BATON ROUGE, Louisiana. (Illuminator Louisiana) – A central part of Gov. Jeff Landry’s plan to revamp the state’s tax laws is struggling to get the votes needed to pass, and some lawmakers have said the bill that would extend the state’s sales tax services and work is dead in its current form. .

Parliamentary Bill 9sponsored by Rep. Neil Riser, R-Columbia, was sidelined for the second day in a row Thursday because he opted not to bring it to a vote in the House. The measure would expand the state sales tax to apply to a list of more than 40 services, including lawn care, massage therapy and various home repair offerings.

Similar legislation to be put in place sales taxes on online streaming subscriptions and other digital services cleared the House on Wednesday.

Riser, who represents a rural area of ​​northeast Louisiana, expressed the precarious nature of the situation in an interview on the House floor as lawmakers adjourned for the day, saying there was nothing in the bill that could be amended to gain a legislator’s support without losing. the support of another.

“It’s like a ripple in time,” Riser said.

His bill is part of a package proposed by Governor Landry, offering a personal and business income tax cut in exchange for more sales taxes and fewer tax credits. Supporters of the plan argue its measures would bring more businesses and jobs to the state.

For a special session scheduled to end at 6 p.m. on November 25, the current pace of bills does not bode well for the initial package of bills.

Senate President Cameron Henry, a Republican from Metairie, said in an interview that Riser’s proposal was a particular sticking point for lawmakers.

“Services have been very difficult throughout this whole process because if you kept everyone inside, that’s one thing,” Henry said. “But once you start breaking down and picking winners and losers, it becomes very difficult to justify.”

Tax bills in Louisiana require a two-thirds majority in each legislative chamber to pass.

From the beginning, a significant number of lawmakers from each political party expressed reluctance to tax services and labor. Some fear its impact will hit low-income residents hardest, while others worry about the cost and logistical burden placed on small businesses and individual owners.

Rep. Mike Bayham, a Republican from Chalmette, said Riser’s bill would leave many small business owners no choice but to hire accountants who would likely charge extra because demand would “skyrocket “.

“Small businesses are going to flock to accountants’ offices,” Bayham said. “And by the way, what services does the bill exempt from tax? Those of accountants.

He said he hopes the governor realizes that parts of his plan could end up favoring larger businesses over smaller ones.

“We can’t be corporatists,” Bayham said. “We need to help our small businesses as well as our large businesses. Do not favor one over the other.

Sen. Gerald Boudreaux of Lafayette, who chairs his chamber’s Democratic caucus, said the large number of new services to be taxed would create collection enforcement problems.

“There are so many that have never been taxed before,” Boudreaux said. “…How are we going to regulate this, and how is this going to be done?”

New doubts began to rise Wednesday during a hearing on Riser’s bill in the House Ways and Means Committee when several insurance industry executives testified about how the proposal would force property insurance premiums to increase.

Rodney Braxton, a lobbyist for the trade association Insurance Council of Louisiana, told lawmakers that rates would undoubtedly increase if labor spent on home repairs was taxed.

The bill would exempt all property services and repairs resulting from an officially declared disaster and all services considered “major improvements” that increase the value of a property. However, insurance industry executives told the committee that these exemptions could actually create uncertainty in the underwriting market, ultimately leading to higher costs for policyholders.

If passed, Riser’s bill is expected to generate $1.9 billion in revenue for the state over the next five years, according to a report. analysis published Thursday evening by the nonpartisan Legislative Fiscal Office. Without this potential revenue available, lawmakers would likely have to consider raising sales taxes on other items.

The House successfully passed companion legislation that would set the effective sales tax rate at 4.4 percent, allowing 0.05 percent of a Parliamentary Bill 10sponsored by Rep. Mark Wright, R-Covington, cleared the chamber with a vote of 71-23 — just one short of the two-thirds needed for the tax measures.

Wright’s bill underwent several amendments that added tax exemptions for diapers, parish books and other special interests. The bill goes to the Senate Committee on Revenue and Fiscal Affairs.

Henry said he would prefer not to adjust the flat tax bills, which set rates of 3% for personal income and 3.5% for businesses.

“There may be a delay in implementing this measure to see how much revenue will be generated by the other bills…” Henry said, specifically mentioning the digital services tax bill. “Maybe we don’t need to talk about it right now.” We might fix this in the future.

Such discussions were put on hold until lawmakers reconvene on Monday.

Julie O’Donoghue contributed to this report.

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