Governor Jeff Landry called state lawmakers back to Baton Rouge for a special session in November to make reforms to the state’s tax code in order to spur economic growth and improve the state’s competitiveness in retaining and attracting private sector investments.  These reforms were highlighted in the legislature’s press release that includes a reduction of the corporate income tax rate from 7.5% to a flat 5.5%, elimination of the corporate franchise tax, and a reduction in the personal income tax rate from 4.24% to a flat 3%.  

The session also resulted in expanding the sales tax to digital services and increasing the sales tax to 5% before reducing it to 4.75% after 5 years to generate revenue from these reforms. The Associated Press reports that the sales tax increase will result in a one cent increase per dollar spent.

The tax changes took effect Jan. 1, 2025.

State lawmakers are starting to return to their respective state offices and capitals to begin the lawmaking process for their 2025 legislative sessions. These sessions will certainly include debates on taxes, the environment, housing, energy and other policies and regulations impacting the commercial development and real estate industry. Session dates provided by MultiState can be found here.