You think Oklahoma’s budget woes are terrible? Well, yes, they are, no question about it. But we got nothing on the Sportsman’s Paradise:
Before the special session began, Louisiana had a 4-cent state sales tax, which, when combined with about 5 cents of local sales taxes, gave Louisiana the country’s third-highest overall average sales tax rate at 9 percent. At the same time, 196 separate transactions were exempt from being charged the 4-cent state sales tax.
Needing to raise money quickly to close a record budget gap, legislators and Gov. John Bel Edwards turned to sales taxes during the 25-day special session that ended March 9.
Beginning April 1, Act 26 [pdf] raised the state sales tax by a penny — giving Louisiana the highest combined local and state sales tax rate in the country — and provided a bewildering list of exemptions to paying that extra penny.
Beginning April 1, Act 25 [pdf] eliminated numerous exemptions to the existing 4 cents of sales tax for three months and then only for 2 cents for the next two years, in another bewildering list of exemptions.
For both acts, sales tax exemptions drop off or come back at different times, adding to the confusion.
Soonerland residents will note that the Oklahoma state sales tax is 4.5 percent, and that various city and county levies bring it up to 8 to 10 percent. (Perhaps the worst is the section of Clinton that lies in Washita County: 4.5 state + 2.0 county + 4.5 city = 11 percent.) And yes, we have a bewildering list of exemptions.