Louisiana Trims Sales Tax Holidays
- Apr 4, 2016 | Gail Cole
There are usually three sales tax holidays in Louisiana: a hurricane preparedness holiday in May, a general sales tax holiday in August, and a Second Amendment tax-free period in September. But recent legislative changes are about to change all that.
The May tax-free period has been suspended for 2016. Moving forward, it will provide for a discounted rate of sales tax, not a full exemption. The 2016 August and September tax-free periods will also offer a reduction in sales tax instead of an exemption (The Advocate).
According to a Louisiana Department of Revenue publication, the reduced rate for all holidays occurring from July 1, 2016 through June 30, 2018 is 3%. Zero percent sales tax holidays resume for the period July 1, 2018 through March 31, 2019.
The reduction in sales tax could cause a compliance nightmare for retailers. Instead of charging no sales tax during the periods, which is complicated enough, they’ll have to alter the rate of tax.
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