Louisiana Phases Out Business Tax

Louisiana starts to make its tax code a little more business friendly today, with the beginning of a plan to phase out two of what Gov. Kathleen Blanco calls onerous business taxes.

The first phase of eliminating the state sales tax on manufacturing equipment, part of an economic development package passed this year by the Legislature, goes into effect with the beginning of the 2005 fiscal year, which runs from today through June 30, 2005.

The tax will be reduced by 5 percent, followed by a 19 percent reduction next year. The tax eventually will be eliminated in fiscal 2011.

The phase-out was pushed by Blanco and business interests, who said the tax puts Louisiana businesses at a competitive disadvantage in attracting and retaining industry.

More here.