Lawmakers Move Tax Breaks *** Military, Dairy Farmers, Consumers Among Those to Benefit

The state House and Senate approved a number of tax credits over the past couple of days that would cut the taxes for military and dairy farmers and for consumers, a couple of sales tax holidays.

The House of Representatives voted 97-0 Thursday to approve House Bill 225 that would create an annual “sales tax holiday” right before hurricane season – the last weekend of May each year – on hurricane preparedness supplies, such as portable lights, portable radios, gas tanks, batteries, ice chests, portable generators and other items. It would cost the state an estimated $3 million a year in lost taxes.

HB225 is one of three sales tax holiday proposals moving through the Legislature. “Sales tax holiday” plans would exempt shoppers from paying sales taxes on certain purchases for brief periods.

In the House on Wednesday, Rep. Billy Montgomery won unanimous support for House Bill 37 that would create a two-year, tax-free shopping period in December.

Montgomery, R-Haughton, said his bill would give taxpayers a break during the Christmas shopping season. The measure would set up the “sales tax holiday” on the first Thursday, Friday and Saturday of December 2007 and 2008. Purchases up to $2,500 – except cars – would be exempt from state and local taxes during the period.

The House on Thursday amended legislation to create a package of tax credits for the military.

House Bill 428 by Rep. John Smith, D-Leesville, would initially just have established an income tax credit for members of the active military and reserves for the cost of noncommercial hunting and fishing licenses.

The credit also would be available to military spouses and dependants.

Rep. Troy Hebert, D-Jeanerette, added an amendment to create a $500 tax credit to Louisiana residents serving as soldiers in Iraq or Afghanistan.

For military members who died while serving in the conflicts, their widows would receive a $5,000 tax credit unless they remarry.

Other tax bills winning House approval on Thursday and going to the Senate, include:

House Bill 973 would give a tax break for dairy farmers that would cost the state $2.5 million a year. Rep. Mike Strain, a supporter, said it was designed to try to stem the loss of dairy farms in Louisiana. He said dairy cattle in Louisiana have decreased by 65 percent since 2001. “This is just a little bit of help,” said Strain, R-Covington.

House Bill 170 that would extend an exemption from the state sales tax on machinery and equipment to certain items purchased by utility companies, which would cost the state $18.7 million each year.

The Senate on Wednesday voted 31-5 for Senate Bill 218, which would offer tax credits to Broadway-style musical theater productions similar to the tax breaks given the film industry. Backers envision a so-called “Broadway South.”

Another tax break proposal, Senate Bill 251, for paper and pulp mills, stalled on the Senate floor when its sponsor postponed a vote. Sen. Robert Adley, D-Benton, pulled the bill after being dismayed that senators approved an amendment that would also allow chemical plants to get the tax break.

Adley could bring the bill up again and try to have that amendment stripped.

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