How much is too much? We posed that question last week concerning tax exemptions for companies seeking to locate in our state. While those tax exemptions help to make our state more attractive to perspective businesses, they can certainly handcuff local and parish governments in how the local area can benefit from having the industry nearby.

Yesterday Governor John Bel Edwards issued an executive order that will give local governing bodies more of a say-so in how tax exemptions are handed out. This order will require businesses seeking the tax exemptions to show exactly how they plan to create or retain jobs in the immediate area. Once the exemption is in place the company will have to continue to provide that information as well.

When industry is moving into a parish, utilizing the roads, the schools, the water and putting a demand in that parish, it seemed more appropriate for that parish to have a voice.

Those are the comments reported by the Louisiana Radio Network that were made by Don Pierson. Mr. Pierson is the Secretary for Louisiana Economic Development.

Under the previous structure an industry moving into an area had no burden of proof to show the commitment to creating or retaining jobs for the local area. This executive order changes that immediately. If a company would receive a tax exemption they must now provide that important piece of information to local governments.

This closes that detail element and requires that the company say we’re going to create X number of net new jobs, we’re going to make this kind of investment, this is what we’re bringing to the table.

In short, this executive order will hold businesses accountable for doing what they said they would do. If you think this order weakens Louisiana’s position to attract perspective employers, you would be mistaken. Currently, 38 other states have similar rules in place regarding oversight in the hands of local governments.

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