Leah Long, state director of the National Federation of Independent Business, said on March 26 that small business owners are asking members of the House Ways and Means Committee to approve House Bill 620. The bill is a proposed constitutional amendment intended to simplify Louisiana’s current sales tax system.
The topic is important because many small businesses in Louisiana operate across multiple communities and face challenges due to varying local tax rules and collectors. A more unified approach could help reduce confusion and administrative burdens for these businesses.
According to Long, “Louisiana’s sales tax system is one of the most complex in the country. Small business owners with operations in different communities have to deal with multiple tax collectors, different rules, and confusing filing requirements. This amendment would create a simpler, more consistent system.” The proposal would establish a centralized system for collecting local sales and use taxes. Under this plan, a central collector would gather all taxes before distributing them to local authorities. The amendment also clarifies that these revenues remain under local control rather than becoming state funds.
Long also said, “Small businesses usually cann’t afford teams of accountants or lawyers to manage taxes. A more streamlined process would reduce paperwork, lower compliance costs, and make it easier for small businesses to focus on serving their customers and growing their businesses.” HB 620 calls for placing the proposed constitutional change on the Nov. 3 ballot so voters can decide whether it should take effect starting Jan. 1, 2027.
If approved by both lawmakers and voters later this year, supporters say the measure could lead to less paperwork for business owners while ensuring that local governments retain control over their own revenue streams.
