Report: Louisiana has largest average local sales tax

WASHINGTON — Louisiana has one of the highest combined sales tax rates in the nation largely because the state has the largest average local sales taxes.

A Tuesday report from the nonpartisan Tax Foundation in Washington, D.C., stated that Louisiana has the nation’s highest average local sales tax rate at 4.86 percent.

Baton Rouge has a 5 percent local sales tax that goes toward the parish and public schools.

Louisiana ranks third nationally in combined sales taxes with an average of 8.86 percent — 9 percent in Baton Rouge — once the 4 percent state sales tax is added. Louisiana trails only Tennessee and Arizona in combined sales taxes, according to the report.

However, the 4 percent state tax ranks only 39th nationally.

Louisiana has the highest minimum local sales tax nationally at 4 percent that rises to a maximum of 7 percent in parts of the state, the report states.

“Retail sales taxes are one of the more transparent ways to collect tax revenue, as statewide sales tax rates are generally well-understood by taxpayers,” Tax Foundation economist Scott Drenkard said. “The local sales taxes collected in thousands of jurisdictions in 37 states, however, often are not. These rates can be substantial, so a state with a moderate statewide sales tax rate can end up with a very high combined state and local rate.”

Delaware, Montana, New Hampshire and Oregon are the only states that do not levy any sales taxes.

“The state of Delaware actually uses its state border welcome sign to remind motorists that Delaware is the ‘Home of Tax-Free Shopping,’ ” the report states, while residents of some cities with higher sales taxes more frequently turn to online shopping to avoid local taxes.

“Of course, sales taxes are just one part of an overall tax structure and should be considered in context,” the report adds. “For example, Washington State has high sales taxes but no income tax; Oregon has no sales tax but high income taxes. While many factors influence business location and investment decisions, sales taxes are something within policymakers’ control that can have immediate impacts.”

Comments

1) Comment by phil - 01/08/2012

The money does have to come from somewhere. The real question is, where does all of the tax money/fees go to? How about that $1.5 billion sewerage project - how about all of those downtown parks (and we need bridge repair??) - how about all that tax money going to BRAC and the DDD, how about. concerts, how about TIF districts and that newly created district by the casino (check it out) - how about.......etc etc.

2) Comment by phil - 01/08/2012

Always someone who never saw a tax they didn't like here! Also speaking of taxes, what happened to all of the comments on the CATS article? Someone doesn't like what was being said maybe?

3) Comment by phil - 01/08/2012

Always someone who never saw a tax they didn't like here! Also speaking of taxes, what happened to all of the comments on the CATS article? Someone doesn't like what was being said maybe?

4) Comment by DMJ - 01/08/2012

Relax, patriots. Louisiana still has among the lowest property taxes in the country....one of the reasons we have high sales taxes. If one tax is low, it just means another tax is high. Oregon doesn't have sales taxes....but they have very high income taxes and property taxes. Texas doesn't have income taxes....but they have very high property taxes and sales taxes upward of 8%. The money's got to come from somewhere...

5) Comment by phil - 01/08/2012

I should have stated that SOME local politicians want more taxes. Remember that ALIVE deal?

6) Comment by phil - 01/08/2012

All of those who say we are not taxed enough in BR please read this article again. If the 8.86 percent average for LA is high, where does that place BR and other cities that have 9 percent or higher. The truth is we are taxed TOO much already, and our local politicians want even more.

7) Comment by zealer99 - 01/08/2012

They through around all of the facts and figures for individual items but it does not mean much if the total debt load and the local cost of living is not "figgered" into the analysis. What might help the analysis is the development of an average family model, which would be fictitious but would give a more realistic means of comparison. I could understand the comparison of one average family, with an average income, with an average cost of living, in an average part of the United States, living in an average house, driving an average car, and so on, to another average family. That model may exist but the fact that I am unaware of it means it is not widely used.

8) Comment by 8point6 - 01/08/2012

"Louisiana ranks third nationally in combined sales taxes with an average of 8.86 percent — 9 percent in Baton Rouge — once the 4 percent state sales tax is added." IMO, this is not good enough for my "progressive" friends. They would be happy to see La ranked number one in combined sales taxes. That would cure all of the ills of public education, there would be no poverty in La, etc, etc....