NEW IBERIA, La. — The city of New Iberia is proposing a 1% tax increase for shoppers at Lagniappe Village, raising questions among residents.
The proposal would add $1 in taxes for every $100 spent. City officials said all money raised by the tax would go back into the shopping center for expansion and upkeep, with the goal of attracting new businesses.
In addition, Mayor Pro Tempore Ricky Gonsoulin said attracting more stores could bring shoppers from outside New Iberia and increase sales tax revenue.
“When you get people from out of town that sees Bath and Body Works from Morgan City, Jeanerette, Abbeville, the outland coming here, they’re investing in our community, so our sales tax [profit] is gonna go up, and we’re gonna collect more money to better the roads and infrastructure in the city that our residents live in,” Gonsoulin said.
Some residents questioned why taxpayers should help pay for improvements at the shopping center. In response to a Facebook post asking neighbors to share concerns, one commenter wrote, “It’s not for the taxpayer to take care of. If the owner can’t afford it, then maybe he should sell to someone who wants to keep their property up.”
In response, Gonsoulin said supporting the economic tax district would be optional because shoppers could choose whether to shop at Lagniappe Village.
“Those box stores will not come if we don’t make that investment,” Gonsoulin said. “This is a choice. You do not have to shop here. You can go shop elsewhere. You don’t have to pay the one if you choose there, then it’s here. But if you choose not to shop here and invest in your local community, so be it.”
When asked what he would say to residents planning to take their business elsewhere, Gonsoulin said shopping locally could still be beneficial.
“If you had to drive to the Bath and Body Works in Lafayette and pay $5 gas, it’s beneficial to spend your money here locally,” Gonsoulin said. “And invest in your community, create more tax dollars, create more jobs, and have an impact on the quality of life for your family here.”
At this point, a decision hasn't been made. The proposal is expected to come back for consideration at a future City Council meeting.
