Louisiana Solves Fiscal Woes with Tax Increases

Louisiana legislators have come up with a solution to improve the state’s serious fiscal problems: tax increases.

The following pieces of legislation have all received Governor John Bel Edwards’ signature:

• HB 14: Increases the tax on cigarettes by one and two-twentieths of one cent per cigarette (22 cents per pack), effective April 1, 2016.

• HB 27: Increases the tax on alcoholic beverage tax by, effective April 1, 2016:
  • Liquors: from 66 to 80 cents per liter
  • Sparkling wines: from 42 to 55 cents per liter
  • Alcohol content not more than 14%: from 3 to 20 cents per liter
  • Alcohol content between 14% and 24%: from 6 to 35 cents per liter
  • Alcohol content more than 24%: from 42 to 55 cents per liter
  • Malt beverages: from $10 to $12.50 per barrel

• HB 30: Creates a sales and use tax obligation for certain remote dealers, applicable to tax periods beginning on and after April 1, 2016.

• HB 39: Imposes a state tax of 2.5% and a local tax of 0.5% on certain automobile rentals, effective April 1, 2016.

• HB 43: Decreases the amount of tax retailers may keep for reporting sales taxes accurately and on time. Effective April 1, 2016.

• HB 59, Expands state sales and use tax to charges for transient guest accommodation in sleeping rooms, cottages or cabins at a residential location (think Airbnb), effective July 1, 2016.

• HB 62: Temporarily increases the state sales and use tax by 1%, effective April 1, 2016.

• HB 72: Increases the state sales tax on certain telecommunications services, effective April 1, 2016.

Every time tax rates, regulations and rules change, businesses have to change point of sale systems to ensure proper tax compliance. Automated solutions facilitate such transitions. Learn more.