RESET Louisiana has released findings from a new report analyzing the impact of recent tax changes adopted by the Legislature and signed into law following the November 2024 special session.
Economist and fiscal expert Greg Albrecht was commissioned by RESET Louisiana to provide an independent review of the state’s revised tax plan, which increased the general sales tax rate from 4.45% to 5% beginning January 1, 2025, through 2030, and added a 5% surcharge on certain telecommunications services. The report also accounts for adjustments made to the standard deduction and retirement income deduction in the state’s income tax structure.
Among the Legislature’s actions:
- Lawmakers rejected a broad expansion of the sales tax base to services not currently taxed, though some digital services were included in the final plan.
- The general sales tax was raised to 5% to offset lost revenue.
- An additional 5% sales tax was levied on certain telecommunications services, bringing the total rate on those services to 10%.
- Inflation adjustments were added to income tax deductions for standard and retirement income.
Albrecht’s latest report examines the income tax changes, sales tax adjustments, and their combined effect across a wide range of Louisiana households.
RESET Louisiana is a nonpartisan collaboration between the Leaders for a Better Louisiana and the Public Affairs Research Council of Louisiana, focused on advancing policies to improve the state’s future.