Provides relative to the funding of the operations of the Department of Revenue (RE +$110,000 GF RV See Note)
Impact
The passage of HB 717 will significantly affect how the DOR manages and utilizes the revenues it collects. By allowing the DOR to retain this self-generated revenue, the bill seeks to reduce dependency on general fund allocations and streamline the department's financial operations. Additionally, penalties that were previously deposited into the state treasury will now partly support the DOR, enabling it to enhance its structures for tax collection and administration, which could lead to more efficient tax compliance across the state.
Summary
House Bill 717 is focused on refining the operational funding and revenue generation mechanisms of the Louisiana Department of Revenue (DOR). This bill aims to designate a portion of the state taxes and penalties collected by the DOR as self-generated revenue, effective from July 1, 2016. Specifically, the proposed law stipulates that 1% of the state taxes and interest income collected by the department would contribute to its self-generated revenue, while 25% of the penalties collected will also be allocated similarly, enhancing the department's funding for its tax administration and operational costs.
Sentiment
The sentiment surrounding HB 717 was generally supportive, with many lawmakers recognizing the need for enhanced funding mechanisms for state departments. Advocates argue that by equipping the DOR with a consistent revenue stream, the state will promote better service to taxpayers and foster responsiveness in tax collection processes. However, there were concerns regarding the diversion of funds from the general treasury and potential implications for state funding availability for other services.
Contention
Key points of contention in the discussions surrounding HB 717 included the implications of this new financing structure for the state’s general fund. Critics expressed concerns about potential shortfalls, particularly in sectors that rely heavily on general fund support. Additionally, provisions related to the waiving of sales tax penalties under certain conditions were also debated, pointing to the need for regulatory clarity and taxpayer fairness within the framework proposed by the bill.
Provides relative to the disposition of certain state revenues through repeal of the Revenue Stabilization Trust Fund and dedication of certain revenues to the Budget Stabilization Fund. (EG SEE FISC NOTE GF RV See Note)
Provides for certain penalties imposed by the Department of Revenue and provides for the disposition of the monies collected from penalties and the self-generated revenue of the department
Establishes the Mineral Revenue Stabilization Trust Fund for the deposit of mineral revenues and provides for the dedication of mineral revenues (OR -$200,000,000 GF RV See Note)
(Constitutional Amendment) Establishes the Mineral Revenue Stabilization Trust Fund and provides for the deposit of mineral revenues (OR -$200,000,000 GF RV See Note)
A bill for an act establishing a central filing system relating to security interests in farm products, providing fees, and including contingent implementation and effective date provisions.
A bill for an act establishing a central filing system relating to security interests in farm products, providing fees, and including contingent implementation and effective date provisions.