Imposes a state ad valorem tax and provides for the dedication of the avails of the tax to the TOPS Fund for the support of higher education (OR +$233,000,000 SD RV See Note)
Impact
If enacted, HB 656 will alter the financial landscape for higher education funding in Louisiana. By creating a dedicated funding stream for the TOPS Fund through the ad valorem tax, the legislation aims to ensure that financial resources are consistently available for scholarships, potentially leading to increased enrollment and student support in state universities. Additionally, the bill establishes new administrative protocols for the assessment and enforcement of this tax at the parish level, which will require regulatory oversight by the Louisiana Tax Commission.
Summary
House Bill 656 proposes the imposition of a state ad valorem tax set at 5.75 mills on the dollar of assessed property value across Louisiana. This tax is specifically designed to generate revenue for the Taylor Opportunity Program for Students (TOPS Fund), which supports scholarships for higher education. The bill outlines that tax proceeds must be collected and transmitted to the state treasury and mandates that a portion of revenue derived from this tax must be used to maintain a certain level of state general fund support for higher education during initial implementation.
Sentiment
The sentiment surrounding HB 656 appears to be cautiously favorable among proponents of education, as it promises to secure necessary funding for the TOPS scholarships. Education advocates are likely optimistic about the reinforcement of financial support for students. Conversely, concerns have been raised about the implications of increasing property taxes, especially in an economic landscape sensitive to tax burdens. Critics worry that additional levies may disproportionately affect lower-income property owners and reduce overall housing affordability.
Contention
Notable points of contention include discussions surrounding the reliance on property tax to fund educational programs, which some argue puts unnecessary strain on property owners. The bill's stipulation that newly generated funds should not supplant existing general fund appropriations for higher education raises questions about state budgeting priorities and funding adequacy for schools that depend on state support. As discussions continue, the balance of equitable funding against potential tax increases remains a focal issue.
Provides for temporary reduction of certain tax exemptions, exclusions, and deductions for support of K-12 and higher education (OR +$67,000,000 SD RV See Note)
Dedicates the avails of the existing one percent state sales and use tax to the Stability in Higher Education Fund and provides with respect to the extent of that tax base for purposes of monies available for deposit into the fund (Items #7 and 36) (EG SEE FISC NOTE GF RV See Note)
Provides for the dedication of certain proceeds for higher education and eliminates certain dedications of proceeds. (gov sig) (OR +$25,000,000 GF RV See Note)
Provides for procedures for the collection of delinquent ad valorem taxes and statutory impositions, tax auctions, tax auction certificates, and the redemption of certain property (RE SEE FISC NOTE LF RV See Note)
Expands the state sales and use tax base by restricting the applicability of certain exemptions and exclusions and dedicates the revenues attributable to the base expansion for support of the TOPS Program and certain other state educational institutions, Medicaid Program providers, and district attorneys (Item #1) (OR +$173,000,000 SD RV See Note)
To provide appropriations from the General Fund for the expenses of the Executive, Legislative and Judicial Departments of the Commonwealth, the public debt and the public schools for the fiscal year July 1, 2023, to June 30, 2024, and for the payment of bills incurred and remaining unpaid at the close of the fiscal year ending June 30, 2023; to provide appropriations from special funds and accounts to the Executive and Judicial Departments for the fiscal year July 1, 2023, to June 30, 2024, and for the payment of bills remaining unpaid at the close of the fiscal year ending June 30, 2023; to provide for the appropriation of Federal funds to the Executive and Judicial Departments for the fiscal year July 1, 2023, to June 30, 2024, and for the payment of bills remaining unpaid at the close of the fiscal year ending June 30, 2023; and to provide for the additional appropriation of Federal and State funds to the Executive and Legislative Departments for the fiscal year July 1, 2022, to June 30, 2023, and for the payment of bills incurred and remaining unpaid at the close of the fiscal year ending June 30, 2022.