Revenue measures from the 2016 La. Special Session

Revenue Bills Passed

  •  Increase Louisiana’s 4-cent sales tax by an additional “clean” penny. Revenue raised: $215 million for 2016 and $883 million annually. House Bill 62.
  • Eliminate state sales tax exemptions, including a number of business exemptions, by “cleaning” four pennies of existing state sales tax. Revenue raised: $80 million for this year’s budget and $400 million annually. House Bill 61.
  •  Increase cigarette tax from 86 cents per pack to $1.08. Revenue raised: $11 million for 2016 and $46 million annually. House Bill 14.
  • State sales tax on hotel rooms booked through short-term rental such as Airbnb. Revenue raised: Uncertain. House Bill 59.
  • Reinstate a 2.5 percent state car rental tax that expired four years ago. Revenue raised: $800,000 for 2016 and $5 million annually. House Bill 39.
  • Renew the state telecommunications tax that expires April 1. Revenue raised: $900,000 for 2016 and $3.4 million annually. House Bill 72.
  • Provide a method for collecting state sales tax from online retailers. Revenue raised: Uncertain. House Bill 30.
  • Reduce the discount rate a business receives for timely filing and payment of state alcohol taxes. Revenue raised: $94,000 for 2016 and $375,000 annually. House Bill 28.
  • Reduce the discount rate for tobacco dealers for expenses related to tax collection. Revenue raised: $275,000 for 2016 and $1.1 million for state general fund annually. House Bill 18.
  • Reduce tax credit for insurance premium tax. Revenue raised: $8 million for 2016 and 2017 budget years. House Bill 87.
  • Increase tax rates charged on liquor, wine and beer. Revenue raised: $4.7 million for 2016 and $19.2 million annually. House Bill 27.
  • Expand corporate franchise tax to include additional businesses. Revenue raised: $10 million for 2016, $89 million for 2017-18 and $94 million thereafter. House Bill 19.
  • Add back certain deductions on corporate income taxes. Revenue raised: Uncertain. House Bill 55.
  •  Allow sales taxes to be charged at certain events at Louisiana domed stadiums and baseball facilities for events such as music concerts, but not athletic events. Revenue raised: Uncertain. Senate Bill 22.
  • Cap the amount a vendor can receive as compensation for timely filing and payment of state sales taxes. Revenue raised: $1.6 million for 2016 and $6.4 million annually. House Bill 43.
  • Reduce and eventually eliminate the Enterprise Zone tax credit. Revenue raised: $2 million in fiscal year 2017-18 up to $50 million in Fiscal year 2020. House Bill 71.

Revenue Bills that Failed to Pass

  • Reduce the inventory tax credit. Revenue raised: About $50 million annually. House Bill 46.
  • Require advance payment of some sales taxes. Raises no new revenue but moves about $2 million or less of sales tax collections into the current fiscal year. House Bill 54.

Note: Revenue estimates based on fiscal notes and could vary based on last minute floor amendments.

Information courtesy of the Council for a Better Louisiana