BATON ROUGE, LA – State Treasurer John Kennedy urged legislators Wednesday to consider suspending the one cent sales tax increase for flood victims rebuilding and refurnishing their homes.

“When the state sales tax was increased earlier this year, no one anticipated we’d have this magnitude of destruction to personal property,” said Treasurer Kennedy. “We now have the highest sales tax in America, and the state should not reap a financial windfall from people’s tragedy. We need to revisit this issue, even if it means calling a special session.”

Flood victims will pay the added sales tax on furniture, appliances, vehicles and other items that were destroyed. They will have to pay the increase on materials used in rebuilding their homes. The sales tax hike also applies to repair costs for personal tangible property, such as appliances.

“If you’re a flood victim and you’re replacing everything you owned, at a minimum you shouldn’t have to pay an extra penny in sales tax. That’s the least we can do for people,” said Treasurer Kennedy.

Contact:
Michelle Millhollon
(225) 342-0012
mmillhollon@treasury.state.la.us