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Friday, 19 February 2016 15:56

Projections if Louisiana legislature passed Jon Bel Edwards's sales tax?

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louisiana legislatureThe Louisiana legislative fiscal office has issued the fiscal analysis of the penny sales tax.

The tax, if approved would increase from four percent to five percent.

Current law imposes a 4% state sales and use tax on sales of tangible personal property and certain services with specific exemptions and exclusions. A statutory dedication of 0.4% of remittances with $2M to the Marketing Fund and the remainder to the LA Economic Development (LED) Fund are required. Business utilities are taxed at 1% for 2015-16 fiscal year.

Proposed law levies an additional 1% state sales and use tax on sales of tangible personal property and certain services with specific exemptions and exclusions. Items that are not taxable under the original 4% state sales tax but are taxable under the proposed 1% sales tax include: Business utilities, purchases of manufacturing machinery and equipment (MM&E), certain trucks and trailers used 80% in interstate commerce, and purchases during sales tax holidays, among many other transactions. The dedication to the Marketing Fund and LED Fund are retained. Effective upon signature for taxable periods beginning April 1, 2016.

According to the analysis, the tax is projected to achieve over 906 million dollars for 2016-17.

http://www.legis.la.gov/legis/ViewDocument.aspx?d=973650

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