SLS 21RS-229 ORIGINAL
2021 Regular Session
SENATE BILL NO. 40
BY SENATOR WARD
TAX/SALES. Constitutional amendment to authorize a parish governing authority to levy
sales tax on motor fuels with the approval of the parish electors. (2/3 - CA13s1(A))
1 A JOINT RESOLUTION
2 Proposing to amend Article VI, Section 29(A) and Article VII, Sections 4(C) and 27(A) of
3 the Constitution of Louisiana and to add Article VI, Section 29.1 of the Constitution
4 of Louisiana; to authorize a parish governing authority to levy and collect a sales tax
5 on motor fuels; to require approval of the electors; to provide that the avails of the
6 tax shall be used for the construction and maintenance of highways and bridges
7 located in the parish where the tax is collected; to provide for submission of the
8 proposed amendment to the electors; and to provide for related matters.
9 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
10 elected to each house concurring, that there shall be submitted to the electors of the state of
11 Louisiana, for their approval or rejection in the manner provided by law, a proposal to
12 amend Article VI, Section 29(A) and to add Article VI, Section 29.1 of the Constitution of
13 Louisiana, to read as follows:
14 §29. Local Governmental Subdivisions and School Boards; Sales Tax
15 Section 29.(A) Sales Tax Authorized. Except as otherwise authorized in a
16 home rule charter as provided for in Section 4 of this Article, the governing authority
17 of any local governmental subdivision or school board may levy and collect a tax
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1 upon the sale at retail, the use, the lease or rental, the consumption, and the storage
2 for use or consumption, of tangible personal property and on sales of services as
3 defined by law, if approved by a majority of the electors voting thereon in an election
4 held for that purpose. The rate thereof, when combined with the rate of all other sales
5 and use taxes, exclusive of state sales and use taxes and taxes levied pursuant to
6 the authority granted in Section 29.1 of Article VI of this constitution, levied and
7 collected within any local governmental subdivision, shall not exceed three percent.
8 * * *
9 §29.1. Parish sales tax on gasoline, diesel fuel, and special fuels
10 Section 29.1. Except as otherwise authorized in a home rule charter as
11 provided for in Section 4 of this Article, a parish governing authority may levy
12 and collect a tax upon the retail sale of gasoline, diesel fuel, and special fuels
13 that are subject to excise tax under Chapter 7 of Subtitle II of Title 47 of the
14 Louisiana Revised Statutes of 1950, if approved by a majority of the electors
15 voting thereon in an election held for that purpose. The avails of this tax shall
16 not be required to be deposited in the Transportation Trust Fund and shall be
17 used solely to supplement state and federal funding for the construction and
18 maintenance of highways and bridges located in the parish in which the tax was
19 collected, as may be further provided by law.
20 Section 2. Be it resolved by the Legislature of Louisiana, two-thirds of the members
21 elected to each house concurring, that there shall be submitted to the electors of the state of
22 Louisiana, for their approval or rejection in the manner provided by law, a proposal to
23 amend Article VII, Sections 4(C) and 27(A) of the Constitution of Louisiana, to read as
24 follows:
25 §4. Income Tax; Severance Tax; Political Subdivisions
26 Section 4. * * *
27 (C) Political Subdivisions; Prohibitions. A political subdivision of the state
28 shall not levy a severance tax, income tax, or an inheritance tax, or and no political
29 subdivision of the state other than a parish governing authority shall levy a tax
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1 on motor fuel.
