Louisiana hurricane preparedness sales tax holiday starts May 26

The 2018 Louisiana Sales Tax Holiday for Hurricane Preparedness Supplies takes place Memorial Day Weekend. Sales tax savings start at 12:01 a.m., Saturday, May 26, and conclude at 11:59 p.m., Sunday, May 27.

Legislation enacted in 2016 temporarily decreased the sales tax savings provided during sales tax holidays in Louisiana. Whereas they once entirely exempted eligible goods from state sales tax, they now merely reduce the rate. Local sales tax continues to apply during Louisiana sales tax holidays.

During the brief hurricane-preparedness tax-free period, numerous items that would prove useful in the event of a hurricane or other severe weather are taxed at a reduced state rate of 3 percent, rather than the full 5 percent. The sales tax holiday exempts purchases of qualifying goods from 2 percent of the tax.

Qualifying items

The first $1,500 of the sales price of the following qualify for the sales tax holiday:

• Batteries (AAA-cell, C-cell, D-cell, 6-volt, 9-volt)
• Carbon monoxide detectors
• Cellphone batteries and chargers
• Gas and diesel fuel tanks
• Ground anchor systems and tie-down kits
• Food storage coolers (non-electric)
• Freezer packs (reusable)
• Portable generators (to preserve food, provide light or communications)
• Portable, self-powered radios, two-way radios, weather band radios
• Portable, self-powered light sources
• Storm shutter devices
• Tarpaulins and flexible waterproof sheeting

The above items do not qualify for the partial exemption when purchased at an airport, convenience store, or hotel or other public lodging establishment.

Sales tax holidays complicate compliance

Businesses that sell qualifying goods in Louisiana, including out-of-state sellers with nexus in Louisiana, need to ensure their point-of-sale systems are set to account for the reduction in sales tax on certain items, as well as other applicable rules. See the Louisiana Department of Revenue for additional information.

Louisiana isn’t the only state providing a sales tax holiday over Memorial Day Weekend. The Texas Sales Tax Holiday for Water-Efficient and Energy Star Products runs May 26–28, 2018. Businesses that sell a wide variety of goods into multiple states should therefore pay extra attention to sales tax compliance this weekend.

Learn more about the 2018 sales tax holidays.