Louisiana DOR Releases Further Guidance on New CBD Tax

As previously reported, the Louisiana legislature passed House Bill 560 this year, which imposed a new tax on certain CBD products effective January 1, 2020. 

Based on recent guidance released by the Department of Revenue (DOR), it’s now clear that the new  tax is not applied at the point of retail sale. Rather, it’s properly paid by any “retailer making retail sales of eligible CBD products.” To that end, the guidance is explicit that the tax (unlike standard state and local sales tax) should not be passed on as an additional tax to the ultimate consumer.

The new DOR information release can be seen here, and includes additional information related to reporting requirements for obligated retailers. 

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Author

Kaitlyn Smethurst

Katie Smethurst is a Regulatory Counsel at Sovos. Within Sovos’ Regulatory Analysis function, Katie focuses on global sales tax and VAT issues, supporting both the tax determination and reporting engines. Katie received her B.A. in International Relations and Spanish from Roger Williams University and her J.D. from Suffolk University Law School. She is a member of the Massachusetts and New Hampshire Bars.
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