Louisiana House Bill HCR11

Louisiana 2015 Regular Session

• Introduced: 4/3/15
• Refer: 4/3/15
• Refer: 4/13/15

Caption

Suspends all state sales and use tax exemptions

Impact

The suspension of these tax exemptions for the state's 2%, 1%, and 0.97% sales and use tax is projected to significantly increase state revenue during the suspension period. By halting exemptions, the state hopes to alleviate financial pressures and ensure the continuation of essential services. This measure could affect various sectors, as numerous entities that benefit from these exemptions will be subjected to taxation during the suspension. The ultimate goal is to stabilize the state's financial situation and provide a more sustainable fiscal environment.

Summary

HCR11 is a House Concurrent Resolution introduced by Representative Jay Morris, aimed at suspending all state sales and use tax exemptions in Louisiana. This resolution is set to remain effective until sixty days after the adjournment of the 2016 Regular Session of the Legislature. The rationale behind this measure is grounded in the state's current fiscal challenges, with the aim of recovering critical revenue that has been lost due to tax exemptions. Legislators are motivated by the need to maintain vital services for citizens by increasing the funds available through taxation.

Sentiment

The sentiment around HCR11 is largely critical, reflecting a mix of state financial urgency and potential taxpayer pushback. While supporters see this as a necessary step to bolster state resources, opponents argue it places an undue burden on consumers and businesses that rely on tax exemptions for operational viability. The need for fiscal responsibility clashes with concerns regarding economic impacts on vulnerable populations and local economies, highlighting a complex public discourse surrounding taxation and state governance.

Contention

Notable points of contention include the potential impact on local businesses that benefit from tax exemptions tailored to their specific circumstances. Critics argue that suspending these exemptions could disproportionately harm smaller businesses and low-income households, which may struggle with increased costs. The debate over HCR11 raises significant questions about the balance between state revenue needs and supporting local economies, with legislators split on the best approach to address the state's financial challenges.