Louisiana residents won’t have to pay the state sales tax on Friday and Saturday on most items due to a one-time sales tax holiday.
The sales tax holiday was proposed by House Speaker Clay Shexnayder during last month’s special session and signed in by Gov. John Bel Edwards on Oct. 28.
The tax exemption applies to the first $2,500 of most purchases from Louisiana’s 4.45% state sales tax, including both in-store and online transactions. The exemption doesn’t cover buying a car or other licensed vehicle. It also doesn’t apply to business, commercial or food purchases. And it doesn’t apply to local sales taxes.
The exemption will cost the state $4.5 million in sales tax revenue, according to a nonpartisan analysis of the bill.
“The proposed holiday has the same applicability as the currently-suspended Louisiana Annual Sales Tax Holiday, which is typically held during the first weekend in August,” the analysis found.