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Committee debates keeping 2% vendor sales‑tax rebate after state law change
Summary
Committee members said a state law change affects vendor compensation (the local rebate vendors can keep when remitting sales tax). Abbeville’s ordinance still lists a 2% rebate; the committee paused action and will await parishwide consensus before amending local code.
A committee member told the ordinance committee that a recent change in state law has altered local options for vendor compensation — the small rebate vendors may retain if they remit sales tax on time. The speaker said the law previously limited local authority and that some taxing authorities have already moved to zero percent, but Abbeville’s ordinance currently retains a 2% vendor’s compensation rebate.
The committee member described a call with the parish sales tax collector and neighboring taxing jurisdictions and said software and collection alignment across the parish are factors in setting a uniform rebate. He argued the city should consider keeping the 2% rebate to support local businesses and said he would not vote to reduce it to zero without broader parish consensus.
He summarized vendor’s compensation for the committee: if a business remits sales tax on time it historically could keep 2% as a vendor’s compensation; the recent state action and differing parish practices mean a coordinated decision is needed. Committee members agreed to pause any ordinance change while they await figures and a consensus recommendation from other taxing authorities.
Next steps: the committee will await parishwide guidance and staff said the item may be tabled or brought back for amendment once the majority position of taxing districts is known.
