Provides relative to tax exemption budget and return on investment reports published by the Department of Revenue. (gov sig) (EG NO IMPACT SG EX See Note)

Senate Bill 318 amends Louisiana Revised Statutes Title 47 governing the tax exemption budget prepared by the Department of Revenue. The bill makes three primary changes to the publication and reporting requirements. First, it relocates publication of the tax exemption budget from the LaTrac website to the Department of Revenue's website. Second, it eliminates the requirement that the budget include the purpose of each tax exemption and eliminates the requirement for estimated administrative costs covering the three preceding fiscal years, the current fiscal year, and the next fiscal year. Third, it modifies the categorization framework by clarifying that each tax exemption must be classified into one of specified categories but removes the requirement that exemptions be organized in a schedule at the beginning of the budget document and eliminates the prohibition on listing items in multiple categories without notation.

The bill substantially reduces reporting burdens on the Department of Revenue by repealing several assessment and analysis requirements. Most significantly, it eliminates the mandate that the tax exemption budget include a detailed assessment evaluating whether each exemption successfully meets its original purpose, whether it represents the most fiscally effective means of achieving that purpose, whether it creates unintended effects or conflicts with other state law, and whether it simplifies or complicates the state tax statutes. Additionally, the bill repeals the biennial reporting requirement under which state agencies administering tax incentives must report to the legislature on the number of employees hired under job creation components by April 1 of each even-numbered year. These changes reduce transparency and analytical requirements that previously allowed lawmakers and the public to evaluate tax exemption effectiveness and fiscal impact.

The amendments operate within the established framework of Louisiana Revenue and Taxation Code provisions governing tax expenditure reporting. The tax exemption budget has long been a cornerstone of Louisiana's tax expenditure evaluation process, with roots in legislative efforts to track and analyze the fiscal impact of tax preferences. By simplifying content requirements and eliminating assessment mandates, the bill reduces the analytical infrastructure surrounding tax exemptions while maintaining the basic requirement that the Department of Revenue prepare and submit the budget to the governor and legislature by March 1 annually. The changes preserve the classification system for exemptions but make it less prescriptive, potentially affecting how legislators review and compare exemptions across policy categories.