Louisiana Decreases Tax Rates on Telecommunications Services and Prepaid Calling Cards

Effective July 1, 2018, Louisiana has decreased the sales tax rates on telecommunications services and prepaid calling cards as follows:

• The sales tax rate on intrastate telecommunications services and prepaid calling cards is reduced from 4% to 3.45%.

• The sales tax rate on interstate and international telecommunications services is reduced from 3% to 2.45%.

If a dealer charges and collects state sales tax at the rate of 4% on intrastate telecommunications services and prepaid calling cards, or at the rate of 3% on interstate and international telecommunications services on or after July 1, 2018, then the dealer must remit the excess sales taxes collected to the Louisiana Department of Revenue. The 0.45% portion of the tax rate will sunset on June 30, 2025. (Revenue Information Bulletin No. 18-017, Louisiana Department of Revenue, June 28, 2018).