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Shreveport Struggles With Declining Sales Tax Revenue

Local entrepreneurs in Shreveport contribute to a vibrant community.

News Summary

Shreveport faces a $7.7 million drop in sales tax revenue, marking a 2.3% decline compared to last year. Local businesses cite stringent regulations as a challenge. With city leaders bracing for continued difficulties, solutions are sought to create a friendlier environment for small businesses to thrive and reverse the tax revenue trend.

Shreveport Struggles With Declining Sales Tax Revenue Amid Small Business Challenges

Shreveport, LA, is facing some tough times as the city grapples with a drop in sales tax revenue. As we close the door on 2024, Caddo Parish has reported a decline of about $7.7 million, which translates to a decrease of roughly 2.3% in comparison to the previous year. This decline is particularly worrying as the area has been witnessing nine months of either negative or flat sales tax numbers.

The Shreveport City Council has taken notice of this downward trend and crafted the 2025 budget with caution. It’s now based on predictions of flat revenue, an indication that city leaders are bracing for continued challenges. While Shreveport enjoyed a few months of positive tax collection this year, they still ended up with a total of $702,352 less in sales taxes compared to 2023.

Business Scene: A Growing Concern for Small Entrepreneurs

In the vibrant heart of Shreveport, local entrepreneurs like Celia Carr, the owner of Bon Lagniappe, are feeling the pinch. Carr, a talented artist, engages in meaningful conversations with customers about her artwork, helping foster community spirit in her cozy gift shop. Although her business sells lovely items and artwork from other local artists, Carr has faced significant challenges navigating the complicated regulatory landscape of starting and running a business.

Bon Lagniappe, like many other small businesses in the area, has to deal with a complex web of permissions and approvals. A recent report highlights that the average cost of city permits for starting a small food business in Shreveport is $1,847, which might sound reasonable compared to other cities like San Antonio and New Orleans, but when combined with the regulatory hurdles, the challenge scales up rapidly.

Small business owners are required to interact with 11 local agencies, fill out a staggering 16 forms, and follow 29 steps just to get a retail business off the ground. Carr has shared tales of having to rely on Google and tips from fellow local business owners to decipher these complicated processes when she opened her shop. This complexity can deter not only new businesses but also those looking to expand.

Food and Restaurant Industry Faces Greater Hurdles

Opening a restaurant in Shreveport is even more daunting. Entrepreneurs are expected to navigate through 49 processes involving 14 agencies. The city’s regulatory environment is under heavy scrutiny, especially after a report criticized the lack of clarity and the convoluted information offered by the Metropolitan Planning Commission’s Unified Development Code. Many believe this sets up unnecessary barriers for those daring enough to venture into the food business.

To address the concerns raised by small business owners, the Cities Work report, developed over 14 months at the behest of the Shreveport Small Business Task Force, suggests an urgent need for a complete overhaul of the Unified Development Code. This report has garnered attention, and city officials, including Mayor Tom Arceneaux, are looking for feedback from various departments and are eager to implement changes within the next year.

Looking Ahead: Toward a Friendlier Business Environment

Amidst these daunting challenges, Carr has proposed practical solutions like creating a checklist to streamline the startup process for prospective business owners. By simplifying the way things work, it is hoped that Shreveport can cultivate a more welcoming environment for small businesses, helping to reverse the trend of declining sales tax revenue.

As Shreveport navigates these economic waters, the hope remains that by addressing these regulatory burdens, local businesses can thrive once again, contributing to a stronger community and a healthier economy.