New Taxes Go Into Effect Friday, April 1

It was a busy - and sometimes contentious - special legislative session that wrapped up recently, resulting in a number of changes to Louisiana’s tax laws, laws that go into effect on Friday, April 1.

A new one-cent sales and use tax goes into effect. It increases the sales tax from four to five cents. The extra penny tax will be in effect until June 30, 2018 in most cases, but expires on July 1, 2016 for manufacturing equipment and machinery.

Most current exemptions and exclusions to the 4 percent sales tax have been eliminated. Those exclusions will be restored by July 1, 2018.

An expired tax on automobile rentals has been restored. It reinstates a rate of 2.5 percent (state) and 0.5 percent (local) on gross proceeds.

A hotel tax, with revenue going to local governments, is widened to include residential locations such as houses, apartments and condominiums.

Sales made in Louisiana by dealers outside the state (e.g., over the Internet) are subject to the collection of sales and use tax.

The tax on cigarettes increases to $1.08 per pack.

The excise tax on alcoholic beverages is raised to:

Liquor - $0.80 per liter

Sparkling wine - $0.55 per liter

Still wines with 14-24 percent alcoholic volume - $0.35 per liter

Still wines with more than 24 percent alcoholic volume - $0.55 per liter

Malt beverages - $12.50 per barrel

Low alcoholic content beverages - $12.50 per barrel

Membership fees or dues paid to a nonprofit, civic organizations which provides access to clubs offering amusement, entertainment, athletic, or recreational facilities are subject to state sales tax.