Not all of the temporary 1-percent sales tax will go away on July 1 as the Louisiana Legislature passed a 0.45-percent sales tax that begins with the new fiscal year. However, loggers will be happy tax exemptions that went away with the tax increase two years ago will be re-instated.
Prior to the tax increase of 2016, logging companies were exempt from state sales tax for logging equipment, parts lubricants and service on logging equipment.
Those exemptions return for loggers beginning July 1.
“Without a concerted effort of legislators and the author of the bill agreeing to add the exemptions to HB10, we would have had to amend the bill on the floor and add the exemptions,” said state Rep. Jack McFarland of Winnfield, who is a Master Logger and has Smart Logger certification, owns Jack McFarland Timber Inc.
So while the state sales tax goes from 5 percent to 4.45 percent, logging companies will get a break on the full state sales taxes beginning July 1, but only if they apply for the exemption.
“Loggers should reapply for tax exempt status beginning July 1st,” said Louisiana Forestry Association Executive Director C.A. “Buck” Vandersteen.
To find out how to apply for tax exempt status, loggers can call the Louisiana Department of Revenue at 855-307-3893.