Louisiana Senate Bill SB232

Louisiana 2019 Regular Session

• Introduced: 4/16/19
• Refer: 4/16/19

Caption

. Excludes funeral establishments that make payment to a third party for cash advance items from the definition of dealer for state and local sales and use tax. (7/1/19)

Impact

The proposal modifies state law governing sales tax exemptions until June 30, 2025. Specifically, it formalizes the exemption criteria related to funeral services and cash advances. Supporters of the bill believe this will help funeral establishments operate more efficiently by reducing operational costs, which may ultimately lead to lower prices for consumers seeking funeral services during difficult times. Additionally, the proposed law could allow funeral homes to remain competitive in a challenging market by maintaining service affordability.

Summary

Senate Bill 232 aims to exempt funeral establishments from state and local sales taxes regarding certain cash advance items. By redefining the term 'dealer' to exclude funeral establishments that collect payments for services delivered by third parties, the bill provides a clearer regulatory framework. This legislative action is intended to alleviate the tax burden on funeral homes while enabling them to provide comprehensive services without additional costs caused by taxation on cash advance items, such as cemetery charges, flowers, and other related services.

Sentiment

The sentiment surrounding SB 232 appears to be generally positive among those in the funeral services industry, as it addresses a specific concern regarding the financial accessibility of funeral services. Community advocates and funeral directors who support the bill see it as a necessary adjustment that aligns state tax law with the realities of the funeral business. However, some critics argue that the bill could open loopholes or lead to unintended consequences if not carefully monitored, suggesting a need for balanced oversight.

Contention

Despite its supportive sentiment, SB 232 has raised questions about potential tax revenue impacts on state and local budgets. While proponents cite the necessity for financial relief for funeral services, opponents call for thorough evaluations of how these tax exemptions might affect overall tax income. The discussion also highlights the broader implications of tax policy adjustments on public services and fiscal responsibility. Ensuring that such exemptions do not set precedent for further requests from other industries remains a critical point of contention among lawmakers.