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American Press
14-05-2025
- Business
- American Press
Jim Beam column:Tax breaks hard to eliminate
Louisiana legislators are addicted to handing out tax exemptions and they are trying to do it again.(metrocreativegraphics). Louisiana legislators love to give tax exemptions. The state gave away $7.5 billion of those exemptions in 2023, according to the latest figures available. The Advocate sized the situation up well when it said the state gave away $1 in exemptions for every $2 it collected in fiscal year 2023. While giving away $7.5 billion, the state collected $12.5 billion in taxes. The Legislature had some success in curbing those exemptions when it held a tax reform special last November, but that has been rare in recent years. The newspaper said it repealed the Quality Jobs Program and Enterprise Zone exemptions. Legislators reduced the cap on tax credits it gives for movie and TV productions from $180 million to $125 million per year and for investments in historic properties from $125 million to $85 million. In 2023, the state raised $4.5 billion in sales taxes, but it gave away $3.3 billion in exemptions. It sounds almost unbelievable, but the state had 218 state sales tax exemptions totaling $1.7 billion. The state had 95 individual income tax exemptions totaling $1.6 billion. It had 60 corporate income tax exemptions totaling $1.8 billion. Susan Bourgeois, secretary of Louisiana Economic Development, in an interview told The Advocate that investors care most about lower tax rates. A tax incentive, she added, 'closes deals, it doesn't get us deals.' While that is true, legislators still love to sponsor tax exemptions. During the current fiscal session, legislators have proposed over 70 new tax breaks. The newspaper said they insist new tax breaks or expansion of existing ones creates jobs and investment. State Rep. Les Farnum, R-Sulphur, doesn't buy that argument. 'Tax credits are the reason we're in the shape we're in financially,' Farnum said. He is a member of the House Ways and Means Committee that handles exemptions and Farnum in an interview said, 'We give away so much money. We have a host of brand new requests every year.' Thanks to the late-Rep. Vic Stelly, an independent from Moss Bluff, there are some tax breaks that benefit all citizens. A sales tax exemption for food purchased for home consumption totaled $584.5 million in 2023. An exemption for residential utilities totaled $251.3 million. And an exemption for prescription medications totaled $405.8 million. The $1.24 billion exempted for those three when they were approved in 2002 were paid for with higher state income taxes. Unfortunately, the Legislature reduced the income taxes in 2008 and the state experienced almost eight years of severe budget crunches. The late-Gov. Mike Foster called the Stelly Plan one of the most beneficial tax reform plans passed in many years. The three special exemptions are in the state constitution and the state's voters are unlikely to ever remove them from that special protection. The income tax that was raised in 2002 wasn't protected. The Advocate said the Tax Exemption Budget from the Louisiana Department of Revenue shows that legislators over the years have legalized a total of 564 tax breaks in the form of exemptions, deductions and exclusions from sales, income, corporate franchise and user fee taxes. The newspaper said Gov. Jeff Landry and legislators at last year's third special session had some luck ending or reducing tax exemptions. They want to continue to wipe out exemptions, but it's never easy. Former state Sen. JP Morrell, who is now president of the New Orleans City Council, in an interview during last year's tax reform session, said, 'We were unable (in 2017) to get traction. Every (tax break) constituency showed up, and they got to one or two legislators' to protect their favored tax breaks. Former state Rep. Julie Stokes, R-Kenner, tried to end some sales tax exemptions as chair of a special committee to do it, but legislators refused to support the effort. Judging from tax exemptions that were ended or reduced during last November's special session, legislators may finally be ready to end some of the costly tax breaks. However, we won't get a final answer until we see what happens to the 70 tax break bills that were filed for the current legislative session. Louisiana has the highest combined state and local sales tax in the country, so it's definitely time to end a large chunk of those existing 218 sales tax exemptions and lower sales taxes. Jim Beam, the retired editor of the American Press, has covered people and politics for more than six decades. Contact him at 337-515-8871 or Reply Forward Add reaction
Yahoo
07-05-2025
- Business
- Yahoo
Armed Forces Brewing Co. didn't tap state grants offered for Norfolk relocation
