Louisiana holds state sales tax holiday to help in hurricane recovery

Mid-South

BATON ROUGE, La. (AP) — Louisiana’s state sales tax won’t be charged on most purchases Friday and Saturday, under a one-time sales tax holiday aimed to help people struggling with the coronavirus pandemic and recovering from hurricanes Laura and Delta.

Lawmakers passed the two-day sales tax holiday legislation by Republican House Speaker Clay Schexnayder last month, and Gov. John Bel Edwards agreed.

Louisiana’s revenue department said the sales tax holiday exempts the first $2,500 of most purchases from Louisiana’s 4.45% state sales tax, including both in-store and online transactions.

The holiday doesn’t cover buying a car, truck and other vehicle. It also doesn’t apply to business or commercial purchases. And it doesn’t apply to local sales taxes.

The state is estimated to lose $4.5 million in sales tax collections because of the tax holiday, according to a nonpartisan analysis of the bill. Louisiana’s other sales tax holidays have been suspended for the last two years — and through mid-2025 — as part of a tax deal to balance the state’s budget.

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