EPSB holds public hearing on Cabot tax exemption

Members of the Evangeline Parish School Board were able to voice their concerns over a recently proposed industrial tax program at a public hearing held Tuesday, April 13, inside the Ville Platte High auditorium.
At issue is a roughly $147 million project at Cabot. Plant Facility Manager Derek Turner explained the project will generate $3.6 million in extra taxes to the school board alone.
The taxes will come from the purchase of two pieces of equipment designed to lower the emissions and improve air quality. According to Turner, the cogen costs about $110 million and is eligible for the industrial tax exemption program. The remainder of the $147 million will be used to purchase a scrubber, which is not eligible for the exemption.
At the end of the exemption period, 100 percent of the value of the cogen will be added to the property tax rolls of the parish, even though it will be at a depreciated value of 28 percent. The property taxes will be collected at that rate until the piece of equipment is no longer in service.
Based on figures presented at the public hearing, the school board will receive an additional $1.8 in property taxes if the 80 percent exemption is granted. Additionally, the school board would receive $1.7 million in added sales taxes along with $1.6 million in added taxes as other tax exemptions fall off the books.
Turner said, “It’s equivalent to a 100 percent tax on a $59 million project.”
Rebecca Shirley from One Acadiana, earlier in the hearing, explained the background on the industrial tax exemption program which began in the state in the 1940s. She also explained changes to the program following an executive order from Governor John Bel Edwards in 2016.
She and Turner explained one of the biggest changes is the renewal process after the first five year exemption period. Turner said the school board, for example, can include in its resolution that it wants to revisit the exemption before it renews for a second and final five year exemption. “The board (at Louisiana Economic Development) will honor that and send it back to you.”
Besides the school board members, input was given from Cabot employees as well as other members of the public. For Pat Leday and others, the exemption seemed to be a no brainer.
“Can we in Evangeline Parish afford to lose Cabot,” Leday asked. “In my book, 20 percent versus 0 is a no brainer. The fact that there are sites where Cabot once existed and those fields are vacant, I can’t tolerate that.”