By Pat Culverhouse

Louisiana residents will ring in the New Year with a state tax rate hike, part of a tax package Governor Jeff Landry called “a huge step” toward overhauling the state’s “outdated and bloated tax code.”

Legislators passed House Bill 10 which increases the state sales tax rate from 4.45% to 5% beginning January 1, 2025 and remaining in effect until Dec. 31, 2029. At that time, the tax will be reduced to 4.75%. Landry signed the bill into law on Dec. 4.

Beginning Jan. 1, Louisiana reportedly will have the highest combined average state and local tax rate in the nation at 9.56%. During debate on the bill, legislators indicated the tax reform package is part of a goal to ultimately eliminate the state’s income tax.

While Gov. Landry touts the package as reform, local businesses are looking at what it means to their bottom line.

“The most important point to this is if you aren’t charging enough as a business owner, you will be losing .55% of your profit when you remit that much more at the end of each month/quarter,” one owner said.

Prior to the increase, total sales taxes for the city of Minden stand at 11.95 percent which includes 4.45% in state taxes. Local tax structure shows 5.5% in local taxes broken down to 2.5% to the school board, 0.5% to the police jury, 0.5% for law enforcement and 2% to the city of Minden.

From Minden’s two percent, one percent is in sales tax and one percent to the sewer plant sales tax. TIF (Tax Increment Financing) is 2%.

Outside the city limits, a 3% tax is collected. Other towns in Webster Parish tax rates include 9.95% in Springhill, Sibley and Cullen; 9.45% in Dixie Inn; and, 8.45% in Doyline, Cotton Valley and Sarepta.