Louisiana House Bill HCR17

Louisiana 2015 Regular Session

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

Caption

Suspends certain exclusions and exemptions from a portion of the state sales and use tax

Impact

The suspension of these tax exemptions is a direct response to the challenging fiscal conditions of the state, as highlighted in the discussions leading to the bill's proposal. Proponents argue that the additional revenue generated from reinstating these sales taxes is crucial for maintaining essential services for Louisiana's residents. By removing the financial burden of these exemptions, the state anticipates a significant influx of revenue that can help alleviate budget constraints.

Summary

House Concurrent Resolution 17 (HCR17) introduces a temporary suspension of specific exemptions and exclusions from the additional state sales and use tax imposed in Louisiana. Specifically, this legislative action targets a 0.97% state sales and use tax on certain transactions including the lease or rental of motor vehicles, services related to the construction or overhaul of US Naval vessels, sales of newspapers, and purchases related to Mardi Gras items. The bill aims to mitigate the financial pressure on the state's budget by temporarily removing these tax exemptions.

Sentiment

Overall sentiment towards HCR17 appears to reflect an understanding of the necessity for budgetary adjustments faced by the state. While supporters emphasize the importance of funding vital governmental services, some potential dissenters may express concern regarding the financial impact on individuals and businesses typically benefitting from these exemptions. Thus, while there is an overall alignment on the urgency to address fiscal shortcomings, there may be varying opinions on the methodology employed through HCR17.

Contention

Key points of contention may arise from the affected parties, particularly constituents and businesses that rely heavily on the exempted transactions. For instance, motor vehicle dealers and companies undertaking contracts with the US Department of the Navy could find themselves facing higher operational costs. Similarly, the suspension of exemptions related to Mardi Gras items may spark pushback from local businesses that thrive during the festive season. These varied interests highlight the delicate balancing act policymakers must navigate when enacting temporary fiscal measures.