New Sales Tax Takes Effect Today
You can expect to pay less sales tax starting today in Louisiana, according to NOLA.com. The change is part of more than three dozen new laws that go into effect today (July 1st), the beginning of government's fiscal year. The decrease isn't huge, however - the sales tax rate has dropped from 5% to 4.45%. It will, however, effect everyone in the state.
According to the report, the modest drop won't be enough to improve the Bayou State's standing as overtaxed. Currently, Louisiana has the highest average sales tax rate (state and local) in the nation, with an average of 9.47%. The other side of this are existing tax cuts. Some of the cuts enjoyed by individuals and corporations will be going away in order to make room for the decrease.
Although most lawmakers are happy with the move, the compromise necessary to pass the new tax cut left many upset. House Democratic leader Robert Johnson of Marksville says that the move was necessary to save the TOPS college tuition program, food stamp aid and other government services, while Shreveport's Alan Seabaugh - the move was unnecessary as Louisiana had enough money to fund everything.