Yahoo is using AI to generate takeaways from this article. This means the info may not always match what's in the article. Reporting mistakes helps us improve the experience. Yahoo is using AI to generate takeaways from this article. This means the info may not always match what's in the article. Reporting mistakes helps us improve the experience. Yahoo is using AI to generate takeaways from this article. This means the info may not always match what's in the article. Reporting mistakes helps us improve the experience. Generate Key Takeaways When Gov. Glenn Youngkin announced that a military-themed brewery was coming to Norfolk's Railroad District in July 2023, the state offered the company more than $300,000 in grants and tax breaks. But Armed Forces Brewing Co., which closed its Norfolk taproom and production facility in March, never completed the grant process or received those funds, according to state agencies. And it's unclear whether the brewery, which is facing debt and lawsuit threats, used the tax breaks either. The brewery arrived in Norfolk in 2023, attracting controversy with its aggressive, testosterone-fueled marketing and brand ambassador Robert O'Neill, the Navy SEAL who claimed to have killed Osama bin Laden. When the brewery left earlier this year, CEO Alan Beal blamed what he called the 'local woke mob' for undermining efforts to successfully do business in Hampton Roads. Virginia has incentive tools it traditionally uses to attract companies to relocate to the state. It offered several of those to the previously Maryland-based Armed Forces: up to $24,500 in Virginia Jobs Investment Program grants through the Virginia Economic Development Partnership, up to $213,600 in Enterprise Zone grants through the Virginia Department of Housing and Community Development and up to $70,260 in manufacturing sales and use tax exemptions through the Virginia Department of Taxation. However, the grant money was never used. Armed Forces was eligible to receive $700 for each net new, full-time job created within 36 months, for a maximum amount of $24,500, said Virginia Economic Development Partnership spokesperson Pryor Green in an email. 'The company accepted the incentive offer but never completed necessary steps to finalize those incentives,' Green said. Armed Forces also failed to apply for any of the Enterprise Zone grants, which are awarded to companies that create jobs or improve property in certain targeted areas, according to Virginia Department of Housing and Community Development spokesperson Alexis Mehretab in an email. Related Articles It's unclear whether Armed Forces used the tax breaks offered by the state, because a representative with the Virginia Department of Taxation said specific tax situations were exempt from public records laws. In an April 4 SEC filing, Beal revealed the company was more than $1.7 million in debt and could file for bankruptcy protections or cease operations if money was not raised to cover the debt. In a May 5 email to investors obtained by The Virginian-Pilot, Beal said the company had raised more than $270,000 in the past few weeks, which was not enough to pay off all the debt. However, Beal said the company has a plan to use that money to move forward with restructuring the business. At least one Armed Forces investor is also exploring a class-action lawsuit against the company, according to reporting by The Virginia Mercury. The outlet also reported that the Norfolk City Treasurer padlocked the former Armed Forces property after failure to pay taxes. Third party building owner Ironbound AFBC Properties, LLC owes the city $13,444 in taxes, according to city records. Beal did not respond to a request for comment. In the May email, Beal said the company plans to pay a missing payroll to employees, move the headquarters to another city and begin brewing beer again with a contract brewery. Beal also said the company would pursue criminal and civil litigation, but did not offer further details on who the suits would be filed against. Beal said in the email that the company might not make it, but would try to survive. 'We may not win our lawsuits, the criminal complaints we filed may never get prosecuted,' Beal said in the email. 'But we are going to continue to fight, because that's what we do, and that's what the U.S. military that we tribute would do.' Trevor Metcalfe, 757-222-5345,
Business Journals
22-04-2025
- Business
- Business Journals
Tradepoint Atlantic plans $100M logistics complex in Howard County
Tradepoint Atlantic's expansion into Howard County signals a new chapter for the developer, with local officials hailing the project as transformative for the area. Story Highlights Tradepoint Atlantic is planning a $100 million logistics complex in Howard County. The project will create 500 new jobs in the Savage area. Groundbreaking for the first warehouse begins in early 2026. Tradepoint Atlantic will expand its footprint in Maryland with a $100 million, 500,000-square-foot logistics complex in Howard County. Plans for Tradepoint at Savage Crossing, located on Route 1 near Laurel, were released Tuesday by Howard County officials and the developer. The project represents Tradepoint's first Maryland development outside of Baltimore County, where the firm has converted 3,300 acres at the former Bethlehem Steel plant in Dundalk into an international trade center with over $2 billion in private investment so far. About 500 new jobs are expected in Savage when the 35-acre project is built out. The Baltimore County site hit its 10-year anniversary last year, and Tradepoint officials said it's time for more growth in the region. The move into Howard County is the result of ongoing negotiations with state and county leaders to develop the state-of-the-art industrial and possible manufacturing complex at 9299 Washington Blvd. DOWNLOAD the free BBJ app for breaking news alerts on your phone. Christiana Rigby, a member of the County Council whose district includes Savage, called the move transformative for the southern Howard County community between Jessup and Laurel that today is a mix of vacant and dilapidated structures, small hotels and newly developed multi-family complexes. "Bringing $100 million to revitalize our portion of the Route 1 corridor and creating hundreds of new jobs — I'm thrilled," Rigby said. The future Tradepoint expansion property today holds WillScot, a mini-storage and portable office container firm, which is expected to sell the site to the large developer by year's end for an undisclosed