LOUISIANA SALES TAX ROLLBACK - Louisiana has the second highest sales tax rate in the nation, depending where you live it averages around 9.45 %; part of which is because the .45%sales tax extension was a compromise measure by lawmakers last year to avoid the so-called “fiscal cliff” of a billion-plus dollar budget deficit. You’ll remember it took several special legislative sessions last year to reach that agreement. Yesterday the Louisiana House advanced a Republican measure to roll back that .45% state sales tax, after the top House Democrat added an amendment to send $42.5 million to early childhood education. For the first time in many years, Louisiana has a budget surplus.. it’s around $300 million dollars and Republican lawmakers say this is evidence that Louisiana citizens are being overly taxed. Representative Lance Harris (R-Alexandria), leader of the House GOP proposed the rollback.
“It’s time, if we’re looking at excesses, to return some of that money back to your constituents,” Harris said.
The .45% tax is meant to last until 2025, but under Harris’ bill, it would start decreasing next year until it rolls off completely in 2023. Democrats originally opposed the sales tax to fix the budget because it affects low-income families more than others. However they eventually supported it to bring stability to state finances and now oppose rolling back the tax, because the state would lose $87 million in the first year. Democratic Representative Walt Leger (New Orleans) amended Harris’ bill dedicating a portion of the tax—worth more than $40 million—to early childhood education, a program lawmakers have been trying to fund all session.
"I don't support what Representative Harris is trying to do," explained Leger, "but I see it as a vehicle to potentially accomplish something that is transformative for the state of Louisiana.”
The bill now moves to the Senate, where an effort to alter the sales tax extension has already been rejected in committee.
