The House Ways and Means Committee approved legislation that would apply sales taxes to 41 services currently not taxed. This would generate 500 million dollars in tax revenues and help offset the loss of tax dollars from a proposed cut to income taxes. New Orleans Representative Mandie Landry voted against the bill and rattled off several services that would be taxed because of this legislation.
“Pest control, fixing the A/C, various plumbing, security system, fixing my fence, broken window, grass, had to paint a wall, shingles on the roof. Those are going to be additional expenses in my budget with taxes on them,” Landry explained.
House Ways and Means approved the bill to expand the sales tax base on a 16 to 2 vote. Landry was one of the two lawmakers who voted against it because it would tax several services, including home repair.
“These are new taxes. I’m not paying them right now. This is a tax on fixing a window, the fence, all these things. So, we are raising taxes,” Landry said.
The bill’s author, Columbia Representative Neil Riser, says the expansion of the sales tax base is part of Governor Landry’s tax reform plan. And the entire plan will result in more money in the pockets of Louisiana residents.
“It’s to lower the personal income tax, and also lower corporate tax, where your net gains, your net money that you’re keeping you’re able to spend. It’s greater,” Riser said.
Louisiana Revenue Secretary Richard Nelson also says the plan also calls for the elimination of sales taxes on prescription drugs.
“Instead of taxing grass cutting and car washes, we’re taxing their prescription drugs, which is something that we are a significant outlier from the rest of these states as well,” Nelson said.
The measure could receive a vote on the House floor by the end of the week.
The Louisiana House on Wednesday approved a bill to charge sales taxes on digital items, including Netflix.
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