Penny sales tax could extend to five years

With the special legislative session over halfway through, the House narrowly approved the 18-month “clean penny” sales tax Thursday and sent it along to the state Senate for consideration.

On Thursday the House passed a version of House Bill 62, the one-cent sales tax that would only last 18 months. The tax-writing Revenue & Fiscal Affairs Committee met Sunday where they discussed and ultimately approved a measure that would extend the 18-month period to 5 years.

According to state Sen. J.P. Morrell, D-New Orleans, who chairs the tax-writing Revenue & Fiscal Affairs Committee, the revenue from having the extra penny for 18 months could not be counted against this year’s $900 million shortfall under the state’s technical rules.

Gov. John Bel Edwards’ revenue secretary Kimberly Robinson told committee members that revenue from 18 months would count as one-time money and could be used only for one-time expenses, not for the current year deficit.

It is uncertain whether the more conservative House will accept having the sales tax last longer than 18 months, especially since the version with the 18-month time limit passed the House last week on a 76-27 vote, only six votes more than the required two-thirds.