With a population of roughly 4.6 million, Louisiana is a state in the southern part of the United States. The state has a distinctive tax structure that sets it apart from other jurisdictions in the nation. I’ve heard this question a lot: “Is Louisiana tax exempt?” The state of Louisiana is not entirely immune from paying taxes, so the answer is no. There are, however, some exceptions that may apply to particular organizations and people.
The sales tax is one of the exemptions. Sales tax is levied in Louisiana on the sale of some services and tangible personal goods. There are a few exceptions to this rule, though. For instance, some foods and prescription medications are excluded from sales tax. A sales tax exemption is additionally offered by the state for specific machinery and equipment utilized in manufacturing and other sectors of the economy.
The taxability of SAAS (Software as a Service) in Louisiana is another issue that comes up. Yes, SAAS is taxed in Louisiana, to answer your question. This implies that companies offering SAAS services and goods must collect and remit sales tax to the state of Louisiana.
Depending on the parish (county) where the purchase is made, Louisiana’s sales tax rates can change. The parish of Orleans has Louisiana’s highest sales tax rate, which is 11.45%. The parishes of Beauregard, Calcasieu, and Vernon have the state’s lowest sales tax rate at 4.45%.
The 2020 Louisiana sales tax rate for the majority of purchases is 4.45%. However, because of municipal sales taxes, certain parishes have higher rates. The fact that local governments in Louisiana are permitted to apply additional sales taxes on top of the state sales tax rate should not be overlooked.
Finally, there is the issue of Louisianan sales tax collection on services. The type of service being offered will determine the answer, therefore. Sales tax is not required for some services, including haircuts and legal counsel. Other services, though, like pest management and landscaping, are taxable.
In conclusion, Louisiana has some tax exemptions accessible for specific businesses and goods, but it is not entirely tax exempt. Parish-specific sales tax rates can vary, and local governments have the authority to apply additional sales taxes on top of the state rate. Sales tax may or may not be applied to some types of services depending on the service being offered, and SAAS products and services are taxed in Louisiana.
State tax in Louisiana is computed as a percentage of the final cost of a good or service. Local sales taxes may also be applicable, raising the overall sales tax rate in some places to as much as 11.45% from the state’s current rate of 4.45%. The seller normally collects the sales tax at the moment of purchase and regularly sends it to the state. Food and prescription drugs are two examples of commodities that may not be subject to sales tax.