Members of the Louisiana Legislature will consider a measure to reduce the state sales and use tax from 5% to 2% on the dollar during the 2017 Regular Session, which begins on April 10.
That measure, House Bill 220, has been prefiled by Representative Tanner Magee (R-Houma) and Senator Ryan Gatti (R-Bossier City).
During the 2016 1st Special Session, the legislature removed many of the exemptions and exclusions on two cents of the state sales and use tax up until June 30, 2018. This measure continues the limitation of those exemptions and exclusions permanently.
Sen. Gatti says that the driving force behind this measure is good tax policy – a broader base and a lower rate.
“We were elected to lower taxes and this bill does just that,” said Senator Gatti. “Many of our local communities have a total sales tax of over 10%. That’s unsustainable. It hurts local businesses and basically puts a “take your business across the state line” sign up in these communities.”
For more information on HB 220, please visit http://www.legis.la.gov/legis/ViewDocument.aspx?d=1028700.