Louisiana 2017 Regular Session

Louisiana House Bill HB562

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

Caption

Provides with respect to the levy of state sales and use taxes on certain sales of tangible personal property and services (OR INCREASE GF RV See Note)

Impact

The implications of HB 562 on state laws are significant. By including services in the sales tax base, the bill may enhance state revenue from previously untaxed services which proponents argue are balancing out the budgetary shortfalls. Proponents believe the expanded tax base could alleviate some financial pressures on state services and infrastructure. Furthermore, the broader application of exemptions helps protect vulnerable populations by ensuring that essential services remain more affordable, particularly for lower-income citizens who rely heavily on these exemptions.

Summary

House Bill 562 aims to amend Louisiana's sales and use tax regulations by expanding the tax base to include various sales of services. The bill specifically addresses the taxation of over a dozen services, including personal services such as massage therapy, escort services, insurance services, data processing, and other miscellaneous services. The proposed amendments also aim to update the exemptions and exclusions from sales tax, ensuring that certain necessities, such as food and prescription drugs, remain exempt across all state sales and use tax levies. This change is intended to simplify the tax code and bring clarity to both taxpayers and tax authorities regarding what constitutes taxable transactions.

Sentiment

The sentiment surrounding HB 562 is mixed, with supporters highlighting its potential to increase state revenue and fiscal stability. They argue that broadening the tax base is necessary for sustainable economic growth and state funding. However, opponents raise concerns about the potential burden this new taxation could impose on consumers, particularly in economically vulnerable communities. Critics also argue that the bill's enactment might lead to higher prices for essential services, ultimately impacting everyday citizens' financial burdens.

Contention

A notable point of contention stems from the inclusion of various personal and professional services in the taxable base. Critics argue that certain services should inherently remain untaxed due to their essential nature, such as healthcare-related services. The debate centers around finding a balance between increasing state revenue and protecting consumers, particularly those already facing economic hardships. Additionally, some members of the legislature voice concerns regarding fairness and the potential backlash against increased taxation of services that had historically been exempt.

Companion Bills

No companion bills found.

Previously Filed As

LA HB655

Provides with respect to the levy of state sales and use taxes on certain sales of services (OR +$202,000,000 GF RV See Note)

LA HB19

Provides with respect to taxation of the sales of certain services (Item #2) (OR +$124,000,000 GF RV See Note)

LA HB423

Provides relative to state and local sales and use taxes (OR INCREASE GF RV See Note)

LA HB673

Provides with respect to the exclusions and exemptions applicable to sales and use taxes (RR2 SEE FISC NOTE GF RV See Note)

LA HB636

Provides with respect to the imposition of sales and use taxes (OR +$196,000,000 GF RV See Note)

LA HB53

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)

LA HB61

To provide with respect to the applicability of certain exclusions and exemptions from state sales and use taxes (EN +$272,300,000 GF RV See Note)

LA HB163

Requires that certain repairs to tangible personal property be excluded from state sales and use taxes and sales and use taxes in East Feliciana Parish (EG SEE FISC NOTE LF RV See Note)

LA HB578

Provides with respect to state and local sales and use taxes and exemptions to those taxes (EN DECREASE GF RV See Note)

LA HB36

Provides with respect to the applicability of certain exclusions and exemptions from state sales and use taxes (Item #16) (OR DECREASE GF RV See Note)

Similar Bills

LA HB23

Provides with respect to the rate and base of the state sales and use tax (Item #7) (EG +$288,000,000 GF RV See Note)

LA HB17

Provide for the applicability of certain exclusions and exemptions to state sales and use taxes (Item #7) (OR +$84,000,000 GF RV See Note)

LA HB561

Levies a 1/2 cent state sales and use tax and dedicates the proceeds to the 21st Century Transportation and Infrastructure Fund (OR +$428,000,000 SD RV See Note)

LA HB20

Provides relative to the base of the state sales and use tax and to provide for the applicability of certain exclusions and exemptions (Item #7) (OR +$143,000,000 GF RV See Note)

LA HB25

Provides with respect to the rate and base of state sales and use tax (Item #22) (OR +$435,000,000 GF RV See Note)

LA HB15

Provides with respect to the rate and base of state sales and use tax (Item #22) (OR +$549,000,000 GF RV See Note)

LA HB555

Provides with respect to the exclusions and exemptions applicable to sales and use tax

LA HB10

Provides for the rate and base for state sales and use taxes (Item #1) (EN +$463,000,000 GF RV See Note)