What is the Louisiana Economic Nexus Sales Tax?

Joshua Rubin
November 19, 2020

We’ve previously discussed the Louisiana economic nexus sales tax, and how remote sellers will need to collect and remit all state and local sales taxes on their sales into the state once certain thresholds are met. In the wake of South Dakota v. Wayfair, Inc., the state created a new Louisiana Sales and Use Tax Commission for Remote Sellers, serving as a single-point system for out of state businesses to collect and remit sales tax, including specific local taxes. Below, we’ve outlined some of the major points for remote sellers and marketplace facilitators.

Enforcement date:
July 1, 2020.

Sales/transactions threshold:
$100,000 or 200 transactions.

Measurement period:
Threshold applies to the previous or current calendar year.

Included transactions/sales:
Retail sales of tangible personal property delivered into the state.

When You Need to Register Once You Exceed the Threshold:
No later than 30 calendar days after exceeding the threshold.

Summary: Remote sellers that have more than $100,000 in sales or more than 200 separate sales into Louisiana are required to collect state and local sales taxes. Prior to July 1, 2020, remote sellers collected sales tax at a special combined state and local rate of 8.45%. Marketplace facilitators must collect Louisiana sales tax on behalf of sellers when the marketplace makes or facilitates more than $100,000 in sales in Louisiana or has 200 or more separate transactions into the state.

The Louisiana economic nexus sales tax is just one example of how remote sellers and marketplace facilitators need to remain current on tax rules and regulations.

Louisiana Sales Tax Resources: Reach out to our team of experts for more information on the Louisiana economic nexus. Also check out our interactive sales tax nexus map for real-time updates on each state.

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