The Louisiana Senate gets its turn this week to debate and vote on the various bills that make up Governor Landry’s tax plan. The bills up for discussion would cut individual and business taxes. There's also a revenue raising bill which would make the state’s sales tax 4.40 percent.
As reported by Louisiana Public Radio, Senate President Cameron Henry is hopeful they will approve changes to the state’s tax code before the session ends next Monday, November 25. “We have more questions than opposition, which is good with members and that gives us the ability to address some of their concerns and move the bills forward.”
The Senate has yet to receive a bill that extends sales taxes to services that are currently not taxed. The Louisiana House has yet to vote on the measure as debate continues over opposition to paying sales taxes for dog grooming, landscaping, and home repairs. In all, House Bill 9 would apply sales tax to 41 goods and service, to help compensate for the potential loss of tax revenue from other bills under consideration. House Bill 1, for example, which House members approved 87-12 last Tuesday, November 12. The legislation would lower the personal income tax rate to a flat 3%. It is now in the Senate.
Louisiana already ranks #1 (9.56%) in the country for overall sales taxes, when combining the state and average local sales tax rates. That’s according to the non-profit international research think tank Tax Foundation in Washington D.C. By comparison, Arkansas ranks as #3 (9.45%) in highest sales taxes by state, while Oklahoma ranks #6 (8.99%), and Texas ranks #14 (8.20). [*Refer to map above]
