OFFICE OF LEGISLATIVE AUDITOR
Fiscal Note
Fiscal Note On: SB 40 SLS 21RS 229
Bill Text Version: ORIGINAL
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: April 9, 2021 4:03 PM Author: WARD
Dept./Agy.: Parish Governing Authorities
Subject: Sales Tax on Motor Fuels Analyst: Barbara Lively
TAX/SALES OR INCREASE LF RV See Note Page 1 of 1
Constitutional amendment to authorize a parish governing authority to levy sales tax on motor fuels with the approval of the
parish electors. (2/3 - CA13s1(A))
Purpose of Bill: (CONSTITUTIONAL AMENDMENT) This bill authorizes a local parish governing authority to impose a tax on
the retail sale of of gasoline, diesel fuel, and special fuels, if approved by a majority of the electors voting thereon. The
collections are not required to be deposited in the Transportation Trust Fund, and shall be used solely to supplement state
and federal funding for roads and bridges located in the parish in which the tax is collected.
This proposed Constitutional Amendment is to be submitted to the electors at the statewide election to be held on November
8, 2022.
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 SEE BELOW SEE BELOW SEE BELOW SEE BELOW $0
Annual Total $0 $0
REVENUES 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 SEE BELOW SEE BELOW SEE BELOW SEE BELOW $0
Annual Total $0 $0
EXPENDITURE EXPLANATION
The bill could increase local expenditures by an indeterminable amount.
The bill requires that the tax collections be used by the parish governing authority exclusively for construction and
maintenance of the roads and bridges within the parish. However, the exact amount of the expenditure increase is
indeterminable at this time as the amount of revenue that will be generated by these taxes is also indeterminable at this
time (see Revenue Explanation below).
REVENUE EXPLANATION
The bill could increase local revenues by varying levels depending on the parishes that implement the tax, the
volume of gallons sold, the sales price of each gallon sold, and the sales tax rate imposed.
The bill would allow a local parish governing authority the ability, subject to voter approval, the right to levy and collect a
sales tax on the retail sales of gasoline, diesel fuel, and special fuels (fuel). Currently, fuel taxes are assessed and collected
only by the state, and all state fuel taxes are based on volume, not total sale value. Therefore, there is no historical
information about revenue generated from fuel taxes based on total sale value. In addition, the bill does not specify the
sales tax rate to be imposed. Consequently, the exact fiscal impact is indeterminate at this time.
For illustrative purposes, we calculated that this bill could generate $75 million annually in local governmental revenue if a
1% sales tax was imposed statewide (based on 3 billion gallons of fuel sold annually at $2.50 per gallon).
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}
Michael G. Battle
x 13.5.2 >= $500,000 Annual Tax or Fee x 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Manager, Advisory Services