Request for tax break sparks debate

CENTERVILLE — St. Mary Parish President David Hanagriff on Thursday asked the School Board to support a tax exemption for Bollinger Amelia Operations LLC. The discussion opened the door for a face-to-face conversation between the board and Hanagriff about his opposition to the board’s proposed half-cent sales tax.
Hanagriff began by explaining about the Louisiana Industrial Tax Exemption Program. The program offers a temporary break from local property taxes to new and expanding employers. It’s administered by the state.
The administration of Gov. John Bel Edwards had changed the program to give local governments affected by the exemptions more input in the decisions.
Hanagriff successfully asked St. Mary governments to allow the parish president to say yes or no to exemption requests to streamline the process for potential employers.
“However, it came back because since we started proceeding, the rules have changed,” Hanagriff said. “Now the state says because of that, we have to go back and get it re-signed by each entity.”
Without the exemption, the board would collect an estimated $122,043 over a 10-year period. With the exemption the board would collect an estimated $36,318, a difference of $85,725.
The resolution in favor of the tax exemption passed, but not before some tough questions about Hanagriff’s opposition to the proposed School Board sales tax.
Kenneth Alfred, St. Mary Parish School Board District 3, addressed Hanagriff by saying, “As you know we are going to ask the public to vote on a sales tax increase to support our teachers and give raises and you went publicly and opposed that, and now you are asking us to take an $85,000 cut.”
St. Mary Parish School Board announced at its Dec. 12 meeting that a 0.5% sales tax proposition would be put on the May 9 ballot. The revenue generated by this sales tax would increase teacher salaries in St. Mary Parish by $3,000 per year and support personnel by $1,500 per year, allowing the board to offer more competitive salaries with those in surrounding parishes.
Hanagriff had a letter sent to the board to be presented at the Dec. 12 meeting expressing his disagreement with the sales tax election. He said a sales tax increase at this time would be devastating to St. Mary Parish’s already fragile economy.
“I understand that it is a tough stance,” Hanagriff said Thursday. “You ask how can I come here and ask the School Board to give exemption to a company and in the same breath tell you to go against sales tax, that it’s bad.
“Well, to me, in my opinion, a sales tax is the most aggressive tax possible. For three reasons: first of all, it’s out there, it broadcasts to everyone, when you look at buying products in this parish or other parishes sales tax is up there in consideration.
“Secondly, it’s a tax that takes advantage of lower income disproportionally. But most importantly, it is a tax on business that people don’t realize.”
Hanagriff returned to the resolution for the tax exemption for Bollinger and explained to the board that there is an argument for not giving tax exemptions to businesses and keeping the money for the schools, roads and infrastructure.
“But the problem we have right now is that everyone gives them,” Hanagriff said, “and St. Mary Parish has to compete with Iberia, Lafayette, Terrebonne and everyone else. So we have to continue. We have to be the lowest. We have to give these exemptions to companies like Bollinger so they don’t leave just like Shell did.”
Marilyn LaSalle, St. Mary Parish School Board District 6, responded to Hanagriff by saying, “The same parishes you are talking about you are competing with, so are we. We are trying to get teachers into this parish.”
The board put the resolution for approval to a vote. Sylvia Locket, District 2 abstained; Pearl Rack, District 4 and LaSalle, voted no. Members voting yes were Roland Verret, District 11; Dwight Barbier, District 10; Alaina Black, District 9; Ginger Griffin, District 5; Alfred, District 3; and Joseph Foulcard, District 1. The resolution passed.
Dr. Teresa Bagwell, superintendent of St. Mary Parish schools, presented the superintendent’s report. She read aloud a letter sent by St. Mary Industrial Group’s president, Bob Miller, addressed to board President Michael Taylor and members of the School Board concerning the proposed sales tax.
“In response to the School Board’s proposed sales tax increase, please allow this letter to convey our strong disagreement with any increase in taxes in St. Mary Parish,” Miller said.
Miller said an increase in tax would hurt local merchants and burden retail businesses in our area.
“We believe the St. Mary Parish School system should be resized for the significant decrease in population by reduction and elimination of duplicative efforts, edifices, and if necessary, personnel,” Miller said. “We ask that you please suspend further efforts to increase taxes.”