Louisiana Senate Bill SB539

Louisiana 2012 Regular Session

• Introduced: 3/12/12
• Refer: 3/13/12

Caption

Provides for credit against local taxes when tangible personal property is brought into this state under certain circumstances. (1/1/13) (OR DECREASE LF RV See Note)

Impact

The implementation of SB 539 will alter how local jurisdictions apply sales and use tax credits, particularly concerning imported tangible personal property. A significant aspect of the legislation requires that credits be provided only if a similar credit exists in the state from which the property is being imported. This could lead to a standardized approach among taxing authorities, potentially easing the burden on taxpayers who may face double taxation from different jurisdictions.

Summary

Senate Bill 539 focuses on amending the existing provisions relating to credit against local sales and use taxes when tangible personal property is brought into Louisiana. It establishes that taxpayers who have paid taxes for similar jurisdictions may receive credits against local taxes when they bring certain property into the state. The bill emphasizes the condition that a taxpayer must not act in bad faith when claiming such credits, aiming to create a more favorable tax environment for individuals importing goods into the state.

Sentiment

Discussion around SB 539 has largely been focused on its potential benefits for taxpayers and businesses involved in interstate transactions. Supporters argue that this bill will aid local economies by encouraging more transactions across state lines without the fear of incurring excessive taxation. However, concerns have also been raised about the implications for local tax revenues and the adequacy of local governments to maintain necessary public services if their tax bases shrink due to this bill's provisions.

Contention

One notable point of contention has centered on the bill's stipulation regarding similar credits being required in other states. Critics argue that this could complicate tax compliance for individuals and businesses unfamiliar with varying state tax laws. Additionally, there are apprehensions that the bill may inadvertently favor certain taxpayers over others, raising questions about equity within tax systems across different regions.