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Auditor: Parishes with tax exemptions have more property tax income

Fri, 10/14/2022 - 10:05am

VICTOR SKINNER, The Center Square

Analysis of the state’s Industrial Tax Exemption Program by the Louisiana legislative auditor reveals parishes with the highest amount of tax exemptions collected higher amounts of property taxes in 2021.

Louisiana Legislative Auditor Mike Waguespack issued an informational brief to lawmakers Monday on the ITEP program and its impact on local governments, using data from the Louisiana Department of Economic Development and Louis-iana Tax Commission.

Gov. John Bel Edwards in 2016 reduced what was a 100% ITEP exemption to 80%, or 93% for “Mega Projects,” and incorporated a job requirement in exemption contracts. The changes, accomplished through executive order, also added a level of local government approval that was not previously required.
LLA analysis found the ITEP exemptions cost local governments in Louisiana $1.5 billion in foregone property tax revenue in calendar year 2021.

Data shows Louisiana had $54.1 billion in taxable assessed value and levied $5.3 billion in taxes, compared to $12.2 billion in ITEP exempt assessed value resulting in $1.5 billion in exempt taxes.

The report also found parishes with the highest amounts of ITEP exemptions per capita tend to have higher property tax collections overall.

“Specifically, the 25 parishes with the highest amounts of taxes exempted under ITEP per capita still levied $1,458 per capita on property taxes net of exemptions in 2021, 48.3% higher than the $983 in taxes levied per capita in the remaining 39 parishes,” according to the report. “One factor contributing to the higher property tax revenues in these 25 parishes is that ITEP recipients contributed an estimated $396 more in taxes levied per capita.”

The dynamic stems from other non-exempt property owned by ITEP recipients, such as property purchased more than 10 years ago, and other land and equipment ineligible for ITEP under the new rules.

The LLA report came one day before a study of the ITEP program by the Institute for Energy Economics and Financial Analysis that found the percentage of property that was actually taxed increased from 37% in 2016 to 50% in 2021. That increased annual industrial property tax revenue by more than $280 million over the same time frame, resulting in $113 million in additional revenue for schools, $55 million for law enforcement and $115 million for other parish services.

“We have increased funding for local governments, public schools, and law enforcement by more than $750 million,” Edwards said in response to the analysis. “And we’ve done it all while more than doubling the number and value of ITEP projects in Louisiana.”

Parishes with the highest total amounts exempted under ITEP in 2021 include $704.8 million in Cameron, $270.7 million in Calcasieu, $123.9 million in Ascension, and $119.8 million in St. Charles, according to the LLA report.

Cameron Parish topped the list for tax amount exempted as a percentage of amount levied at 1,211.8%, the only parish over 100%. Calcasieu Parish’s 94.9% was second.

For the top 25 parishes with ITEP exemptions, the total amount exempted was $1.439 billion, compared to $44.9 billion in the remaining 39 parishes.

The top 25 ITEP parishes exempted 64.5% of the amount levied, while that percentage for the remaining 39 parishes was 1.5%.

Statewide, the ITEP exemptions totaled $1.484 billion, or 28.1% of taxes levied, according to the LLA.

Chemical manufacturers accounted for the bulk of ITEP tax exemptions at 80.7%, followed by petroleum and coal products manufacturers, which took the next largest share of 6.5%.

The report broke down total dollar amounts exempted by industry, with about $1.2 billion going to chemical manufacturers, $96.6 million for petroleum and goal products manufacturers, $93.5 million for utilities, $24.2 million for paper manufacturers, $12.6 for food manufacturers, $12.3 million for wood product manufacturers, $4.6 million for machinery manufacturers, $4.1 million for fabricated metal product manufacturers, $3.4 billion for oil and gas extraction companies, $2.8 million for plastics and rubber companies and $31.9 million for all others.

“Of the 25 parishes with the highest ITEP exempt taxes per capita, chemical manufacturing is most commonly the industry receiving the largest amount of ITEP exemptions within the parish,” the report read. “On the other hand, among the remaining 33 parishes that had ITEP exemptions, the wood product, chemical, food, and machinery manufacturing industries were tied as the industries most commonly receiving the most ITEP exemptions.

“The remaining six parishes (Catahoula, Claiborne, Franklin, Madison, Tensas, and West Carroll) reported no ITEP exemptions in 2021.”

Around Town for Oct. 14

Fri, 10/14/2022 - 10:02am

Happy birthday Sunday to Cherie from all your family and friends … Happy birthday Saturday to Roz Burney and Mervin Story, Sunday to Lucille Whiley and Anissa Eugene, and Tuesday to Dr. Desi Rae Valentine from family, friends and Ira … Congratulations to Alabama State Lady Hornets bowling team on a third place finish in the Florida A&M tournament Oct. 7-9, a local athlete is a member of the team.

