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Louisiana among just five states where tax rate on cell phone service is below sales tax rate, study says
Source:
businessreport.com
- Oct 19, 2016
For once, Louisiana is at the bottom of a national ranking for a good reason.
On average, Louisianans pay 1.54 percentage points less in taxes for cell phone service than they do in sales taxes, according to a recent joint study by the Tax Foundation and Scott Mackey of KSE Partners.
That places The Bayou State among just five states bucking a national trend in which most Americans are paying higher taxes on cell service than they are on general purchases, the study says.
According to the report, Louisianans pay on average a 8.79% state-local tax rate for wireless service, compared to the 10% average sales tax rate. The state is ranked No. 50 out of the 50 states plus Washington D.C. and Puerto Rico for the disparity between the state-local wireless tax rate and its sales tax rate. Louisiana is ahead of Idaho (a disparity of 3.74 percentage points) and Nevada (a disparity of 5.85 points) on the list. Alabama (0.08 points) and West Virginia (0.28 points) also deviated from the national trend, but had disparities that were much less than Louisiana’s.
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Category: General Business
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