Lawmakers are pushing bills aimed at helping Louisiana lower its sales tax rate, which the Tax Foundation has found to be the highest in America—9.98% when combining the average local and state rates.
The USA Today Network of Louisiana reports House Bill 562, filed by Democratic state Rep. Katrina Jackson of Monroe and endorsed by Gov. John Bel Edwards, would broaden the base on the 4 cent state sales tax. It is thought such a broadening could help offset the loss of the temporary fifth penny passed last year that’s set to expire July 1, 2018.
Meanwhile House Bill 220 by Tanner Magee, R-Houma, proposes to wipe out every exemption and reduce the state sales tax to 2 cents.
“We don’t want to be known as the sales tax capital of America,” Jackson says. “If we broaden what’s covered by the 4 cents, what we call clean pennies, that could go a long way in offsetting the loss of the temporary penny.”
Though Jackson’s bill was crafted with input from Edwards, she’s already backing off some of what is included in it now, specifically services.
“I’m going to amend the bill,” she says. “It’s become clear as I speak with small and medium businesses that including services would be over burdensome to them and to the taxpayers.”
That leaves the governor to either find someone else who could file a bill to include services or shift support to another bill that could be amended. As for Magee, he says he’s just trying to lower the state sales tax rate as much as possible to “start with two truly clean pennies.”
