Louisiana House Bill HB636

Louisiana 2017 Regular Session

• Introduced: 4/18/17
• Refer: 4/19/17

Caption

Provides with respect to the imposition of sales and use taxes (OR +$196,000,000 GF RV See Note)

Impact

The impact of HB 636 on state laws is significant, as it modifies the framework governing how sales and use taxes are applied in Louisiana. By making certain tax exemptions permanent, the bill could create a more predictable environment for businesses and consumers alike. However, critics argue that this might lead to a heavier tax burden on individuals and small businesses, particularly those relying on less essential expenditures. The adjustments to tax exemptions could influence consumer spending patterns and consequently, the state's economy.

Summary

House Bill 636, proposed by Representative Ivey, seeks to amend existing laws regarding the imposition of state sales and use taxes in Louisiana. The bill effectively removes the sunset provision set to expire on July 1, 2018, which means that certain exclusions and exemptions from the tax—including those related to food, utilities, and other essentials—will become permanent rather than temporary. This legislation is positioned within an intent to stabilize and possibly increase state revenue by eliminating the fluctuation in tax regulations affecting various goods and services over time.

Sentiment

The sentiment surrounding HB 636 appears to be mixed among lawmakers and stakeholders. Proponents of the bill champion the idea of long-term tax stability, suggesting that it is advantageous for fiscal planning and can lead to enhanced revenue for state programs. However, opponents express concern regarding the potential negative consequences, particularly for low-income communities who may disproportionately feel the impact of an expanded tax base on essential goods and services.

Contention

Notable points of contention related to HB 636 include debates about the appropriateness of excluding certain items from sales tax and whether reliance on exemptions is the best method for aiding citizens; critics highlight the inequity in taxing everyday essentials. The divergence of opinions illustrates a broader conflict between enhancing state revenue and ensuring equitable tax burdens across different economic demographics.