ACADIA PARISH — Tensions ran high during an Acadia Parish Police Jury meeting on Tuesday as business owners voiced concerns over a sales and use tax they say was implemented without their knowledge.
In 2023, the former Acadia Parish administration created a new economic development district, triggering a 2% sales and use tax within the area. The increase brought the total sales tax rate in the district from 9.25% to 11.25%.
Business owners operating within the district told the police jury they did not learn about the tax increase until October.
“Just because it’s legal doesn’t make it right,” said Jay Domingue of Reach4 Communications.
Domingue said he began asking questions after noticing a higher tax rate on purchases processed through a national distributor.
“Speaking to other business owners, they were unaware of it as well,” Domingue said. “Nobody was even remitting the proper tax as passed because no one even knew about it. The only reason my situation happened is I have a national distributor, and they tapped into the software and said, ‘Yep, 11.25%.’”
Under state law, when changes are made to a non-residential economic development district, the parish is only required to publish a notice of intent twice in the local newspaper and hold a public meeting.
Domingue criticized that process, calling it outdated.
“Nobody reads the newspaper,” he said. “They held the committee meeting to discuss it on Jan. 3, of 2023, which no one goes to after the holidays. It’s announced in a small thing in the paper, and then no one showed up, so the next meeting they passed the tax.”
Business owners said the increase puts them at a competitive disadvantage. One business owner who attended the meeting said companies outside the district are not subject to the same tax burden.
“If I have to compete with somebody in a different place that’s not paying that tax, then I either have to eat the 2% or they’re not buying from me,” the business owner said.
At the meeting, state Rep. Chance Henry, who authored the legislation that allows for the tax, proposed removing the “use” portion of the sales and use tax. However, he cautioned the police jury against eliminating it entirely, citing the costs associated with attracting large industrial developments.
“If they build a building of that size, you’re going to want to collect the use tax on that,” Henry said. “You’re going to spend so much money on infrastructure to get them there, you’re going to drain that account doing it.”
No vote was taken Tuesday, and parish officials said discussions on potential changes to the tax structure are ongoing.
