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)
Impact
The enactment of HB 80 introduces a new funding mechanism that could significantly enhance the financial landscape for both transportation and higher education in Louisiana. The bill stipulates that the Secretary of the Department of Revenue must inform key legislative figures of any changes in federal law impacting the state's ability to collect sales tax from out-of-state vendors. This could facilitate a more responsive approach to revenue collection and allocation, providing the state with a stable source of funding that adapts to legislative changes at the federal level.
Summary
House Bill 80 aims to address the funding needs of both transportation and higher education in Louisiana by creating the Better Highways and Higher Education Fund. This fund is intended to receive a designated portion of state sales and use tax revenues generated from out-of-state vendors selling through the internet and mail order. By mandating that 50% of these revenues are allocated to the Transportation Trust Fund, the bill seeks to support infrastructure projects prioritized by the state. The other half is earmarked for public postsecondary institutions, ensuring that higher education receives necessary financial support for its operations and initiatives.
Sentiment
General sentiment surrounding the bill appears to be supportive among legislators who recognize the dual need for investment in infrastructure and education. The funding structure outlined in HB 80 is seen as a positive development that aligns with state needs. However, there could be underlying concerns regarding the reliance on out-of-state sales tax revenues, as this dependency could fluctuate with changes in federal regulations and consumer behavior, which may pose risks to the anticipated revenue streams.
Contention
Some notable points of contention could arise from how effectively the state will be able to implement and manage the fund, especially in light of potential volatility in sales tax collections from internet and mail orders. For instance, discussions may focus on the appropriateness of the 50/50 allocation between transportation and education, as different stakeholders might advocate for a larger share for their respective sectors. Additionally, how the estimated amounts are calculated by the Revenue Department and Legislative Auditor might also be scrutinized to ensure transparency and accuracy in revenue reporting.
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)
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.
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)
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)
Requests that the Bd. of Regents and the State Bd. of Elementary and Secondary Education, with the Taylor Foundation, La. Office of Student Financial Assistance, public postsecondary education management boards, and certain others, study certain issues relative to TOPS
Requests the Louisiana Workforce Commission and the Louisiana Department of Veterans Affairs to study employment practices and professional licensing requirements to benefit veterans in the workforce
Creates a task force to study meaningful oversight of the professional healthcare licensing boards statutorily created within the Department of Health and Hospitals.