MCFD celebrates

Fri, 10/14/2022 - 9:59am

Submitted Photo
Morgan City Mayor Lee Dragna and the City Council recently recognized the Morgan City Fire Department's Austin Ratcliff on his promotion to captain and Driver Operators Andrew Ratcliff III and Russell Miller for 10 years of service to MCFD and the citizens of Morgan City. The department is also celebrating its 150th anniversary Saturday with a 10 a.m.-1p.m. Fire Prevention Open House and anniversary celebration at 2:30 p.m. To RSVP for the anniversary celebration, call Assistant Chief Joe Marino at 985-380-4617 or 985-518-1585.

Governor, companies announce carbon capture partnership

Fri, 10/14/2022 - 9:58am

Gov. John Bel Edwards and the executives of major global energy corporations CF Industries, ExxonMobil and EnLink Midstream announced an “unprecedented” decarbonization collaboration aimed at dramatically reducing industrial CO2 emissions in Louisiana. The announcement – described as a potential business prototype for industrial-scale carbon capture and sequestration projects – was made Wednesday at the State Capitol.

The three companies have entered into the largest-of-its-kind commercial agreement to capture emissions from CF Industries’ Ascension Parish manufacturing complex, transport the CO2 through EnLink’s transportation network and permanently store it underground on property owned by ExxonMobil in Vermilion Parish.

“Today’s announcement of this unprecedented, large-scale, low-carbon partnership is a key milepost on Louisiana’s path toward a brighter future for our climate, our economy and our people,” Gov. Edwards said. “The collaboration and innovation to bring carbon capture and storage technology forward at this scale reaffirms our state’s ability to grow our economy without sacrificing our long-term emission-reduction goals to net zero by 2050.”
A leading global manufacturer of hydrogen and nitrogen products, CF Industries recently announced a $198.5 million plan to build a CO2 dehydration and compression unit at its ammonia production plant in Donaldsonville. ExxonMobil has signed an agreement with EnLink Midstream to transport the CO2 through EnLink’s pipeline network to a 125,000-acre secure geologic storage location in Vermilion Parish approximately 100 miles south and west of CF’s facility.

The companies expect start-up for the project to be scheduled for early 2025. They estimate the project will allow them to capture and sequester up to 2 million metric tons of CO2 annually, equivalent to replacing approximately 700,000 gasoline-powered cars with electric vehicles.
CF Industries expects to market up to 1.7 million metric tons of blue ammonia annually. A chemical process is considered “blue” when CO2 emissions are captured before their release into the air, making the process more carbon-neutral.

Demand for blue ammonia is expected to grow significantly as a decarbonized energy source for hard-to-abate industries, both for its hydrogen content and as a fuel itself, because ammonia’s components – nitrogen and hydrogen – do not emit carbon when combusted.

“CF Industries is pleased to partner with ExxonMobil through this definitive CO2 offtake agreement, accelerating our decarbonization journey and supporting Louisiana’s and the country’s climate goals,” said Tony Will, president and chief executive officer, CF Industries Holdings, Inc. “This agreement also ensures that we remain at the forefront of the developing clean energy economy. As we leverage proven carbon capture and sequestration technology, CF Industries will be first-to-market with a significant volume of blue ammonia. This will enable us to supply this low-carbon energy source to hard-to-abate industries that increasingly view it as critical to their own decarbonization goals.”

ExxonMobil Low Carbon Solutions is working to bring lower-emission technologies to market, making them accessible to hard-to-decarbonize industries in the United States and internationally. It is focusing its carbon capture and storage efforts on point-source emissions, the process of capturing CO2 from industrial activity that would otherwise be released into the atmosphere.

Once captured, the CO2 is injected into deep, underground geologic formations for safe, secure and permanent storage. In the United States, these storage efforts are regulated by state and federal agencies.

“This landmark project represents large-scale, real-world progress on the journey to decarbonize the global economy,” said Dan Ammann, president of ExxonMobil Low Carbon Solutions. “ExxonMobil is providing a critical and scalable solution to reduce CO2 emissions, and we’re ready to offer the same service to other large industrial customers in the state of Louisiana and around the world. We’re encouraged by the momentum we see building for projects of this kind, thanks to supportive policies such as the Inflation Reduction Act.”

