Economic Competitiveness in Louisiana: The Inventory Tax Credit
Louisiana’s local inventory tax is assessed on tangible personal property used in a business. This includes goods awaiting sale, commodities that are in the course of production, and raw materials and supplies. Examples of taxable items include retail or wholesale merchandise, commodities from farms, repair parts, and manufacturing by-products, among others.
For decades, Louisiana has maintained an ad valorem tax on inventory held by manufacturers, distributors, and retailers that is assessed and collected by local government. In 1991, the Louisiana Legislature authorized a five-year phase-in […]