LAFAYETTE, La. (KLFY) – On average, Louisiana consumers are paying a whopping 9.98% sales tax making them the highest taxed consumer in the nation.
According to Tax Foundation, Louisiana consumers are paying the highest sales tax rate in America.
“It hits you right away in the pockets when you go to buy that one item and you add about 10% more to the price,” said a local resident.
Last year legislators raised the state sales tax one penny to avoid more budget cuts.
“The sales tax was raised by a penny because we put in several cuts over the last five years. I’m talking income tax cuts so that brought a huge shortfall to the state in the tune of anywhere from 6 to 8 hundred million dollars,” said Eric LaFleur.
Senate Finance Committee Chairman Eric LaFleur said when you add local taxes some cities are paying even more than the state’s average 9.98%.
“Each town has it’s own sales tax and they charge different rates, so that’s why in certain areas it could be as high as 10 or 11 percent.”
Kris Close moved to Louisiana from Minnesota a year ago. She said Minnesota was also a heavily taxed state but said there is a clear difference.
“You do get what you pay for and unfortunately with that, I don’t see that we are paying for those taxes here. In Minnesota yes, you paid high taxes but you saw what you got very nice roads, very nice parks that we paid for through taxes.”
LaFleur said he hopes the senate can find a better alternative to fill the gap.
“It would be disappointing if the legislature chose to do nothing else but take the easy way out and say we just renewed the sales tax for the next couple of years. That, I hope, is not what happens.”
Governor Edwards announced a special session Friday to discuss financial reform. It is set to begin February 13th.