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)
Impact
The enactment of HB 665 would primarily affect tax statutes governing sales and use taxes in Louisiana. By exempting repair services for certain aircraft from local taxation, the bill creates a relevant tax incentive for aircraft owners and repair facilities. This change could lead to an increase in aircraft operations and repair services within Calcasieu Parish, ultimately benefiting local businesses and the economy. However, the bill's exemption does not extend to other parishes unless they choose to adopt similar measures, potentially leading to a disparity in tax policies across the state.
Summary
House Bill 665 seeks to amend existing sales and use tax regulations in Louisiana by excluding certain repairs made to aircraft from the local sales and use tax imposed by specific taxing authorities, particularly in Calcasieu Parish. This exclusion applies when repairs are performed at a qualified airport and aids in fostering a more favorable tax environment for the aviation sector. The bill aims to encourage growth in the aircraft repair business by removing the financial burdens associated with local sales tax on repairs, thereby promoting economic activity in the region.
Sentiment
The sentiment surrounding HB 665 appears to be generally positive among stakeholders in the aviation industry. Supporters of the bill, including local businesses and industry advocates, argue that eliminating this tax burden will significantly enhance the competitiveness of repair services. They view the bill as a proactive step to stimulate growth in a sector that is vital to the local economy. However, there may be concerns related to the loss of potential tax revenue for local governments, which could create a divide in opinions among fiscal conservatives and local government advocates.
Contention
While HB 665 has garnered support within the aviation community, there are notable points of contention regarding the implications of tax exemptions. Critics may voice concerns about the fairness of tax breaks afforded to the aviation industry compared to other sectors that might not receive similar treatment. Additionally, questions may arise about the long-term sustainability of tax revenues for local governments, especially if such exclusions become more common. Balancing the need for economic development through tax incentives with the necessity of maintaining adequate public funding represents a critical discussion likely to surround this legislation.
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)
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)
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)
Excludes from repairs to tangible personal property and fabrication certain preparation and painting of certain aircraft for purposes of sales and use tax aircraft having an FAA registration address outside the state. (7/1/17) (EN NO IMPACT GF RV See Note)
Provides with respect to the levy of state sales and use taxes on certain sales of tangible personal property and services (OR INCREASE GF RV See Note)
Excludes from state and local sales and use tax the sales of tangible personal property and services sold by the sponsor at events sponsored by certain nonprofit organizations (EN -$1,000,000 GF RV See Note)
Authorizes a state and local sales and use tax exclusion for certain re-leases or re-rentals of items of tangible personal property (RE DECREASE GF RV See Note)
Provides a state and local sales and use tax exclusion for certain re-leases or re-rentals of items of tangible personal property (EN DECREASE GF RV See Note)