Treasurer Kennedy Says Shorter Deposit Time Means More Money for the State

BATON ROUGE, LA The state will double the interest earned on some tobacco and inheritance taxes when the Baton Rouge Regional Office of the Louisiana Department of Revenue (LDR) begins depositing them daily instead of twice a month, according to State Treasurer John Kennedy.

Every little bit counts, and were always pleased when we can find a way to earn money for the state without costing the taxpayer, said Treasurer Kennedy. In the crunch the state is experiencing right now, it is even more important for government agencies to do everything in their power to utilize cost cutting and money-making strategies.

LDR’s Baton Rouge Regional Office will join other regional offices in making daily deposits at local bank branches instead of sending checks to department headquarters for depositing. There is at least a two-day reduction in deposit time using this new procedure, resulting in additional interest earned for the state.

The Baton Rouge Regional Office used to deposit tobacco taxes two to three times each month for a total of $300,000. The office also made two to three weekly inheritance tax deposits for a total of nearly $7,000 a month. By depositing funds daily, the state will earn nearly $4,000 a year in interest.

During a time of budget cuts and hiring freezes, our Department is thrilled that we are allowed to make this change for the benefit of the state, said Secretary of Revenue Cynthia Bridges. As the Treasurer says, every little bit helps and we are willing to work in a collaborative manner with all agencies to enhance the benefits to the state.

The Treasury and the Office of Motor Vehicles developed a similar system that saves the state $500,000 annually by improving check deposit and other cash management practices. Other state agencies seeking ways to save money and improve earnings should contact the Treasury at (225) 342-0055 and ask about the cash management audit program.

Contact:
Sarah Mulhearn
(225) 342-0012