Sales tax holiday to benefit storm, COVID-19 victims

A state sales tax holiday to provide relief for Louisiana residents recovering from hurricanes Laura and Delta, in addition to the COVID-19 public health emergency, will take place Nov. 20-21.

Act 16 of the 2020 Second Extraordinary Session of the Louisiana Legislature exempts the first $2,500 of most consumer purchases from the 4.45 percent state sales tax. The exemption applies to in-store purchases as well as transactions completed online or by telephone.

Eligible transactions include:

• Buying and accepting delivery of tangible personal property;

• Placing tangible personal property on layaway; and

• Making final payment on tangible personal property previously placed on layaway.

 The sales tax holiday does not apply to:

• Business or commercial purchases of tangible personal property;

• Prepared meals;

• Rentals or leases of tangible personal property;

• Sales of taxable services; and

• Vehicles subject to license and title.

The sales tax holiday exempts eligible purchases from the 4.45 percent state sales tax only. Local sales and use taxes apply to all purchases.