New State Sales Tax Rate Goes Into Effect July 1
Jul 06, 2018 03:29PM
On July 1st, Louisiana consumers started paying slightly less for their purchases, as Louisiana’s overall state sales tax rate decreased from 5 percent to 4.45 percent. The new rate, enabled by House Bill 10 of the 2018 rare third Special Session of the Louisiana Legislature, is to be levied upon the sale at retail, the use, the consumption, the distribution, and the lease or rental of an item of tangible personal property; and upon the sale of services.
The decrease will affect nearly every person and business in the state, though it's questionable how many will notice the modest change.
Renewal of part of the sales tax drew heated disagreement before lawmakers brokered the final deal in the final hours of their Third Special Session. Conservative Republicans called the deal a tax hike, while Democratic Gov. John Bel Edwards called it a tax cut.
State sales tax still won't be charged on food for home consumption, residential utilities, and prescription drugs.
The Louisiana Department of Revenue has issued Revenue Information Bulletin 18-016 to explain the provisions of HB 10. A copy of this Bulletin can be found by clicking on this article at www.MyParishNews.com.