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 sales and use taxes 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 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 expands the scope of taxable services, including the rental of accommodations, admissions to events, parking services, and various repair and maintenance services, while providing new definitions for these terms. The bill specifies that the sales and use tax will apply to a range of activities, such as telecommunications services and prewritten computer software access, with a total state sales tax of 10% on these services. Furthermore, it allows the secretary of the Department of Revenue to waive penalties for certain taxpayers who fail to report or collect sales and use tax on services that were not taxable prior to January 1, 2026, for a specified period. These changes aim to create a more comprehensive tax framework and provide financial relief to local governments, set to take effect on January 1, 2026.

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