(Constitutional Amendment) Removes the prohibition of the state levying sales and use taxes on gasoline and certain motor fuels (OR +$173,250,000 GF RV See Note)
Impact
If passed, this bill would have notable implications for state and local tax revenues. By allowing the state to levy sales and use taxes on gasoline and other specified fuels, it could potentially generate additional funds for the state treasury, with estimates suggesting an increase in revenue around $173.25 million. However, there is concern regarding the financial impact on consumers, as such taxes would likely lead to higher prices for fuel, affecting the cost of living for many residents in Louisiana.
Summary
House Bill 438 proposes a constitutional amendment to remove the prohibition against the state levying sales and use taxes on purchases of gasoline, diesel fuel, and certain special fuels. The current state constitution exempts these fuels from such taxes if they are already subject to excise taxes. The bill seeks to revise Article VII, Section 27(A) of the Louisiana Constitution to authorize state sales and use taxes on these fuel purchases, which could significantly impact state revenue streams by enabling additional taxation on these essential commodities.
Sentiment
The sentiment around HB 438 appears mixed, reflecting concerns among both supporters and detractors. Proponents argue that this amendment is a necessary step for increasing state revenue, allowing for more funding for transportation and infrastructure projects, which could benefit the public good. Opponents, however, warn that imposing these taxes could place an undue financial burden on consumers, especially in a state where transportation costs are already significant. This divergence of views highlights the potential economic trade-offs involved in the proposal.
Contention
Notable points of contention center on the potential economic impact of the bill. Critics highlight that adding sales taxes to fuel purchases could disproportionately affect low- and middle-income families, leading to increased living costs. Furthermore, there is concern about the fairness of taxing essential goods that are already subject to excise taxes. Advocates of the bill, on the other hand, stress the importance of securing additional resources for vital state services and infrastructure repair, framing the discussion around fiscal responsibility and the future needs of the state.
(Constitutional Amendment) Removes the prohibition against levying a state sales and use tax on the sale of gasoline (Item #36) (EG +$90,800,000 GF RV See Note)
(Constitutional Amendment) Provides relative to the deposit and use of the avails of the taxes levied on gasoline, motor fuels, and special fuels (OR SEE FISC NOTE SD EX)
(Constitutional Amendment) Provides relative to sales and use tax exemptions for gasoline, diesel fuels, special fuels, food for home consumption, certain residential utilities, and prescription drugs
Constitutional amendment to authorize a parish governing authority to levy sales tax on motor fuels with the approval of the parish electors. (2/3 - CA13s1(A)) (OR INCREASE LF RV See Note)
Proposes temporary constitutional amendment allowing State constitutional convention convened to reform system of property taxation to propose statutory changes.
Proposes temporary constitutional amendment allowing State constitutional convention convened to reform system of property taxation to propose statutory changes.