Increases the tax on certain telecommunication devices and services (Item #10) (EN +$213,000 SD RV See Note)
Impact
The amendment will subject both residential and business customers of local or wireless telecommunications service companies to this revised tax rate. The tax collected under this bill will be remitted on a quarterly basis, allowing for predictable revenue for the state's budget. By increasing the tax rate, the legislation is expected to raise approximately $213,000 in additional revenue, according to estimates provided in the bill notes.
Summary
House Bill 27, introduced in Louisiana, proposes an increase in the telecommunications tax levied on certain devices and services. Specifically, the bill amends the rate of the tax assessed on wireline access lines and wireless handset devices, increasing it from four and one-half cents to five cents per month. This legislation aims to enhance revenue for the state while supporting various initiatives related to telecommunications services within Louisiana.
Sentiment
The sentiment around HB27 appears to be generally supportive among legislators, as indicated by its unanimous passage in the Senate with a vote of 35 to 0. This consensus reflects a shared understanding of the necessity for increased funding in the telecommunications sector, although it may also indicate limited opposition to tax increases in this area.
Contention
Despite the supportive sentiment, there may be concerns regarding the impact of such tax increases on consumers and businesses, particularly regarding financial strain on those using telecommunications services. Critics may argue that additional taxes could lead to higher service fees for customers or might disproportionately affect lower-income users. Nevertheless, the lack of recorded opposition during discussions suggests that such contentions have not yet significantly surfaced in public discourse surrounding the bill.
Increases the tax on certain telecommunication devices and services and levies a tax on prepaid mobile devices and prepaid mobile device cards (Item #10) (EG +$11,700,000 SD RV See Note)