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Louisiana Senate scraps sales tax idea, tries new road plan

Louisiana State Capitol Building
Posted at 4:49 PM, Jun 07, 2021

BATON ROUGE, La. (AP) - Louisiana senators have shelved their effort to renew a temporary state sales tax.

Instead, they unanimously backed a different tactic to steer millions of dollars more annually to roadwork that could create future budget gaps for health care, education and other services.

The new approach would dedicate 75% of the money generated each year from the state’s vehicle sales tax specifically to transportation projects.

That would take those dollars away from general state operating expenses. The shift would be phased in over three years, starting in July 2022.

It would eventually send an estimated $375 million more annually to roadwork.

The proposal heads to the House for debate.

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