2 * * *
3 §27. Transportation Trust Fund
4 Section 27.(A) Creation of fund. Effective January 1, 1990, there shall be
5 established in the state treasury as a special permanent trust fund the Transportation
6 Trust Fund ("the trust fund") in which shall be deposited the "excess revenues" as
7 defined herein which are a portion of the avails received in each year from all taxes
8 levied on gasoline and motor fuels and on special fuels (said avails being referred to
9 as the "revenues") as provided herein. After satisfying pledges respecting that portion
10 of the revenues attributable to the tax rates in effect at the time of such pledges for
11 the payment of obligations for bonds or other evidences of indebtedness on the
12 effective date of this Section, the treasurer shall allocate such portion of the revenues
13 received in each year as necessary to pay all principal, interest, premium, if any, and
14 other obligations incident to the issuance, security, and payment in respect of bonds
15 as authorized in Paragraph (C) hereof. Thereafter, the portion of the revenues
16 remaining shall be deposited in the Bond Security and Redemption Fund in the state
17 treasury. After (1) the payment of any obligations for bonds or other evidences of
18 indebtedness in existence on the effective date of this Section which are secured by
19 revenues; (2) payments in respect of bonds authorized in Paragraph (C) hereof; and
20 (3) credit to the Bond Security and Redemption Fund, the treasurer shall deposit in
21 and credit to the trust fund all of the revenues remaining (the "excess revenues")
22 from the avails of all taxes levied on gasoline and motor fuels and on special fuels,
23 as follows: for the fiscal year beginning July 1, 1989, the avails of twelve cents per
24 gallon of said taxes received on and after January 1, 1990; for the fiscal year
25 beginning on July 1, 1990, the avails of fourteen cents per gallon of said taxes; for
26 the fiscal year beginning on July 1, 1991, and thereafter, the avails of all taxes levied
27 on gasoline and motor fuels and on special fuels other than the avails of any tax
28 levied by a parish governing authority pursuant to Section 29.1 of Article VI of
29 this constitution. Taxes levied pursuant to Section 29.1 of Article VI of this
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1 constitution shall not be considered "excess revenues" and shall not be required
2 to be deposited in the Transportation Trust Fund. Purchases of gasoline, diesel
3 fuel, or special fuels which are subject to excise tax under Chapter 7 of Subtitle II of
4 Title 47 of the Louisiana Revised Statutes of 1950 shall be exempt from the state
5 sales tax and any sales tax levied by a political subdivision as defined by Article VI,
6 Section 44(2), except for a tax levied pursuant to Section 29.1 of Article VI of
7 this constitution. The avails of any tax levied by a parish governing authority
8 pursuant to Section 29.1 of Article VI of this constitution shall not be considered
9 "excess revenues" and shall not be required to be deposited in the
10 Transportation Trust Fund. All monies appropriated by the Federal Highway
11 Administration and the Federal Aviation Administration, or their successors, either
12 reimbursed or paid directly, shall be paid directly or deposited in and credited to the
13 trust fund.
14 * * *
15 Section 2. Be it further resolved that this proposed amendment shall be submitted
16 to the electors of the state of Louisiana at the special election to be held on November 8,
17 2022.
18 Section 3. Be it further resolved that on the official ballot to be used at the election,
19 there shall be printed a proposition, upon which the electors of the state shall be permitted
20 to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
21 follows:
22 Do you support an amendment to authorize a parish governing authority,
23 with the approval of the voters, to levy and collect a sales tax on the retail
24 sale of motor fuels, with the tax collections used solely for construction and
25 maintenance of highways and bridges located in the parish where the tax was
26 collected?
27 (Amends Const. Art. VI, §29(A) and Art. VII, §4(C) and 27(A); adds Const.
28 Art. VI, §29.1)
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 40 Original 2021 Regular Session Ward
Present constitution prohibits the levy by a political subdivision of a severance tax, income
tax, inheritance tax, or a tax on motor fuels.
Proposed constitutional amendment authorizes a parish governing authority, subject to voter
approval, to levy a sales tax on motor fuels.
Present constitution authorizes parish and municipal governing authorities and school boards
to levy and collect a tax upon the sale at retail, the use, the lease or rental, the consumption,
and the storage for use or consumption, of tangible personal property and on sales of services
as defined by law, if approved by a majority of the electors voting in an election held for that
purpose. The total of these taxes levied and collected within any parish or municipality is
limited to 3%.
Proposed constitutional amendment retains present constitution and adds an exception for
a tax levied by a parish governing authority on the sale of motor fuels pursuant to proposed
constitutional amendment from the 3% limit on sales taxes in a parish.
Present constitution establishes the Transportation Trust Fund as a special treasury fund and
requires that all state taxes levied on gasoline and motor fuels be deposited annually into the
fund. The current state excise taxes on gasoline and motor fuels total 20 cents per gallon.
Monies in the fund are used to provide for construction and maintenance of roads and
bridges of the state and federal highway systems, the Statewide Flood-Control Program,
ports, airports, transit, and the Parish Transportation Fund. Further, present constitution
prohibits the levy of any state or local sales tax on gasoline and motor fuels.
Proposed constitutional amendment retains these provisions but adds an exception to that
prohibition for a tax levied by a parish governing authority on the sale of motor fuels
pursuant to the proposed constitutional amendment.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held November 8, 2022.
(Amends Const. Art. VI, §29(A) and Art. VII, §4(C) and 27(A); adds Const. Art. VI, §29.1)
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