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Louisiana lawmakers advance house bill 9, expanding state sales tax to 41 new services

Adding sales taxes on digital streaming, pet grooming, and other services to generate $400 million for the state amid income tax cuts.
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Louisiana lawmakers are pushing forward with a major tax reform effort, advancing House Bill 9 to add 41 new services to the state’s sales tax. The bill, part of an ongoing special session, is projected to generate an estimated $400 million in revenue to balance reductions in income taxes. Services newly subject to sales tax include digital streaming, lawn care, spa and massage services, and pet grooming.

While the bill is seen as a step toward modernizing Louisiana’s tax code, some lawmakers are voicing concerns about potential cost increases for residents. The Ways and Means Committee has also voted to eliminate income taxes and approved House Bill 3, which repeals the corporate franchise tax.

The special session, which must conclude by Nov. 25, is expected to bring significant changes to Louisiana’s tax structure.

For more on the legislative changes, click here.

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