Carbon capture and storage is a safe, proven technology that can enable some of the highest-emitting sectors to meaningfully reduce their emissions. These industries include manufacturing, power generation, refining, petrochemical, steel and cement operations. With effective government policies in place, broad deployment of commercial-scale carbon capture and storage projects could create a new industry, resulting in job creation and economic growth.

“EnLink has a system of over 4,000 miles of pipeline already in the ground in Louisiana,” said Jesse Arenivas, Chief Executive Officer of EnLink. “Utilizing this extensive network enables us to provide the most timely and cost-effective solution to CO2 transportation, with a significantly lower environmental impact. Because of this, EnLink is uniquely positioned to be the CO2 transportation provider of choice in Louisiana’s Mississippi River corridor, which is a hub of industrial activity that is important to our economy. We look forward to working with ExxonMobil to help CF Industries and the State of Louisiana reach their decarbonization goals.”

Louisiana dedicates October to the Basin

Fri, 10/14/2022 - 9:55am

Lt. Gov. Billy Nungesser, with the Atchafalaya National Heritage Area, proclaims October as Atchafalaya Month.
“The Atchafalaya National Heritage Area is full of both beauty and mystery," Nungesser said.

"In October, during Atchafalaya Month, we take time to celebrate both with events throughout the 14-parish area. In Louisiana, we celebrate our culture like nowhere else in the country. And, you can get firsthand experience of some of that culture in the Atchafalaya National Heritage Area."

Grab a kayak and paddle Bayou Teche with the Shake Your Trail Feather Festival on Saturday, Oct. 22, in Breaux Bridge.

You can even get in the mood for spooky season at Rougarou Fest in Houma on Oct. 21-23, and while you’re there be sure to stop by the official Atchafalaya stage to hear local music and learn about traditions from around the Basin.

“As the seasons begin to change and the temperatures fall, local culture is showcased far and wide at the region’s many festivals nestled in a natural environment unlike any other,” said Atchafalaya National Heritage Area Executive Director Justin Lemoine. “October is the perfect month to explore America’s largest river swamp by car, bike, boat, or kayak.”

October is also Archaeology Month, Louisiana Seafood Month, and Folklife Month, so be on the lookout for special surprises you can only find in October.

ning in the Atchafalaya National Heritage Area, check out www.atchafalaya.org.

Ochsner St. Mary Women's Expo

Fri, 10/14/2022 - 9:52am

Submitted Photo
On Tuesday, Ochsner St. Mary hosted a Women’s Expo at the Hampton Inn & Suites in Morgan City. Members of the community were treated to lunch, health screenings and guest speakers including Dr. Julie Price, OB/GYN, Matt Reynolds, OB/GYN, Alexandra Hudson, Women’s Services manager, and Melanie Williams, mammography tech. Other staff members participating were Community Outreach Coordinator Dwan Naverre, Brittany Bellard, Chelsea Grogan, Allison DeLaRosa and Laurie Barbera.

Franklin has one of six new Cultural Districts

Fri, 10/14/2022 - 9:49am

Franklin has one of six newly created Cultural Districts announced Wednesday by Lt. Gov. Billy Nungesser and the Office of Cultural Development’s Division of the Arts.

The new districts bring the statewide total to 124 in 77 municipalities and 44 parishes.

Certified Cultural Districts benefit from two targeted tax incentives: renovation projects on historic buildings may qualify for state historic tax credit, and qualifying works of original art are exempt from local sales tax. Created by Act 298 of the 2007 Regular Legislative Session, the program’s goal is to spark community revitalization based on cultural activity through tax incentives, technical assistance, and resources.

The new districts are:

—City of Crowley African American Cultural Historical District (Crowley, Acadia Parish)

—Divine Nine Cultural District (Monroe, Ouachita Parish)

—Franklin Cultural District (Franklin, St. Mary Parish)

—Gretna South Cultural District (Gretna, Jefferson Parish)

—Jean Lafitte Cultural District (Jean Lafitte, Jefferson Parish)

—Pointe-aux-Loups Cultural District (Iota, Acadia Parish)

Cultural Districts are a unique reflection of local heritage, history, and cultural development, the Lieutenant Governor’s Office said.
“Many are found in downtown areas, but they can be in suburban, rural, and neighborhood locations," Nungesser said.

Americans for the Arts define Cultural Districts as “a well-recognized, labeled, mixed-use area of the city in which a high concentration of arts and cultural facilities serve as the anchor attraction.”

The most recent economic impact data available for Cultural Districts in 2021 show:

—193,584 people attended 536 events

—398 new businesses opened

—649 commercial renovation projects began

Sales tax exemption on qualifying, original art sales directly benefitted:

—1,824 businesses
—526 artists
—184 events
—52 organizations

Boundary changes can be applied for after two years of certification.

