Louisiana Senate Bill SB235

Louisiana 2019 Regular Session

• Introduced: 4/17/19
• Refer: 4/17/19
• Report Pass: 4/29/19
• Engrossed: 5/1/19
• Refer: 5/2/19
• Report Pass: 5/20/19
• Enrolled: 5/31/19
• Chaptered: 6/11/19
• Passed: 6/11/19

Caption

Repeals unused tax credits. (gov sig) (EN NO IMPACT GF RV See Note)

Impact

The repeal of these tax credits is expected to have a notable impact on state revenue and tax administration. By removing unutilized credits, Louisiana aims to tighten its tax legal framework, potentially increasing the overall efficiency of tax collection. Supporters of the bill argue that it will provide a more straightforward tax structure, allowing for better fiscal planning and management within the state. However, there may be concerns regarding the implications for taxpayers who previously benefited from these tax credits.

Summary

Senate Bill 235, introduced by Senator Morrell, is legislation aimed at amending existing tax laws in Louisiana, specifically focusing on the repeal of unused tax credits. By eliminating these credits, the bill seeks to streamline Louisiana's tax code and reduce unnecessary financial burdens on state finances. The effective date for the provisions of this act is set for income tax periods beginning January 1, 2019, and for corporation franchise tax periods starting on January 1, 2020. This bill represents a significant shift in how certain tax incentives are structured within the state tax system.

Sentiment

The sentiment surrounding SB 235 was largely consensus-driven among legislative members, with a unanimous vote (90 yeas and no nays) in favor of the bill during its final passage on May 30, 2019. This lack of opposition suggests a general agreement that the elimination of unused tax credits aligns with beliefs about government efficiency. Nonetheless, while the voting reflects a positive sentiment, it also highlights the potential for underlying challenges where affected taxpayers may have different opinions on the matter.

Contention

Despite the apparent support for SB 235, notable points of contention may arise from community discussions regarding the fairness of repealing tax benefits, particularly during economic downturns. Some legislators and community advocates may argue that tax credits, even if underutilized, serve a purpose in stimulating certain sectors or supporting vulnerable populations. Therefore, while the bill is framed as an improvement to the tax code, it could face scrutiny regarding its broader socio-economic implications.