The National Federation of Independent Business State Director Leah Long said on Mar. 11 that small business owners are calling on lawmakers to back House Bill 620, a proposed constitutional amendment aimed at simplifying Louisiana’s sales tax system by allowing the state to implement a centralized process for collecting local sales and use taxes.
The proposal is significant because it seeks to address what many see as one of the most complicated sales tax systems in the country. Small business owners currently face multiple collectors, varying rules, and confusing filing requirements, which can be burdensome for those without dedicated accounting resources.
If passed by both the Legislature and voters, House Bill 620 would enable lawmakers to create a single system for collecting all state and local sales and use taxes. The plan calls for a central collector who would gather these taxes before distributing them to the appropriate local authorities. The amendment also clarifies that local tax revenues would remain under the control of local taxing authorities rather than being treated as state funds.
“Our sales tax system is one of the most complex in the country,” Long said. “Small business owners have to contend with multiple tax collectors, different rules, and confusing filing requirements. This proposed amendment would help create a simpler, more consistent system.”
Long also said, “Small businesses don’t have teams of accountants or lawyers to handle taxes. A more streamlined process would cut paperwork, reduce compliance costs, and make it easier for small businesses to focus on serving their customers and growing their businesses.”
House Bill 620 is set to appear before voters in the Nov. 3 statewide election if approved by lawmakers. Should voters pass it, changes are scheduled to take effect on Jan. 1, 2027.
