Louisiana 2019 Regular Session

Louisiana House Bill HB304

Introduced
3/28/19  
Introduced
3/28/19  
Refer
3/28/19  
Refer
3/28/19  
Refer
4/8/19  

Caption

Provides for state sales and use tax exemption for new automobiles, aircraft, boats, vessels or other water craft used as demonstrators

Impact

The proposed law has significant implications for state tax policy concerning the sale of tangible personal property. By re-establishing these exemptions through June 30, 2025, HB 304 aims to boost state revenue from vehicle sales while reducing the fiscal strain on dealers who may otherwise face higher operational costs. Critics may argue that this extension could negatively impact state revenues and influence public services dependent on tax income, proposing a need for a careful balance between helping businesses and ensuring adequate funding for governance.

Summary

House Bill 304 focuses on reinstating exemptions from the state sales and use tax for specific categories of vehicles, including new trucks, automobiles, aircraft, and boats, as long as these items are used as demonstrators. This reinstatement extends to vehicles held in dealer inventory, facilitating the sales process by easing the tax burden for dealers who utilize such vehicles to attract potential buyers. The bill aims to maintain sales activity in the automotive and recreational vehicle market by making it financially feasible for dealers to offer demonstration vehicles without financial penalties from taxes.

Sentiment

Sentiment surrounding HB 304 appears to lean towards support from stakeholders within the automotive industry. Supporters, particularly dealership representatives, are likely to endorse the bill as a pro-business initiative that aids their financial viability during economic fluctuations. However, there may be apprehensions from fiscal conservatives about the long-term impacts on state revenue and the fairness of tax exemptions that primarily benefit certain sectors over others.

Contention

Notable points of contention within discussions about HB 304 may include debates on the extent of tax exemptions granted to businesses at the potential expense of state revenues. While proponents advocate for the necessity of these exemptions to foster a healthy marketplace, opponents could raise concerns about the equity of benefiting a select sector and the implications for broader tax policies. These discussions underscore ongoing tensions between promoting local business interests and maintaining sufficient state funding for essential services.

Companion Bills

No companion bills found.

Previously Filed As

LA HB209

Authorizes a sales and use tax exemption for new automobiles, aircraft, boats, vessels or other water craft used as demonstrators (EN NO IMPACT GF RV See Note)

LA HB609

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

LA HB53

To establish a framework upon which to repeal the property tax on business inventories and offshore vessels as well as the state income tax credits associated therewith through the repeal of a state sales and use tax, the levy of a limited, temporary state sales and use tax, and limitations on the applicability of certain exclusions and exemptions from certain state sales and use taxes (Items #31 and 36) (OR SEE FISC NOTE GF RV)

LA HB555

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

LA HB10

Provides for the rate of the state sales and use tax and for exemptions, exclusions, credits, and rebates claimed against sales and use taxes; and provides for a flat rate of income tax for individuals, estates, and trusts, increases the standard deduction, and modifies or repeals certain income tax deductions and credits (Items #5, 6, and 8) (EN SEE FISC NOTE 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 HB444

Provides for the termination of certain tax exemptions, exclusions, credits, deductions, and other tax incentives

LA HB101

Provides for the extent of applicability of various exclusions and exemptions from state sales and use tax (Item #36) (EG +$789,900,000 GF RV See Note)

LA HB641

Provides for the termination of certain tax exemptions, exclusions, credits, deductions, and other tax incentives (EG INCREASE GF RV See Note)

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)

Similar Bills

LA HB209

Authorizes a sales and use tax exemption for new automobiles, aircraft, boats, vessels or other water craft used as demonstrators (EN NO IMPACT GF RV See Note)

LA HB609

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

MS SB2191

Sales tax; remove tax on wholesale sales of beer.

KY HB84

AN ACT relating to liability protection in emergencies.

NV AB57

Revises various provisions relating to motor vehicles. (BDR 9-274)

IL HB1497

VEH CD-LIABILITY-RENTALS

AL HB174

Crimes & offenses, further provides for the crime of discharging a firearm

CA SB353

Insurance: classes.