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The Metro New Orleans area, which includes St. Charles, is among the lowest in the nation in respect to overall business operating costs. The region’s cost-of-living is less than other Southern metropolitan areas such as Atlanta, Nashville, Tampa and Miami. Labor costs, on average, are considerably lower than most metropolitan areas of comparable size. An office space lease cost in the New Orleans area is 16 percent below the national average and is among the lowest in the South. The average industrial building lease price (on a net basis) is only 68% of the average for Southern metropolitan areas. Labor and rental costs for operating a 200,000 sf warehouse/distribution center are 12 percent lower than the national average. Combining these low labor and real estate costs with below-national average costs for electricity and natural gas yields a significant advantage for profitable business investment.

COST OF BUSINESS
Sales Tax: State: 4 percent
Local: 5 percent

PROPERTY TAX
Property is assessed as follows: 
Land     10 percent of its "fair market value" or "use value"
Residential Improvements 10 percent of "fair market value"
Commercial Property (including personal property) 15 percent of "fair market value"
Commercial Land 10 percent of "fair market value"

LOCAL MILLAGE RATE (2013)
West Bank: 113.69
East Bank: 113.28

PERSONAL INCOME TAX

State:
Single, married filing separately, or head of household:
2 percent                First $12,500
4 percent                Next $37,500
6 percent                Over $50,000
Married, filing jointly or qualified surviving spouse:
2 percent                First $25,000
4 percent                Next $75,000
6 percent                Over $100,000

Local:
No personal income tax

CORPORATion INCOME TAX

State:
Corporations will pay tax on net income computed at the following rates:
4 percent                First $25,000
5 percent                Next $25,000
6 percent                Next $50,000
7 percent                Next $100,000
8 percent                Over $200,000

Local:
No corporation income tax 

corporation FRANCHISE TAX
State:
$1.50 for each $1,000 or major fraction thereof up to $300,000
$3.00 for each $1,000 or major fraction thereof in excess of $300,000
**The initial corporation franchise tax is $10.
Local: 
No corporation franchise tax 


TAX INCENTIVES

  • Industrial Tax Exemption – Provides manufacturers with a property tax exemption for a five-year period, renewable for an additional five years. Exemptible property includes buildings, machinery, equipment, furniture, and fixtures for a new expanded or renovated facility.  
  • Louisiana Quality Jobs – Eligible companies may receive a rebate of up to 6 percent of their payroll for 10 years and a refund of state and local sales and use taxes on purchases of building construction materials, machinery, and equipment. Companies with more than 50 employees must create $500,000 in new payroll and companies with less than 50 employees must create $250,000 in new payroll. Additionally, the employer shall pay at least 85 percent of the total health insurance premium for individuals or at least 50 percent of the total health premium for employee and dependents. 
  • Enterprise Zone – Provides a one-time $2,500 tax credit for each net new permanent job created ($5000 for aviation/aerospace industries). Credits may be applied against a company’s state income or corporate franchise tax liability. In addition, companies receive refunds on state and local sales and use taxes on purchases of building construction materials, machinery, and equipment. 
  • Tax Equalization – New manufacturing establishments, new corporate headquarters, or new warehousing and new distribution companies which are considering sites in other states because of tax rates lower than those of Louisiana, may be eligible for tax equalization.
  • Inventory Tax Credit – Manufacturers, distributors, and retailers are allowed a credit against the state corporate and personal income taxes, and corporate franchise taxes for ad valorem taxes paid.
  • Freeport Law – Cargo in transit is free from taxation as long as it is kept intact within the smallest original container. Most manufacturers can bring raw materials into the state without paying taxes on them until they are placed in the manufacturing process.
  • Film and Video Sales Tax Credits – Film production companies are eligible for state tax credits on investments in productions shot in Louisiana. Tax credits on payroll generated by production companies in the state are also available on payrolls of $250,000 or greater.
  • Workforce Development Grants – The Louisiana Department of Economic Development awards grants for workforce training costs up to $500,000 per project for new or existing companies creating at least 10 new jobs in the state.
  • Research and Development Tax Credit – Companies with less than 225 employees and that have 75 percent of their workforce as Louisiana residents can receive up to an 8 percent tax credit on costs associated with research and development activities in accordance with federal IRS deductions with excess state tax liabilities refundable directly to companies. 
  • Technology Commercialization Tax Credit and Jobs Program – Companies partnering with Louisiana universities on new products and new technologies can receive an annual 15 percent tax credit of total costs associated with the product development for up to eight years. Credits can be carried over for up to 20 years. 
  • Biotech Sales and Use Tax Exemption – Equipment, machinery, and construction materials purchased by biotechnology companies are exempt from both state and local sales taxes.
  • Moderization Tax Credit - Provides a 5% refundable state tax credit for manufacturers making capital investments to modernize or upgrade existing facilities in Louisiana. 

     Financial Incentives

  • Industrial Revenue Bonds – This program allows parishes, cities, port authorities, development boards, and the Louisiana Public Facilities Authority to issue up to $10 million in tax-exempt revenue bonds to finance construction and equipping new or expanding manufacturing facilities.
  • Revolving Loan Fund – Small businesses may receive a loan up to $250,000 at 4 percent interest.


For more information see the following websites:


For more information about available tax incentives contact us at:
St. Charles Parish Department of Economic Development and Tourism
P.O. Box 302
Hahnville, LA  70057

Phone: (985) 783-5140
Fax: (985) 783-5144
E-Mail: econdev@stcharlesgov.net

Last updated: 10/23/2013 4:27:47 PM