Louisiana House Bill HB693

Louisiana 2021 Regular Session

• Introduced: 4/21/21
• Refer: 4/22/21
• Report Pass: 4/28/21
• Refer: 4/29/21

Caption

Dedicates a portion of the avails of state sales and use tax to the Construction Subfund of the Transportation Trust Fund and extends .4% of current state sales and use tax (EG -$37,800,000 GF RV See Note)

Impact

The implications of HB 693 are significant for the state’s transportation infrastructure funding. By earmarking a dedicated revenue stream for transportation projects, the bill aims to enhance highway and bridge preservation efforts, fostering improvements in crucial areas of infrastructure that are often neglected due to budgetary constraints. The Department of Transportation and Development will be required to prioritize projects funded by this revenue, focusing primarily on highway and bridge preservation, which are essential for ensuring safe and efficient transportation for Louisiana residents.

Summary

House Bill 693 seeks to dedicate a portion of the state sales and use tax revenues to the Construction Subfund of the Transportation Trust Fund in Louisiana. The bill proposes to allocate a percentage of the revenues collected from a .45% state sales and use tax each fiscal year from 2021 to 2025, with increasing amounts deposited into the subfund until 40% by FY 2024-2025. Additionally, the bill introduces a new .4% state sales and use tax effective July 1, 2025, which will also contribute to the subfund, gradually rising from 50% in FY 2025-2026 to 100% by FY 2030-2031.

Sentiment

Discussions around HB 693 appear to reflect a generally positive sentiment among supporters, who argue that sustainable investment in infrastructure is essential for economic development and public safety. Proponents view the bill as a proactive measure to secure necessary funding for transportation projects that enhance connectivity and improve the quality of life for citizens. However, the sentiment may not be universally shared, as concerns could arise regarding the potential impact of an increased sales tax on consumers and the economic burden it may impose on low-income families, drawing criticism from certain demographics.

Contention

Notable points of contention regarding HB 693 might center on the transparency of how funds are allocated and the accountability of the DOTD in managing these funds. Critics may express worries about the efficiency of government spending and whether earmarking the sales and use tax as proposed will adequately address the complex infrastructure needs of various communities across the state. Additionally, there could be debates about whether other funding sources should be pursued to alleviate reliance on sales tax increases.