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Special session tax bill to apply sales tax to tax-free goods, services unable to secure sufficient votes

1 week 2 days 10 minutes ago Friday, November 15 2024 Nov 15, 2024 November 15, 2024 11:54 AM November 15, 2024 in News
Source: LSU Manship School News Service

BATON ROUGE – Gov. Jeff Landry's ambitious tax plan, which had previously encountered minimal resistance, hit its first bump on Thursday as lawmakers balked at applying sales taxes to more goods and services that are tax-free now.

Lawmakers said Landry was unable to secure the 70 votes from the House of Representatives needed to pass a sales tax expansion that would tax more than 40 currently untaxed services, so the House delayed voting on it.

The bill, House Bill 9, would generate $500 million to partially offset the estimated $1.3 billion shortfall from cutting individual income taxes to a flat 3% tax.

The proposed sales taxes would apply to services ranging from streaming platforms like Netflix and online dating services like Tinder to car washes and pet grooming.

Rather than call the bill to a vote, the House adjourned until Monday leaving time for back-room discussions for the governor and his allies to try to round up more support.

Meanwhile, other significant bills moved forward Thursday, two in the House and the other in the Senate.

The House narrowly passed another part of Landry's tax plan and voted 99-0 to advance a $2,000 pay raise for certified teachers and a $1,000 increase for school support staff.

The Senate passed a bill that could increase the number of juveniles sentenced to adult prison.

If voters statewide approve a constitutional amendment next March, the bill would give the Legislature more leeway to add to the list of crimes for which juveniles can be transferred to adult court.

Republicans in the House caucused in private during the day to try to find a way forward on the tax measures.

After the caucus, the House narrowly passed the one measure, House Bill 10. It would reduce a 0.45% portion of the state sales tax to 0.4%, repeal 84 current tax exemptions, and add new ones, such as exemptions for prescription drugs, baby
and adult diapers and Bibles.

Tax bills require a two-thirds vote to pass. The House passed HB 10 71-23 after a lengthy debate over amendments and other details.

The pay raises for teachers, which must be approved by the Senate, would be partially funded by drawing from a $2 billion frozen education trust fund and applying it to reduce the debt in the separate teachers' retirement system.

"We are freeing funds so that schools can give that pay raise," Rep. Tony Bacala, R-Prairieville, the bill's sponsor, said. "We are mandating they dedicate the savings to teachers' pay raises."

Charter schools and other institutions that have not contributed to the teachers' retirement system will not qualify for the raise money.

Any leftover state funds at other schools are mandated to go toward other employees rather than being spent on things such as textbooks.

"This $2,000 just makes permanent the $2,000 that teachers received as one-time payments in 2023, 2024, and 2025," Rep. Tammy Phelps, D-Shreveport, said. "They will know that this $2,000 is not a stipend and will now be attached to their
salary."

If voters approve, the juvenile crime bill approved in the Senate would allow the Legislature to add to the list of crimes for which juveniles can be transferred to adult court without further amending the Constitution.

The plan is to ask voters next March in a statewide election to remove any language from the Constitution that limits which crimes can allow a juvenile to be transferred to adult court.

"I think they're just looking for another way to lock juveniles up," Checo Yancy, policy director of VOTE From Chains to Change, which advocates on criminal justice issues, said. 

"Changing the Constitution will make it very, very easy for them," Yancy said.

Current law lists four crimes that are automatically transferable to adult court after a juvenile court finds probable cause.

These include four of some of the most severe crimes. First and second-degree murder, aggravated kidnapping and first-degree rape are all automatically transferable under current law.

Several other crimes require a parish district attorney to decide whether a suspect should go through the juvenile or adult system. These include crimes such as manslaughter, armed robbery, second-degree rape, attempted murder and a second
offense of burglary of an inhabited dwelling, according to the Louisiana Children's Code.

"The bill isn't changing anything; just availing discussions for the future," Sen. Heather Cloud, R-Turkey Creek, said.

Minors are required by federal law to be separated from adults if placed in adult facilities. However, these limitations often mean that juveniles will end up in solitary confinement or special housing.

"We currently have young people in North Louisiana housed in shipping containers, and I pray to God that it is at least livable, but some have them living as animals," Sen. Regina Barrow, D-Baton Rouge, said.

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