Louisiana House Bill HB656

Louisiana 2017 Regular Session

• Introduced: 4/19/17
• Refer: 4/20/17

Caption

Imposes a state ad valorem tax and provides for the dedication of the avails of the tax to the TOPS Fund for the support of higher education (OR +$233,000,000 SD RV See Note)

Impact

If enacted, HB 656 will alter the financial landscape for higher education funding in Louisiana. By creating a dedicated funding stream for the TOPS Fund through the ad valorem tax, the legislation aims to ensure that financial resources are consistently available for scholarships, potentially leading to increased enrollment and student support in state universities. Additionally, the bill establishes new administrative protocols for the assessment and enforcement of this tax at the parish level, which will require regulatory oversight by the Louisiana Tax Commission.

Summary

House Bill 656 proposes the imposition of a state ad valorem tax set at 5.75 mills on the dollar of assessed property value across Louisiana. This tax is specifically designed to generate revenue for the Taylor Opportunity Program for Students (TOPS Fund), which supports scholarships for higher education. The bill outlines that tax proceeds must be collected and transmitted to the state treasury and mandates that a portion of revenue derived from this tax must be used to maintain a certain level of state general fund support for higher education during initial implementation.

Sentiment

The sentiment surrounding HB 656 appears to be cautiously favorable among proponents of education, as it promises to secure necessary funding for the TOPS scholarships. Education advocates are likely optimistic about the reinforcement of financial support for students. Conversely, concerns have been raised about the implications of increasing property taxes, especially in an economic landscape sensitive to tax burdens. Critics worry that additional levies may disproportionately affect lower-income property owners and reduce overall housing affordability.

Contention

Notable points of contention include discussions surrounding the reliance on property tax to fund educational programs, which some argue puts unnecessary strain on property owners. The bill's stipulation that newly generated funds should not supplant existing general fund appropriations for higher education raises questions about state budgeting priorities and funding adequacy for schools that depend on state support. As discussions continue, the balance of equitable funding against potential tax increases remains a focal issue.