A second special legislative session concluded June 23, 2016, with lawmakers passing a number of bills that will affect business taxpayers.
In February 2016, the governor convened Louisiana’s first special legislative session of 2016 to address a $900 million deficit expected for the fiscal year ending June 30, 2016, as well as a $2 billion shortfall for the fiscal year starting July 1, 2016. The special session was necessary because Louisiana law prohibits lawmakers from considering revenue raising measures during the regular session in even-numbered years. Numerous revenue raising measures were passed during the first special session, including, but not limited to, the enactment of a new, temporary one percent (1%) state level sales and use tax. Lawmakers also temporarily suspended a number of sales tax exemptions and exclusions.
Although significant revenues were raised during the first special session, the state still faced an estimated $600 million shortfall for the fiscal year beginning July 1.
The governor called the second special session that commenced on June 6, 2016 and adjourned on June 23, 2016. Lawmakers reportedly raised $263 million for the state’s operating budget, reducing—but not completely closing—gaps in health and education programs. Among the legislation affecting business taxpayers are the following:
Read a July 2016 report [PDF 191 KB] prepared by KPMG’s State and Local Tax practice: Louisiana’s Second Special Session Brings More Tax Changes for Businesses
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