Tax holiday less than ‘15
Published 7:08 am Wednesday, July 27, 2016
Although the state’s Department of Revenue cancelled an earlier sales tax holiday for hurricane season, a limited sales tax holiday for school supplies will be held Friday, Aug. 5, through Saturday, Aug. 6.
The popular annual tax holiday is intended to give parents a chance to save a few dollars on school supplies without having to pay sales tax. The savings applies to the first $2,500 in goods.
However, this year’s tax holiday won’t be as generous as in years past.
Only months earlier the state faced a massive budget deficit, so while this year’s tax holiday will offer savings, it won’t eliminate sales tax altogether. Rather than 5 percent sales tax, consumers will pay 3 percent on select items.
According to a statement from the Department of Revenue, “Beginning July 1, 2016 through June 30, 2018, the Annual Louisiana Sales Tax Holiday will be partially exempt from state sales tax. Consumers, who purchase eligible items of tangible personal property during the sales tax holiday, will pay 3 percent state sales tax. Two percent of the sales price or cost price of an eligible item of tangible personal property will be exempt from state sales tax.”
As in the past, the sale begins Friday, Aug. 5, at 12:01 a.m. The sales tax holiday can be applied to nearly any back-to-school item that could be used for personal, non-business use.
Louisiana shoppers can also take advantage of Mississippi’s sales tax holiday this weekend.
From Friday through midnight Saturday, Mississippi is offering a sales tax holiday on most back-to-school items up to $100. The holiday is a repeal of the state’s 7 percent sales tax, although the Mississippi sales tax holiday is limited to mostly clothes and doesn’t apply to electronics.