Provides an exemption from sales and use tax for fuel used for farming. (gov sig) (RE -$796,000 GF RV See Note)
Impact
The implementation of SB 105 is anticipated to have a positive impact on state laws relating to sales and use tax, particularly as it relates to agricultural fuel purchases. By granting this exemption, the state acknowledges the unique challenges faced by farmers, potentially leading to increased productivity and economic stability in rural areas. The financial relief from taxation could allow farmers to allocate resources more efficiently, and it may also lead to lower prices for consumers due to enhanced production capabilities.
Summary
Senate Bill 105 aims to provide a significant financial relief measure for farmers in Louisiana by exempting sales and purchases of diesel fuel, butane, propane, and other liquefied petroleum gases from state sales and use tax. This exemption is proposed to take effect on July 1, 2017, and is intended to alleviate some of the financial burdens associated with fuel costs in agricultural production, thereby promoting continued investment and operational viability within the farming community. By eliminating the tax on these essential fuels, the bill is expected to support agricultural sustainability and growth within the state.
Sentiment
Sentiment around SB 105 is generally supportive among agricultural stakeholders and farming communities, who view the bill as a necessary intervention to reduce operational costs. Policymakers advocating for the bill argue that it aligns with broader objectives of economic development and agricultural advancement in Louisiana. However, some concerns may arise regarding the potential impact on state revenues, as the projected loss to the general fund is estimated at $796,000, which detractors may highlight as a point of contention in discussions about fiscal responsibility.
Contention
While the bill is largely viewed favorably in terms of supporting farmers, there may be notable points of contention regarding the potential implications for state financial resources. Critics may express concerns about the sustainability of the state budget in light of reduced tax revenues, raising questions about the balancing act between providing financial support to a critical industry and ensuring sufficient funding for state programs and services. Therefore, the debate may focus on the broader economic trade-offs involved in implementing such tax relief measures.
Provides with respect to the effectiveness of certain exclusions and exemptions from state sales and use taxes (Items #7-34) (EN DECREASE GF RV See Note)