Expands an exclusion from state and local sales tax for repairs to certain property which is delivered out of state. (7/1/13)
Impact
The bill modifies existing legislation related to sales and use tax, specifically R.S. 47:301(14)(g)(i) and 337.10(F). By redefining the parameters for tax exemptions, SB79 can help stimulate business for repair services that often handle out-of-state deliveries. This could encourage businesses in Louisiana to engage more freely with clients beyond state lines without the fear of incurring additional tax liabilities. The bill also allows other political subdivisions, whose boundaries are not coterminous with the state, the option to apply the same exemption, thus offering a degree of flexibility.
Summary
Senate Bill 79 aims to expand the exclusion from state and local sales tax for repairs to certain tangible personal property that is delivered out of state. Specifically, it allows for an exemption from sales tax when the repaired property is either shipped to a customer outside Louisiana via common carrier or transported using the repair dealer’s own vehicle. In cases concerning aircraft, it stipulates that delivery may happen by the best available means. This change intends to facilitate trade and prevent taxation from hindering business operations, particularly for industries dependent on out-of-state clients.
Sentiment
Overall sentiment around SB 79 appears to be supportive among its proponents, who argue that it will enhance business operations and foster economic growth by lowering operational costs for service providers who ship repaired property out of the state. Conversely, it may face skepticism from those concerned about the implications of broadening tax exemptions, particularly regarding local revenue that can be impacted by such exemptions.
Contention
The primary contention surrounding SB 79 lies in the potential loss of revenue for local governments and schools, as the sales tax is a significant funding source for numerous public services. Opponents of the bill could argue that such exemptions may disproportionately affect public funding, calling for a balance between economic development and the financial needs of local authorities. While the bill is designed to promote trade and reduce tax burdens, the consequences of these tax exclusions raise valid concerns about the long-term fiscal impacts on local communities.
Provides for certain tax authorities to grant an exclusion from sales tax for repairs to certain property which is delivered out of state. (7/1/13) (EN SEE FISC NOTE LF RV)
Requires that certain repairs to tangible personal property be excluded from state sales and use taxes and sales and use taxes in East Feliciana Parish (EG SEE FISC NOTE LF RV See Note)
Requires that certain repairs to tangible personal property be excluded from local sales and use taxes in East Feliciana Parish (OR SEE FISC NOTE LF RV)
Excludes certain repairs on tangible personal property from local sales and use tax by certain taxing authorities in Calcasieu Parish (EN SEE FISC NOTE LF RV See Note)
Provides for the extent of applicability of various exclusions and exemptions from state sales and use tax (Item #36) (EG +$789,900,000 GF RV See Note)
To establish a framework upon which to repeal the property tax on business inventories and offshore vessels as well as the state income tax credits associated therewith through the repeal of a state sales and use tax, the levy of a limited, temporary state sales and use tax, and limitations on the applicability of certain exclusions and exemptions from certain state sales and use taxes (Items #31 and 36) (OR SEE FISC NOTE GF RV)
Provides for the rate of the state sales and use tax and for exemptions, exclusions, credits, and rebates claimed against sales and use taxes; and provides for a flat rate of income tax for individuals, estates, and trusts, increases the standard deduction, and modifies or repeals certain income tax deductions and credits (Items #5, 6, and 8) (EN SEE FISC NOTE RV See Note)