Louisiana Senate Bill SB3

Louisiana 2016 2nd Special Session

• Introduced: 6/6/16
• Refer: 6/6/16
• Refer: 6/7/16
• Report Pass: 6/14/16
• Refer: 6/14/16
• Report Pass: 6/15/16
• Engrossed: 6/17/16

Caption

Provides with respect to exemptions from state sales tax. (Item Nos. 7-35) (7/1/16) (RE DECREASE GF RV See Note)

Impact

If enacted, SB 3 would have a significant impact on local economies by providing tax relief to certain sectors, particularly in education and nonprofit organizations. The restoration of these sales tax exemptions is aimed at alleviating financial burdens on families and individuals who participate in educational and community activities. Notably, the bill highlights a continued effort by the state to support local nonprofits and ensure affordability in recreational and educational services.

Summary

Senate Bill 3, introduced during the 2016 Second Extraordinary Session, aims to amend and restore several exemptions to the state sales tax in Louisiana. The bill proposes to restore 28 specific sales tax exemptions that were suspended since April 1, 2016, reinstating them beginning July 1, 2016. These exemptions pertain to sales related to educational events, fishing supplies, and essential commodities like butane and propane for residential use. Specifically, it allows for tax exemption on sales of room rentals by nonprofit camps and shelters, admissions to school athletic events, and various sales by private educational institutions.

Sentiment

The sentiment surrounding SB 3 appears to be generally positive among proponents who argue that restoring these exemptions encourages community engagement and supports the missions of nonprofit organizations. Advocates expressed that this financial relief would benefit families and local businesses that rely on events tied to schools and nonprofit entities. However, sentiments could vary among fiscal conservatives who may view the restoration of exemptions as reducing state revenue unnecessarily.

Contention

While the bill received support in the Senate with a unanimous vote, some critics raised concerns regarding the financial implications of reinstating these sales tax exemptions. Detractors indicated that restoring exemptions could exacerbate ongoing budgetary constraints faced by the state, arguing for a more comprehensive review of tax policy rather than piecemeal exemptions. This introduces a potential point of contention regarding the balance between supporting nonprofit sectors and maintaining state revenue.