Provides for an annual reporting requirement by certain nonprofit entities for certain sales tax exemptions. (7/1/16) (Item Nos. 7, 8, 11, 12, 14, 15, 19-24, 32) (EN SEE FISC NOTE GF RV See Note)
Impact
The enactment of SB 15 will affect various nonprofit entities, including homeless shelters, camp facilities, and educational institutions, by mandating that they report their sales data annually. As a result, these organizations will need to manage compliance processes to align with the new reporting requirements. This initiative aims to enhance state revenue monitoring while maintaining exemptions that these organizations rely on to operate effectively.
Summary
Senate Bill 15 introduces an annual reporting requirement for certain nonprofit organizations regarding sales tax exemptions in Louisiana. The bill specifies that certain transactions involving sales of tangible personal property or services, which are exempt from state sales and use tax, must be reported annually. This requirement is intended to provide the state with better information about the revenue loss associated with these exemptions, aiding in fiscal planning and accountability.
Sentiment
The sentiment around SB 15 is largely supportive among legislators who emphasize the importance of transparency and accountability from nonprofit organizations benefiting from tax exemptions. Proponents view this bill as a necessary step in fiscal responsibility, without imposing undue burdens on the nonprofits involved. However, some stakeholders express concerns regarding the administrative burden that such reporting could impose on smaller organizations.
Contention
Notably, discussions around the bill highlighted concerns regarding the complexity and feasibility of the reporting requirements. Opponents argue that the annual reporting could distract nonprofits from their primary missions and overwhelm them with paperwork. Additionally, there are apprehensions that the bill could unintentionally lead to the loss of essential services provided by these organizations, particularly if compliance becomes too onerous.
Legislates with regard to sales tax exemptions for certain educational institutions. (Item Nos. 7, 13, 14, and 32) (7/1/16) (OR DECREASE GF RV See Note)
Provides with respect to the effectiveness of certain exclusions and exemptions from state sales and use taxes (Items #7-34) (EN DECREASE GF RV See Note)
Provides relative to the base of the state sales and use tax and to provide for the applicability of certain exclusions and exemptions (Item #7) (OR +$143,000,000 GF RV See Note)
Restores sales tax exemption for admissions to athletic and entertainment events for elementary and secondary schools. (7/1/16)(Item No. 7) (EG DECREASE GF RV See Note)
Provides for the effectiveness of state sales and use tax exemptions and exclusions for the sales of certain tangible personal property and services (Items #7-34)
Provides for the effectiveness of state sales and use tax exemptions and exclusions for the sales of certain tangible personal property and services (Items #7-34)