At a glance
Constitutional Amendment 1 would establish a state commission to process all sales tax receipts in the state, replacing the currently decentralized and disjointed local sales tax collection system.
Background
The Louisiana Department of Revenue collects the 4.45% state sales tax, but separate collectors assigned by each parish collect local sales taxes. These collectors differ by parish and could be a school board, parish government, the sheriff, or the municipality. Louisiana stands out as one of only three states (along with Hawaii and Colorado) that doesn’t use a single agency to collect taxes on goods and services. That means retailers and wholesalers with operations in different parishes have to collect different amounts of taxes on sales, follow different rules, and cooperate with different interpretations of the same state law. Under the proposed legislation, businesses would remit sales taxes to a centralized authority, which would disburse the tax revenue to each local tax collection authority and to the state revenue department. This amendment is of particular importance to the small business community, for which multiple reporting standards and offices create an undue burden. This amendment was developed through months of collaboration between local sales tax collectors, business groups, and state policy experts to resolve tax collection issues that have long damaged Louisiana’s economic climate and national perception. The bill enjoyed broad bipartisan support during the legislative session.
What the ballot says
Do you support an amendment to authorize the legislature to provide for the streamlined electronic filing, electronic remittance, and the collection of sales and use taxes levied within the state by the State and Local Streamlined Sales and Use Tax Commission and to provide for the funding, duties, and responsibilities of the commission?
BRAC’s take
BRAC is in support of Constitutional Amendment 1 and encourages voters to vote yes. Read BRAC’s full position here.
Brace B. “Trey” Godfrey, III
As the senior vice president of policy, Trey drives regional and state-level initiatives to create a more competitive region for business growth and talent development, particularly through the organization’s public policy and government affairs activity.