LAFAYETTE PARISH — Louisiana's new sales tax, which took effect January 1, has increased rates on services like streaming platforms, leaving many residents feeling the financial strain.
On Wednesday, Louisiana customers began receiving notifications from providers like Cox, which alerted them to a 10% sales tax now applied to TV and video streaming services.
Customers were notified of a, "significant tax change" which would see customers paying additional charges on their upcoming bills.
The tax increase is part of a greater plan by Governor Jeff Landry to modernize Louisiana’s tax code.
The changes are meant to help cover the shortfall after Louisiana lawmakers decided to lower state income taxes and cut the corporate franchise tax to make the state more competitive for new businesses and residents.
The tax increase will make up for the losses in revenue but now Louisiana will have one of the highest combined sales tax rates in the country, ranging from 10% to 12%.
Among those impacted is Ronald Boutte, who expressed concern over the growing cost of living.
"We already have a problem with inflation, people struggling as it is," Boutte said. "The higher taxes are hurting us more."
Lawmakers argue that the sales tax increase is necessary to balance the reduction in state income taxes.
Critics say the change would primarily hurt lower income families.
