Louisiana House Bill HB7

Louisiana 2013 Regular Session

• Introduced: 4/8/13
• Refer: 4/8/13

Caption

Provides a state and local sales and use tax exemption for certain items purchased by a nonprofit blood bank to be used in the collection of donated blood (OR -$100,000 GF RV See Note)

Impact

The enactment of HB 7 is expected to have a meaningful impact on how nonprofit blood banks operate by reducing their operational costs associated with purchasing essential equipment and supplies. The financial relief afforded by the tax exemption could enable these organizations to reallocate funds toward other critical areas, such as enhancing donor outreach and improving collection methods. By easing the tax liabilities tied to acquiring necessary resources, HB 7 aims to support the vital work that blood banks perform within communities.

Summary

House Bill 7 introduces a sales and use tax exemption specifically for certain items purchased by nonprofit blood banks and collection centers. This legislation aims to facilitate the collection, separation, treatment, testing, and storage of donated blood by eliminating the sales tax burden on motor vehicles, machinery, and supplies used for these purposes. The bill repeals the previous exclusion of certain blood collection materials from the definition of tangible personal property for tax purposes, thus broadening the scope of items exempt from taxation under state and local laws.

Sentiment

The overall sentiment surrounding HB 7 appears to be positive, particularly among legislators and advocacy groups that support blood donation initiatives. Advocates argue that the bill will strengthen the capacity and efficiency of nonprofit blood banks, ultimately benefiting public health outcomes. While some discussions may highlight concerns over potential loss of tax revenue, the predominant view recognizes the essential service that blood banks provide and sees the exemption as a necessary investment in community health.

Contention

Potential points of contention related to HB 7 may arise from the implications of tax exemptions on state revenue. Critics might argue that while supporting nonprofits is valuable, such exemptions could lead to a decrease in financial resources available for state programs. Additionally, there may be debates regarding which specific items should qualify for the exemption and the adequate definitions of those items to prevent misuse. Nonetheless, the bill has garnered broad support for its intended purpose of facilitating blood donation efforts.