House Bill No. 656, introduced by Representative Jordan, aims to repeal the scheduled reduction of the state sales and use tax rate from 1% to 0.75% beginning January 1, 2030, thereby making the 1% levy permanent. The bill also establishes the Teacher Compensation Fund, which will receive 0.25% of the avails collected from the state sales tax levied under R.S. 47:321.1. This fund is intended to support teacher pay raises, specifically providing a $2,000 increase for teachers and a $1,000 increase for support staff within the Department of Education.

In addition to the establishment of the Teacher Compensation Fund, the bill amends several sections of the existing law regarding the imposition of sales and use taxes, including the addition of digital products to the taxable items. It also repeals certain provisions related to the temporary tax rates that were set to take effect in 2030. The bill is set to take effect upon the governor's signature or after the lapse of time for gubernatorial action.

Statutes affected:
HB656 Original: 47:1(G)
HB656 Engrossed: 47:1(G)