House Bill No. by Representative Riser proposes significant changes to Louisiana's tax structure, including reductions in individual and corporate income tax rates and the introduction of a new state sales and use tax on certain services. The bill amends existing statutes to lower the individual income tax rate from three percent to two and nine-tenths percent and adjusts the corporate income tax rate from five and one-half percent to five and four-tenths percent, effective for taxable years beginning on or after January 1, 2026. Additionally, it establishes a new Local Revenue Fund to receive revenues from specific taxes, which will be used to offset losses from business inventory exemptions granted by parishes. The legislation also expands the scope of taxable services, including the rental of accommodations, admissions to entertainment events, parking services, and various repair and maintenance services, while providing new definitions for terms related to these services. A new state sales tax of 5% will be imposed on these services, which will be exempt from local sales taxes, resulting in a total state sales tax rate of 10% on these newly taxable services. The bill includes a limited waiver of penalties for individuals who fail to collect or report sales and use tax on services that were not taxable prior to January 1, 2026. Overall, the bill aims to modernize Louisiana's tax system and improve local funding mechanisms, with an effective date of January 1, 2026.

Statutes affected:
HB666 Original: 47:32(A), 47:3(3), 47:1(F)