BATON ROUGE — The special session to rewrite Louisiana’s tax code continued Tuesday at the state capitol, where proposed changes could affect everyday services such as car washes. The committee’s amendments spared two notable tax credits that were targeted for cuts.
During a Senate Revenue and Fiscal Affairs Committee meeting, several bills were discussed and amended.
House Bill 9, authored by State Rep. Neil Riser, R-Columbia, was up for debate in the Senate but was stalled once again. This bill proposes implementing sales taxes on 19 services and goods for the first time, including car washes, rideshare services, and delivery services.
Rep. Sam Jenkins Jr., D-Shreveport, spoke about the committee's goals.
“As it stands right now, we are trying to lower taxes as best we can, keep some control of the sales taxes as best as we can, and hopefully all of this will help the economy,” Jenkins said.
Among the most significant changes was the film tax credit, which was restored to $125 million. This figure represents a decrease from previous funding levels but is seen as a compromise to keep the program alive.
“I think it’s very important to bring the film industry tax back because it shows that it creates jobs, it helps the industry overall, and it helps investors,” Jenkins added.
The Historic Preservation Tax Credit, which encourages private investors to restore historic buildings, was also on the chopping block. State Rep. Dustin Miller, D-Opelousas, emphasized its importance for local communities.
“These credits are important for our community, especially the historic district. I mean those are buildings that have been unoccupied for a long time. You get investors who come in and get the credit to get those buildings back in commerce,” Miller said.
After days of discussion, the committee’s amendments also restored the historic restoration tax credit.
Additionally, lawmakers discussed a proposal to set the corporate income tax at a flat rate of 6 percent. The fate of House Bill 9, which would tax services that are typically not taxed, such as cable TV, remains uncertain.
Miller expressed confusion regarding the bill's current status.
“Right now, we don’t know what’s in HB 9. It started off with probably 40 to 50 services, and I think it’s down to 12. Every second it’s moving, so I can’t really take a position on a bill until we see exactly what services they are considering," he said.
Another bill taken up during the committee session was House Bill 7, which aims to double the tax deduction for seniors receiving pension income from $6,000 to $12,000. This proposal has been sent to the Senate floor for a hearing.
