Louisiana House Bill HB631

Louisiana 2013 Regular Session

• Introduced: 4/8/13
• Refer: 4/8/13
• Report Pass: 4/23/13
• Engrossed: 5/1/13
• Refer: 5/6/13
• Report Pass: 5/21/13
• Enrolled: 5/29/13
• Chaptered: 6/7/13
• Passed: 6/7/13

Caption

Removes the exclusion of the city of New Orleans and the parish of Orleans relative to the offset of individual income tax refunds (EN SEE FISC NOTE LF RV See Note)

Impact

The implementation of HB 631 may significantly impact local revenue streams by enabling New Orleans to utilize tax refund offsets as a method to settle owed debts. This could enhance financial resources for local government initiatives that rely on tax funding. By addressing debts through income tax refunds, the city might see improved collection rates, facilitating better city services and financial management. Furthermore, it suggests a broader trend towards empowering local municipalities with more tools to manage their financial situations effectively.

Summary

House Bill 631 amends the Louisiana Revised Statutes to change the exclusion status of the city of New Orleans and the parish of Orleans regarding the offset of individual income tax refunds against debts owed to certain state agencies. This legislation aims to allow the city and parish to collect tax refunds from individuals who may owe debts, thereby increasing their revenue collection abilities. By including New Orleans and its parish in the definition of 'agency,' the bill opens new avenues for addressing outstanding debts through income tax offsets.

Sentiment

The sentiment surrounding HB 631 appears mostly favorable amongst legislators, as evidenced by its unanimous passage in the Senate with a vote of 37-0. Advocates argue that this bill represents a pragmatic approach to municipal governance and fiscal responsibility. However, there may be concerns from constituents about the increased government intervention in personal tax refunds, potentially leading to backlash from residents who view such policies as punitive.

Contention

While HB 631 enjoys significant support, it may not be without its detractors. The primary contention surrounding this bill could stem from discussions on personal financial privacy and the extent to which local government can claim portions of individual tax refunds. Detractors might argue that utilizing tax refunds for debt collection can create hardships for individuals and families, particularly those already facing financial difficulties. Balancing the need for effective revenue collection while protecting taxpayers' rights will likely be a focal point during discussions of the bill's implementation.