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NFIB Renews Call for LA Lawmakers to Reject Service Tax

NFIB Renews Call for LA Lawmakers to Reject Service Tax

November 14, 2024

Louisiana News

Extending the service tax could create insurmountable problems for Main Street businesses.

NFIB State Director Leah Long today renewed her call for legislators to vote “no” on House Bill 9, legislation that poses a grave threat to Louisiana’s small businesses.

“We are deeply concerned about this proposed tax expansion, which could create insurmountable challenges for Louisiana’s smallest businesses—those that lack the resources to absorb new compliance costs,” Long said. “While our members support reducing the individual income tax rate, the proposal to extend the sales tax to new services, currently untaxed, represents an unreasonable demand on businesses already struggling to stay afloat.

“The burdens these reforms would impose are unprecedented and unnecessary,” she said. “Other states have successfully lowered individual and property tax rates without transferring additional costs to small businesses. States like Arkansas, Mississippi, and Texas have all found effective ways to ease taxes on individuals and small enterprises. Louisiana, meanwhile, continues to lack centralized sales tax collection, further complicating compliance for small business owners.

“Our small businesses already face tax compliance costs that are 90% higher than those of larger corporations. Business owners—from rural dog groomers to solo handyman operators—do not have the infrastructure or resources to manage this increased complexity. This proposal would force a local dry cleaner, for example, to pay new taxes on essential operational expenses like fleet maintenance, security, and other basic business services.

“We urge the Senate to correct this misguided package and protect our small businesses,” Long said. ” We are ready to work with Governor Landry and legislative leaders to pursue a fairer tax structure that supports growth without compromising the essential services our local businesses provide.”

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