Louisiana to Increase Sales Tax, Extend It to Digital Products Starting 2025

• Louisiana is set to increase the state sales tax rate to 5% from 4.45% starting January 1, 2025
• The sales tax rate was previously 5% in 2016 and was reduced to 4.45% in 2018
• The rate will decrease again to 4.75% starting January 1, 2030
• New legislation will extend sales tax to various digital products including digital books, audiovisual works, and applications starting January 1, 2025
• Certain digital products used exclusively for business or health care are exempt from this tax
• The definition of sale or use of digital products includes actions like downloading, accessing, or enjoying the product
• These tax changes are part of a broader tax reform that also includes lowering income taxes and abolishing the corporate franchise tax
• The tax reform aims to overhaul the state’s tax code but has been criticized as potentially increasing tax inequity
• Both tax bills have been sent to the governor, who is expected to sign them into law

Source: avalara.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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