Tomorrow the state sales tax will increase from four cents to five cents until June 30, 2018. LSU Marketing Professor Dr. Dan Rice expects some people looking to make a major purchase will try to get that out of the way before the increase goes into effect. But he says this likely won’t change consumer’s purchasing habits.
“We’re not talking about a huge tax increase and I think there has been a lot of news about it but I think that it’s something that if you just raised it and hadn’t had all the news, a lot of consumers may not even notice it quite frankly.”
Rice says most consumers are aware of the higher sales tax, but doesn’t see many stores reducing their prices to offset the tax increase.
“There might be some out there that try and combat that by reducing their prices slightly to maybe avoid people that are on the margins going from one state to the next but I think that’s likely the minority.”
Also, state taxes on cigarettes and alcohol will increase on Friday. Rice says shoppers making big purchases, like vehicles or furniture, will likely see a difference after the sales tax goes up.
“Whether it’s better to buy it now before the one percent increase or wait for the next sale, which may be is a bigger decrease. It really just depends on your particular situation.”