Senators move ahead with 1-cent state sales tax hike

by MELINDA DESLATTE  |  published on February 29, 2016

Louisiana senators Sunday reworked the state sales tax increase that is the linchpin of rebalancing this year’s budget, deciding to keep the tax on the books for five years, rather than the 18 months sought by the House.

The Senate Revenue and Fiscal Affairs Committee quickly changed the sales tax expiration date before voting 10-1 to advance the proposal to the full Senate for consideration.

The state sales tax would grow from 4 cents on the dollar to 5 cents, starting April 1.

That would boost Louisiana’s average combined state and local sales tax rate, which currently sits at more than 9 percent, to the highest in the nation, according to the Tax Foundation.

It also would generate money quickly – and in large amounts – to help fill gaps in the state’s budget, which must be rebalanced by June 30. Estimates are that the sales tax would raise more than $210 million for this year’s budget and nearly $880 million for a full year.

  • drrocko

    Any state sales tax passed will become permanent – the state will never repeal or allow any tax to expire ! EVER ! And they WILL increase it once enacted !

  • ADRoberts

    Might as well make it permanent. We know politicians. They will NEVER take control of the spending. In fact, in FIVE YEARS they will need to increase the sales tax again. I hope all those welfare leaches figure out that they are going to have to KEEP PAYING MORE. LOL

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