Louisiana House Bill HB1120

Louisiana 2016 Regular Session

• Introduced: 4/5/16
• Refer: 4/6/16
• Report Pass: 5/2/16
• Engrossed: 5/19/16
• Refer: 5/23/16
• Report Pass: 5/26/16
• Enrolled: 6/5/16
• Chaptered: 6/17/16
• Passed: 6/17/16

Caption

Creates the Louisiana Tax Institute within the Dept. of Revenue as an advisory body on tax related matters (REF INCREASE GF EX See Note)

Impact

By creating the Louisiana Tax Institute, HB 1120 empowers this new body to examine existing tax laws, identify flaws, and propose modifications to enhance clarity and efficiency in tax administration. The Institute’s activities are designed to align Louisiana's tax regulations closely with best practices observed in other jurisdictions, facilitating cooperation with organizations like the Multistate Tax Commission and the Federation of Tax Administrators. This reform is expected to streamline tax processes and support local municipalities in improving tax collection efficacy.

Summary

House Bill 1120 establishes the Louisiana Tax Institute within the Department of Revenue as an advisory body focused on the review and reform of Louisiana's tax laws. The Institute aims to address issues related to tax law complexity and inequities, providing necessary recommendations to improve both the substantive and procedural facets of tax legislation. A key goal is to facilitate ongoing revision of tax policies, ensuring they remain relevant and fair.

Sentiment

The sentiment surrounding HB 1120 appears largely positive, with lawmakers recognizing the necessity for a structured approach to tax reform. Proponents advocate for the potential benefits of the Institute in alleviating administrative burdens associated with Louisiana tax law. However, there could be concerns about the effectiveness of the Institute’s advice being implemented by the legislature, as well as skepticism about the speed of meaningful change.

Contention

Notable points of contention may arise around the governance structure of the Institute and its relationship with the state legislature. The requirement for a substantial majority (three-quarters) of board members to approve recommendations could lead to challenges in consensus-building, possibly stalling necessary reforms. Additionally, stakeholders may debate the degree to which the Institute's recommendations will influence state policy, particularly concerning local taxation issues.