Louisiana sales tax law lacks support, postponed in House
LOUISIANA (KTAL/KMSS)—Taxes are the topic of Louisiana's third special session of the state legislature. In a proposed bill, House Bill 9, a sales and use tax would be imposed on certain services, such as pet grooming and spa services.
The proposed taxable services would include:
- Auto club services and fees, including road and travel services
- Car wash services
- Coin-operated machines
- Dating and social matching services and marriage bureaus.
- Delivery, shipping, freight, and transportation services associated with a taxable sale of tangible personal property.
- Non-medical diet and weight reduction services
- Interior decorating and design services.
- Intrastate limousine, bus, and van transportation services and taxicab and rideshare services.
- Landscaping, lawn care, and horticulture services.
- Linen supply services.
- Lobbying services.
- Machine and equipment operator services
- Mailing services
- Personal fitness training services
- Pet grooming, boarding, sitting, training, and obedience services
- Photography and photographic studio services
- Private process server services.
- Public opinion and research polling services.
- Quilting, embroidery, and monogramming services.
- Repairs, maintenance, and installation of tangible personal property.
- Restroom operations and comfort station services.
- Security services as defined in proposed law.
- Personal shopping services for individuals.
- Social event planning and coordination services and catering services.
- Spa services, massages by massage parlors, and steam baths.
"You have folks who operate small lawn landscape services, you have people who operate gyms, they're not used to collecting tax on that service so until you can address the compliance issue, and things like that, it's just too much too soon," said Stephen Jackson, Louisiana state representative for house district 2.
Jackson says he does not support the bill, and he is not alone.
"The status of that bill is it doesn't have enough votes to get out of the house. That's the house that it started in. And so it just doesn't have enough votes, so that bill was postponed- that vote was postponed yesterday, and quite frankly, we don't know if it will make it through the process," said Jackson.
His lack of support stems from the harmful impacts on small businesses.
"People may decide to start cutting their own grass at that point, people might start cutting back on things, people might not want to do dog grooming at this point, and so you could essentially be putting people out of business as well," said Jackson.
The state representative says he understands what Governor Jeff Landry is attempting to do, "lower the tax burden on citizens," but Jackson says the burden cannot just be shifted.
"Will these individuals resort to just using cash to a certain degree? You know, hair stylists, barbers, things of that nature, people have gone for a long time without having to pay a tax on those, and trying to make that adjustment is probably too much for us to stomach at this particular time," said Jackson.
As the special session continues, amendments to the proposed bill could be made, but it could die and not make it through the process.
"These conversations could resurface in our regular fiscal session that's going to come up in the spring, but I just don't see- I don't feel that there is an appetite for it right now," said Jackson.