Louisiana’s overall state sales tax rate decreases from 5 percent to 4.45 percent.
The new rate, enabled by House Bill 10 of the 2018 Third Extraordinary Session of the Louisiana Legislature, is to be levied upon the sale at retail, the use, the consumption, the distribution and the lease or rental of an item of tangible personal property; and upon the sale of services.
Any dealer that charges a 5 percent state sales tax rate on or after July 1, 2018, must remit the excess collected tax to the Louisiana Department of Revenue.
Also beginning July 1, 2018, a state sales tax rate of 2 percent is to be levied for the sale at retail, the use, the consumption, the distribution, and the storage to be used or consumed of steam, water, electric power or energy, natural gas, or other energy sources for non-residential use (“business utilities”).
The Louisiana Department of Revenue has issued Revenue Information Bulletin 18-016 to provide an explanation of the provisions of HB 10.