What Taxes Lawmakers Are Working on as Special Session Winds Down

The special session of the Legislature must wrap up by 6pm Wednesday night and lawmakers still have a long way to go to close the budget deficit. Here's a list of taxes they are working on:

Sales Tax 

Lawmakers are still bickering over the proposed sales tax increase. Right now, we pay 4 cents on the dollar. This proposal would increase the state sales tax to 5 cents. The Senate has passed the tax with a 5 year expiration date. The House version is 18 months. If approved, the tax would go into effect on April 1. This tax would generate more than $210 million this fiscal year and more than $800 million a year. (HB 62)

Cigarette taxes 

This measure is on the way to the Governor for his signature. It boosts the price of a pack of cigarettes by .22 cents. The tax jumps from .86 cents a pack to $1.08. It would go into effect on April 1. (HB 14)

Car rental tax

This measure would reinstate a 2 1/2% tax on car rentals. This tax expired four years ago. This tax would bring in $800,000 this fiscal year and $5 million a year after that. (HB 39)

Phone tax

The telecommunication tax is due to expire April 1st. This measure would keep that tax on the books. It would bring in $900,000 this year and $3.4 million each year after that. (HB 72)

Stadium tax

This measure would let groups charge sales taxes at Louisiana domed stadiums and baseball facilities beginning April 1st. This would include music concerts and other non-athletic events. (SB 22)

Alcohol Taxes

The House has approved an increase in the alcohol tax. The measure is now headed to the Senate for final passage. Mike Johnson was the only local lawmaker to oppose this tax. This tax will cost you about a penny more on each beer and wine and hard liquor prices would go up by about 2 cents a serving. This tax would raise about $7 million for this budget year and $25 million a year. (HB 14)

Online sales tax

This item sets up a way the state can collect taxes from online retailers. Lawmakers don't know how much money this tax could bring in. This measure has passed both houses and is on the way to the Governor. (HB 30)

Corporate Franchise Tax

Still waiting on a decision from the Senate on this one. The measure passed on the House side. This would increase the franchise tax on more businesses across the state. This bill would bring in about $10 million. (HB 19)

Tax breaks for business

A couple of bills would set more limits on what businesses can deduct from their income for tax purposes.  No idea yet how much this would raise. (HB 55 and 87)