Home News-Premium New sales tax rate goes into effect July 1

New sales tax rate goes into effect July 1

Effective July 1, 2018, 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,” said a press release from the Louisiana Department of Revenue.

However, those who still charge the 5 percent, aren’t off the hook.

“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,” the release said.

Also beginning July 1, 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”).