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Lawsuit challenges utility tax change used to balance budget

4 years 2 weeks 5 days ago Wednesday, July 01 2015 Jul 1, 2015 July 01, 2015 2:07 PM July 01, 2015 in News
Source: Associated Press
By: Melinda Deslatte

BATON ROUGE - The Louisiana Chemical Association has filed a lawsuit challenging one of the tax changes recently enacted by state lawmakers to balance the state's budget.

The lawsuit strikes at legislation that temporarily suspended a 1-cent sales tax exemption on business utilities, expected to raise $103 million in the budget year that began Wednesday. The tax hike is expected to fall heaviest on chemical plants.

The association is asking a Baton Rouge judge to declare the legislation unconstitutional because it didn't receive support from two-thirds of House lawmakers. House leaders ruled only a majority vote was needed to pass the bill.

Lawmakers scaled back dozens of tax breaks, to generate more money for the state treasury and stop deep cuts to public health care services and colleges. Several industries have threatened lawsuits.

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