Provides relative to the sales and use tax exemption for certain institutions of higher education (OR DECREASE GF RV See Note)
Impact
The passage of HB 135 is expected to have a notable impact on financial operations within higher education institutions, particularly those that might be hindered by the current limitations of exemption eligibility. By extending the sales tax exemptions to nationally accredited independent colleges and universities, the bill could reduce operational costs for these institutions. This change may promote greater equity among educational institutions, allowing those that achieve national accreditation to compete effectively. In addition, it is likely to positively influence the affordability of educational resources for students enrolled in these institutions.
Summary
House Bill 135 seeks to amend the existing sales and use tax exemptions pertaining to educational institutions in Louisiana. Specifically, the bill expands eligibility for the state and local sales tax exemptions to include nationally accredited independent institutions of higher education. This change is aimed at aligning with the educational mission of such institutions, allowing them to benefit from sales tax exemptions similar to those available to regionally accredited institutions already covered under current law. The proposed law comes into effect on July 1, 2025, implying a future implementation time frame.
Sentiment
The sentiment surrounding HB 135 has been largely supportive among educational institutions advocating for parity in taxation policies. Supporters view this bill as a necessary adjustment to ensure fair treatment of all eligible institutions, thereby promoting educational growth and access. However, there may also be concerns regarding the potential long-term effects on state tax revenues, particularly if a significant number of institutions take advantage of this exemption, which could detract from public funding for other areas.
Contention
While the bill enjoys support from various educational circles, it faces scrutiny regarding funding implications. Critics may express concern that increasing the number of institutions eligible for tax exemptions could lead to decreased revenue for state and local governments, potentially impacting public services. Additionally, the question of whether such tax exemptions should be universally applied to all colleges regardless of their accreditation may spur debate around educational oversight and resource allocation in the state.
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)
Provides a state sales tax exemption for certain farmers for acquisition of renewable energy systems and items and services for energy efficiency improvements (OR DECREASE GF RV See Note)
Changes local sales and use tax exemptions for commercial fishermen and certain seafood processing facilities from optional to mandatory (EN DECREASE LF RV See Note)
Provides tuition and fee exemptions at public postsecondary education institutions for Louisiana women of a certain age. (gov sig) (OR DECREASE SG RV See Note)