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)
Impact
The implications of SB 118 are significant, as it creates a sustainable revenue stream designed to support both infrastructure needs and higher education funding in the state of Louisiana. By allowing sales tax proceeds, which previously may not have been collected, to be redirected into these crucial areas, the bill aims to enhance urban development and educational resources. This provision positions the state to capitalize on e-commerce trends that can yield increased tax revenues, benefiting both public safety and educational advancement.
Summary
Senate Bill 118 is a legislative proposal aimed at dedicating specific state sales tax proceeds, which are collected from out-of-state vendors as a result of federal laws, to a newly established fund known as the Better Highways and Higher Education Fund. The bill mandates that any increase in state sales tax revenue due to the requirement for out-of-state vendors to remit sales tax on their internet and mail order sales should be allocated directly to this fund. This allocation is divided equally between the Transportation Trust Fund for highway construction and maintenance, and public postsecondary institutions based on their federally-financed research expenditures.
Sentiment
The sentiment surrounding SB 118 appears to be cautiously optimistic amongst its proponents. Supporters argue that the bill addresses critical funding shortages in transportation and education by leveraging federal changes to taxation on internet sales. However, there is also a degree of skepticism regarding the reliability of the revenue estimates and whether they will consistently meet the funding needs over time. Opponents may express concerns about dependency on out-of-state vendor taxation, which could fluctuate based on federal policy changes.
Contention
Notable points of contention surrounding SB 118 include debates over how effectively the bill can predict increased revenue from out-of-state vendors, as well as worries about the potential for future legislative changes at the federal level that might affect these collections. Additionally, the allocation of funds raises questions about prioritization among various transportation projects and whether higher education institutions will receive adequate support. Lawmakers will need to navigate these discussions to ensure that the benefits of the bill truly align with the needs of local infrastructure and educational systems.
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)
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))
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)
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)