LA HOUSE BILL – Yesterday, Louisiana Lawmakers rejected a bill that would have extended a half-cent of sales tax to fill a budget gap that will happen as the one-penny temporary sales tax expires June 30th. Louisiana Gov. John Bel Edwards has said such revenue is needed to avoid significant budget cuts to state agencies, higher Ed and other programs. Rep. Paula Davis, Republican from Baton Rouge had originally presented the bill thinking it would receive strong bipartisan support.
“I brought this bill at point-4 thinking it was a compromise,” Davis said.
Davis’ bill, HB10 was amended to raise the rate to a half-penny and although the vote was 60-40 in favor, 70 votes or a two-thirds majority was needed to pass. Extreme Deadlock is what House Speaker Taylor Barras observed and urged house members to try and reach compromise.
“What we need is movement from the two corners," he explained, "because we’re in two corners and no one has budged in the last three days.”
Some feel yesterday’s vote was heavily influenced by the Supreme Court of the United States as it ruled that states will be able to collect sales taxes from internet sales…which will yield a windfall of revenue to state coffers. Rep. Stuart Bishop, R-Lafayette reflected as much to Public Radio WRKF:
"The Supreme Court ruling, I think, changed a lot of people’s votes," explained Bishop. "As of right now, we do not have a timetable, when it’ll happen and how much revenue it’ll raise for the state."
Bipartisan tax groups say that while the SCOTUS ruling is good, it won’t fix Louisiana’s immediate budget problems. Thursday’s vote was seen as critical to the latest special session, which has only 5 days left and must end by 6 p.m. Wednesday.
