Voters have rejected an amendment to the state constitution that would have allowed industry to negotiate tax rates with local municipalities.
Amendment 5 would have authorized local governments to enter into cooperative endeavor ad valorem tax exemption agreements with new or expanding manufacturing establishments for payments in lieu of taxes.
Opponents said it would give preference to private businesses and result in less funding for education and infrastructure by allowing local politicians to negotiate the terms of tax payments.
“I’m delighted,” said Anne Rolfes, with the advocacy group the Louisiana Bucket Brigade. “The petrochemical industry consistently tries to move its operations to backroom deals so they can take more and money from taxpayers — and tonight the taxpayers said ‘no.’”
Her organization rallied hard against the amendment and held a protest in St. James Parish. Together Louisiana, a grassroots coalition of 250 religious congregations and civic organizations, also lobbied against it.
They argue that it would have incentivized short-term gains over long-term planning for local municipalities. Local governments would then receive less tax revenue, which could lead to spending cuts or an increase in taxes.
The Louisiana School Board Association, the Police Jury Association and the Louisiana Sheriff’s Association all supported the measure. They did not respond to repeated requests for comment, but have said the amendment will help local governments prioritize how tax dollars are invested.
At the time the Associate Press called it, 62 percent had voted against Amendment 5.
Support for the Coastal Desk comes from the Greater New Orleans Foundation, the Walton Family Foundation, and local listeners.
