In addition to the state sales tax, municipalities and
parishes also levy additional sales taxes. The local/parish sales tax option
ranges from an additional 3% to 7%.
Locally, Jefferson Parish adds 4.75% to the state sales tax
while Orleans Parish adds 5% and Plaquemines adds 4%. Including the proposed
state sales tax increase, the new rates would be 10.63% for Jefferson, 10.88%
for Orleans and 9.88% for Plaquemines. All three parishes charge a lower local
rate for Food, which is exempt from the state sales tax as is Utilities and
Prescription Drugs.
In addition to raising the state sales tax rate, Governor
Jindal is proposing to eliminate about 200 current exemptions, include rebates
for low-income residents and retirees, and raise the cigarette tax by $1.05 per
pack.
While not disclosing complete details on the entire package,
which the Governor described as not “etched in stone”, the plan calls for a
sales tax on some previously untaxed services including haircuts, movie and
theater tickets, and landscaping to name a few.
“I know this is
not the beginning or the ending of the conversation,” Governor Jindal said to
lawmakers.
House Democratic
leader, and gubernatorial candidate, John Bel Edwards of Amite was critical of
the plan.
In a written
statement, Edwards said, “It will raise taxes on most Louisiana families,
Louisiana workers and Louisiana small businesses in order to give tax breaks to
out-of-state corporations and the wealthy. Louisiana retailers will be
especially hurt.”
If approved by
the state legislature, the plan would go into effect on January 1st,
2014. 