Adds the service of shipping and transportation of tangible personal property as a taxable service (OR INCREASE GF RV See Note)
Impact
The implementation of HB 391 is expected to have a direct impact on both businesses providing shipping and transportation services as well as consumers purchasing tangible personal property. By adding these services to the taxable list, it may increase operational costs for businesses, which could be passed down to consumers in the form of higher prices. Additionally, the revenue generated from these taxes could potentially contribute to state and local budgets, which may be utilized for public services and infrastructure improvements. However, the overall effect on consumer spending and business margins might also raise concerns among stakeholders in the shipping and retail industries.
Summary
House Bill 391, introduced by Representative Robby Carter, aims to expand the scope of taxable services under Louisiana's sales and use tax laws to include shipping and transportation services related to tangible personal property. The bill seeks to amend existing tax definitions to classify these services as taxable, thereby creating a new revenue stream for the state. This legislative change represents a significant shift in taxing practices, as it adds another layer of tax for businesses engaged in logistics and transportation activities within Louisiana.
Sentiment
The sentiment surrounding HB 391 appears to be mixed, with supporters in favor of bolstering state revenue through expanded taxation on services, while opponents argue that this broadened tax base could hinder economic growth by increasing costs for businesses and consumers. Some proponents view the bill as a necessary step toward modernizing tax structures in response to the evolving economy, where service-based transactions are becoming increasingly prevalent. Conversely, others fear that it may discourage business activity or lead to potential job losses in sectors reliant on transportation and shipping.
Contention
A notable point of contention in discussions surrounding HB 391 centers on the implications of imposing additional taxes on shipping services. Critics often voice concerns that such a move could disproportionately affect small businesses and disrupt supply chains. Furthermore, there are worries that taxing transportation services might be perceived as an unfair burden, especially when compared to neighboring states that may not impose similar taxes. The debate highlights the balancing act lawmakers must navigate between generating revenue to support state interests and fostering a business-friendly environment that encourages growth and competitiveness.
Provides with respect to the levy of state sales and use taxes on certain sales of tangible personal property and services (OR INCREASE GF RV See Note)
Requires the filing of an annual use tax return for the payment of use tax on taxable tangible personal property and services purchased from a remote seller (EG INCREASE GF RV See Note)
Exempts from state and local sales and use taxes certain tangible personal property and services related to photography and videography services. (gov sig) (RE DECREASE GF RV See Note)
Provides with respect to sales of certain services and tangible personal property at certain publicly owned facilities (Item #35) (EN SEE FISC NOTE GF RV)
Provides for applicability of the sales and use tax exclusions for certain tangible personal property purchased for lease or rental (EG -$4,000,000 GF RV See Note)
Excludes from state and local sales and use tax the sales of tangible personal property and services sold by the sponsor at events sponsored by certain nonprofit organizations (EN -$1,000,000 GF RV See Note)