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Bill

HB 666

TAX: Reduces individual and corporate income tax rates and imposes sales and use tax on certain services

2025 Regular Session Introduced by Neil Riser

Louisiana HB 666 reduces income tax rates while expanding sales tax to services, shifting tax burden from earnings to consumption.

Read by title, under the rules, referred to the Committee on Ways and Means.
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Bill Summary · HB 666

Legislative bill overview

HB 666 proposes a dual tax reform in Louisiana that reduces both individual and corporate income tax rates while expanding the sales and use tax base to include certain previously untaxed services. The bill aims to shift the state's tax revenue structure away from income taxation toward consumption-based taxation.

Why is this important

Tax structure changes directly affect household budgets, business competitiveness, and state revenues. This proposal could reshape Louisiana's tax burden distribution between different income levels and between individuals versus businesses, with cascading effects on economic growth, state services funding, and cost of living.

Potential points of contention

  • Regressivity concerns: Sales taxes disproportionately burden lower-income households who spend larger portions of income on consumption, while income tax reductions primarily benefit higher earners and business owners
  • Service sector definition: The bill's specification of "certain services" lacks detail; ambiguity about which services are taxed could create compliance confusion and unequal treatment across similar businesses
  • Revenue neutrality uncertainty: Whether the sales tax expansion generates sufficient revenue to offset income tax cuts remains unclear, potentially creating budget shortfalls for education, infrastructure, and social services
  • Economic competitiveness: Changes to corporate tax rates could affect Louisiana's ability to attract or retain businesses compared to neighboring states with different tax structures

Compiled from official sources — confirm details with the bill’s official record.

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