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Committee recommends 10-year industrial tax exemption for Gulf Island LLC
Summary
The Finance, Insurance and Section 16 Lands Committee moved to approve an industrial tax exemption request from Gulf Island LLC tied to a $4.15 million expansion; committee members debated projected revenue impacts and a member publicly opposed exemptions.
The Finance, Insurance and Section 16 Lands Committee recommended approval of an industrial tax exemption request from Gulf Island LLC tied to a $4,148,390 expansion, committee members said.
Cohen Gidre, executive director of Terrebonne Economic Development, presented the application and addressed committee questions. “Normally, I think everybody looks at these and says, well, it's a it's a loss because we're losing money coming that would be coming in,” Gidre said, describing how the local tax impact is calculated.
As presented to the committee, an 80% exemption would apply to the $4,148,390 expansion over 10 years. The presentation said Gulf Island would still pay a 20% ad valorem tax on that expansion; the presenter told the committee that ad valorem and sales tax revenues tied to the project were projected to produce a net fiscal increase over the 10-year period. The presentation included the figures that sales taxes tied to the project would be roughly $228,161 and that the net fiscal impact, after accounting for the partial ad valorem payments and sales taxes, was presented as a $35,385 gain over the 10-year period (figures given by the presenter and shown in committee materials).
A committee member, Mr. Ford, said he opposed the ITEP exemption on principle and said he represented constituents who do not support such exemptions: “I oppose this ITEP exemption as usual, because I am representing the people that put me here,” he said. Ford also questioned the timing of the item appearing before a smaller committee membership, saying the coincidence raised questions.
The committee chair called for objections; none were voiced and the chair declared the motion passed in committee. Committee members indicated the recommendation will proceed to the full board for final action.
Details presented to the committee (amounts and projections) were provided by Terrebonne Economic Development and the project applicant at the meeting. The committee record shows the recommendation to approve the resolution granting industrial tax exemption project number 20230387-ITE was adopted in committee.
The full board will receive the committee recommendation for final consideration at a later meeting.
