Includes numismatic coins and bullion in the definition of tangible personal property subject to sales and use tax. (Item #36)(gov sig) (EG INCREASE GF RV See Note)
The impact of SB21 on state laws involves redefining how certain investments are taxed, particularly those related to precious metals and collectible coins. By eliminating the exemption for numismatic items, the bill aligns Louisiana's sales tax regulations with broader economic trends where such items are often viewed as investments. This change can potentially increase state tax revenues and provide funding for public services, but it could also stir debate about fairness in taxation and the treatment of investment assets.
Senate Bill 21, introduced by Senator Morrell, amends the definition of tangible personal property in the context of sales and use tax in Louisiana. The primary change brought by this bill includes numismatic coins and bullion as taxable items, which were previously excluded from sales tax. This legislative adjustment aims to broaden the tax base in the state by capturing significant assets that could contribute to state revenue. The inclusion of these items will come into effect for all taxable periods beginning on or after April 1, 2016.
The sentiment surrounding SB21 appears divided among stakeholders. Supporters likely view the bill as a necessary step toward enhancing state revenues and creating a more equitable tax system that captures all forms of tangible assets. Conversely, opponents may argue that taxing numismatic coins and bullion could deter investments and harm collectors, who might view such taxation as an unfair burden. This division reflects a broader concern about how tax policy can influence individual and business financial behaviors.
Notable points of contention include concerns from various advocacy groups about the implications of the bill on collectors and investors. Critics argue that this taxation move could lead to a decrease in market activity around numismatic coins and bullion, as hobbyists and investors might rethink their purchases in light of new costs associated with ownership. The debate thus centers not only on the economic implications of the bill but also on its potential to alter the collector community's dynamics in Louisiana.