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Senate panel backs constitutional changes on property, severance and local inventories; pharmacists warn on prescription sales tax
Summary
The committee adopted a 51-amendment package to a proposed Article 7 constitutional amendment that moves many exemptions into statute, creates local inventory-tax flexibility and adds severance allocation changes; a pharmacy association urged restoring exemptions for prescription drugs, calling local taxation 'a sick tax on seniors.'
The Senate Committee on Revenue and Fiscal Affairs on Nov. 19 adopted an extensive set of amendments to House Bill 7, a constitutional amendment package that moves much tax‑related language out of the constitution and into statute while preserving certain protections.
Staff described amendment set 95 as 51 discrete changes that restore some existing constitutional language, provide new local options on business inventory valuation, clarify severance‑tax allocations (including language for brine/lithium revenue splits), and create a local revenue fund mechanism to help offset ad valorem losses for parishes that opt out of inventory tax. The package also includes language requested by the attorney general’s office for veil requirements and a provision authorizing by law a fee for geologic sequestration of carbon dioxide.
During public comment, Don Caffrey of the Louisiana Independent Pharmacies Association warned that local sales and use taxes classified as tangible personal property can make prescription drugs more expensive for seniors and fixed‑income residents. "That winds up being a sick tax on seniors and folks on fixed incomes," Caffrey said, urging the committee to restore an exemption. Chairwoman Emerson acknowledged the concern and said the committee would work with local governments and stakeholders to address the issue.
Senator Reese and others said amendment language also seeks to give parishes flexibility to reduce the percentage of fair market value applied to business inventory below the current 15% figure — but only by agreement among the parish governing authority, school board and sheriff. Sponsors said the change is intended to allow parishes to remain competitive with neighbors while providing an oversight mechanism.
The committee adopted the amendment set and reported HB7 as amended to the next stage. Committee members and staff stressed that technical cleanups remain possible and that some provisions will require follow-up work with local officials before final floor action.
What happens next: HB7 will advance to the full Senate as a proposed constitutional amendment with the committee’s changes; specific ballot timing or final statutory enactment will depend on subsequent legislative action and voter approval where required.
