The origin of Mardi Gras otherwise referred to as “Carnival” or “Fat Tuesday” is the practice of the last night of eating and drinking with abandon and celebrating before the fasting ritual of the Christian Lenten season. When people think of Mardi Gras what normally comes to mind are the outrageous parades, dazzling parties, amazing food, and an abundance of beverages. But, have you ever thought about the relationship between sales tax and this festive event?
Mardi Gras is integral to Louisiana's economy, and sales tax is without doubt woven into the reason why.
According to Casetext, the Louisiana state department of revenue (DOR) has a bulletin dedicated to outlining state sales and use tax on purchases of specialty items for use in connection with Mardi Gras activities. An exemption is available to carnival and nonprofit organizations domiciled within Louisiana that plan to sponsor either a ball or parade during the next Mardi Gras season to its members for fund-raising purposes and exempt from state sales tax.
As the French would say...
So, if you are ready to Laissez les bons temps rouler (Let the good times roll), don’t forget about the taxable activities associated with this popular event!