Some history:
Louisiana Tax Tokens were used to collect sales tax of fractions of a cent.
• One Mill is 1/10th of a cent.
• Five Mills is 1/2 cent.
The first tax tokens issued by the state of Louisiana were in conjunction with the Luxury Tax Act of 1936.
It was termed "Luxury Tax" because of the numerous exemptions. Although the law specifically exempted about seventy-five items from the tax, the state released an expanded list of exemptions.
This list included such items as alcoholic beverages, bottle openers, cigars, lawn mowers, maple syrup, and plum pudding. Merchants and consumers claimed it was confusing because it taxed articles as necessities while exempting some classed as luxuries.
The tokens were released on October 1, 1936 and within ten days more than four million tokens were in circulation in the New Orleans area alone. The Luxury Tax Act of 1936 was repealed by the Public Welfare Revenue Act of 1938. All Luxury Tax tokens were to be withdrawn with a deadline for redemption of December 31, 1938.
While the Public Welfare Revenue Act reduced the tax rate to 1% and contained fewer exemptions than its predecessor, it was no more popular. One of the campaign issues in the 1939 Governor's race was abolition of the Public Welfare tax. As a result, Governor Sam Jones approved repeal of the act on July 9, 1940, effective December 31, 1940.
Eight million five mill and forty-nine million one mill tokens were issued for this tax. Final redemption of the tokens took place March 31, 1941, and fewer than seven million tokens were returned.
Don....