While bills related to the gas tax and our income tax rates will share a sizable portion of the regular session’s center stage this spring, many lawmakers are endeavoring to place sales tax issues in the spotlight as well, writes Jeremy Alford in his new opinion piece.
So far, however, Republicans and Democrats haven’t shown a willingness to galvanize around a particular topic—aside from a centralized sales tax collection system proposal. Plus, no other sales tax issue has been included in a tax package yet that will be co-sponsored by Revenue and Fiscal Affairs Chairman Bret Allain and Ways and Means Chairman Stuart Bishop.
Instead, when it comes to sales tax issues, several lawmakers are working individually or in small teams on a number of different bills. The elephant in the room is the state’s 4.45% sales tax rate, of which the .45 portion is set to expire in 2025. Lawmakers approved that increase as part of a deficit deal a couple years ago—and with economic outlooks shaky at best, state officials aren’t eager to lose that revenue.
The Legislature has four more years until it reaches the end of that sales tax cliff, and history proves that if lawmakers can put off a decision, they will. But not everyone is willing to wait. Read the full column.
Jeremy Alford publishes LaPolitics Weekly, a newsletter on Louisiana politics, at LaPolitics.com. Follow him on Twitter, or on Facebook. He can be reached at JJA@LaPolitics.com.
