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Louisiana Solves Fiscal Woes with Tax Increases

  • Mar 19, 2016 | Gail Cole

 Can tax increases stop Louisiana's fiscal hemorrhaging?

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.

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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.