A proposal to gradually return the state sales tax to four-percent, where it was for many years prior to the Edwards administration clears out of the House Ways and Means Committee. The current state sales tax rate is 4.45 percent, but Alexandria Representative Lance Harris says it’s helping to produce surpluses.
“We are not in this just to grow government, via extracting money out of their pockets and when we do collect to much, we can give it back to them,” said Harris.
The state sales tax increased to five-percent in 2016 to to address a massive budget shortfall. It was lowered to 4.45 percent last year as part of a budget deal and Marksville Representative Robert Johnson is concerned Harris’ legislation will return the state to budget deficits.
“We’ve been in deficits and budget crisis ever since and this is the first time we are not in (one), it’s sort of refreshing,” said Johnson.
According to Harris’ bill, the state sales tax would return to four percent in July 2023, it would start to gradually lower in July 2020, costing the state 87-million dollars in its first year of implementation. Harris says the state’s budget is growing and the average taxpayer is not seeing a benefit.
“This is a bill that can help your constituents on a day-to-day basis, because they pay it on everything,” said Harris.
The Edwards administration opposes the measure and with less than a month to go in the legislative session, the proposal might have a hard time getting full legislative approval.
