Louisiana House Bill HB18

Louisiana 2018 1st Special Session

• Introduced: 2/16/18
• Refer: 2/16/18
• Refer: 2/19/18

Caption

Provides for the applicability of certain exclusions and exemptions to the state sales and use tax (Item #7) (OR +$426,500,000 GF RV See Note)

Impact

The impact of HB 18 is significant as it modifies the framework under which sales and use taxes are collected in Louisiana. By establishing a clear timeframe for the applicability of exemptions, the bill intends to support local businesses by alleviating some of their tax burdens, potentially stimulating economic activity during this period. This legislation further ensures that specific essential items such as food, natural gas, and electricity remain exempt from sales tax, thus acknowledging the basic needs of Louisiana residents and attempting to protect them from further financial strain.

Summary

House Bill 18 seeks to amend the existing state sales and use tax structure in Louisiana by making specific exclusions and exemptions applicable to taxes levied under recent amendments. Specifically, it aims to clarify the temporary exemptions that have been put in place since April 1, 2016, and outlines a path for their applicability and operational status until June 30, 2018. The proposed bill seeks to provide clarity and consistency in how certain exemptions are applied to various transactions, thereby facilitating compliance for businesses and consumers alike.

Sentiment

The sentiment around the bill appears to be generally supportive among business communities that stand to benefit from the clarity in tax obligations that HB 18 provides. However, there may be reservations voiced by consumer advocacy groups concerned about the eventual expiration of certain exemptions and how they could affect low-income populations. Overall, there seems to be a recognition of the need for a simplified and transparent tax code, which this bill aims to deliver.

Contention

Notable contention surrounding HB 18 may arise from varying interpretations of what should qualify as exempt. While the intent is to establish consistent guidelines, there is concern that the changes could lead to disputes over specific categories of transactions. Additionally, the bill's repeal of previous exemptions under the 2017 Regular Session may draw criticism, particularly from groups who benefited from those specific exclusions, highlighting ongoing debates within the legislature on how best to balance tax policy with the needs of taxpayers.