Louisiana: Hurricane relief sales tax holiday forthcoming

Recently enacted Act 16 establishes a one-time state sales tax holiday to provide relief for citizens recovering from Hurricanes Laura and Delta, as well as the COVID-19 pandemic. Specifically, the first $2,500 of any consumer purchase that occurs on November 20^th and 21^st will not be subject to Louisiana sales tax. “Consumer purchases” are purchases of tangible personal property, not including vehicles or prepared meals purchased for consumption on the premises or to-go orders.  The exemption will apply if any of the following conditions occur during the holiday period: (a) Title to the property passes from a dealer to a purchaser; (b) A customer selects an item from a dealer’s inventory for layaway, and that item is physically set aside for future delivery to the customer; (c) A customer makes final payment and withdraws an item from layaway that might have been placed in layaway before the holiday period; or (d) A customer orders and pays for an eligible item, and the dealer accepts the order for immediate shipment, even if delivery is made after the holiday period, provided the customer does not request delayed shipment. Local sales and use taxes are not covered under the holiday and will continue to be imposed on purchases. Please contact Randy Serpas at 504-569-8810 or view the Department of Revenue’s recently-released policy statement for more information on Louisiana Act 16.