Louisiana House approves sales tax phase-out plan

Don Ames
May 23, 2019 - 8:49 pm

Louisiana House members on Thursday agreed to roll back the state sales tax passed in 2018 earlier than the planned mid-2025 expiration date.

House Republican leader Lance Harris' proposal would gradually reduce the 0.45% portion of Louisiana's 4.45% state sales tax over four years. By mid-2023, it would be eliminated, leaving the tax rate at 4%.

The phase-out plan, which Gov. John Bel Edwards opposes, was approved ina 73-21 vote by the House.

Those in favor of the plan say recent surpluses show Louisiana set taxes too high. Those opposed say the seven-year tax passed last year stabilized state finances and ended years of uncertainty over the budget.

The bill would go next to the Senate tax committee, where another attempt to tweak last year's sales tax deal was defeated.

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