Linares receives Terrebonne General award

Fri, 10/14/2022 - 9:46am

Terrebonne General Health System announced Dr. Hector A. Linares, physical medicine, and rehabilitation, as the recipient of the Golden Stethoscope Award.

The prominent Golden Stethoscope Award publicly recognizes Terrebonne General physicians for their exceptional level of professionalism, integrity, and teamwork in caring for patients and families, as well as interacting with hospital staff members and other physicians. Nominations can be made by physicians, employees, patients, and volunteers. Two physicians a year are recognized with this award.

Linares has been the director of rehabilitation services at Terrebonne General for 32 years. He completed medical school at Universidad De El Salvador in 1979 and completed his residency and internship at LSU New Orleans.
He has lifetime board certification through the American Board of Physical Medicine and Rehabilitation.

Linares served on several leadership committees including the Medical Staff Performance Improvement Committee, and Medical Executive Committee. He also served as chief of staff from 2009-2010 and vice chief of staff from 2007-2008.

“This is a surprise and an honor to be recognized for this award. I appreciate the medical staff and the hospital for this recognition,” said Linares.

Deere announces $29.8M, 180-job expansion in Lafourche

Fri, 10/14/2022 - 9:39am

Deere & Company, the global corporation that manufactures the iconic John Deere brand of agricultural, construction and forestry equipment, is investing $29.8 million to expand operations at its Thibodaux facility.

The company will create 70 new direct jobs with an average annual salary of $47,472, and will retain 311 existing jobs in Louisiana, including 284 jobs at the Lafourche Parish facility. Louisiana Economic Development estimates the project will result in 110 new indirect jobs, for a total of 180 new jobs in the Bayou Region.

The announcement coincides with Louisiana’s observation of Manufacturing Week, the 11th annual nationwide celebration of the sector’s continued growth and the career opportunities it has to offer.

“This investment by Deere & Company demonstrates not only the strength of Louisiana’s manufacturing sector, but the resilience and recovery of the Bayou Region,” Gov. John Bel Edwards said.

“Manufacturing has long played a vital role in Louisiana’s economy and never more so than today, supporting more than 178,000 Louisiana workers and their families through ongoing investments in every region of the state.

"Thanks to Deere & Company for its commitment to Lafourche Parish, and congratulations to the skilled workers whose dedication convinced this global manufacturer to expand its footprint in our state.”

The expansion involves the development and installation of a new production line and upgraded equipment, which will allow the Thibodaux facility to begin producing medium-chassis cotton harvesting models that will replace existing models currently built in China.

“The new cotton harvesters present a huge opportunity for John Deere Thibodaux to deliver innovative and technologically advanced solutions to our customers, which will increase their productivity and profitability,” said Mike Duplantis, factory manager at John Deere Thibodaux.

“This expansion is possible due to the tremendous amount of hard work and resiliency of the Thibodaux team.”

The Thibodaux site currently serves as a design center for sugar harvesting and earthmoving scraper equipment as well as a manufacturing facility for a variety of agriculture and construction products.

The company expects production of the new cotton harvesters to begin within the next two years and to reach full capacity by 2025.

“John Deere’s expansion is a huge win for Lafourche Parish,” Lafourche Parish President Archie Chaisson said.

“The addition of new manufacturing lines to John Deere Thibodaux shows how productive and efficient this facility is, which is a testament to the local workforce and management. The Thibodaux facility’s successful competition for these new cotton harvesters shows just how competitive Lafourche Parish can be.”

To secure the project in Thibodaux, the state offered Deere a competitive incentive package including a performance-based retention and modernization grant of up to $1 million, and the services of LED FastStart, Louisiana’s nationally acclaimed recruitment, customized training and workforce development program.

The company is also expected to participate in the Industrial Tax Exemption and Enterprise Zone programs.

“It’s always exciting for our community to experience new high-paying employment opportunities and a positive stimulus to our local economy,” Thibodaux Mayor Tommy Eschete said. “John Deere Thibodaux once again illustrates its history as an outstanding corporate citizen by diversifying its production capabilities so as to remain a viable manufacturing business in the Bayou Region.”

Deere & Company is a global leader in the delivery of agricultural, construction, and forestry equipment.
It helps customers push the boundaries of what’s possible in ways that are more productive and sustainable to help life leap forward.

The company’s technology-enabled products including John Deere Autonomous 8R Tractor, See & Spray™, and E-Power Backhoe are just some of the ways it helps meet the world’s increasing need for food, shelter, and infrastructure. Deere & Company also provides financial services through John Deere Financial. Learn more at Deere.com.

