BATON ROUGE, La. (BRPROUD) — The full details of the governor’s proposed tax reform plan is still under wraps to the public. Legislators got a chance Tuesday to learn more about the broad ideas they’ll be debating in a special session. The state is facing an over $700 million budget hole next year with the temporary .45 sales tax rolling off and some triggers for an automatic income tax reduction. The sales tax was passed in 2016 as a way to help fill the $2 billion shortfall that Gov. John Bel Edwards inherited in his first term and set to sunset in 2025. The trigger for the personal income tax reduction was part of a 2021 law that if a state savings account hits a certain point, then there is an automatic reduction in the next fiscal year the legislature budgets for. The governor’s plan looks to further reduce the income tax than the triggers would lower it to and make the temporary sales tax permanent. EBR voters to decide on amendment that packs many changes for city-parish government Under the proposed plan, there would be a flat 3% individual income tax rate, with the lowest earners (under $10,000) not being subject to the tax at all. It would also increase the retirement income exemption to $12,000. This would create an additional $400 million shortfall for the budget. In order to offset that money, they plan to expand the goods and services subject to sales tax – largely focusing on online sales. “The broader your base of your sales tax, you know, the more stable and I would say the lower the overall rates can be, because you're going to raise more revenue on kind of a broader swath,” said Secretary of the Department of Revenue Richard Nelson. “I think when you look across states, it's relatively arbitrary about how many services they tax.” Louisiana delegation weighs in on call for FEMA funding, flood insurance reform Services include hotel rooms, landscaping, amusement activities, streaming services and other things the administration feels are luxury things that won’t heavily impact the poorest people in the state. The plan wants to remove sales tax on medications, but they have to make changes to the constitution to do so. Part of that proposed amendment would shift around the emergency funds that are ballooning up. “Basically, get rid of the revenue stabilization fund and move about $2 billion into the budget stabilization fund,” Nelson said. “So, almost double the cap on the budget stabilization fund to address for this, I would say the increased volatility of those tax sources and then have more money in our savings account.” The governor has committed to making the teacher stipend from this year permanent and is part of his funding plans. Close Thanks for signing up! Watch for us in your inbox. Subscribe Now BRProud Daily News SIGN UP NOW The plan also includes moves to repeal the corporation franchise tax, which would lose the state around $400 million. They’d also repeal inventory tax credits and other tax incentive programs in order to move toward a grant-based system that rewards corporations not with tax breaks up front, but grants for job creation and other positive initiatives. They propose a 3.5% flat corporation income tax, down from the 7.5% rate. There are no official dates yet for the special session. It is said to take place between Election Day and Thanksgiving.  Latest News 'Redneck Air Force' delivers aid to North Carolina mountains Louisiana nursing home owner Bob Dean agrees to pay $8.2M after violating federal housing act New Brave Cave lawsuit alleges BRPD illegally detained, strip searched pregnant teen iPhone update allows users to text for help when there's no cell service. How it works 18-wheeler in St. Gabriel pulls down poles, damages homes; causes power outage