Louisiana Senate Bill SB11

Louisiana 2016 2nd Special Session

• Introduced: 6/13/16
• Refer: 6/14/16

Caption

Legislates with regard to sales tax exemptions for certain educational institutions. (Item Nos. 7, 13, 14, and 32) (7/1/16) (OR DECREASE GF RV See Note)

Impact

The impact of SB11 on state laws primarily revolves around financial implications for educational institutions and their operations. By reinstating these sales tax exemptions, the bill aims to relieve some financial burdens on private and parochial schools that comply with existing court orders and regulations. Supporters believe that reinstating these exemptions will promote educational access and support extracurricular activities that are vital for student development. Additionally, the exemptions could enhance the financial viability of various events held in schools, thereby encouraging community participation.

Summary

Senate Bill 11, also known as SB11, was introduced to address sales tax exemptions related to certain educational institutions in Louisiana. Specifically, the bill seeks to restore previously suspended sales tax exemptions for admissions to athletic and entertainment events, for sales to and by parochial or private elementary and secondary schools, and for meals provided by educational or medical institutions. These exemptions are set to apply for the period beginning July 1, 2016, through July 1, 2018, impacting the application of the 2% sales tax rate imposed during that time.

Sentiment

The overall sentiment surrounding SB11 appears to be supportive among education advocates and institutions directly affected by the sales tax exemptions. Many proponents argue that such provisions are necessary for fostering a robust educational environment. However, there may also be sentiment countering the restoration of these exemptions, particularly from fiscal conservatives who may contend that these tax breaks could adversely affect state revenue. The balance between educational support and economic implications is a central theme in the discussions surrounding this bill.

Contention

Notable points of contention include debates regarding the fairness of the tax treatment for private institutions compared to public schools and whether tax exemptions should be maintained during times of budget constraints. Critics may argue that the state's financial stability should take precedence over such exemptions, particularly if educational funding is inconsistent. The legislative discussion around SB11 highlights a broader conversation about public vs. private funding in education and the role of government in supporting various types of educational institutions.