United States

Louisiana enacts use tax notification requirements

Imposes in-state sales reporting obligations on remote sellers

TAX ALERT  | 

On June 17, 2016, Louisiana Gov. John Edwards signed House Bill 1121 adopting Colorado-style remote seller reporting requirements on ‘remote retailer’ sales to in-state customers effective July 1, 2017. For purposes of the law, a remote retailer is a retailer that avails itself of the benefits of an economic market in Louisiana and 1) is not required by law to collect Louisiana sales and use taxes, 2) makes retail sales of taxable property or services delivered into Louisiana and the cumulative annual gross receipts from those sales exceeds $50,000 per calendar year, and 3) does not collect and remit Louisiana sales and use taxes.

House Bill 1121 imposes three primary reporting requirements on remote retailers:

  1. The remote retailer must notify the in-state purchaser that a purchase is subject to the sales and use tax unless it is specifically exempt, and that use tax liability must be paid to the state annually
  2. The remote retailer must mail their Louisiana customers an annual notice by Jan. 31 containing the total amount paid by the purchaser for purchases made in the preceding calendar year
  3. Each remote retailer who made sales of taxable property or services into Louisiana must provide an annual statement to the Louisiana Department of Revenue by March 1 including the total amount paid by each of the retailer’s customers

Louisiana’s remote seller reporting requirements comes on the heels of similar legislation recently passed by Vermont. Louisiana remote retailers will also want to follow the use tax reporting requirements litigation in Direct Marketing Assoc. v. Brohl, which currently enjoins Colorado’s similar use tax reporting requirements. For more information regarding the Direct Marketing Association case, please read our article, DMA's Colorado sales and use tax information reporting saga continues.

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