Red River Faces Tax Revenue Decline

The Louisiana Legislative Auditor issued a report forecasting a decline in tax revenue.  The report said all governing bodies in the state are facing a decline in revenue income due to the economic effect of the COVID-19 Pandemic.  The Auditor estimates Red River Parish will face a 4.5% drop in all tax revenues going to all governing bodies.

Here is what the audit concluded:

We estimate that parish governing authorities, municipalities, school boards, and sheriffs will collectively experience revenue losses in sales, ad valorem, and severance taxes and mineral royalties ranging from $404.7 million to $1.1 billion (2.3% to 6.9%) during fiscal years 2020 and 2021, with an average total loss of $787.5 million (4.6%). These losses would be between 1.0% to 2.8% of total local government revenues from all sources, or 1.4% to 4.0% of general revenues (which excludes grants and charges for services).

These estimates are based on assumptions that the number of people employed in Louisiana will decrease by 197,000 to 317,000 (as distinguished from unemployment claims) and will take two to five years to recover, along with other specific assumptions about different sectors of the state’s economy.

Red River is estimated to loose 4.5% of the tax revenues going to all agencies.  Neighboring parishes and estimated losses are:

Natchitoches – 7.2%

Winn – 4.5%

Bienville – 2.3%

DeSoto – 6.8%

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