Louisiana Senate Bill SB342

Louisiana 2012 Regular Session

• Introduced: 3/12/12
• Refer: 3/12/12

Caption

Re-creates the Louisiana Tax Free Shopping (Refund) Program set to terminate on 7/1/13. (gov sig) (OR -$1,000,000 GF RV See Note)

Impact

The continuation of the Tax Free Shopping Program is anticipated to have a positive economic impact by attracting more foreign visitors, who contribute significantly to the state's revenue through spending in retail and hospitality sectors. By allowing tourists to reclaim sales taxes on their purchases, Louisiana positions itself as a more competitive shopping destination compared to other states, potentially leading to increased consumer spending and job creation in affected industries.

Summary

Senate Bill 342 aims to re-establish the Louisiana Tax Free Shopping Program, which provides a sales tax refund for foreign visitors to the state. Originally set to terminate on July 1, 2013, this bill proposes to extend the life of the program for an additional four years, effectively changing the termination date to July 1, 2017. The program is designed to encourage tourism and stimulate economic activity by making shopping in Louisiana more appealing to international travelers.

Sentiment

The sentiment surrounding SB342 appears to be generally positive among supporters who advocate for tourism development and economic growth in Louisiana. The bill is seen as beneficial not only for local businesses that cater to tourists but also for the state economy as a whole. However, the discussion may contain some opposition regarding the cost of implementation and the impacts on state revenue, though specific details concerning dissenting views were not highlighted in the available documents.

Contention

One notable point of contention related to SB342 could revolve around the fiscal impacts of extending the program. Critics may argue that while the program is designed to boost tourism, it could lead to significant tax revenue losses during its extended period. There may also be discussions on whether the benefits of encouraging foreign tourism through tax refunds justify the potential drawbacks of reduced state tax income.