Louisiana Announces Remote Seller Collection Rule

As expected, states are moving quickly to expand their tax collection capabilities in light of the Supreme Court’s decision in South Dakota v. Wayfair, with Louisiana being the first state to make a big splash. Specifically, in their 2018 special session, the legislature passed a bill (HB 17) re-defining the term “dealer” to include remote sellers that have more than $100,000 in sales or make more than 200 separate sales into Louisiana. While Louisiana created a Sales and Use Tax Commission on Remote Sellers to study the issue, Revenue Information Bulletin 18-019 makes it clear these changes nonetheless go into effect July 1, 2018.

Under the new regime, which looks a little like the Alabama Voluntary Use Tax Program, tax is collected at the special rate of 8.45%. By way of a simplification, standard local taxes are not collected and all funds are remitted to the state directly via Form R-1031. No local filing is required. Stay tuned to the Sovos Regulatory Feed for further developments in Louisiana and other states.

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