Louisiana Sales Tax Holiday

 

If you or a family member are facing legal difficulties, please call us at 504-522-7260. We offer free initial consultations with our clients in mind.

 

Rebekah Allen of The Advocate reports that Louisiana’s annual sales tax holiday is this Friday and Saturday, but the discount isn’t as deep as it’s been in previous years.

 

Typically, “sales tax holidays” give buyers a full pass on the state’s portion of sales tax, which is 5 percent as of this year. But because of the state’s unprecedented budget woes, the weekend discount is only 2 percent (Advocate).

 

The sales tax relief doesn’t apply to local sales taxes, which is typically at least another 4 or 5 percent (Advocate).

 

That means, if you’re shopping this weekend in East Baton Rouge Parish, sales taxes will amount to 8 percent instead of the usual 10 percent (Advocate).

 

In February, the Louisiana Legislature met in a special session to close a $900 million mid-year shortfall for the year, and chip away at a $2 billion shortfall for the current fiscal year which began July 1 (Advocate).

 

Part of the solution called for temporarily eliminating and scaling back dozens of sales tax exemptions. Another part of the plan called for increasing the total sales tax statewide by a penny (Advocate).

 

An earlier scheduled sales tax holiday in May for hurricane preparedness items was totally voided this year as a result, and the sales tax discounts for the remaining holidays are reduced (Advocate).

 

The sales tax holiday this week, which applies to most retail goods, doesn’t apply to cars, meals, services or admissions (Advocate).

 

On Sept. 2 through 4, another tax holiday for guns and ammunition will also be impacted. Dubbed the annual “Louisiana Second Amendment weekend sales tax holiday,” firearm and hunting supplies will also only get the 2 percent discount instead of the full five percent (Advocate).

 

According to the Louisiana Department of Revenue:

 

“For the fiscal years beginning July 1, 2016, through June 30, 2018, acts 25 and 26 of the 2016 First Extraordinary Session of the Louisiana Legislature provide for a two percent state sales tax exemption during the general sales tax holiday scheduled for the first consecutive Friday and Saturday each August. This means purchases of most items of tangible personal property during the 2016 and 2017 general sales tax holiday weekends are subject to only three percent state sales tax. Beginning July 1, 2018, eligible purchases will again be exempted fully from the state sales tax.

 

The Louisiana Annual Sales Tax Holiday provides an exemption from state sales tax on the first $2,500 of the purchase price of most individual items of tangible personal property for non-business use. The full state sales tax is payable on the portion of the purchase price of any individual item in excess of $2,500.

 

The holiday applies only to the state sales tax. It does not apply to sales taxes levied by parishes, municipalities, school boards, and other political subdivisions of the state.

Under Louisiana law, the annual sales tax holiday takes place on the first consecutive Friday and Saturday each August. The 2016 sales tax holiday begins at 12:01 a.m. on Friday, August 5, and continues through 11:59 p.m. on Saturday, August 6.”

 

See the full article here.

 

If you or a family member are facing legal difficulties, please call us at 504-522-7260. We offer free initial consultations with our clients in mind.