Nov 11, 2024
BATON ROUGE, La. (BRPROUD) — As part of Gov. Jeff Landry’s tax reform plan, lawmakers are considering updating the state’s sales tax collection to include digital goods and services. It is part of a broader plan to expand the sales tax base to pay off the lost revenue of an income tax cut. “Most of the digital goods were once taxed by the Louisiana Tax Code as tangible personal property. But now these goods and services are no longer taxed,” said state Rep. Ken Brass, D-Vacherie. The bill has come to be known as the “Netflix bill” as it would tack on sales taxes to online services such as video streaming, digital books and gaming. Some of the products are already subject to sales taxes, but this law would bring them all in line. It is estimated this modernizing of the sales tax would bring in an additional $40-million a year to the state coffers. This goes in hand with two other proposed bills that would expand the physical goods and services the sales tax applies to and make the temporary .45 sales tax permanent.  “I know we're talking a lot about the impending deficit, but it really is putting Louisiana in line with where it needs to be, right? I mean, because we probably should have done this around the dot com boom,” said state Rep. Rashid Young, D-Homer. This Week in Louisiana Politics: Tax reform special session, Primary Election results Some digital services that would be taxed include: computer software, newsletters, internet access services, video games, music and ebooks. Things that are excluded from the tax are patents, stocks, bonds, and telecommunication services. There was little pushback on this part of the plan, except some lawmakers wanted explicit language in the bill to ensure the tax would not apply to telehealth services. The bill now heads to the full house for more debate, where it will need a two-third vote of the entire body to pass. The more controversial sales tax bills that would add goods and services to the sales tax are expected to be debated in committee later this week. Latest News Trump 'border czar' says administration will conduct workplace immigration raids 5 things to know about Tom Homan, Trump's new border czar SEC fines LSU $250K after football fans throw trash on field during Alabama game What will happen to Trump's legal cases? Megan Fox is pregnant, expecting 1st child with fiancé Machine Gun Kelly
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