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Lafayette

City of Broussard Nixes Tax Collection Bonuses for Businesses

The city of Broussard has stopped giving local businesses a cut of sales taxes as a reward for collecting and remitting them in a timely fashion.

Chief Financial Officer Karen Fontenot says the city is following the lead of other smaller municipalities in the parish like Carencro, Scott and Youngsville in ending the practice allowing local businesses to keep 1 percent of sales taxes collected. Ending the practice means roughly $100,000 in extra revenue for a city with a $23.5 million annual operating budget — not exactly a windfall.

“But for the departments that those taxes pay for, it could be a piece of equipment, it could be salaries; for the actual departmental level it could be substantial,” Fontenot tells News15.

The Broussard City Council will vote on an ordinance for final adoption at its March 10 meeting make the change official, but Fontenot adds that the council approved a resolution earlier this year and the city actually stopped giving the tax-collection bonus to local businesses effective Feb. 1.

So far, Fontenot says, there have been no complaints from area business owners.