Archive for December 17, 2009

Report: ‘Tax revenue drop causes $197M La. budget deficit’

Louisiana’s Revenue Estimating Conference forecast a sharp reduction in state revenues for the rest of this fiscal year and into the next.

From the Associated Press:

Louisiana’s revenue forecast dropped $197 million Thursday, driven by plummeting state sales taxes as shoppers shut their wallets and businesses shrink spending in the tight economy.

The state income projecting panel, the Revenue Estimating Conference, revised tax collection estimates sharply downward for the current fiscal year that ends June 30, continuing a recent trend of forecast revisions to reflect drops in tax collections.

Thursday’s changes create a deficit in the $29 billion budget that must be closed in the coming weeks.

Economist Greg Albrecht said sales tax revenue has slumped, and the uptick in severance and royalty money from oil prices isn’t enough to combat it. Albrecht, the chief economist for the Legislative Fiscal Office, said he projects a more than 14 percent decrease in sales tax collections compared to last year — and he said that could get worse.

“There’s just a massive retrenchment of spending for households and businesses,” said Albrecht, whose revenue projections were selected by the conference as the official forecast. “People just aren’t spending.”

Estimates of business tax collections also were cut, along with revenue from gambling taxes.

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New RIB explains Louisiana School Tuition & Expense Tax Deduction

The Louisiana Department of Revenue has published Revenue Information Bulletin (RIB) 09-19, which explains the set of tax deductions known collectively as the Louisiana School Tuition & Expense Tax Deduction.

There are three deductions that cover a range of expenses including private and parochial school tuition, the costs of school supplies and uniforms for public school students, and home-schooling supplies.

From RIB 09-019:

The deductions, equal to 50 percent of the actual amount paid during the tax year by the taxpayer, limited to $5,000 per dependent, must be reported on Schedule E of the Louisiana Resident Income Tax return, Form IT-540. The deductions are also allowed for Part-Year residents for school expenses paid in Louisiana during the time the taxpayer was a Louisiana resident and must be reported on the Nonresident and Part-Year Resident (NPR) Worksheet of the Nonresident and Part-Year Resident Income Tax return, Form IT-540B. The total amount of the deduction may not exceed the taxpayer’s total taxable income. When filing Form IT-540 or Form IT-540B, the Louisiana School Expense Deduction Worksheet must be attached to the return, and taxpayers must retain all expense receipts as proof of the amounts paid.

Read the full RIB, which includes helpful examples of eligible expenses, at revenue.louisiana.gov.

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New RIBs discuss product taxable values for 2010

The Louisiana Department of Revenue has issued two new Revenue Information Bulletins (RIBs) providing information about product taxable valuations that are to be used in the determination of tax liabilities during calendar 2010.

Revenue Information Bulletin No. 10-003 discusses the taxable values of five categories of timber and pulpwood products that are to be used during 2010 in the calculation of the severance taxes that are payable on those products.

Revenue Information Bulletin No. 10-004 discusses the sales and use taxable value of refinery gas for calendar 2010.


A Revenue Information Bulletin (RIB) is issued under the authority of LAC 61:III.101(D). A RIB is an informal statement of information issued for the public and employees that is general in nature. A RIB does not have the force and effect of law and is not binding on the public or on the Department of Revvenue.

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