Imposes a one cent state sales and use tax for ten years dedicated to the construction of highways and bridges constituting major economic development corridors and capitalization of the Louisiana State Transportation Infrastructure Bank (EG +$792,000,000 SD RV See Note)
Impact
The bill's implementation is intended to create a significant financial resource for enhancing Louisiana's transportation infrastructure. By specifying a list of highway and bridge projects that will receive funding, such as upgrades to interstates and major roadways, the legislation seeks to address long-standing infrastructure challenges. Supporters argue that improved infrastructure directly correlates to economic growth, job creation, and better accessibility for citizens and businesses alike. The proposed projects are expected to enhance connectivity within the state, thereby promoting economic stability and development.
Summary
House Bill 778 proposes the introduction of an additional 1% state sales and use tax in Louisiana, which is set to be in effect for ten years, commencing July 1, 2015. The tax will be applicable to the same tax base currently subjected to the 4% state sales and use tax, and it aims to bolster funding for specific highway and bridge projects deemed essential for the state's economic development corridors. The initial $100 million accumulated from this tax will be directed into the Louisiana State Transportation Infrastructure Bank Fund, while any remaining funds will support infrastructure projects under the Major Economic Development Corridors Fund.
Sentiment
Sentiment around HB 778 appears to be generally supportive among lawmakers and stakeholders invested in economic growth and infrastructure improvements. The bill signifies an effort to robustly finance critical projects that may otherwise be sidelined due to budgetary constraints. However, there may be opposition concerned about the additional tax burden on consumers and the long-term commitment of the state to fund these projects responsibly. Critics might question the effectiveness of funneling additional tax revenue into specific projects rather than addressing broader fiscal challenges within the state's budget.
Contention
While HB 778 aims to provide a dedicated funding stream for transportation, the imposition of an additional sales tax raises potential contention over its impact on the public. Critics may argue that any increase in taxes may disproportionately affect lower-income residents, thus detracting from the perceived benefits of improved infrastructure. Moreover, the specification of certain projects within the bill might lead to debates regarding prioritization and efficacy; taxpayers could question why specific projects were chosen over others that may also hold significant importance for community development. Overall, with approaches to raising funds for essential services like infrastructure historically contentious, HB 778 is likely to spark discussions among various stakeholders about its broader implications.
Levies a 1/2 cent state sales and use tax and dedicates the proceeds to the 21st Century Transportation and Infrastructure Fund (OR +$428,000,000 SD RV See Note)
Dedicates a portion of the avails of state sales and use tax to the Construction Subfund of the Transportation Trust Fund and extends .4% of current state sales and use tax (EG -$37,800,000 GF RV See Note)
(Constitutional Amendment) Dedicates the avails of the existing one percent state sales and use taxes for the support of public elementary through post-secondary education (RE +$113,000,000 SD RV See Note)
Repeals the reduction in the state sales and use tax rate and dedicates a portion of the avails of the state sales tax to fund teacher pay raises (EG -$276,800,000 GF RV See Note)
Dedicates the avails of the existing one percent state sales and use tax for the support of public elementary through post-secondary education (EG +$231,000,000 GF RV See Note)
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.