Louisiana Senate Bill SB202

Louisiana 2017 Regular Session

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

Caption

Exempts sales and purchases of gold, silver, or numismatic coins, or platinum, gold, or silver bullion from sales and use tax. (gov sig)

Impact

If enacted, SB202 would modify existing tax laws to include specific exclusions for transactions involving precious metals and coins. This change could lead to a significant reduction in state tax revenue from these transactions, as they will no longer be subject to sales and use tax. The implications of this bill are particularly relevant for investors and traders, as it could stimulate a market for precious metals in Louisiana, potentially making the state a favorable destination for these types of investments.

Summary

Senate Bill 202, proposed by Senator Gary Smith, aims to exempt sales and purchases of gold, silver, and numismatic coins, as well as platinum, gold, and silver bullion from state sales and use tax. This exemption is intended to alter the current tax framework, allowing individuals and businesses engaging in the trading of these precious metals to do so without incurring the typical taxation found in other retail transactions. The bill emphasizes the need to encourage investment in tangible assets, as well as to maintain competitiveness with neighboring states that may offer similar tax advantages.

Sentiment

The sentiment around SB202 appears to be largely supportive among proponents who advocate for the financial freedom of investors and the economic opportunities associated with precious metals trading. However, there may also be concerns about potential revenue losses for the state, particularly from legislators focused on maintaining budgetary balance and funding for public services. The debate reflects broader discussions about tax policy and economic strategy in the state, particularly in terms of how best to stimulate economic growth.

Contention

While SB202 seems to garner approval from those looking to diversify investment opportunities, it does represent a contentious shift in tax policy. Critics may argue that by implementing such exemptions, the state could jeopardize critical funding streams that support essential services. This reflects the ongoing challenge for legislators in balancing the interests of economic development against the fiscal responsibilities of governing.