Jeremy Alford: Louisiana elections often beget elections

Fri, 10/14/2022 - 9:36am

JEREMY ALFORD

The headline on this opinion column was recycled. I used the caption in April of last year to explain the various electoral dominoes toppled by the resignation of former Congressman Cedric Richmond of New Orleans.

The resulting 2021 special election, which gave us now-Congressman Troy Carter, led to two other special elections because Carter was a member of the state Senate at the time and his Senate replacement, nephew Gary Carter, was a state representative.

With primary voting set to conclude in less than a month, both of the open state Senate seats on the fall ballot could — again — lead to other special elections on future ballots. Put another way, special elections in Louisiana beget special elections.

There are three state representatives running for these two competitive Senate seats, and neither contest has crystal clear frontrunners as of this hour.

Democrats will definitely maintain control of New Orleans’ Senate District 5, where a replacement politico is needed for former Sen. Karen Carter Peterson, who pleaded guilty to a federal wire charge in August.
In Senate District 17 in the Iberville-Pointe Coupee region, Republicans and the business lobby may have to fight to hold onto the seat vacated by term-limited Sen. Rick Ward of Maringouin — or wait until the district turns more conservative next term due to redistricting.

Of the two contests, the special election in New Orleans between Reps. Royce Duplessis and Mandie Landry is a real dogfight.

While the two Democrats agree on many policy issues, they offer more contrast on the political front.
Duplessis has a well-funded campaign stocked with seasoned consultants. His team is pushing out media with production value and buying airtime. Landry is managing her own campaign and a tight budget. She’s making her own videos and prioritizing things like door-knocking and canvassing.

Landry, in particular, has some natural advantages in this race, like her entire House district being inside the Senate district. She’s also well positioned to discuss abortion rights — easily the hottest issue in the district, which is home to some of the most progressive voters in the state. On this issue, Landry has both policy and professional experience.

Abortion can be a difficult issue to tackle gracefully for male candidates, but Duplessis’ campaign is searching for that avenue in its latest TV spot, which feature’s the representative’s mother discussing a family member’s “self induced coat hanger abortion.”

Duplessis, in a polished fashion, is selling himself to voters as a politician who has forged compromises in Baton Rouge on tough topics like criminal justice reform. But supporters add he can get it done on the neighborhood-level as well and he can work with the alphabet groups in New Orleans, some of which are lining up behind his bid.

Landry, meanwhile, gladly discusses not having the same establishment endorsements or in-demand consultants, which has in turn become part of her own political brand. She instead points to her community-level engagement, like being a volunteer attorney with the Pro Bono Project, and her grassroots approach to this race.

In the three-candidate field for Senate District 17, Rep. Jeremy LaCombe, a Democrat from New Roads, has garnered the most attention in Capitoland, as any sitting lawmaker would.

LaCombe will have the fundraising and campaign staff, led by consultant Trey Ourso, to mount a strong bid. He’ll need both to replace Ward in a district that twice backed former President Donald Trump.

There are two other candidates, both Republicans, making unmissable noise in this race, beginning with West Baton Rouge Parish Councilman Caleb Kleinpeter of Port Allen.

Conservatives and some corners of the business lobby find Kleinpeter’s candidacy attractive, and they like seeing consultant Jason Hebert of the Political Firm at the helm of the campaign.

But those same players also know this race is gong to be personal and intimate during the primary’s final weeks, and they want to see how all of the candidates perform when faced with fodder from opposition research books.

Republican-leaning groups also stand ready to spend in the district to weaken LaCombe’s standing as the quasi-incumbent in the race. That includes dredging up this term’s controversial votes on transgender athletes.
LaCombe, however, may have an ace in the hole with the high number of Democrat-versus-Democrat races slated on the municipal level in the district’s nine parishes. Should he find a way to tap into those elections in a meaningful way, LaCombe will have a powerful weapon.

The wild card in the race is Dr. Kirk Rousset of Oscar, an OBGYN at Woman’s Hospital. He’s running on health care and has a commercial on the air produced by media consultant Roy Fletcher.

Rousset may be in a position to either grab some dollars from the medical PACs or make sure they stay on the sidelines. Either way, he could also cut into LaCombe’s base in Pointe Coupee Parish.

This Iberville-Pointe Coupee race, as well as the contest over in New Orleans, may not stay as tight and competitive in the coming weeks. But right now they both look livelier than expected with a whole lot of voters in the undecided category.
For more Louisiana political news, visit www. LaPolitics.com.