Posted: Mar 13, 2014 6:12 PM by Rob Krieger
Updated: Mar 13, 2014 6:53 PM
DONALDSONVILLE- Shoppers can expect to pay more starting in April as part of an agreement made between the city and Ascension Parish ten years ago.
When Donaldsonville and Ascension agreed to annex a portion of the parish's land to the city in 2004, it came with an agreement to keep both the city and parish sales taxes on the book for that area, but slice the collection in half.
Now that agreement has expired, and the parish will collect it's portion of sales tax alongside the city's taxes. That brings the total sales tax in the area to 11-percent.
"It's an unfortunate thing, but the city cannot afford to lose those revenues, we still have to provide these services," said Raymond Aucoin, a Donaldsonville Councilman.
Now businesses in the area are worried the increased sales tax will drive customers away.
"Definitely worried, there's a lot of shops around, a lot of competitions around, when they can get lower rates, 9-percent, or maybe 8.5-percent somewhere, and here it's 11-percent which is two digits, so they'll definitely go somewhere else to buy something," said James Kim, who runs Beauty Town, a store in the annexed area.
One family, who is planning on moving to the area, may reconsider their decision because of the high rate.
"Heck I don't know, I might just change my mind about what I'm gonna do, I may just build my future somewhere else, that's a lot, double-digit taxes is a lot, and it adds up," said Johnny Harris, who's moving to Donaldsonville.
Now the council is trying to work with the parish to come up with an agreement to split tax revenue in a way that may make it easier for Donaldsonville and it's residents.
The older portion of the city won't be affected by the change.