LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 6 HLS 21RS 30
Bill Text Version: ORIGINAL
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: March 3, 2021 12:17 PM Author: RISER
Dept./Agy.: Revenue
Subject: Hurricane Preparedness Sales Tax Holiday Analyst: Benjamin Vincent
TAX/SALES-USE-EXEMPT OR -$100,000 GF RV See Note Page 1 of 1
Provides for the effectiveness of the annual state sales tax holiday for hurricane-preparedness items or supplies
Present law suspends certain state and local sales and use tax exemptions, subjecting purchases during the Hurricane
Preparedness Sales Tax Holiday (R.S. 47:305:58) to the full 4.45% state-level tax rate through July 1, 2025, at which time
these purchases will become fully exempt. The holiday, when effective, is held the last Saturday and Sunday in May, and
exempts the first $1,500 of purchases of certain hurricane-preparedness items and supplies.
Proposed law provides that the exemptions under the Hurricane Preparedness Sales Tax holiday would be reinstated, and
fully exempt from the total rate of 4.45% of state sales and use tax. Proposed law additionally repeals the statutory
suspension for the one-time sales tax holiday in November 2020 (R.S. 47:305:74).
Effective upon governor's signature.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. ($100,000) ($100,000) ($100,000) ($100,000) $0 ($400,000)
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total ($100,000) ($100,000) ($100,000) ($100,000) $0 ($400,000)
EXPENDITURE EXPLANATION
LDR reports that modifying the current set of suspended exemptions will require minor expenditures for tax return form
redesign, and for computer system modification, development, and testing.
REVENUE EXPLANATION
Proposed law provides that the suspended Hurricane Preparedness sales tax holiday in R.S. 47:305.58 would be reinstated,
and that these purchases would be fully exempt from state sales and use tax.
A multi-year average estimate of recent sales tax data for this holiday implies an annual general fund impact of
approximately $100,000 at a 4.45% state tax rate.
The state revenue loss is depicted as entirely state general fund in the table above, but small amounts of loss (roughly 1%
of the total) will occur to the Tourism Promotion District allocation and economic development dedications, as well.
Current law provides that the exemption will permanently regain effectiveness in FY26. Thus, proposed law would have no
revenue impact in FY26 or in any following year.
While sales tax holidays may change the timing of purchases from taxable days to tax-exempt days around the holiday
period, they are not likely to materially change the overall level of annual spending. Thus, their effect is a loss of tax
receipts.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Gregory V. Albrecht
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} Chief Economist
or a Net Fee Decrease {S}


Statutes affected:
HB6 Original: 47:302(BB)(113), 47:321(P)(114), 47:1(I)(114), 47:331(V)(114)