Gov. Jeff Landry’s new tax plan will increase sales tax across all parishes, solidifying Louisiana’s historical standing as one of the states with the highest sales tax. 

“We have made generational change in this state. We now stand at the threshold of a new era for Louisiana,” Landry said in a statement following his special tax session. 

The tax session introduced a flat 3% income tax rate for individuals and a 5.5% rate for corporate income, resulting in a $1.3 billion cut to the state’s budget. How to make up for this cut: a sales tax increase. 

“They adopted a low, flat rate income tax, increased the standard deduction and raised sales taxes to pay for this [cut],” Steven Sheffrin, Tulane University economics professor, said in an email to The Hullabaloo.   

Prior to the session, Louisiana had the highest combined state and local sales tax, at 4.45% for the state and 5% for Orleans Parish.  

Beginning Jan. 1, the state sales tax will be 5%, making the combined local and state sales tax 10% in Orleans Parish.  

Landry also decreased the income tax to 3%, eliminated the corporate franchise tax and reduced corporate income taxes.  

“They funded these corporate changes by cutting back on a number of tax credits,” Sheffrin said. 

Some Louisianans are displeased with the new tax legislation.  

“I think [the new tax legislation] is bad for me personally because I don’t have an income, but I buy thing[s] in Louisiana,” Louisiana resident and sophomore Mae-Ying Stock-Bordnick said. 

Sheffrin believes that coordinating state and parish taxes and taxing more services would be effective reforms.  

“That would really help smaller businesses by making the system less complex and cumbersome and make Louisiana even more competitive,” he said.