Report: Louisiana sales taxes 3rd highest in nation

It probably won’t come as a surprise to anyone who looks closely at receipts, but a study published by the Washington, D.C.-based Tax Foundation says Louisianans pay the third-highest sales taxes in the country. The study ranks states based on a combination of the statewide sales tax rate and average local rates—which are weighted by population. Louisiana posts a combined average rate of 8.85%—just below Arizona’s 9.12% and Tennessee’s 9.45% rate. “It’s significant, and not in a positive way,” State Treasurer John Kennedy tells The Times-Picayune. “When you’re No. 3 in the country in a category of taxes that states and local government rely on, that’s not a good thing in my judgment.” Melissa Flournoy, director of the liberal advocacy group Louisiana Progress, says the report could provide a jumping-off point to “restart the conversation about tax equity.” She says part of that discussion should be about the principles of the Stelly Plan, a now-abandoned constitutional amendment that sought to balance lower sales tax rates with higher income taxes. Check out an overview of the Tax Foundation report and the complete state-by-state rankings here; and read the full story here.