Shreveport, LA — As Louisiana voters prepare for the March 29 Municipal Primary Election, the Greater Shreveport Chamber of Commerce has issued its official position in support of Constitutional Amendment 2, a sweeping fiscal reform package that would reshape how the state handles taxation, debt repayment, and budget flexibility.
The proposed amendment, which spans nearly 115 pages, makes substantial changes to Article VII of the Louisiana Constitution, which governs fiscal matters. According to the Chamber, these changes are complex but ultimately positive for individuals, businesses, and local governments—particularly in terms of reducing tax burdens and increasing financial flexibility.
“Reducing the size and complexity of the constitution and moving fiscal provisions to statute is a positive development,” the Chamber noted in its statement. “The reduction in the income tax rate and the fiscal support for eliminating the inventory tax are both positive changes that help improve Louisiana’s economic competitiveness.”
Key Provisions of Amendment 2:
- Reduces individual and business income tax rates
- Moves fiscal restrictions from the state constitution into statute, giving the legislature more flexibility
- Removes the 20% cap on severance tax distributions to municipalities—potentially aiding local governments that choose to eliminate the inventory tax
- Reallocates funds from dedicated accounts to pay down debt early, potentially saving K-12 and higher education systems millions in unfunded accrued liabilities
- Removes certain existing dedications for higher education and early childhood education, although state leadership has pledged to maintain ECE funding using debt savings
These reforms are intended to complement changes enacted during the state’s most recent special tax session, particularly in relation to inventory tax reform—a long-standing concern for Louisiana businesses.
While the Chamber acknowledged that uncertainties remain—particularly regarding speculative future inflows to municipalities—it emphasized the need for vigilance.
“It will be incumbent on the legislature to ensure that any shortfalls to the state are not rectified at the expense of local municipalities,” the Chamber stated.
A Balanced but Cautious Endorsement
In evaluating the amendment’s overall impact, the Chamber concluded that the proposal is at least fiscally neutral, and possibly fiscally positive, with benefits extending to individuals, local governments, and educational institutions.
Despite concerns about how new legislative powers might be used, the Chamber expressed confidence in the potential of Amendment 2 to modernize Louisiana’s fiscal structure and enhance its appeal to businesses and investors.
“While uncertainties remain, on balance, the Chamber is supportive of the constitutional streamlining and positive economic and business drivers present in the amendment and recommends voters support Amendment 2.”
For more information on Amendment 2 and other items on the March 29 ballot, voters can visit www.GeauxVote.com.