Louisiana House Bill HB95

Louisiana 2018 Regular Session

• Introduced: 2/21/18
• Refer: 2/21/18
• Refer: 3/12/18

Caption

Authorizes Sales Tax District No. 4 of Lafourche Parish to levy an additional sales tax (OR +$2,800,000 LF RV See Note)

Impact

The bill effectively amends existing laws governing the imposition of sales and use taxes in Louisiana. While the state constitution imposes limitations on the combination of all sales and use taxes collected within a parish, this bill creates an exception for the new tax proposed by Sales Tax District No. 4. This authority also aligns with provisions that allow local governmental subdivisions to create special districts with additional taxing powers, thereby contributing to a more flexible fiscal environment for local governments to address their specific needs and funding requirements.

Summary

House Bill 95 proposes the authorization for Sales Tax District No. 4 of Lafourche Parish to levy an additional sales and use tax not exceeding 3/10%. This bill aims to enhance the local government's ability to generate revenue through taxation, thereby providing additional funds for any lawful purpose within the district. The initiative aligns with the current constitutional framework that allows local units of government to impose taxes subject to voter approval, ensuring that these measures receive support from the community before implementation.

Sentiment

The overall sentiment surrounding HB 95 is generally positive among local government officials and proponents of increased local funding. Supporters argue that an additional sales tax will empower the district to enhance public services and infrastructure. Conversely, there could be concerns from some residents regarding the additional financial burden of increased taxes, especially if the benefits are not clearly communicated or perceived to directly impact their community positively.

Contention

There may be notable points of contention regarding this bill, particularly concerning the decision-making process for imposing such a tax. Critics may argue that even with voter approval, there are concerns about the potential misuse of tax revenues or questions about transparency in how the funds will be allocated. Additionally, debates may arise about the fairness of imposing such taxes on residents, especially in economically diverse areas where residents may already be stretched financially.