Louisiana Senate Bill SB200

Louisiana 2015 Regular Session

• Introduced: 4/2/15
• Refer: 4/2/15
• Refer: 4/13/15

Caption

Constitutional amendment to authorize the state to levy and collect an additional state sales tax at the same rate as the state sales tax upon Internet and mail-order sales in lieu of local sales tax, all the proceeds of the tax to be distributed to each political subdivision and to dedicate the proceeds of a state tax on the same sales. (2/3 - CA13s1(A))

Impact

The bill seeks not only to enhance the state’s revenue from out-of-state sales but also to allocate these funds toward critical areas such as public higher education and healthcare services. Specifically, 75% of the tax revenue would be dedicated to funding operational expenses for public universities, while the remaining 25% would be directed towards providing health care services. This allocation intends to support both education and health sectors that are vital for the state's welfare and development. By excluding these transactions from the sales tax levied by local subdivisions, the bill centralizes the tax collection system and potentially alters how local governments raise funds through taxation.

Summary

Senate Bill 200 proposes a constitutional amendment to authorize the state of Louisiana to levy and collect an additional sales tax at the same rate as the state sales tax on Internet and mail-order sales. This proposed tax would be applied in lieu of any local sales tax and aims to ensure that the sales tax is uniformly applied to purchases made from out-of-state vendors that systematically solicit Louisiana consumers. The revenue generated from this tax would be distributed to local governmental subdivisions, which include parishes and municipalities, thereby impacting state revenue distribution practices significantly.

Sentiment

The sentiment surrounding SB 200 appears to be cautiously optimistic, with proponents viewing the collection of sales tax from out-of-state vendors as a favorable move that could significantly benefit crucial services such as education and healthcare. However, there may also be skepticism regarding the practical implementation of the tax and its implications on local authority over tax regulations. Opponents might express concerns about the loss of local autonomy in tax matters, particularly from communities that rely on local sales taxes, leading to debates on the balance of state versus local governance.

Contention

Notable points of contention around SB 200 may center on the constitutional implications of granting the state additional taxing authority that traditionally resided with local governments. Some legislators and advocacy groups might argue that the bill undermines local control by transferring taxation authority for online and mail-order sales to the state level, potentially leading to pushback from local leaders concerned about losing vital funding mechanisms. The passage of this amendment would require the electorate's approval, highlighting the need for widespread public support and understanding of the intended benefits and changes that would be brought about by this legislation.