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“It’s just a matter of when and how we’ll do it”: Centralized Sales Tax Bill Sees Legislative Backing Prior To Deferral
In another win for the status quo against Louisiana’s small businesses, legislation aimed at streamlining Louisiana’s complex sales tax system was voluntarily deferred Monday. But make no mistake: after a robust committee discussion, one thing was clear, no one seriously questioned whether reform should happen. The real debate is about when—and how.
HB 620, a Constitutional Amendment that, if approved by voters, would have authorized the Legislature to create a single, centralized system—bringing Louisiana in line with every other state and delivering an efficient and consistent system—was the first bill heard by the House Ways & Means Committee. Its author, Rep. Josh Carlson (R-Lafayette), laid out the core problem facing businesses across the state:
“Because of [the system’s] complexity, this increases administrative costs, it discourages expansion across parish lines, it puts local businesses at a disadvantage and it makes Louisiana less competitive for attracting companies. In a state working to grow jobs and investment, the question I have for you this morning is, how long are we going to make it unnecessarily difficult for businesses to succeed here?”
That sentiment was echoed by business leaders and lawmakers alike. Testifying on behalf of the state’s business taxpayers, LABI’s Jim Patterson warned that maintaining the current system comes at a real cost to those who choose to start and build a business in Louisiana:
“We are holding our young people back when we insist upon adhering to an archaic system that is not serving the interests of the people it is intended to serve.”
Members of the committee also acknowledged the broader economic stakes. Rep. John Wyble (R-Bogalusa) emphasized the importance of aligning tax policy with the state’s economic development goals, saying, “as we continue to work very hard on economic development and growing business, at some point we have to listen to our business and industry.”
Even though tremendous progress was made during the 2024 Special Session on Tax Reform, lawmakers have yet to address the state’s fragmented collection system, not for a lack of effort on the part of the business community and pro-growth leaders.
“We can’t continue to make it more and more difficult for the business and industry that we’re trying to bring here,” Rep. Wyble added. “At the end of the day, we can’t do any of the objectives we want to do as a state until we put more people to work.”
That inaction has continued to hamper Louisiana’s tax ratings from national organizations like the Tax Foundation and Council on State Taxation (COST), both of which were represented in Monday morning’s committee hearing.
Rep. Roger Wilder (R-Denham Springs) struck a similar tone, pointing to the need for growth and collaboration.
“I ran for office because we need to bring business to our state. We’re going to solve no problems unless we bring in more commerce and tax base.”
He urged local stakeholders, including sheriffs and collectors, to come to the table adding, “I would just respectfully ask that all of our locals … let’s work on a workable way to get something done that moves the state forward instead of just no, no, no.”
Rep. Carlson has said he will instead bring a resolution on the issue, although, what exactly that will look like is unclear. He also asked the Committee to defer HB 658, the statutory companion to HB 620, and the Committee approved.
LABI believes it is past time for studies on this issue and urges concrete action.
While today’s deferral delays immediate action, it does not diminish the urgency of reform. The conversation has clearly shifted. Lawmakers, business leaders and policy experts are increasingly aligned on the need to modernize Louisiana’s sales tax system. The path forward may still be under discussion—but standing still is no longer seen as a viable option.