Centralized Sales Tax Collection Bill Faces Huge Hurdle In Louisiana Legislature
Louisiana’s legislature is about three weeks away from the start of a fiscal session. For two months, lawmakers will debate tax policies in the state. Taking center stage could be a bill from Representative Tanner Magee (R-Houma).
The bill aims to change the way local sales taxes are collected. Instead of having businesses pay local sales taxes to individual parishes, they would bypass local collectors and go straight to the state.
The centralized sales tax collection system has support from the Louisiana chapter of the National Federation of Independent Business, representing small business owners in the state. But it's expected to face opposition from local governments, who are concerned the change could create a cash-flow problem.
Representative Magee says the bill faces a huge hurdle in front of a Legislature that has proven unenthusiastic about tax reforms in the past. Facing elections this year, lawmakers could take an even more hands-off approach.
The bill would need support from two-thirds of both chambers in the Legislature and clear a vote of the people before becoming law.
On this week's Capitol Access, Representative Magee discusses the constitutional amendment and the pushback anticipated from local governments.