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CLA Warns Louisiana Laundry Owners of Tax Reform’s Impact

Staff Writer |

Budget proposal would eliminate sales tax exemption for self-service laundry

KENNER, La. — Louisiana Gov. Bobby Jindal’s tax reform proposal includes a broadening of the state’s sales tax base, including eliminating the exemption for self-service laundry, and the Coin Laundry Association (CLA) will be hosting a free public meeting here later this week to bring Louisiana laundry owners up to speed on this critical issue.

Like most states, Louisiana currently exempts coin laundries from collecting sales tax, CLA says. Gov. Jindal’s budget proposal centers around broadening the sales tax base to include scores of industries and services that are presently exempt (while raising the base rate from 4.0% to 5.88%).

The end result could mean that all Louisiana laundry owners would remit more than 5.88% of gross sales to the state each year going forward without being able to directly collect this tax from customers on a daily basis, CLA says. The association estimates it could cost the average laundry owner at least $5,000 to $10,000 per store annually.

The proposal is expected to be included in bills to be considered by the Louisiana legislature when its session begins next Monday.

The CLA will host the luncheon meeting beginning at 11 a.m. Thursday at the Hilton New Orleans Airport. There is no cost to attend the event, but the CLA is requesting attendees to RSVP by calling 800-570-5629 or to e-mail.

Comments

Iowa sales tax

In Iowa we pay 7% sales tax on every quarter dropped besides sales tax on utilities used each month.  Our neighbors across the river in Omaha, Ne only pay sales tax on vending items sold, although there's talk sales tax is going to be charged as we are in Iowa.  Nothing like having to find two hundred extra customer's each month to stay even with what you're use to.  That's about 600 - 700 extra turns each month.  That's what we face here compared to Nebraska.

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