Inventory Tax
Treatment: Fully taxed
Inventory is taxed locally, but the state has offered income tax credits designed to offset the liability — so the gross tax overstates the net cost for some taxpayers.
Assessment date: January 1
Indicative county rate range: 0.23%–0.89% of assessed value. Actual rates are set locally; confirm with the county assessor.
Assessment & Filing
Assessment date: January 1
All property subject to taxation, including merchandise or stock in trade, is assessed on the basis of the condition of things existing on January 1 of each year (La. R.S. 47:1952). Assessors must complete the listing of all real and personal property by July 1 each year, except that the Orleans Parish assessor has until August 1 (La. R.S. 47:1987(A)). Form LAT 5 states that the inventory report must be filed with the parish assessor by April 1 or within forty-five days after receipt, whichever is later, in accordance with RS 47:2324. Assessors deliver the tax roll to the tax collector by November 15, except as otherwise provided by law (La. R.S. 47:2126).
Louisiana assesses business inventory at 15% of fair market value (La. Const. art. VII, § 18(B), "Other property 15%"). Inventory is defined in La. R.S. 47:1961.1 as all goods held in inventory as raw materials, goods-in-process, or finished goods whether held by manufacturers, wholesalers, distributors, or retailers. Assessment is made locally by parish assessors.
Additional Exemptions
Act 357 of 2025 (Optional Parish Inventory Exemption) — Condition Not Met
Act 357 of the 2025 Regular Session (HB 365) would have allowed a parish to exempt business inventory from ad valorem tax if the parish sheriff, school board, and parish governing authority elected to do so. By its terms the Act is "effective if and when the proposed amendment contained in the Act which originated as House Bill No. 366 of this 2025 R.S. of the Legislature is adopted at a statewide election and becomes effective." That amendment (Act 221 of 2025) was Amendment 4 on the May 16, 2026 ballot and failed, so the condition in Act 357 was not met.
Sources: https://www.legis.la.gov/Legis/ViewDocument.aspx?d=1430268. https://legis.la.gov/LegisDocs/ConstAmend/Constitution_Amendments_Table.pdf
Inventory Tax Credit (Restricted for C Corporations as of July 1, 2026)
Louisiana has historically offered an income tax credit designed to offset inventory tax liability. According to Revenue Information Bulletin 26-011 (March 27, 2026), taxpayers taxed as C corporations for federal income tax purposes, and estates and trusts subject to tax levied in R.S. 47:300.1, are prohibited from earning the inventory tax credit for ad valorem taxes paid on or after July 1, 2026; the prohibition does not apply to cooperatives allowed a federal deduction for patronage dividends. Credits earned by C corporations for taxes paid from January 1, 2025 through June 30, 2026 are nonrefundable and may be carried forward up to ten years, unless an exception applies, and the Bulletin allows an additional 10-year carryforward for existing credits that did not expire before December 31, 2025. S corporations and entities taxed as partnerships may continue to earn the credit.
Source: https://dam.ldr.la.gov/lawspolicies/RIB%2026-011.pdf
Amendment 4 Defeated (May 16, 2026)
Louisiana Amendment 4 (HB 366 / Act 221 of 2025), which proposed a separate classification for business inventory and would have allowed a parish to reduce or exempt property tax on business inventory, was defeated on May 16, 2026: 272,540 votes for (33.92%) and 530,878 against (66.08%), according to the Louisiana Legislature's table of constitutional amendments.
Sources: https://legis.la.gov/LegisDocs/ConstAmend/Constitution_Amendments_Table.pdf. https://www.sos.la.gov/media/dhxnfs1p/proposed-constitutional-amendments-2026-may-summaries.pdf
Frequently Asked Questions
Is business inventory taxed in Louisiana?
Yes. Under La. Const. art. VII, § 18(B), "other property" is assessed at 15% of fair market value, and the Act 357 digest states that business inventory is assessed at 15%. Inventory is assessed locally by parish assessors as of January 1 of each year (La. R.S. 47:1952). Voters defeated Amendment 4 on May 16, 2026, which would have allowed parishes to reduce or exempt business inventory from property tax.
What is the Louisiana property tax assessment date?
January 1. All property subject to taxation, including merchandise or stock in trade, is assessed on the basis of the condition of things existing on January 1 of each year per La. R.S. 47:1952.
What is the inventory tax credit in Louisiana?
Louisiana has historically offered an income tax credit designed to offset inventory tax liability. According to Revenue Information Bulletin 26-011, C corporations and certain estates and trusts are prohibited from earning the credit for ad valorem taxes paid on or after July 1, 2026; S corporations and entities taxed as partnerships may continue to earn it.
Can parishes exempt business inventory from property tax in Louisiana?
Not under the 2025 proposal. Act 357 of 2025 would have let a parish exempt business inventory if its sheriff, school board, and governing authority all elected, but it was effective only if the constitutional amendment originating as HB 366 (Act 221 of 2025) was adopted. That amendment was Amendment 4, which was defeated on May 16, 2026.
Primary Source
Sources
La. Const. art. VII, § 18 — Ad Valorem Taxes
La. R.S. 47:1952 — Place and time of listing and assessment
La. R.S. 47:1961.1 — Inventories of manufacturers or merchants defined
La. R.S. 47:1987 — Time when listing of property concluded
La. R.S. 47:2126 — Duty of assessors; single assessment; exception
Act 357 of 2025 Regular Session (HB 365) — Business inventory optional exemption
Revenue Information Bulletin 26-011 — Inventory tax credit changes
Related Guides
This page is general information, not tax or legal advice. State tax laws and local rates change. Confirm current positions with the state revenue department, county assessor, and qualified advisors before committing to a location.