There was huge drop off because of the national recession. And in the repeal of Stelly and you have a decrease in revenues. Since then revenues have been increasing.
We got a big sales tax bump in the aftermath of Katrina but sales tax revenue is not going to be a stable revenue source going forward. Internet sales will grab a growing share of business and that will only be hastened by a 12% sales tax rate.
The Stelly plan was to exempt food and prescription drugs from state sales tax in exchange for a hike in income tax rates. The intent was to provide a source of revenue that would grow with the economy. When it was repealed the sales tax exemptions should have been repealed with it. This has been a budget buster every year since repeal.
Local governments have their hands tied as far as raising revenue because of the homestead and industrial tax exemptions. A sales tax hike will only exacerbate that because there is a practical limit to how much you can tack on top of 7%.
It's an idea that hasn't been thought through, i.e., bull shite and grandstanding in preparation for 2016. A pox on Bobby Jindal.