BATON ROUGE – Gov. Jeff Landry’s ambitious tax plan, which had previously encountered minimal resistance, hit its first bump on Thursday as lawmakers balked at applying sales taxes to more goods and services that are tax-free now.
Landry was unable to secure the 70 votes from the House of Representatives needed to pass a sales tax expansion that would tax more than 40 currently untaxed services. This bill, known as House Bill 9, would generate $500 million to partially offset the estimated $1.3 billion shortfall from cutting individual income taxes to a flat 3% tax. The proposed sales taxes would apply to several different services, such as streaming platforms like Netflix and online dating services like Tinder.
Rather than call this shaky bill for a vote, the House adjourned until Monday leaving time for back-room discussions for the governors and his allies in the House to round up more support.
Bumps popped up earlier in the day when the House recessed earlier than planned to give representatives time to discuss concerns about both House bills 9 and 10 which would reduce the existing .45% sales tax to 0.4%, repeal 84 current tax exemptions, and add new ones, such as exemptions for prescription drugs, baby and adult diapers and Bibles.
The House returned in the afternoon, but 90 minutes later than planned.
During the discussions, House Bill 10 gained support and was put to a vote, passing 71-23 after a lengthy debate over amendments and details that garnered support for the whole.
Early in the day, the House easily approved a $2,000 pay raise for certified teachers and a $1,000 increase for school support staff, passing the bill unanimously with a 99-0 vote. This raise will be partially funded by drawing from a $2 billion frozen education trust fund and applying it to reduce the debt in the separate teachers’ retirement system.
“We are freeing funds so that schools can give that pay raise,” said Rep. Tony Bacala, R-Prairieville, the bill’s sponsor. “We are mandating they dedicate the savings to teachers’ pay raises,” he said.
Charter schools and other institutions that have not contributed to the teachers’ retirement system will not qualify for this raise. Additionally, some school districts will have money left over after receiving these funds from the state. Any leftover funds are mandated to go toward other school employees rather than being spent on things such as textbooks.
“This $2,000 just makes permanent the $2,000 that teachers received as one-time payments in 2023, 2024, and 2025. They will know that this $2,000 is not a stipend and will now be attached to their salary,” said Rep. Tammy Phelps, D-Shreveport.
While the House was stumbling on the sales tax, across the Capitol the Senate passed a separate bill that could increase the number of juveniles sentenced to adult prison.
This bill will allow the Legislature to add to the list of crimes for which juveniles can be transferred to adult court without amending the Constitution. To achieve this, a constitutional amendment will be required, asking voters next March in a state-wide election to remove any language that limits which crimes can allow a juvenile to be transferred to adult court.
“I think they’re just looking for another way to lock juveniles up,” said Checo Yancy, policy director of VOTE From Chains to Change, which advocates on criminal justice issues.
“Changing the Constitution will make it very, very easy for them.”
Current law lists four crimes that are automatically transferable to adult court after a juvenile court finds probable cause. These include four of some of the most severe crimes, such as first and second-degree murder, aggravated kidnapping and first-degree rape are all automatically transferable under current law.
Several other crimes require the parish district attorney to decide whether a suspect should go through the juvenile or adult system. These include crimes such as manslaughter, armed robbery, second-degree rape, attempted murder and a second offense of burglary of an inhabited dwelling, according to the Louisiana Children’s Code.
“The bill isn’t changing anything; just availing discussions for the future,” said Sen. Heather Cloud, R-Turkey Creek, the bill’s sponsor.
Minors are required by federal law to be separated from adults if placed in adult facilities to limit the risk of abuse. However, these limitations often mean that juveniles will end up in solitary confinement or special housing, restricting their access to rehabilitative services.
“We currently have young people in North Louisiana housed in shipping containers and I pray to God that it is at least livable, but some have them living as animals,” said Sen. Regina Barrow, D-Baton Rouge.
This bill is part of a larger trend towards harsher penalties for juveniles in Louisiana. This year, the Legislature passed a bill that sends 17-year-olds to adult prisons and requires some youth to spend more time in secure care.
Noah Martin contributed reporting to this report.
Thursday at the Capitol: Teacher raises and juvenile sentencing bills passed, House tables a sales tax expansion
November 15, 2024
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