TAX/SALES & USE: Repeals the reduction in the state sales and use tax rate and dedicates a portion of the avails of the state sales tax to fund teacher pay raises (EG -$276,800,000 GF RV See Note)

HB 656 would repeal a previously enacted reduction in Louisiana's state sales and use tax rate, effectively increasing the tax rate. It would dedicate a portion of the resulting tax revenue - estimated at $276.8 million - to fund permanent salary increases for public school staff, specifically requiring at least $2,000 for certified personnel and $1,000 for noncertified personnel. The bill's implementation is conditional: it would only take effect on January 1, 2030, if the legislature fails to secure funding for these raises by December 31, 2029, through the Minimum Foundation Program or other sources. This bill directly affects public school employees across Louisiana's city, parish, and local school boards.