The Legislature completed its second week of the 2021 Regular Session with a major step forward on tax reform, as the House overwhelmingly supported legislation to establish a centralized sales tax collection system in Louisiana, one of 1A’s top priorities for the Session.

Here is an update on key legislation 1A is engaged on and monitoring:

Centralized Sales Tax Collection

• HB 199 by Speaker Clay Schexnayder – This Constitutional Amendment establishes the State and Local Streamlined Sales and Use Tax Commission to modernize and simplify our tax system for Louisiana’s small businesses. This new 8-member Commission will have equal representation from state and local governments and will administer sales tax collection, auditing, and dispute resolution. This common-sense reform puts Louisiana’s businesses on a level playing field with online retailers like Amazon and Wayfair. The bill passed the House by a vote of 97-4 and now heads to the Senate.

Join 1A in responding to LABI’s call-to-action

Additional Tax Reform

Sen. Bret Allain is making rapid progress on his tax reform proposals, passing a number of bills out of the Senate and over to the House, including:

• SB 157 by Sen. Bret Allain – This measure exempts nonresident mobile workers who work in the state for fewer than 30 days from individual income tax and their employers from withholding tax. This change was recommended by both the Multistate Tax Commission (MTC) and the Council on State Taxation (COST). The bill passed the Senate by a vote of 39-0 and now heads to the House.


• SB 159 by Sen. Bret Allain – This Constitutional Amendment reduces the maximum rate of individual income tax from 6% to 5% and allows for, but does not require, a federal income tax deduction. The bill passed the Senate by a vote of 36-3 and now heads to the House.


• SB 160 by Sen. Bret Allain – This good-government bill simplifies tax administration for businesses by aligning state partnership reporting adjustments to federal taxable income with current federal partnership audit adjustments. The bill passed the Senate by a vote of 39-0 and now heads to the House.


• SB 161 by Sen Bret Allain – This legislation aids small businesses by extending, through 2025, the exemption from the corporate franchise tax on the first $300,000 of a small business corporation’s taxable capital. The bill passed the Senate by a vote of 39-0 and now heads to the House.

Read more from The Advocate at this link.

Educational Attainment

• SB 148 by Sen. Page Cortez – This bill creates the M.J. Foster Promise Program, a key priority of 1A’s 55 by 25 educational attainment initiative. Beginning in 2022, The M.J. Foster Promise Program would provide financial support for Louisiana adults to earn credentials that align with high-demand jobs in industries like construction, healthcare, information technology, manufacturing, and more. The program will serve as a “last dollar” award, open to Louisiana residents over the age of 21. 1A supported SB 148 in the Senate Education Committee, where it was reported favorably. The bill is pending Senate consideration.

Tell your Senator to support SB 148

• HB 85 by Rep. Scott McKnight – This legislation creates the Steve Carter Literacy Program. Public school students in grades K-5 who read below grade level, are at risk for reading difficulties, or meet certain other criteria identified by their educators or state assessments would be eligible for up to $1,000 per school year for eligible services intended to improve their reading or literacy skills. The program would give priority to economically disadvantaged students. 1A supported HB 85 in the House Education Committee, where it was reported favorably. The bill is pending House consideration.

Infrastructure

1A is monitoring key transportation funding measures expected to be debated as early as this week, including:

• HB 693 by Rep. Paula Davis – This bill phases in the dedication of the temporary 0.45% state sales tax to the Construction Subfund of the Transportation Trust Fund (TTF) beginning in 2022. Directing these monies to the Subfund would ensure they are protected for project delivery, construction, and maintenance. The bill would also extend the sales tax at a reduced rate of 0.4% from July 1, 2025 to June 30, 2031. By FY 2030-2031, 100% of the collections would be deposited into the Subfund. The bill also requires DOTD to prioritize construction of certain megaprojects, including I-49 South. HB 693 is scheduled for an initial hearing in the House Ways and Means Committee on Tuesday evening.


• SB 1 by Sen. Barrow Peacock – This bill also phases in the dedication of the temporary 0.45% state sales tax to the Construction Subfund of the TTF beginning in 2022, but does not provide for an extension of the tax. SB 1 was reported favorably by the Senate Finance Committee and is scheduled to be considered in the Senate on 4/26.

View 1A’s comprehensive bill tracker at this link.