Louisiana Waives Sales Tax to Lure Overseas Tourists

Despite the old saw about the inevitability of death and taxes, tourists from overseas will be able to live it up in Louisiana without paying sales taxes.

“Louisiana is already a popular tourist destination with foreign travelers,” said Ann P. Borne, director of Louisiana Tax Free Shopping. “This will make it a world-class shopping destination as well.

“Tax-free shopping will give foreign visitors a chance to pick up bargains and get refunds of their sales taxes. We think it will boost tourism and sales both and do it very quickly,”

Louisiana is the first state to offer the tax-free incentive, but the concept is well-established abroad, where it is used in 17 European countries, Japan and Israel.

Louisiana officials believe that giving up a small percentage of their sales taxes will spark tourism, boost retail sales and be a substantial step toward bolstering the state’s sagging economy. The program affects only sales taxes; other taxes--such as those on hotel rooms and entertainment--still must be paid.

In 1987 an estimated 400,000 foreign travelers visited Louisiana; in 1988 the figure grew to 487,000.

In 1989, spending by international visitors in Louisiana on items eligible for sales tax refunds is expected to reach $31 million.