
Abbeville only gets less than 2 percent of the 11 percent sales tax collected
Abbeville Mayor Roslyn White wishes to clarify confusion regarding the city’s sales tax revenue.
Starting in 2025, Louisiana will increase its sales tax collection by half a cent. This increase will raise Abbeville’s sales tax to 11 percent, making it the highest in Vermilion Parish.
Last week, the Meridional reported that 6 percent of the 11 percent collected is for Abbeville, and the other 5 percent is for the state.
Mayor White aimed to clarify a common misconception regarding the 6 percent tax collected in Abbeville. She explained that only 1.75 percent of this tax goes to Abbeville; the remaining 4.25 percent is allocated to various government agencies across the parish.
A person will pay $11 in sales tax on a $100 purchase in Abbeville.
Here is a breakdown of where the money will go on the 11% sales tax collected in Abbeville on a $100 purchase:
• $5 or 5% goes to the state.
• $1.50 or 1.5% goes to the Police Jury
• $1.50 or 1.5% goes to the School District
• 75 cents or 0.75% goes to the Sheriff’s Office
• $1.75 or 1.75% goes to the city of Abbeville.
• 50 cents or 0.50% goes to the Hospital Service District #2
The total amounts to $11, which is 11% of a $100 purchase.
“I hate taxes, and I agree sales tax is high, but that is why it is even more important to be clear and transparent about actual numbers so people understand what their taxes pay for and why taxes are higher in some parts of the parish versus others,” she said. “More importantly is why is the tax in Abbeville City limits the highest in the parish. What does that sales tax pay for?”
A big chunk of that 1.75% collected goes towards keeping Abbeville and parish residents safe.
Abbeville has the only full-time fire department in the parish. The city of Abbeville Fire Department also responds to fires not only within the city limits but also in other areas as needed, on a nearly daily basis.
She said this is a cost the city pays out of its budget that no other municipality or rural area has.
If you live outside the city limits, your house or business is on fire, and your local volunteer department needs assistance, the Abbeville Fire Department responds. That service currently runs just over $4 million per year.
The police department alone runs just under $3.7 million.
So, it takes a combined $7.7 million to operate the police and fire departments in Abbeville.
The Mayor explained that those two combined budgets account for 64% of the City’s General Operating Budget.
“More importantly, if you look at what the 1.75% of sales tax brings in for the City of Abbeville, the total hovers around $6 million annually, which does not even cover the cost of public safety,” said Mayor White.
“Throughout the years, the mandated retirement for fire and police has steadily increased, which is why at some point, many years ago, the city rededicated half of one percent of the Capital Outlay (projects) portion of sales tax to cover retirement and health benefits for city employees.”
Mayor White also explained what residents’ property taxes pay for.
Abbeville collects a total of $440,000 annually for property tax. Mayor White said the combination of sales and property taxes.
“If you do the math, property, and sales tax combined does not cover the cost of public safety, let alone the other employees like the street team, administrative staff, and projects like infrastructure and park improvements,” she said. “The difference is covered by other sources such as licenses, fees and utility sales.”
The Mayor stated that ensuring substantial sales tax collection in Abbeville requires residents to shop locally.
“Local taxes are under my umbrella, and I can account for where your money goes in Abbeville, she explained. “I hope people do not choose to shop outside of Abbeville because a portion of the money spent in our local community stays here, and for that money, you get the protection of your home or business, road improvements, and you support local jobs. When you shop in other places, none of your money goes back into your community; it goes to the state and other communities. That’s OK occasionally, but it hurts the place you call home over time.”
