Sales Tax

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All hope appears lost that the state legislature will pass any tax measures in this special session to address a nearly one-billion dollar shortfall. A sales tax bill that would provide nearly 300-million dollars in revenues was defeated soundly for a second time last night. Jeremy Alford, the publisher of LA-politics-dot-com, was there for the vote.

Alford says that the bill "went down in flames" with a 33-70 vote. 

 

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The House is set to try again today on passing tax proposals that will go towards closing a one-billion dollar budget deficit. A sales tax bill that would generate 300-million dollars anually was soundly defeated on Wednesday, but House Speaker Taylor Barras says that measure is still a critical part of addressing the fiscal cliff.

 

Lawmakers are running out of time as the special session to pass revenue generating measures must end Wednesday night. Barras says we’ll know after today on whether this special session will be successful.

 

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Will the state House come to an agreement on solving a looming one-billion dollar budget deficit as a result of expiring state sales taxes? President of the Public Affairs Research Council Robert Travis Scott says even though Republicans are the majority party in the lower chamber, Democrats are holding firm on their wishes

 

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Two tax bills that will help the state overcome a looming one billion dollar budget deficit are heading to the House floor. Some Republicans were seeking to make permanent a quarter of a temporary one-cent sales tax. But Shreveport Representative Alan Seabaugh didn’t like the permanent part, so he changed the legislation so a quarter of the temporary one-cent sales tax stays until mid-2021.

 

Seabaugh says that the State would need about two more years before it "permanently sticks its hands into businesses' pockets."

 

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House Republicans are looking at renewing at least some or all of the temporary one cent sales tax as a way to address a looming one billion dollar shortfall. Houma Representative Tanner Mcgee.

 

But Governor John Bel Edwards says he will not support any plan that maintains the current sales tax rate which is currently five percent, one of the highest in the country. And Baton Rouge Representative Ted James says legislators promised to let the temporary sales tax penny expire when they voted for it in 2016.