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What you need to know about Louisiana's sales tax change

Only the 1 percent sales tax surcharge added temporarily in 2016 will change. The rest of the state's 4 percent sales tax remains, as do any city and parish sales taxes.

The state sales tax will drop a teensy bit starting Sunday — July 1.

If you like the reduction, then thank the Louisiana Legislature and Gov. John Bel Edwards. After three special legislative sessions this year and much wrangling, they agreed over the weekend to replace a 1 percent state sales tax that was to expire Saturday.

The new tax: .45 percent.

The weekend tax action means that instead of a 1 percent reduction in the sales tax, you'll see a .55-percent reduction.

Here's what you need to know.

What will change

Only the 1 percent sales tax surcharge added temporarily in 2016 will change. The rest of the state's 4 percent sales tax remains, as do any city and parish sales taxes.

For example, the local sales tax paid on top of the state tax is 4 percent in Lafayette, and 4.5 percent in Broussard and 5.5 percent in Youngsville.

The tax is paid on each dollar you spend on retail items and at restaurants, with some exceptions.

How the change will work

Businesses collect the tax and must send the money to the Louisiana Department of Revenue.

A revenue department spokesman said Monday that it had communicated the tax change to every chamber of commerce in the state, to the Louisiana Retailers Association and to other retail business groups. The spokesman also said the department began Monday to reprogram its computer system — a task that he described as "a routine part of what we do."

What businesses must do

They generally must reprogram their own point-of-sale software to reflect the change, and they may need to communicate with their accountants. Employees also will need to be briefed, because prices they've memorized for commonly sold items will change.

Total sales tax owed locally after change

Here's a handy reference to the total sales tax rate — state (4.45 percent) plus local — that you'll owe starting Sunday.

  • Lafayette: 8.45 percent
  • Broussard: 8.95 percent
  • Carencro: 9.45 percent
  • Duson: 8.45 percent (increasing to 9.45 Oct. 1)
  • Youngsville: 9.95 percent
  • Unincorporated Lafayette Parish: 8.45 percent

What if you're charged the wrong tax amount?

Byron Henderson, spokesman for the Louisiana Department of Revenue, said taxpayers who are charged the wrong sales tax amount may file a claim with the department. Get a copy of the claim form at bit.ly/2N1k1UL.

LDR did send guidance over the weekend saying that any business that charges too much must send the excess to the revenue department.

Fortunately, for most purchases, the excess charge will be small. Still, you're probably best off checking your receipt before you leave a business and challenging an error immediately.

What you'll save

A windfall? Not exactly. We checked the prices Monday on 10 items, from small to big. We then calculated your savings when the state sales tax goes into effect Sunday.

Hamburger

A Big Mac at the McDonald’s

  • Cost: $4.09
  • Current 5% sales tax: 20 cents
  • New 4.45% sales tax: 18 cents
  • Savings: 2 cents. But $7.30 in a year if you buy one every day.

Fancy Starbucks Drink

Venti Mango Dragonfruit Refresher without lemonade

  • Cost: $4.66
  • Current 5% sales tax: 23 cents
  • New 4.45% sales tax: 21 cents
  • Savings: 2 cents. But $7.30 in a year if you buy one every day.

Movie ticket

General admission ticket to a 7 p.m. showing

  • Cost: $10
  • Current 5% sales tax: 50 cents
  • New 4.45% sales tax: 44 cents
  • Savings: 6 cents. But $3.12 in a year if you go to one movie a week.

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