North Louisiana has consistently been named as the most cost effective region to do business. A combination of low utility rates, transportation costs, labor costs and a business friendly tax structure make North Louisiana a sustainable solution to help your business succeed nationally and globally.
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North Louisiana: No. 1 Lowest Cost of Doing Business in the Nation and in North America

Forbes named North Louisiana the most cost competitive place to do business in the United States. Business Facilities magazine named North Louisiana No. 3 among Low Cost Manufacturing Centers. KPMG Competitive Alternatives recognized the region as the No.1 most cost competitive area in North America in 2008 and in 2010. These rankings all point to the fact that North Louisiana offers a competitive cost structure.

A combination of factors provide a low cost of doing business in Louisiana:
 

  • The state effectively provides a zero corporate income tax environment for items produced in Louisiana and shipped out of state (single sales tax apportionment).
  • As of July 2009, electricity, water, natural gas, machinery and equipment used by manufacturers are exempt from Louisiana sales tax .
  • Louisiana has a low percentage of unionized workers (4.3 percent reported by U.S. Bureau of Labor Statistics, 2010), and the ratio of worker skill-to-pay favors businesses.
  • Louisiana businesses have access to a competitive, comprehensive portfolio of state, local and federal incentives that can make a profound impact on a company’s bottom line.

Tax Structure: Cost of Doing Business


State Corporate Income Tax
  • 4% on the first $25,000 of net income
  • 5% on the next $25,000
  • 6% on the next $50,000
  • 7% on the next $100,000
  • 8% on the excess of $200,000
  • Louisiana uses single sales factor
State Corporate Franchise Tax**
  • $1.50 per $1,000 or major fraction thereof up to $300,000
  • $3.00 per $1,000 or major fraction thereof in excess of $300,000
Unemployment Insurance Tax
  • Standard rate range is .10% - 6.2%
  • Rate for new employers is the average rate for the particular industry
  • Maximum unemployment weekly benefit is $258 for 26 weeks

Sales Taxes

  • 4% sales tax with a local sale tax component, which combined ranges from 7%-10% 
  • Check out local sale tax rates
  • As of July 2009, electricity, water, natural gas, machinery and equipment used by manufacturers are exempt from Louisiana sales tax

State Property Taxes (Mills*)

  • 15% of assessed valuation
  • Up to 2% of taxable value
  • Industrial property and equipment can receive a ten year full abatement, depending on circumstances

Parishes Property Taxes    

  • Ranges from 58.63 to 186.59 Mills*
  • Check out local rates

* To calculate property tax, multiply the assessed value of the property by the appropriate millage rate. The assessed value is the fair market value of the property times 10% for real property or 15% for personal property. 

**Assessed on the value of all real and personal property in the state, or the amount of issued and outstanding capital stock, surplus, undivided profits and borrowed capital.
 

Labor Costs

As a right-to-work state, Louisiana offers affordable labor costs with high productivity and retention rates.  The following table shows salaries for various occupations in North Louisiana. 
 

Average Salaries by Occupation for Region

 

 

AVERAGE SALARY BY SELECTED OCCUPATION--FOURTEEN PARISH REGION 2010

 

Occupation

Entry Level Salary

Mean Average Salary

Median Salary

Average Maximum Salary

Professional        
Accountants and Auditors

$40,880

$53,760

$50,535

$64,435

Administrative Services Managers

$45,730

$61,010

$57,400

$76,505

Budget Analysts

$38,845

$51,460

$46,895

$63,770

Computer Programmers

$39,605

$53,110

$52,590

$64,680

Electrical Engineers

$69,890

$84,085

$80,095

$98,575

Financial Analysts

$49,255

$74,540

$65,010

$91,980

Gaming Supervisors

$17,500

$21,000

$21,555

$24,815

Pharmacists

$89,990

$101,070

$102,600

$116,930

Registered Nurses

$47,595

$59,680

$56,490

$66,760

Retail        
Retail Salespersons

$15,800

$23,160

$19,480

$25,700

Stock Clerks and Order Fillers

$16,030

$20,190

$18,565

$22,820

Clerical        
Computer Operators

$28,200

$29,610

$34,370

$41,240

Customer Service Representatives

$20,950

$26,380

$24,765

$29,925

Data Entry Keyers

$19,565

$25,250

$22,340

$28,775

Executive Secretaries & Administrative Assistants

$27,770

$34,305

$32,550

$39,160

File Clerks

$16,885

$21,095

$19,365

$24,220

Office Clerks, General

$15,515

$20,315

$18,360

$23,790

Payroll and Timekeeping Clerks

$26,470

$33,485

$32,370

$40,880

Receptionists and Information Clerks

$16,025

$20,420

$19,520

$23,535

Switchboard Operators

$16,250

$20,155

$19,460

$22,795

Unskilled        
Construction Laborers

$19,700

$25,895

$23,965

$30,350

Couriers and Messengers

$15,975

$18,560

$17,580

$20,450

Packers and Packagers, Hand

$14,855

$19,920

$15,990

$22,720

Service Station Attendants

$15,060

$17,455

$16,650

$19,390

Semi-Skilled        
Cashiers

$14,665

$16,580

$15,745

$18,010

Security Guards

$16,000

$22,035

$19,460

$25,405

Sheet Metal Workers

$29,775

$35,595

$36,795

$42,325

Skilled        
Architectural and Civil Drafters

$34,365

$42,675

$40,830

$50,855

Crane and Tower Operators

$25,210

$39,595

$35,180

$49,890

Machinery Maintenance Workers

$11,955

$16,085

$15,680

$19,430

Machinists

$30,115

$37,775

$38,135

$45,290

Welders, Cutters, Solderers, and Brazers

$29,145

$37,805

$34,325

$41,935

Technical        
Automotive Service Technicians and Mechanics

$21,875

$33,855

$31,705

$42,350

Medical and Clinical Laboratory Technicians

$23,455

$32,175

$30,025

$39,050

Pharmacy Technicians

$22,685

$26,685

$25,855

$30,455

Source: U.S. Bureau of Labor Statistics-Occupational Employment Statistics May 2010