ITEP

Oh now this is interesting.  It's taken a few years since John Bel granted local taxing authorities some discretion over the Industrial Tax Exemption but we're finally seeing the New Orleans City Council set to take some positive action.

The ordinance, approved by the council’s Economic Development Committee, is aimed at ensuring that city residents benefit from the millions of dollars of annual property tax breaks given to New Orleans businesses through the Louisiana Industrial Tax Exemption Program, or ITEP.

For businesses to receive the benefit, which can cut their property taxes on new buildings, factories or other investments by 80% for up to ten years, they would need to create jobs paying at least $18 an hour and must be located in areas that are struggling economically, among other conditions.

According to this, New Orleans is roughly $112 million poorer for tax revenue than it would have been over the course of the past decade were it not for the ITEP.  There are a lot of ways to BS around whatever limits the Council imposes, but this is definitely worth watching. The Advocate article notes a possible push back from LABI.

I'd also point out that the mayor hasn't weighed in yet. Earlier this year, the Orleans Parish School Board denied an ITEP request from Bollinger Algiers. Boysie Bollinger was a key contributor to a PAC that helped elect LaToya Cantrell. But since she's become mayor, LaToya hasn't been shy in talking about the city's "fair share" of various tax revenues.  Maybe she'll let this go.