Louisiana House Bill HB148

Louisiana 2021 Regular Session

• Introduced: 3/19/21
• Refer: 3/19/21
• Refer: 4/12/21
• Report Pass: 4/28/21
• Engrossed: 5/6/21
• Refer: 5/10/21
• Report Pass: 5/17/21
• Enrolled: 6/1/21
• Vetoed: 6/29/21

Caption

Exempts certain educational institutions from state sales and use tax on the lease or rental of tangible personal property (EN -$200,000 GF RV See Note)

Impact

If enacted, HB 148 would have a notable impact on state law by expanding the current tax exemption framework for educational institutions. It could lead to a significant reduction in tax obligations for accredited osteopathic colleges, thereby supporting their financial sustainability. This exemption could potentially enable these institutions to allocate more resources to educational programs and initiatives that benefit students, including enhanced facilities or updated technologies that support learning.

Summary

House Bill 148 aims to amend Louisiana's state sales and use tax regulations by providing exemptions for certain educational institutions. Specifically, it allows institutions accredited by the American Osteopathic Association Commission on Osteopathic College Accreditation to lease, rent, or purchase tangible personal property without incurring sales and use taxes if these transactions directly relate to their educational mission. This builds upon existing provisions that already grant similar exemptions to a specific category of higher education institutions in Louisiana.

Sentiment

The sentiment surrounding HB 148 appears to be predominantly positive, especially among stakeholders associated with higher education and its financial governance. Supporters may argue that the exemption facilitates improved educational offerings and helps promote osteopathic education within the state. However, as with many tax-related bills, there may be some opposition from those concerned about the overall tax revenue impact and the precedent set for other institutions seeking similar exemptions.

Contention

While the bill is largely seen as beneficial to educational institutions, notable contention may arise around the implications of expanding tax exemptions. Critics could argue that increased exemptions might lead to a decline in state revenues, thereby affecting funding for other essential state services. There also may be concerns regarding fair competition among educational institutions, as some might argue that not all categories of colleges receive equivalent benefits under similar circumstances.