Provides that the one percent state sales and use tax does not apply in Plaquemines Parish during a certain period of time (OR -$7,600,000 GF RV See Note)
Impact
The legislation is designed to offer some financial relief to residents and businesses in Plaquemines Parish while tolls are being collected, potentially easing the burden on consumers during this period. By exempting the sales tax, the bill aims to encourage local spending and support economic activity, which could be particularly beneficial during the toll collection phase when additional costs may affect residents' disposable incomes. Furthermore, this exemption may serve as a pilot for future discussions around tax policy in the state.
Summary
House Bill 165 proposes a temporary exemption from the one percent state sales and use tax on transactions in Plaquemines Parish, which will be in effect during the period when tolls are being collected on the Judge Perez Bridge. The bill stipulates that this exemption will begin on the first day of the next calendar quarter following the start of toll collection and will cease once toll collection ends. It also establishes requirements for the Department of Transportation and Development to notify relevant authorities about the commencement and cessation of toll collection.
Sentiment
Sentiment around HB 165 appears to be mixed, with supporters likely viewing it as a necessary measure to alleviate financial pressures on residents due to toll fees. However, there may be concerns among fiscal conservatives about the implications of tax exemptions on state revenue. Furthermore, questions around fairness and the need for similar measures in other areas could lead to contentious discussions among legislators and the public.
Contention
Key points of contention surrounding HB 165 may center on the potential revenue loss for the state during the period of the tax exemption, estimated at $7,600,000 in general fund revenue. Critics might argue that this loss could affect funding for essential services. Additionally, there may be discussions on whether similar tax exemptions should be made available during toll collections at other sites or concerning other types of fees, raising broader questions about tax equity and governmental budget priorities.
Provides relative to rebates to certain businesses domiciled in certain parishes for use of certain bridges and tunnels. (8/1/20) (OR DECREASE GF RV See Note)
Dedicates the avails of the existing one percent state sales and use tax to the Stability in Higher Education Fund and provides with respect to the extent of that tax base for purposes of monies available for deposit into the fund (Items #7 and 36) (EG SEE FISC NOTE GF RV See Note)