Establishes the Sales Tax Streamlining and Modernization Commission, as the successor to the commission established by Act No. 405 of the 2015 Regular Session of the Legislature, to continue the comprehensive study of Louisiana's state and local sales and use tax systems
Impact
The establishment of this commission aims to lead to legislative recommendations that will revise existing practices, administrative procedures, and statutory laws to streamline the sales tax structure. This effort is crucial for ensuring revenue stability and taxpayer equity in Louisiana, especially considering the complexities introduced by recent legal changes, such as the U.S. Supreme Court's ruling in South Dakota v. Wayfair, Inc. This ruling requires certain out-of-state sellers to collect sales taxes, which further necessitates a reevaluation of Louisiana’s tax structure to maintain competitiveness and compliance.
Summary
HCR7, also known as the Sales Tax Streamlining and Modernization Commission resolution, was introduced by Representative Stokes to establish a commission aimed at comprehensively studying Louisiana's state and local sales tax systems. This initiative was necessary due to the expiration of the previous commission set up by Act No. 405 of the 2015 Regular Session, which focused on addressing significant issues in the state's sales tax structure. Acknowledging the complexity and high rates of sales taxes in Louisiana, the bill seeks to modernize the sales tax framework to better reflect contemporary economic activities, especially in light of the increasing importance of e-commerce and services over traditional goods.
Sentiment
The sentiment surrounding HCR7 is generally supportive, particularly among legislators who recognize the importance of adapting tax systems to evolving economic contexts. There’s an understanding that a modernized sales tax system will benefit both state and local governments by stabilizing revenue streams. However, the discussions may also highlight concerns from stakeholders who worry about the implications of changes in the tax structure, especially regarding local tax autonomy and the adequacy of funding for essential services at the local level.
Contention
Notable points of contention involve balancing the need for a streamlined and modern tax system while safeguarding local government's ability to fund their services adequately. As the newly formed commission moves forward, it will have to navigate these concerns and address potential fears from local governments about losing critical revenue sources which they rely on for operation. The commission's recommendations will play a key role in determining how Louisiana's sales tax landscape will evolve, making this a pivotal issue for stakeholders across the state.
Establishes the Sales Tax Streamlining and Modernization Commission to perform a comprehensive study of Louisiana's state and local sales and use tax systems (EN SEE FISC NOTE GF EX See Note)
Creates the Louisiana Sales Tax Simplification Task Force to develop a comprehensive plan to simplify Louisiana's sales tax administration and collection system. (OR SEE FISC NOTE GF EX)
Continues the study committee to evaluate the statewide system of healthcare delivery created by HCR No. 170 of the 2015 Regular Session of the Legislature
Expresses the intent of the legislature regarding House Bill No. __ of the 2018 Third Extraordinary Session of the Legislature with respect to certain "excess" state sales and use tax revenues
Creates the Task Force on Structural Changes in Budget and Tax Policy to continue the budget and tax reform evaluations begun in the 2016 First Extraordinary Session and urges and requests the governor to support and implement initiatives for structural change introduced in upcoming sessions that will lead to savings through more efficient and effective state operations
Provides relative to the Louisiana Uniform Local Sales Tax Board and the Louisiana Sales and Use Tax Commission for Remote Sellers (EN SEE FISC NOTE GF RV See Note)
Requests that the Bd. of Regents and the State Bd. of Elementary and Secondary Education, with the Taylor Foundation, La. Office of Student Financial Assistance, public postsecondary education management boards, and certain others, study certain issues relative to TOPS
Requests the Louisiana Workforce Commission and the Louisiana Department of Veterans Affairs to study employment practices and professional licensing requirements to benefit veterans in the workforce
Creates a task force to study meaningful oversight of the professional healthcare licensing boards statutorily created within the Department of Health and Hospitals.