(Constitutional Amendment) Provides with respect to limitations on sales and use tax including exclusions and exemptions (Item #36) (OR +$90,800,000 SG RV See Note)
Impact
If approved, the bill is expected to significantly alter state tax revenues by enabling the imposition of sales and use taxes on motor fuels, which were previously exempt. This change may lead to increased funding for transportation and infrastructure projects, as revenues generated could be allocated to the Transportation Trust Fund. However, this could place a higher financial burden on consumers, particularly affecting regular drivers and businesses reliant on transportation fuels, impacting overall economic conditions in the state.
Summary
House Bill 82, also known as the Constitutional Amendment regarding limitations on sales and use tax, proposes to amend Article VII, Section 27(A) of the Louisiana Constitution. This amendment seeks to remove the existing exemption on state and local sales and use taxes for gasoline, motor fuels, and special fuels, allowing these fuels to be taxed. The proposed bill limits the state sales and use tax on such fuels to a maximum price of $2 per gallon. The bill is set to be submitted to voters during the statewide election on November 8, 2016, for their approval or rejection.
Sentiment
The sentiment surrounding HB 82 appears to be mixed. Proponents argue that the amendment is a necessary step to enhance revenue generation for crucial state projects, particularly in transportation. They believe that targeting an area previously exempt could bring more funds into the state economy. Conversely, opponents argue that this move could disproportionately impact low-income households and working-class citizens, as fuel costs contribute significantly to everyday expenses. The opposition calls into question the appropriateness of taxing essential commodities like fuel, thus fostering a sense of economic inequity.
Contention
Notable points of contention include the potential financial impact on families who rely heavily on fuel for their daily commutes and business operations. Critics of the bill are concerned that taxing gasoline and motor fuels could worsen financial strains on vulnerable populations, especially amidst rising living costs. Furthermore, there are debates on the adequacy of the proposed tax cap of $2 per gallon and whether it effectively balances revenue generation with the preservation of accessible fuel pricing for consumers.
(Constitutional Amendment) Removes the prohibition against levying a state sales and use tax on the sale of gasoline (Item #36) (EG +$90,800,000 GF RV See Note)
(Constitutional Amendment) Removes the prohibition of the state levying sales and use taxes on gasoline and certain motor fuels (OR +$173,250,000 GF RV See Note)
Provides for the extent of applicability of various exclusions and exemptions from state sales and use tax (Item #36) (EG +$789,900,000 GF RV See Note)
Constitutional amendment to authorize a parish governing authority to levy sales tax on motor fuels with the approval of the parish electors. (2/3 - CA13s1(A)) (OR INCREASE LF RV See Note)
(Constitutional Amendment) Provides relative to the deposit and use of the avails of the taxes levied on gasoline, motor fuels, and special fuels (OR SEE FISC NOTE SD EX)
Proposes temporary constitutional amendment allowing State constitutional convention convened to reform system of property taxation to propose statutory changes.
Proposes temporary constitutional amendment allowing State constitutional convention convened to reform system of property taxation to propose statutory changes.