Phases in the dedication of the temporary state sales tax levy to the Transportation Trust Fund. (8/1/20)
Impact
With the passage of SB 89, Louisiana state laws regarding the use of sales tax revenues will shift significantly as it channels funding specifically towards transportation infrastructure. The bill mandates that at least 50% of the funds dedicated to the TTF be evenly distributed across the nine multi-parish highway districts, which aims to ensure equitable investment in road maintenance and construction. This dedicated funding model seeks to create more reliable and safer transportation systems, addressing long-standing infrastructure concerns within the state.
Summary
Senate Bill 89, introduced by Senator Peacock, amends Louisiana state law regarding the collection and allocation of the temporary state sales and use tax. This bill phases in the dedication of 0.45% of the existing temporary sales tax to the Transportation Trust Fund (TTF), which is crucial for financing road and bridge projects across the state. The bill outlines a schedule for increasing the percentage of tax allocated to the TTF annually, ultimately ensuring that all funds collected from this levy will be directed towards infrastructure projects by 2025.
Sentiment
The general sentiment regarding SB 89 has been largely supportive among legislators and public stakeholders interested in improving the state's transportation infrastructure. Proponents argue that this bill is a necessary step toward better funding for roads and bridges, presenting it as a pragmatic solution to the urgent maintenance and construction needs of Louisiana's highway system. However, there are also voices of caution regarding the implications of relying heavily on sales tax revenues for infrastructure, emphasizing the need for a diverse funding strategy.
Contention
Despite the overall positive sentiment, there are notable points of contention surrounding SB 89. Critics raise concerns regarding the potential impact on the state general fund, as a sizable portion of sales tax revenue will be diverted to the TTF starting July 2021. They fear that such reallocations could limit available funding for other essential services or state operations. Additionally, there are apprehensions about the reliance on sales tax, which can be volatile and sensitive to economic fluctuations, for funding long-term infrastructure needs.
Phases in the dedication of the temporary state sales tax levy to the Construction Subfund of the Transportation Trust Fund. (8/1/22) (OR -$226,500,000 SG RV See Note)
Dedicates a portion of the avails of state sales and use tax to the Construction Subfund of the Transportation Trust Fund and extends .4% of current state sales and use tax (EG -$37,800,000 GF RV See Note)
Increases the per gallon excise tax on gasoline, diesel, and certain special fuels and levies an excise tax on electric and hybrid vehicles (OR -$305,000,000 GF RV See Note)