Louisiana Senate Bill SCR91

Louisiana 2014 Regular Session

• Introduced: 4/21/14
• Refer: 4/22/14

Caption

Requests the Department of Revenue to study a communications network equipment tax exemption and report its findings to the legislature.

Impact

The bill's ultimate impact on state laws hinges on the findings of the study it mandates. If the Department of Revenue finds that eliminating sales taxes on communications network investments could enhance economic growth, as suggested by prior research, this could lead to legislative proposals aimed at enacting those tax exemptions. Supporters believe that the study could provide the necessary justification to incentivize high-capacity communications infrastructure, which is essential for modern economic activities and competitive positioning in the global marketplace.

Summary

SCR91 is a Senate Concurrent Resolution from Louisiana that requests the Department of Revenue to undertake a study on the implications of exempting communications network equipment from state taxes. The resolution recognizes the increasing reliance of both consumers and businesses on high-speed communications networks, emphasizing their critical role in various sectors, including agriculture, healthcare, and retail. By evaluating the potential tax exemption, the bill aims to assess how such a policy might bolster economic growth and improve the efficiency of government services as well as meet the rising demand for network capacity.

Sentiment

The sentiment surrounding SCR91 appears largely supportive, as it aligns with broader efforts to enhance technological infrastructure within the state. Lawmakers and stakeholders advocating for the bill suggest that it could lead to significant economic benefits, including job creation in both the short and long term. However, some skepticism may exist regarding the feasibility of implementing such tax exemptions and the specific methods by which the Department of Revenue would evaluate the anticipated economic impacts.

Contention

There is potential contention surrounding the resolution primarily related to the broader implications of tax exemptions. Opponents might argue that while tax exemptions can stimulate growth, they could simultaneously diminish the state's tax revenues, thus impacting funding for essential services. The debate may also center on whether such tax strategies truly lead to the intended economic benefits or whether they simply shift financial burdens to different segments of the population.