Exempts business utilities from state sales tax for businesses impacted by 2020 states of disaster or emergency. (gov sig) (Item #26) (OR -$84,400,000 GF RV See Note)
Impact
If enacted, SB3 will amend existing tax legislation in Louisiana, ensuring that eligible businesses can receive tax relief on essential utility expenses during a time of crisis. The financial impact of this bill is significant, with an estimated reduction of approximately $84,400,000 in general fund revenues as businesses benefit from this exemption. This measure is seen as a supportive gesture toward helping the local economy recover from the effects of the emergencies declared in the state.
Summary
Senate Bill 3, introduced by Senator Cathey, addresses the state sales tax exemption specifically for business utilities. This bill outlines an exemption related to the sale or use of utilities including steam, water, electric power, energy sources, and natural gas for businesses adversely affected by the disasters or emergencies declared in 2020. The proposed law is designed to alleviate some financial burdens on these businesses by reducing their tax obligations during a critical recovery period lasting from November 1, 2020, until June 30, 2021.
Sentiment
The sentiment surrounding SB3 appears generally positive, especially among business owners and advocates for economic relief measures. Supporters of the bill emphasize the importance of providing immediate financial assistance to businesses that have faced severe disruptions. However, there may be concerns from fiscal conservatives about the long-term impacts of tax exemptions on the state budget, noting the potential challenges for revenue generation in subsequent years.
Contention
While the bill has garnered support for its intent to help struggling businesses, some legislators may express concerns about the precedent it sets for tax exemptions. Questions may arise regarding fairness and the allocation of state resources, as well as the potential for abuse of the exemption if not adequately regulated. Therefore, discussions around the bill may also touch upon how to balance immediate relief with prudent fiscal management.
Exempts purchases of utilities by commercial farmers and agricultural manufacturers impacted by a declared state of emergency or disaster from state sales and use tax. (gov sig) (Item #26) (OR -$3,200,000 GF RV See Note)
Exempts purchases of certain farm equipment from the state sales and use tax during a declared state of emergency or disaster. (gov sig) (Item #26) (OR DECREASE GF RV See Note)