Louisiana House Bill HB230

Louisiana 2017 Regular Session

• Introduced: 3/29/17
• Refer: 3/29/17
• Refer: 4/10/17
• Report Pass: 5/8/17
• Engrossed: 5/17/17
• Refer: 5/18/17
• Report Pass: 5/30/17
• Enrolled: 6/2/17
• Chaptered: 6/12/17
• Passed: 6/12/17

Caption

Provides for the definition of aviation gasoline (EN NO IMPACT See Note)

Impact

The revisions introduced by HB 230 provide a clear legal definition of aviation gasoline, which was previously not explicitly stated in state tax regulations. By exempting aviation gasoline from the state fuel tax, the bill hopes to alleviate some of the financial burdens on aviation businesses and operators. As it stands to affect tax revenues, the state may foresee a modest reduction in tax income, but the bill is designed to support the aviation industry by encouraging its growth and sustainability.

Summary

House Bill 230 aims to amend existing Louisiana tax law by specifically defining 'aviation gasoline' and establishing a tax exemption for it. The bill clarifies that aviation gasoline is a type of motor fuel intended exclusively for propelling aircraft, distinguishing it from motor fuel used for vehicles. According to the bill, aviation gasoline must conform to the American Society for Testing and Materials (ASTM) specifications, ensuring that the definition aligns with industry standards. This legislative change is intended to promote clarity in the law and streamline the tax treatment of fuels used in aviation.

Sentiment

The sentiment around the bill appears to be largely supportive, particularly among stakeholders within the aviation sector, who argue that the tax exemption will foster growth and competitiveness within the industry. Legislative discussions seem to have highlighted the importance of supporting air travel and aviation businesses, and the simplicity of the amendment was generally accepted without significant controversy. The lone dissenting vote during the Senate passage reflects that while there may be some concerns, overall, the response was positive.

Contention

While there were no major points of contention noted in the legislative history of HB 230, it is important to recognize potential debates over tax exemptions in general. Opponents of tax exemptions often caution against the impact on state revenue and the precedent it could set for other industries seeking similar treatment. However, HB 230 does not appear to have faced significant opposition, highlighting a consensus on the necessity to support the aviation industry in Louisiana.