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% that is set to take effect on January 1, 2030. Instead, the bill makes the 1% sales tax rate permanent and establishes the Teacher Compensation Fund, which will receive 0.25% of the avails collected from this sales tax. The funds in the Teacher Compensation Fund will be used to provide pay raises for teachers and support staff within the Department of Education, specifically a $2,000 raise for teachers and a $1,000 raise for support staff.

The bill amends several sections of the existing tax law, including R.S. 47:321.1, and introduces new provisions under R.S. 39:100.254 to create the Teacher Compensation Fund. It also repeals certain sections of the existing law that pertain to the previous tax rate reduction. The effective date of the bill is contingent upon the governor's signature or the expiration of the time for gubernatorial action.

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