(The Center Square) – Shreveport sales tax revenue is outpacing last year’s collections but still below the city’s projected increase for its current budget cycle.
The city’s 2026 budget includes a projected 2% sales tax increase. The city collected approximately $166.5 million last year. They’re expecting to surpass that figure by about $3.3 million by year’s end.
Sales tax is the largest single revenue source for the city’s general fund budget, which pays for things like public safety, public works, citywide payroll and various equipment.
Shreveport’s local tax rate is 4.6%, which, combined with the state’s 5%, results in a 9.6% sales tax – one of the highest in the nation, according to the Tax Foundation, a Washington, D.C.-based research organization. Nationwide, the average combined sales tax rate is 7.53%.
January and February sales tax collections are up by $338,717– or about 1.3% – over the previous year. During those two months, the city collected $25.6 million, according to a report by the Caddo-Shreveport Sales and Use Tax Commission.
A slump in tax revenue last year caused the city to reduce spending through expense cuts, reduced equipment purchases and some vacancies were left unfilled.
It’s good news for Shreveport’s budget that consumers are demonstrating a willingness to spend. In February, Shreveport’s sales tax collections rose $1.2 million from a year earlier, a 9.7% increase.
Mining, machinery and equipment, supplies, lumber and construction materials, transportation, communications, and electric and gas services posted the largest percentage gains, with notable spending growth also in food and health services.
Strong growth in grocery, retail and restaurants suggest robust consumer activity, whereas mining and machinery sales may signal increased industrial or infrastructure projects, research indicates.
Sales decreased in Hosston, Ida and Oil City, while increases were reported in Blanchard, Greenwood and Mooringsport.
Across all of Caddo Parish, February sales moved past last year’s totals by 13.5%. The parish brought in $27.9 million, which is $3.3 million more than the previous year.
On the Bossier Parish side, after two months of declining sales, Bossier City rebounded in February, posting a $300,000 year-over-year increase, or roughly 5%. Approximately $5.3 million was collected during the month. Meanwhile, Haughton reported three consecutive months of significant sales increases.
