Louisiana consumers are paying the highest sales tax rate in America—nearly a half-cent more than Tennessee, the next highest state, according to the latest data from the Tax Foundation.
The USA Today Network of Louisiana reports that the distinction is the result of the state Legislature adding an extra penny to its 4-cent state sales tax last year to mitigate budget cuts.
Combine the 5-cent state sales tax with local tolls and Louisiana has an average rate of 9.98%. Tennessee is next at 9.46%.
It’s a distinction bemoaned even by those who advocated for the tax like Gov. John Bel Edwards and state Rep. Katrina Jackson of Monroe, who carried the bill for the governor.
“Oh, Lord,” Jackson said when told of the ranking.
Some constituents criticized Jackson and Edwards, both Democrats, for advocating for the extra penny, saying that sales taxes are the most regressive form of tax and disproportionately affect the poor.
Both agreed. But they believed the consequences of deeper cuts to health care and other state services without the additional penny would have impacted Louisiana’s most at-risk residents even more.
“Adding the additional penny of sales tax goes against everything the governor believes, but he and the Legislature had limited options to address the historic deficits left over from the previous administration when he took office last year,” Edwards spokesman Richard Carbo told USA Today Network of Louisiana.
Jackson’s bill did put a sunset provision on the tax. It will expire in 2018, if not extended.
