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Louisiana Parish May Embrace Sales Tax Holidays

  • Jun 13, 2014 | Gail Cole

 May have local sales tax holidays.

Louisiana provides an annual state sales tax holiday for hurricane-preparedness items and supplies each May. In the past, it has provided a general tax-free period in August and one for firearms and hunting supplies in September. During sales tax holidays, retailers throughout the state are required to exempt qualifying items from Louisiana state sales tax.

However, “the governing authority of any parish, school board, municipality, or other local taxing authority may, by ordinance or resolution grant the exemption” created by a sales tax holiday. Local sales tax holidays must be held at the same time and exempt the same items as the corresponding state sales tax holidays.

Effective June 9, 2014, “the governing authority of St. John the Baptist Parish and of any of the political subdivision within the parish may establish, by ordinance or resolution, annual sales tax holidays….”

Impact on businesses

Sales tax holidays impact businesses. Retailers must reprogram point-of-sale systems in order to account for the lack of state sales tax, keeping local taxes or not according to local tax law. Extra help may have to be hired. In short, sales tax holidays can cost businesses.

To (sort of) account for this, the state permits dealers and merchants “who shall incur a cost to reprogram cash registers, including computer programming, as a result of a change in the state sales and use tax rate or base … [to take] a deduction against the tax due and accounted for and remitted to the secretary.” The deduction for any such costs may not exceed $25 “per each cash register reprogrammed, and such costs must be invoiced and filed with the merchant’s or dealer’s tax return.” This allowance is further explained on the Louisiana Department of Revenue website.

Lots of states provide sales tax holidays in 2014. How do you manage them?

photo credit: jimmywayne via photopin cc

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.