Louisiana 2017 Regular Session

Louisiana House Bill HB548

Introduced
3/31/17  
Introduced
3/31/17  
Refer
3/31/17  
Refer
4/10/17  

Caption

Establishes a rebate for state sales and use tax paid on certain industrial utilities (OR -$56,900,000 GF RV See Note)

Impact

If passed, this bill would create a direct financial incentive for manufacturers, potentially leading to increased investment and growth in the industrial sector. The rebate is designed to make Louisiana more competitive as a manufacturing location by reducing the operational costs associated with state sales and use taxes on vital utilities. This, in turn, could foster job creation and economic growth within the state as companies may expand their operations or relocate to the state to take advantage of the new tax incentives.

Summary

House Bill 548 seeks to establish a rebate for state sales and use taxes paid on certain industrial utilities, specifically targeting those utilized in the manufacturing process. This initiative is designed to provide financial relief to manufacturers who pay sales and use tax on essential utilities such as steam, water, and energy. By offering a rebate amounting to twenty-five percent of the taxes paid, the bill aims to support the manufacturing sector within Louisiana, which is classified under specific codes by the Louisiana Workforce Commission.

Sentiment

The sentiment around HB 548 is generally positive among proponents, particularly within the business and manufacturing communities. Supporters argue that the rebate will alleviate financial burdens on manufacturers and potentially enhance the state’s overall economic activity. However, there may be concerns regarding the long-term fiscal implications, as the state will see a reduction in tax revenues, leading to discussions about the sustainability of such incentives.

Contention

One notable point of contention regarding HB 548 involves the balance between providing tax incentives to promote industry growth and ensuring that the state can support essential services without significantly losing tax revenue. Opponents of such tax rebates might question whether the benefits provided to manufacturers justify the costs incurred in lost revenue. This debate centers around the prioritization of economic incentives versus maintaining robust state funding for public services.

Companion Bills

No companion bills found.

Previously Filed As

LA HB559

Repeals the state sales and use tax exclusion for manufacturing machinery and equipment and the exemption for business utilities and provides a refund of the state sales and use tax collected on certain manufacturing machinery and equipment and industrial utilities (OR INCREASE GF RV See Note)

LA HB43

Exempts certain business utilities from state sales and use taxes (OR -$69,200,000 GF RV See Note)

LA HB376

Excludes certain business utilities from state and local sales and use taxes (OR -$2,300,000 GF RV See Note)

LA HB603

Exempts certain business utilities from state sales and use taxes (RE -$62,000,000 GF RV See Note)

LA HB157

Exempts certain business utilities from a state sales and use tax levy (OR -$85,000,000 GF RV See Note)

LA HB94

Provides for the extent of the sales and use tax exemption for business utilities (Item #16) (OR SEE FISC NOTE GF RV)

LA HB64

Provides for the extent of the state sales and use tax exemption for business utilities (Items #9 and 36) (EG +$238,200,000 GF RV See Note)

LA SB6

Exempts purchases of utilities used by commercial farmers for on-farm storage from state sales and use tax. (gov sig) (EN DECREASE GF RV See Note)

LA HB3

Provides for the rate and base of state sales and use taxes (Item #1) (OR +$507,000,000 GF RV See Note)

LA HB2

Provides for the rate and base of state sales and use taxes (Item #1) (OR +$507,000,000 GF RV See Note)

Similar Bills

No similar bills found.