Dedicates to the Better Highways and Higher Education Fund state sales tax proceeds collected each fiscal year as a result of a federal law which will require vendors located out-of-state to collect sales tax on their Internet and mail order sales.
Impact
The funding allocated from the Better Highways and Higher Education Fund is divided equally between two key areas: the Transportation Trust Fund and public postsecondary institutions. Fifty percent of the funds will be directed to the Transportation Trust Fund to assist with highway construction and maintenance projects, while the remaining half will support higher education institutions based on their federally financed research and development expenditures. Overall, this bill aims to enhance infrastructure and educational support in the state, potentially leading to economic growth and improved public services.
Summary
Senate Bill 463 intends to establish the Better Highways and Higher Education Fund in Louisiana. This fund will be sourced from the state sales tax proceeds collected from vendors located out-of-state as a result of federal legislation that compels these vendors to remit sales tax on their internet and mail order sales. The bill mandates that the Secretary of the Department of Revenue, in conjunction with the Louisiana Legislative Auditor, develop a reasonable estimate of these sales tax proceeds for each fiscal year. This financial mechanism aims to generate much-needed revenue to support crucial sectors within the state.
Sentiment
The general sentiment surrounding SB463 appears to be cautiously optimistic among stakeholders. Advocates for infrastructure and educational improvements see the bill as an innovative approach to leveraging out-of-state vendors' contributions for local benefit. However, there may be concerns about the reliability of forecasting tax proceeds from out-of-state vendors, requiring a monitoring mechanism to ensure the intended financial support materializes effectively. Overall, it highlights a growing reliance on e-commerce taxation to boost state finances.
Contention
While SB463 aims to bolster state revenues, there might be points of contention regarding the equity and effectiveness of taxing out-of-state vendors. Critics may argue about the implications of relying on federal legislation and the potential administrative hurdles that could arise in accurately estimating and collecting these taxes. Additionally, concerns about the allocation process for the funds may surface, particularly regarding equitable support for diverse educational institutions and infrastructural needs across different regions in Louisiana.
Dedicates to the Better Highways and Higher Education Fund state sales tax proceeds collected each fiscal year as a result of a federal law requiring vendors located out-of-state to collect sales tax on their Internet and mail order sales. (gov sig) (OR SEE FISC NOTE GF RV See Note)
Creates the Out-of-State Sales Tax Collection Fund in the state treasury and dedicates certain proceeds from implementation as a result of a federal law which will require vendors located out-of-state to collect sales tax on their Internet, mail order, or other sales into the state. (gov sig) (OR SEE FISC NOTE SD RV)
Creates the Better Highways and Higher Education Fund and dedicates a certain portion of state sales and use taxes from out-of-state vendors into the fund (RE SEE FISC NOTE GF RV See Note)
Constitutional amendment to authorize the state to levy and collect an additional state sales tax at the same rate as the state sales tax upon Internet and mail-order sales in lieu of local sales tax, all the proceeds of the tax to be distributed to each political subdivision and to dedicate the proceeds of a state tax on the same sales. (2/3 - CA13s1(A))
Constitutional amendment to provide for taxation of Internet and mail-order sales and to provide for dedication and distribution of the proceeds. (2/3-CA13s1(A)) (1/1/16)
To provide for the payment of a vendor's compensation for the state sales and use tax collection and to dedicate certain state sales tax revenues (EN +$4,300,000 GF RV See Note)
Dedicates the proceeds of the state sales tax collected on hotel occupancy tax in Grant Parish to the Grant Parish Economic Development Fund (OR -$5,000 GF RV See Note)
Allows a taxpayer who is subject to any collection procedure for local sales tax, or whose request for a refund of such tax has been denied by a collector, to initiate a mandatory, binding, arbitration proceeding. (See Act) (RE SEE FISC NOTE LF EX)