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DeSoto Parish committee approves 80% industrial tax exemption for International Paper
Summary
Jurors approved an 80% industrial tax exemption for International Paper covering roughly $18 million in 2023 asset additions; the company pledged three net new jobs and must maintain a 710-job baseline or risk losing the abatement.
A special meeting of the DeSoto Parish Police Jury voted to authorize the parish president to sign a resolution approving an industrial tax exemption for International Paper covering assets placed in service in 2023.
The exemption applies to about $18 million in new or upgraded assets, was described at the meeting as "an 80% exemption for 5 years with the option for a 5 year renewal," and carries a company commitment to add three net new jobs above an existing baseline while maintaining about 710 current positions. "We will likely be back before you for 2024 asset additions," Jesse Broderick of Summit Credits said while presenting the application, and Chris Hawkins of International Paper described Mansfield Mill as "one of the top output" facilities in the company's fleet.
Why it matters: jurors and residents pressed for clarity on who bears the reduced revenue from the abatement. Presenters estimated roughly $240,000 per year in tax savings across all taxing millages; jurors said the parish's pre-abatement share was about $50,000 annually and that the abatement would reduce the parish portion substantially. The company must report annually to the Louisiana Department of Economic Development (LED), and Broderick said LED will notify the parish if job commitments are not met: "you will get a letter from Louisiana Department of Economic Development telling you that the company did not meet the jobs commitment."
What the exemption requires and how it is enforced: presenters emphasized that the program covers new assets or qualifying upgrades (not routine maintenance) and that job figures used for the application must be net new hires rather than transfers from other company plants. Broderick clarified that some reductions in headcount caused by attrition must be replaced to maintain the 710-job baseline. If the company fails to meet its obligations, the parish may cancel the exemption and existing abatements on the rolls would be removed going forward; the transcript records no negotiated cash repayment amount for past years in the event of noncompliance.
Meeting action: the motion to authorize the president to sign a resolution approving an industrial tax exemption between the Northwest Louisiana Authority and International Paper Company was made by Mister Latham, seconded by Mister Johnson, and the chair announced the motion passed. The transcript records no roll-call or detailed vote tally.
Next steps: staff told jurors LED requires timely action and that similar applications may return to the parish for 2024 asset additions. Several jurors requested follow-up documentation and data (including updated job counts for 2024) through committee to clarify long-term fiscal effects for parish millages.
