Suspends annual state sales tax holidays until 60 days after adjournment of the 2016 Regular Session of the Legislature (EG1 +$3,300,000 GF RV See Note)
Impact
The resolution's impact is notable as it directly affects the state's budget and the financial planning of both consumers and businesses within Louisiana. By suspending the sales tax holiday, the state aims to generate additional revenue essential for funding state services, higher education, and health care, particularly for low- to moderate-income families. Expected outcomes include an increased tax burden on consumers during traditionally high sales periods, which may affect spending patterns and the local economy.
Summary
HCR15 is a House Concurrent Resolution that suspends the provisions authorizing annual state sales tax holidays in Louisiana until 60 days after the final adjournment of the 2016 Regular Session of the Legislature. The resolution is primarily a response to a significant budget shortfall projected at $1.6 billion for the upcoming fiscal year, stemming from a struggling economy characterized by falling oil prices and a challenging job market. The suspension of the tax holidays is intended to bolster state general fund revenues and support essential government operations during a time of fiscal crisis.
Sentiment
The sentiment surrounding HCR15 is mixed. Supporters, primarily from the legislative majority, argue that suspending tax holidays is a necessary measure to address pressing budget issues and maintain essential state services. Conversely, critics raise concerns about the potential negative impact on consumers and businesses, particularly those reliant on increased sales during the holiday periods. The divergent views highlight a tension between immediate fiscal needs and the long-term economic implications of tax policy changes.
Contention
Notable points of contention surrounding HCR15 include debates on the appropriateness of utilizing tax policy as a tool for budget management during economic downturns. Critics argue that such measures disproportionally affect lower- and middle-income families who may benefit the most from tax holidays. The discussions remain focused on balancing the state's need for revenue against the economic relief provided to constituents during critical retail periods.
Suspends the .45% state sales and use tax levy imposed in R.S. 47:321.1 until 60 days after final adjournment of the 2020 R.S. (OR -$392,000,000 GF RV See Note)
Expands the Annual Louisiana Second Amendment Weekend Holiday exemption and repeals other state sales tax holidays (Item #7) (EG +$400,000 GF RV See Note)