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The Louisiana House of Representatives approved legislation Wednesday expanding sales taxes to digital streaming services, establishing a flat tax on corporate income and repealing a whole host of special interest tax breaks, Louisiana Illuminator reports.
Sponsored by Rep. Ken Brass, D-Vacherie, House Bill 8 cleared the lower chamber in an 80-19 vote and now heads to the Senate for consideration.
The proposal expands the state sales tax to an array of digital goods and services, including streaming video and audio services, smartphone and tablet apps, video games and any other downloadable or streamed content. The bill is part of Gov. Jeff Landry’s tax reform plan, which looks to swap lower income taxes for an expansion of sales taxes on goods and services.
The Legislative Fiscal Office estimates Brass’ proposal could generate more than $178 million in state revenue over the next five years—assuming an existing voluntary compliance rate of roughly 35%. That money could help offset other parts of the tax package including House Bill 2, which also passed through the House on Wednesday. Sponsored by Rep. Julie Emerson, R-Carencro, HB2 replaces the current corporate income tax structure that maxes out at 7.5% with a single flat rate of 3.5%.
