Legislates with regard to sales of butane, propane, or other liquified petroleum gases for private, residential consumption. (7/1/16)(Item No. 34) (EG DECREASE GF RV See Note)
If enacted, SB5 would have a significant impact on the state's revenue from sales taxes, particularly during the specified period from July 1, 2016, to July 1, 2018. By restoring these exemptions, the state would potentially see a decrease in revenue collected from the sales of butane and propane, affecting the overall budget allocated for various public services. This proposed change underscores the legislature's consideration of the financial burden that taxation on essential household energy sources places on residents, particularly in the context of rising energy costs.
Senate Bill No. 5, introduced by Senator Chabert, focuses on the imposition and exemption of sales tax regarding butane, propane, and other liquified petroleum gases for private, residential consumption. The bill aims to reinstate exemptions for sales of these gas types effective from July 1, 2016, allowing residents to purchase these fuels without incurring the temporary state sales tax that was previously applied. The bill modifies existing state law regarding sales taxes to reintegrate these exemptions, which were suspended under earlier legislation.
The sentiment around SB5 appears generally supportive, particularly among constituents who rely on butane and propane for residential heating and cooking. Proponents advocate for the bill as a necessary measure to ease the financial pressures on families by reducing the cost of essential energy sources. However, there are underlying concerns regarding the potential long-term impacts on state revenue and the ability to fund public services, which may generate contention among fiscal conservatives and budget-conscious lawmakers.
Notable points of contention involve the balance between providing necessary financial relief to residents and ensuring sufficient state revenue. Critics may argue that while the exemptions help families, they could lead to budgetary shortfalls that would affect state services. The debate surrounding SB5 illustrates the ongoing tension between economic support for residents and the financial realities of tax policies impacting state governance and service provision.