Project Director Jan Moller. "Louisiana needs to limit the cost to taxpayers without pulling the rug out from under the industry." The program cost $231 million in the just-ended fiscal year and more than $1 billion in the decade since the program was expanded in 2002, LBP says. The group offers multiple recommendations for "reining in the uncontrolled growth of this program, while still giving filmmakers an incentive to choose Louisiana." Suggestions include lowering the value of the tax credits over a number of years, capping the total amount of tax credits that can be claimed in a fiscal...
Assessments won't surprise many
The Capital Region real estate was distorted by underassessed homes a decade ago. Every neighborhood had them, says appraiser Tom Cook, and they were often assessed at just 50% of real value.
Follow the money
A bill that former Rep. Jane Smith co-authored in 2009 cost the job of one Jindal Cabinet member. It might also end up costing the state more than $200 million a year.
Giving credit
In a region rich with historic buildings, incentives that encourage maintaining such structures for future generations are especially attractive. That's why some Baton Rouge-area developers sing the praises of historic restoration tax credits.
'Tax break' commission to hold first meeting Monday
A legislative commission formed to review Louisiana's tax credits, exemptions, exclusions and rebates will meet for the first time Monday. While often described generally as "tax breaks," many of these measures have nothing to do with a recipient's tax liability and are officially known by the Legislature as "tax preference expenditures." Some legislators say the review is long overdue, arguing that the state gives away too much money that could be used for higher education and health care. The Jindal administration says, "Any changes that are made must be budget neutral and not an attempt to just raise revenue." LED Secretary Stephen Moret says state exemptions total about $6.8 billion, but says nearly 95% of that cost is unrelated to economic development programs managed by LED. Sen. Dan Claitor, R-Baton Rouge, a commission member, says a review to determine if the state is getting a decent return from its tax expenditure investments makes sense no matter what the state's budget...
Jindal hoping for more revenue to fill budget gap
Even after announcing $523 million in health care cuts, Gov. Bobby Jindal's administration has slashed only two-thirds of the spending needed to close the entire gap in Louisiana's Medicaid budget. The administration is banking on better-than-expected revenue projections to close the remaining budget hole. If that doesn't pan out in the next few months, more reductions are on the horizon. Commissioner of Administration Paul Rainwater, the governor's top budget adviser, says state economists believe there's a "strong likelihood" the state brought in more tax revenue for the fiscal year that ended June 30 than was expected or budgeted. Rainwater says the state should know if there was surplus cash—and how much—by August or September. If the funding does show up, questions remain about possible legal hurdles to accessing the cash to fill the Medicaid budget for the fiscal year that began July 1. The Jindal administration announced $523 million in cuts to state health care...
Emails show Jindal adviser was told about credit rule
A top official in Gov. Bobby Jindal's administration was notified shortly after the Louisiana revenue department issued a controversial ruling to expand an alternative fuel vehicle tax credit, The Associated Press has uncovered. Since the controversy over the tax credit came to light, a Jindal spokesman has said the governor didn't know of the ruling until mid-June. But a review of Department of Revenue e-mails by the AP shows Jindal's natural resources secretary and chief legislative lobbyist, Scott Angelle, was told about the ruling on May 1—the day after it was issued. Jindal rescinded the tax credit expansion June 14 after lawmakers complained it could blow a hole in the budget, potentially costing upwards of $100 million per year. However, the internal emails, obtained through a public records request, also suggest the actual cost of the credit expansion hadn't been determined, and that Revenue Secretary Cynthia Bridges left her job because of the controversy. The credit...
Editor: BREC wants to raise taxes
BREC is considering a proposal to raise taxes, without a vote of the people, during a meeting at 5 p.m. today, reports Business Report Executive Editor JR Ball. The officials at BREC will argue this is not a tax increase; instead, they will suggest that tonight's vote to roll forward the property tax millage to 14.463 mills, from 14.038 mills, is simply a way to generate more revenue from taxes already approved by voters. If approved by a two-thirds vote of commissioners, the millage hike will generate an additional $1.488 million for BREC's budget next fiscal year. BREC Superintendent Carolyn McKnight says the increase is necessary due to increasing costs and inflation. The easy response to McKnight's position is that all of us, including taxpayers, are struggling to keep our financial books balanced, and perhaps BREC should look to cut expenses—and eliminate money-losing programs—rather than forcing taxpayers to dig deeper into their own pockets. The more probing...
