While the rest of the state had the day off Monday, Louisiana’s House passed its first major new tax after more than a year of debate to address the state’s budget crisis, The News Star reports.
House Bill 27 by Rep. Lance Harris, R-Alexandria, which would levy a one-third cent sales tax and eliminate some sales tax breaks for business, passed by 76-26 vote on its second try. Harris is chairman of the House GOP Caucus.
Now the bill goes to the Senate, where members there have said they are more receptive to new taxes to mitigate the looming shortfall.
Harris’ bill, which would sunset after five years, would raise about $369 million annually. That’s less than Democrat Gov. John Bel Edwards wants to close next year’s $648 million shortfall, but more than the Republicans, who hold a strong majority, have been willing to give through two special sessions and one regular session.
Harris was able to get enough votes from reluctant Republicans, while enough Democrats also voted in favor to reach the two-thirds majority required for a new tax.
The House also agreed to pass House Bill 18 by Rep. Katrina Jackson, D-Monroe, to continue for five years a limitation on tax breaks people can take for taxes paid in other states. It was set to expire June 30 and would raise about $34 million.
