Louisiana residents will pay more taxes starting April 1
NEW ORLEANS (WGNO) – Starting Friday, Louisiana residents will be paying more taxes. The tax hike will be highest on cigarettes, going up $.22 a pack. This brings the state tax up to $1.08 on cigarettes. This will be the second tax hike approved by the state legislature in the last year.
The state sales tax will also increase, effective April 1 and will give Louisiana one of the highest sales taxes in the country.
This new tax will add a penny to the existing 4 cent sales tax until June 30, 2018.
The tax will mean Louisiana residents and anyone who shops in the state will see an increase on their receipts for clothing purchases, electronics and meals in restaurants.
The tax will also affect the state’s sales tax holidays requiring shoppers to pay 2% of the state’s sales tax instead of eliminating the tax during holiday periods.
Some items that were exempt from the state sales tax, most notably Mardi Gras beads will now be taxable.
Prescription medication and grocery items will also keep their exemption and not be subject to sales tax.
Other purchases that will see an increase in taxes include alcohol sales, online purchases, as well as Airbnb and other short-term online rentals.
The Louisiana Legislature and Governor John Bel Edwards approved the tax hikes earlier this month in hopes that the increased revenue collected will equal around $300 million offset state budget deficit.
All taxes are in effect from April 1, 2016, until June 30, 2018