Two Cents: BREC wants to raise your taxes
Officials with BREC will meet this afternoon to consider raising taxes without a vote of the people. If this matters to you, then it would be wise to attend the commission meeting at 5 p.m. at BREC's headquarters on Florida Boulevard.
Editor: La.'s corporate tax breaks breaking higher education
Regardless of whatever stats, rankings or carefully shaded reports the Jindal administration puts out regarding job creation or the state of the state's economy, Business Report Executive Editor JR Ball says, in truth, Louisiana is on a high-speed-rail collision course with global economic irrelevance. "Make no mistake, it's fabulous that Louisiana, under Gov. Bobby Jindal, has spent hundreds of millions of economic development dollars to sustain chicken farmers, enable the manufacturing of high-end toilet paper, land international industrial companies, leverage cheap natural gas to attract manufacturing facilities, and provide any incentive necessary to develop the movie and nascent digital media industries," Ball writes in his latest column. "It's also wonderful that Louisiana, under Jindal, has moved hundreds of millions of dollars from the state treasury to personal bank accounts and corporate balance sheets thanks to an unprecedented level of tax cuts over the past five...
Report: La. at No. 49 for state tax growth
Louisiana is ranked 49th in the United States for its 1.2% growth rate of state tax collections from 2010 to 2011, according to a new report from the U.S. Census Bureau. Hawaii came in 50th with 0.40% growth. Moreover, Louisiana ranked 43rd for its overall growth rate of 3% in collections between 1997 and 2011. North Dakota ranked first for growth between 2010 and 2011, at 44.5%, and its 9.6% growth in collections between 1997 and 2011 also earned it the top spot among all states. Across the nation, state tax collections reached $764 billion in 2011, an increase of 8.9% over 2010 and the second-highest ever collected, behind the $781 billion collected in 2008. Even accounting for the recession of recent years, state taxes have grown by 4% since 1997. Among states levying an individual income tax, Louisiana's top rate of 6%—kicking in at an income level of $50,000, among the three brackets—ranks 21st highest nationally, according to the Taxfoundation.org. For 2010,...
AG's ruling on homestead exemption fogs CATS tax
More questions than answers surround Wednesday's state attorney general opinion that the homestead exemption will apply after all to the recently passed CATS tax. Among them: How does the CATS board plan to make up for the shortfall that will occur as a result of factoring the homestead exemption into the 10.6-mill property tax increase? For that matter, how much will the shortfall actually be? Advocates of the tax, who campaigned for it in the special election last month, said at the time if the tax didn't pass, the transit agency faced a possible summer shutdown. Now that the tax will generate millions less than planned, how will daily operations be affected? Moreover, what does it mean for the massive overhaul of the system that voters were promised? For now, all CATS officials can say is that they're trying to assess what the decision will mean. "I think we're still trying to analyze the numbers and what the real impact will be," says CATS CEO Brian Marshall. "But we're committed...
Jindal-backed tax breaks near final passage
A package of tax breaks sought by Gov. Bobby Jindal is nearing final legislative passage in the Louisiana House but with more usage restrictions than when it was proposed. Lawmakers in the Senate added several hurdles before the tax breaks could be used, with senators saying they want to make sure the tax breaks generate new jobs rather than just give money away to businesses that would have come to Louisiana anyway. The bills by Rep. Joel Robideaux, R-Lafayette, would give the state's economic development chief limited ability to offer three new tax breaks to businesses that are considering whether to relocate or expand in Louisiana. Those include rebates for payroll, relocation costs, and corporate income and franchise taxes.
Tax credits to help save Spanish Town houses
State historic tax credits will allow for the restoration of five houses considered to be contributing elements to the historic Spanish Town neighborhood. Developer Lance Bennett says he paid about $100,000 each for the houses—three on North Seventh Street, and two along South Capitol Drive—and expects to spend about $50,000 gutting and renovating each one. The sale closed last week. State historic tax credits will make the numbers on the deal feasible, says Bennett, who will get back from the state's incentive program about 45 cents for every $1 he spends renovating the houses. "You really couldn't do this project without them," says Bennett. "I've done many projects in Spanish Town, and this is what makes them all work." Richard Preis, who sold the houses to Bennett, owns other rental houses and a 47,000-square-foot vacant lot on the block. Preis says the sale to Bennett represents an "olive branch" to Spanish Town residents who opposed Preis' plans in 2009 to sell...