Act 1 of the 2018 Third Extraordinary Session of the Louisiana Legislature has amended La. R.S. 47:321.1 (A), (B), and (C) effectively reducing the overall state sales tax rate in Louisiana from 5% to 4.45% beginning July 1, 2018.
Businesses will need to insure that all computer and accounting systems have been updated for the reduced sales tax by July 1, 2018. Any business that collects sales tax at the rate of 5% on or after July 1, 2018 is required to remit the excess sales taxes collected to the Louisiana Department of Revenue and report the excess amount on Line 8 of the Sales Tax Form R-1029.
Additional information about the July tax rate decrease is available in the Louisiana Department of Revenue’s Information Bulletin No. 18-016 published June 24, 2018. Click here to read the bulletin. If you have questions regarding sales tax requirements for your business, please contact us.