Louisiana House Bill HB53

Louisiana 2016 2nd Special Session

• Introduced: 6/6/16
• Refer: 6/6/16
• Report Pass: 6/7/16
• Engrossed: 6/13/16
• Refer: 6/14/16
• Report Pass: 6/16/16
• Enrolled: 6/23/16
• Chaptered: 6/28/16
• Passed: 6/28/16

Caption

Provides with respect to sales of certain services and tangible personal property at certain publicly owned facilities (Item #35) (EN SEE FISC NOTE GF RV)

Impact

If enacted, HB 53 would significantly reform the way that taxes are levied on events at publicly owned facilities in Louisiana. The proposed local access charge would create a new revenue stream for parishes where these facilities are located. Notably, a portion of the state sales tax proceeds would be allocated to educational institutions, such as the Louisiana School of Math, Science, and the Arts, and the New Orleans Center for Creative Arts. This allocation aims to provide additional funding to valuable educational programs and promote economic development within the state.

Summary

House Bill 53 seeks to amend existing laws related to the sales of certain services and tangible personal properties at publicly owned facilities, primarily focusing on domed stadiums and baseball facilities. The bill specifically introduces a local public entertainment facility access charge, set at four percent of the retail price of services or properties sold at these venues. It allows for exemptions from both state sales and local taxes for various activities associated with large scale events at such facilities, thereby aiming to benefit local economies and enhance the attractiveness of state-owned venues for hosting events.

Sentiment

Despite the overall support for the bill in terms of economic development, there are concerns regarding its implications for local governance. Proponents argue that by providing tax exemptions and establishing new revenue mechanisms, the bill will stimulate business activities and attract more events to Louisiana. However, opponents have voiced apprehensions over potential negative impacts on local revenues and the autonomy of local governments to impose taxes that fund essential services.

Contention

A significant point of contention arises from the bill's provision to exempt certain sales from local taxation unless the local authority first opts to exempt those sales from taxation. This could create disparities in tax revenues across different areas, primarily benefiting larger municipalities at the expense of smaller communities. Additionally, the imposition of the local access charge itself raises questions about affordability for event-goers and how it may ultimately affect ticket prices and accessibility to events at these venues.