Louisiana Ends Special Tax Session, Raises Sales Tax

Louisiana has officially become the state with the highest sales tax in the nation, raising its average combined sales tax to 10.11% after a special legislative session concluded on Friday. This increase follows the previous average of 9.56% and impacts both state and local tax rates, with the highest possible rate now at 12%. The legislation also includes flattening income tax brackets and eliminating the corporate franchise tax. Governor Jeff Landry's administration aimed to offset revenue lost from income tax cuts by increasing sales taxes, although some lawmakers expressed concerns over the lack of public input on the changes. The new tax structure will take effect on January 1, 2024, with significant implications for state revenue, projected to fall by $1.3 billion due to the income tax cuts. Critics argue that these adjustments could disproportionately affect lower-income residents, as they will face higher sales tax burdens.