Louisiana finished its first full fiscal year under the 2024 tax overhaul with major state revenues down $934 million from the previous year. Higher sales tax collections failed to offset steep declines in individual and corporate income taxes, according to the Louisiana Department of Revenue’s June Net Receipts Report.

Tax Overhaul Impact

The state collected $11.2 billion in major revenues during fiscal year 2026, compared with $12.1 billion during fiscal year 2025, an 8% decline. The 2024 overhaul lowered individual and corporate income tax rates while increasing the state sales tax rate to 5%, shifting a larger share of state revenue toward consumer purchases.

General sales tax collections increased to $5.2 billion, up about 15% from fiscal year 2025. At the same time, individual income tax collections fell to $3.8 billion, down 19%, while corporate income and franchise tax collections dropped to $725 million, a 49% decline from the previous fiscal year.

June’s monthly collections were stronger than May’s, but the improvement did little to change the broader fiscal picture. The state collected $1,131,947,860 in net receipts in June, up $38,525,654 from $1,093,422,206 in May, an increase of about 3.5%.

Original reporting: KTBS 3 (Shreveport) — read the source article.