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. The bill outlines the investment and management of the fund, ensuring that unspent funds at the end of the fiscal year remain available for future use.

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. It modifies the language to clarify the tax collection process and the allocation of funds, while repealing certain provisions that are no longer applicable. The bill is set to take effect upon the governor's signature or after the expiration of the time for bills to become law without signature.

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