LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 26 HLS 202ES 105
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: October 21, 2020 1:34 PM Author: SCHEXNAYDER
Dept./Agy.: Revenue
Subject: Sales Tax Holiday: November 2020 Analyst: Benjamin Vincent
TAX/SALES-USE-EXEMPT EN -$4,500,000 GF RV See Note Page 1 of 1
Establishes a sales tax holiday to provide relief for recovery as a result of Hurricane Laura, Hurricane Delta, and the COVID
-19 pandemic (Item #26)
Current law temporarily provides for the suspension of three state sales and use tax holidays through June 30, 2025. These
include the Louisiana Annual Sales Tax Holiday, the Hurricane Preparedness Holiday, and the 2nd Amendment Weekend
Holiday.
Proposed law establishes a one-time sales tax holiday, effectively identical to the Annual Louisiana Sales Tax Holiday, from
November 20 through November 21, 2020.
Effective upon governor’s signature.
EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 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 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. ($4,500,000) $0 $0 $0 $0 ($4,500,000)
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 ($4,500,000) $0 $0 $0 $0 ($4,500,000)
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure.
REVENUE EXPLANATION
Proposed law enacts a sales tax holiday on the days of November 20-21, 2020. The proposed holiday has the same
applicability as the currently-suspended Louisiana Annual Sales Tax Holiday, which is typically held during the first weekend
in August.
The level of taxable sales observed during the August Annual Sales Tax Holiday implies an average revenue impact of
approximately $4.2 million in recent years. As elevated taxable sales activity is consistently observed during the holiday
season, the figure in the boxes above is adjusted to reflect the seasonal effect of moving the holiday from August to
November, which is estimated at approximately 7% for the particular weekend of this proposed holiday.
The resulting anticipated one-time state revenue impact is $4.5 million.
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
x 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}