price. Groundbreaking on the first of three Class A industrial warehouses will take place in early 2026, and the complex is expected to be completed in 2029. "Our hope is that successful development like Tradepoint at Savage Crossing will add to the economic development ecosystem here and further encourage other businesses to look to this area for their next expansion," Howard County Executive Calvin Ball said. Howard County recently paved the way for the expansion by passing new land use regulations to allow flex warehouse development on Route 1. A portion of the large suburban county was also recently awarded a state Enterprise Zone designation, which includes part of Route 1 near Savage, but not the Tradpoint expansion site, Ball added. That designation will allow tax breaks and other incentives to businesses located within those boundaries, and Ball pledged the county's support over the coming years to help Tradepoint put down roots. "We realize that Tradepoint Atlantic is making a significant investment at a challenging time. Please know that we will remain your partner through this journey. Together we will meet the magic of this moment," Ball said. Aaron Tomarchio, senior vice president at Tradepoint, said the move to expand into a new county was a way to "build upon the development model we had created." He noted that Savage's location between Baltimore and Washington, D.C. and proximity to Interstate 95 were major drivers for the project. "Our team set their eyes on other opportunities where we could bring thoughtful, redevelopment strategies and transformational change to a new project and community," Tomarchio said. Marc Salotti, Tradepoint's managing director, said the firm could grow further in other jurisdictions with locations "to be determined." expand A bird's eye view of the 3,300-acre Tradepoint Atlantic development in Sparrow's Point. Tradepoint Atlantic State Sen. Guy Guzzone, who represents a portion of the Route 1 corridor, said the area has been cited for years as ripe for redevelopment and upgrades. The thoroughfare runs through Maryland as an alternate route to Interstate 95, and was once the only roadway stretching from Maine to Florida, before the U.S. interstate system was built. "This is a big one to have (Tradepoint) come here to redevelop this land," Guzzone said. "The fundamental of all this is jobs. At the basis, we're trying to build a community where people have jobs close to where they live and have economic development that lifts up the community. We're so lucky." The private Tradepoint development is fueled by investors at Redwood Holdings, chaired by the low-profile yet powerhouse Baltimore investor Jim Davis. Redwood joined with Hilco Global in 2014 to acquire Sparrows Point out of bankruptcy before Hilco sold its share in the project. Today, Tradepoint at Sparrows Point has more than 13,000 workers and other officials on site each day, and just over 50 warehouse, logistics and manufacturing facilities. A massive private port is under development on 330 acres, and the Sparrows Point Container Terminal is expected to be completed by early 2028, with 1,000 new jobs expected to follow.
Yahoo
03-04-2025
- Business
- Yahoo
Groton grand list grows slightly
Groton — The town's 2024 net grand list of taxable properties grew slightly, by 0.2%, or $7.7 million, to $4.7 billion. Motor vehicle assessments, the category with the largest decrease, dropped by 11%, to $263.1 million. Assessor Mary Gardner said this is because the state passed legislation to value cars with a new formula using Manufacturer's Suggested Retail Price multiplied by a depreciation factor. Real estate grew by 0.4%, to $4.1 billion. Gardner said many Enterprise Zone tax exemptions went into place with Electric Boat's expansion, so the full tax revenue benefits expansion won't be realized for several more years. For example, Electric Boat's South Yard Assembly Building is in the second year of the Enterprise Zone program. Gardner said Electric Boat's new larger buildings are part of the state's five-year Enterprise Zone program, which provides an 80% tax exemption. The town absorbs half of the exemption, and the state reimburses the other half when it has funding, she said. Some of Electric Boat's smaller buildings or additions are under the seven-year local Enterprise Zone program, which has a 100% exemption for the first two years and then phased-in exemptions for the next five. Gardner said personal property had the largest increase, at 8%, growing to $319.8 million, due to the taxable assets Electric Boat acquired through its expansion. The 2024 grand list is prior to the Board of Assessment Appeals process. The town's top 10 taxpayers include Electric Boat, Pfizer, apartment complexes, a hotel and a shopping center. Electric Boat remained the top taxpayer in town for the second year in recent decades. Triton Square Apartments, the apartment complex at the former William Seely School site off Route 12, is new to the town's top taxpayer list. The top 10 taxpayers, with their net assessments, are as follows: 1. Electric Boat Corp., $431.2 million 2. Pfizer Inc., $362.4 million 3. Merion Group LP (Ledges Apartments), $43.8 million 4. Groton Development Association LTD (Country Glen Apartments), $30.7 million 5. Triton Square Owner LLC (Triton Square Apartments), $27.1 million 6. Elk La Triumph (La Triumph Apartments), $21.8 million 7. Exit 88 Hotel LLC (Marriott Hotel), $20.2 million 8. Winterfell Windham Falls CT Owner LLC (Windham Falls Elderly Apartments), $17.7 million 9. ECA Buligo Groton Partners LP (Groton Square Shopping Center), $16.5 million 10. Branford Manor Preservation LP (Branford Manor Apartments), $16 million
