BATON ROUGE, La. – The Louisiana Association of Business and Industry (LABI) released the following statement on behalf of President and CEO Will Green after voters failed to approve Constitutional Amendment 4.

“While we are disappointed that Constitutional Amendment 4 did not pass, we remain committed to a solution that ultimately eliminates the inventory tax.

“Louisiana continues to stand out as one of only seven states that fully taxes business inventory, an outdated policy that increases the cost of doing business and places our state at a disadvantage when companies decide where to invest, expand and create jobs.

“Constitutional Amendment 4 would have given local communities the opportunity to decide whether reducing or eliminating this tax made sense for their economies while preserving local control and providing a one-time state payment to help offset impacts.

“Instead, Louisiana businesses are stuck paying a tax on inventory despite their ability to generate a profit, limiting capital that could otherwise be used for hiring, wage growth and expansion.

“The conversation about competitiveness does not end today. Louisiana is competing every day for jobs and investment, and modernizing our tax structure remains essential to long-term economic growth.

“LABI thanks the voters, coalition partners, administration officials and business leaders across Louisiana who worked tirelessly to support this effort. We will continue working together with policymakers and local leaders to pursue solutions that strengthen our business climate and ensure Louisiana can compete for future opportunities. Our state has made meaningful progress in recent years, and we must continue building on that momentum.”

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