SALT Report 3778 – The Louisiana Senate voted in favor of a five-year sales tax increase aimed at fixing the state budget crisis on March 1, 2016.
The bill (House Bill 62) differs significantly from the sales tax that already passed the House because it spans a much longer period of time than the 18-month sales tax House members passed last week. It means the House and Senate will have to work out a compromise over how long the sales tax will stay in effect.
The sales tax increase is expected to produce $215 million by June 30. It is also estimated to raise $883 million for the fiscal cycle starting July 1. The $883 million can be used to help close a $2 billion shortfall expected next year, according to a financial analysis.
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