Continuing with the quality work up there

There's so little to say about the Legislature at this point. We know who they are and what they're about.

The Republican majority in the House Labor committee voted Thursday – four times – against establishing a minimum wage and setting the rate above $7.25 per hour.

They keep complaining about a "labor shortage."  I don't actually think that is real and I plan to talk about that in a different post soon. But if it were real, if the bellyaching bosses who own and operate this state really were in desperate need of help but unable to find anyone willing to work, I wonder what could be the reason.

In any case, no one is asking the bosses to give up their subsidies. 

Facing stiff opposition from Louisiana’s business and oil and gas industry lobbies, a state senator on Wednesday shelved a bid to enshrine in the state constitution local government’s newly won authority over the state’s most generous corporate tax incentive.  

This week we also learned that Folgers is suing to keep hold of tax money it has owed the city of New Orleans after having had its ITEP denied.

In its suit, Folgers, which is owned by The J.M. Smucker Co., does not contest that it will owe taxes going forward. However, the company argues there is a conflict in the procedures outlined in the state law allowing assessors to adjust prior years’ assessments and requirements laid out by the state Constitution and says because of that, the bills for years’ past should be thrown out.

Of course, if this Legislature refuses to make local discretion permanent and future Governor Jeff Landry changes the rules, then companies like Folgers will again be off the hook. 

So, once again, brilliant work up there.  Can't wait to find out what else they've been up to... oh. Oh no. 

These two items are not related

The way this story presents the information, a casual reader might conclude that Caesar's "pledged" to uphold its obligations under its licensing agreement because Erroll Williams gave them a tax break. Rest assured this is not the case. 

Part of Caesars' pledge on the license extension deal was that it would continue to employ at least 2,400 people and add 500 staff after the hotel was built. It also committed to pay for various state and city infrastructure projects, including $19.5 million over three years to New Orleans.

Earlier this year, Caesars got a big break on one of its biggest city bills. The casino operator was one of the prime beneficiaries of a decision by the Orleans Parish Assessor to cut property valuations for 2021 — and thus cut property taxes — for businesses in the area because of the unprecedented effects of the coronavirus pandemic. Hotels saw the highest valuation cuts, at about 58%, which translates into an annual savings for Caesars of an estimated $1.5 million to $2 million.

The license agreement has nothing to do with the property tax assessment. The license agreement was negotiated with the legislature in the spring of 2019. The tax break is part of a larger corporate giveaway cooked up by the Assessor's office this year. Just after homeowners saw their assessments go up dramatically and as housing costs remain high while workers are being laid off left and right during a pandemic, Erroll Williams and Michael Sherman arranged to hand over $42 million to commercial landlords with deep corporate pockets.  I know the placement of the two paragraphs above in today's story might make it look like this has something to do with Harrah's/Caesar's lease. But it does not.  

Meanwhile, Did You Know.. next Friday your beloved City Council and School Board are scheduled to approve a series of back-tax exemptions that would cede another $25 million to Folgers. Last month when the state Commerce board gave its preliminary approval to the exemptions, a certain parish assessor took their side. 

At Friday’s meeting, Folger consultant Jimmy Leonard said the company requested the delay simply because it wanted the board to consider the application along with the company’s other newer applications at the same time. Leonard also presented a letter to the board from Orleans Parish Tax Assessor Erroll Williams describing Folger as a good taxpayer that has been transparent with him throughout the process. 

Together Louisiana members were armed with a letter of their own — from New Orleans Councilwoman Helena Moreno — that painted a different picture.

“A recent investigation by journalist Lee Zurik on WVUE-TV brought this matter to the public’s attention in August, due to the alarming length of time of not paying millions of dollars of taxes and now seeking a loophole to get a pass,” Moreno wrote in the Oct. 26 letter. “The total owed could be as high as $12 million…We cannot afford for a large corporation to not pay its fair share when our residents and small business owners are being asked to sacrifice so much.”

The board, nevertheless, approved Folger’s application because it was up to the tax assessor to place the property on the tax rolls, which he never did, Board Chairman Jerald Jones said.

Together New Orleans has scheduled a rally and press event at City Hall to discuss the Folger's situation. Although, at the moment that page says the event is Friday in the headline and Monday in the text. So maybe check back when they have it sorted out.