Lawmakers could take up numerous bills vetoed by Gov. John Bel Edwards when they return to Baton Rouge on Tuesday for a five-day veto override session.
In total, Edwards vetoed 28 bills from the 2023 legislative session that ended June 8, and the Louisiana constitution requires an override session of not more than five days unless a majority of lawmakers opt out. Lawmakers on Thursday confirmed a session will start Tuesday, which gives them through Saturday to attempt to override the Democratic governor.
Some of the vetoed bills passed both chambers of the Republican-controlled Legislature by wide margins, some mirrored bills Edwards did approve, and others came as retribution for lawmakers who voted against the governor’s spending priorities.
Perhaps the most consequential is Senate Bill 1, by Franklin Republican Sen. Bret Allain, to phase out Louisiana’s corporate franchise tax, which Allain described as "the worst tax Louisiana has on the books" because it discourages investment.
SB 1 aims to reduce the franchise tax by 25% per year if corporate income tax revenues remain above $600 million. Allain tied SB 1 to SB 6, also vetoed by Edwards, to reduce the project facility expense rebate in the state’s Quality Jobs Program to help offset the revenue lost from the franchise tax phase-out.
Edwards agreed the franchise tax is "antiquated and should be structurally reformed or repealed," but argued in his veto message that with the unknown impact of changes to the tax structure two years ago and a looming sunset of a 45-cent sales tax in 2025 the phase-out now would be "unwise."
Allain has expressed disappointment about the veto, which would maintain the second-highest franchise tax in the nation at 0.275% with no limits. SB 1 cleared both chambers with only one lawmaker voting against, while the vote for SB 6 was unanimous.
