As we step into 2025, I am optimistic about the opportunities ahead for Louisiana’s franchised dealers. The year brings a fresh start, a commitment to advocacy and a focus on critical issues that shape our industry. With a new administration in Washington and an upcoming fiscal session in Louisiana, LADA remains unwavering in its commitment to amplifying our dealers’ voices and safeguarding their businesses to ensure they continue to thrive. So, what’s ahead for LADA in 2025?

The March 29 Special Election: What’s at Stake

On March 29, 2025, Louisiana voters will decide on four constitutional amendments, with Amendment 2 being particularly significant for businesses, especially automobile dealers. Amendment 2 introduces critical tax reforms, including lowering personal and corporate income tax rates, increasing income tax deductions for citizens over 65, capping government growth, preserving the homestead exemption, securing a permanent teacher pay raise, and — most importantly — addressing the business inventory tax.

This critical amendment gives the state the authority to pay parishes via the Revenue Stabilization Trust for those parishes’ agreement to no longer collect taxes on business inventory. Amendment 2 also establishes a “Local Revenue Fund,” which would be a constitutionally protected bucket of money to be distributed to local governments to compensate them for revenue losses they would incur by eliminating their inventory tax.

However, the approval of Amendment 2 is merely the first step in this process of eliminating the tax on business inventory. Complementing this, House Bill 11 by Representative Daryl Deshotel outlines the statutory framework that parishes must follow. Under this bill, each parish’s key entities — the sheriff, school board and parish governing authority — must collectively decide by July 1, 2026, whether to opt into this exemption program. They do this by signing a written agreement to accept the state payment in lieu of collecting business inventory taxes. Once this decision is made, it is irrevocable.

For instance, if the Bossier Parish sheriff, school board and governing authority all agree to accept the exemption, opting for a one-time $15 million payment from the state instead of ongoing tax collection, this decision becomes permanent as of July 1, 2026. Even if subsequent officials wish to reinstate business inventory taxes, they are legally barred from doing so. Following the decision to accept payment, the state treasurer will disburse payments to the local tax collector, who will then distribute these funds proportionally among the parish’s taxing authorities. 

Through LADA’s advocacy in the November special session, we were able to secure an important safeguard: If Amendment 2 fails — or if it passes but your parish does not accept the state’s compensation — automobile dealerships operating as pass-through entities (LLCs, S-corps, partnerships) will continue to benefit from the inventory tax credit indefinitely, while C-corps will retain the credit until July 2026. 

Without approval of Amendment 2 and, ultimately, a decision by parishes to no longer tax business inventory, Louisiana businesses will remain burdened by this anti-business tax, hampering economic growth and competitiveness. We encourage you and your employees to get out and vote YES on Constitutional Amendment 2. 

The 2025 Fiscal Legislative Session and Beyond

This year’s legislative session, beginning April 14, will center on critical fiscal matters — including tax policy, budget allocations and economic development incentives — that could significantly impact dealership operations. Beyond fiscal policy, we are also pursuing opportunities to strengthen dealer-related laws to enhance operations across our industry, so stay tuned for updates.

We encourage all members to join us for Dealer Day at the Capitol on May 12-13, during the session. This event offers a valuable opportunity to engage directly with legislators, advocate for key industry issues and showcase the strength and importance of Louisiana’s auto retail sector. Your participation makes a meaningful difference.

Additionally, our Legislative Roadshow this fall will bring dealers and legislators together across the state to discuss priorities and shape advocacy efforts for the 2026 regular session. Your participation is key — these meetings are an opportunity to engage with lawmakers and share the realities of running a dealership in today’s economic climate.

A Big Win for Dealers and Consumers: The FTC’s Vehicle Shopping Rule Vacated

In a 2-1 decision, the U.S. Circuit Court of Appeals for the Fifth Circuit sided with NADA and the Texas Automobile Dealers Association (TADA), vacating the FTC’s Vehicle Shopping Rule (the “CARS” Rule). The court ruled that the FTC violated its own procedural rules by skipping a crucial step: issuing an advanced notice of proposed rulemaking. As a result, the rule is null and has no legal effect.

This ruling is a monumental victory for consumers, dealers and the rule of law. From the start, we’ve been vocal about the dangers of the FTC’s rushed and poorly researched Vehicle Shopping Rule. If implemented, the rule would have added massive amounts of time, complexity, paperwork and cost to the car-buying experience for virtually every customer. This decision clears the path for dealers to get back to delivering an exceptional customer experience, streamlining transactions and making the car-buying journey as smooth as possible. However, while the rule’s administrative burdens, pointless paperwork and time-consuming delays have been eliminated, the fact remains that the misconduct the FTC aimed to address — such as bait-and-switch tactics, junk fees and false advertising — was already illegal and remains so.

Together, we’ve defended what matters most: efficient, customer-focused dealerships that drive value for consumers.

Opportunities to Engage

In addition to our legislative initiatives and Dealer Day at the Capitol, LADA has a calendar of events designed to keep you informed, connected and engaged. Our annual convention, scheduled for June 11–15 at the Grand Hotel in Point Clear, Alabama, will bring together dealers and industry leaders for insightful discussions, valuable networking opportunities and a collective vision for the future of Louisiana’s auto retail industry.

Our charity golf tournament in the fall also offers a chance to further strengthen relationships while supporting the NADA Emergency Relief Fund, which supports auto and truck dealership employees who have been impacted by natural disasters. Here in Louisiana, we are no strangers to natural disasters, and the Emergency Relief Fund has provided significant relief to Louisiana’s dealership employees who have been affected by natural disasters over the years.

This year, we are also proud to launch the NextGen Dealer Program, dedicated to developing the next generation of dealership leaders. The program will kick off with a fall retreat, providing emerging leaders with a platform to connect, learn and prepare for the future of the automotive industry.

Many of you have seen the launch of LADA’s #LADealersDoGood initiative on our social media platforms, spotlighting the invaluable contributions Louisiana dealers make to their local communities. Now, more than ever, it’s essential to highlight why the dealer franchise model remains superior to the direct sales approach being considered by several legacy OEMs, including Scout/Volkswagen and Sony Honda/Afeela. We encourage you to share photos and stories of your dealership’s community involvement through our social media channels. Additionally, we urge you to invite your elected officials to attend these events to witness firsthand the positive impact your dealerships have on your communities and the state of Louisiana.

Your Involvement Matters

As we move forward, I encourage each of you to stay involved. Attend events, engage with your legislators, and stay informed on issues that matter to our industry. LADA exists to serve and support Louisiana’s dealers, but our strength comes from the participation of our members.

Thank you for your support. I look forward to a successful year ahead and to working alongside you to ensure a strong future for Louisiana’s auto industry.