The Louisiana Legislature has enacted Act 1 of the 2018 Third Extraordinary Session. Act 1 reduces the state sales tax rate from 5% to 4.45% effective July 1, 2018. Also, beginning July 1, 2018, the overall state sales tax rate 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”) will be 2 percent (2%) levied pursuant to La. R.S. 47:302. For more information, please see Revenue Information Bulletin No. 18-016.
If you file a return for a hotel or room rentals in Orleans or Jefferson parish, the sales tax collected by LDR on room rentals decreased to 9.45% (Column D decreased to 2.45%). For locations with less than 10 rooms, the rate decreased to 4.45%.
Visit the webpage at www.revenue.louisiana.gov/SalesTax/SalesTaxRates for more information or contact your tax professional with any questions.