Louisiana Sales and Use Tax Reform for January

Louisiana has passed HB8 and HB10. Key changes in HB8 are an expansion of the types of digital products subject to sales and use tax, and elimination of the 1% rate reduction for certain prepaid wireless products. HB10 most notably increases the state sales and use tax rate to 5.0%, as mentioned in our prior post. Additional significant changes in HB10 include application of sales and use tax on information services and newspapers, and an expansion of the state exemption for feminine hygiene and diaper products to include localities. The provisions in these bills take effect January 1.