LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7421 NOTE PREPARED: Jan 13, 2025
BILL NUMBER: HB 1646 BILL AMENDED:
SUBJECT: Local option sales taxes.
FIRST AUTHOR: Rep. Isa BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: Pending
DEDICATED
FEDERAL
Summary of Legislation: Allows counties, cities, and towns to adopt a local sales tax applicable to tangible
personal property delivered (not by common carrier) within the geographic boundaries of the political
subdivision. Provides that the local option sales tax revenue may be used for infrastructure improvements.
Provides that the department of state revenue shall maintain several data bases of local sales tax data
associated with the local option sales tax, in accordance with the requirements of the Streamlined Sales and
Use Tax Agreement. Adds the local option sales tax to the list of local taxes that may be captured by the state
in the case of a local unit failing to make timely debt payments and sources of revenue that may be used by
the local unit to make debt service payments.
Effective Date: July 1, 2025.
Explanation of State Expenditures: As of the above date, the fiscal analysis of this bill has not been
completed. Please contact the Office of Fiscal and Management Analysis for an update of this fiscal impact
statement.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues:
State Agencies Affected:
Local Agencies Affected:
Information Sources:
Fiscal Analyst: Qian Li, 317-232-9671.
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