Arizona Business Owner Complains Louisiana Sales Tax is Unconstitutional for Out-of-State Sellers

Louisiana is facing complaints from an Arizona jewelry wholesaler claiming that their sales tax system is unconstitutional due to its compliance burdens on out-of-state sellers. Louisiana is a home rule state and has 64 parishes (localities) with different sales tax administration requirements. Other states with local taxes such as Texas and South Dakota are examples of states that were able to simplify their sales tax administration for out-of-state sellers. The Arizona business argues that this violates the 2018 Supreme Court South Dakota v. Wayfair decision’s commerce clause and due process clause. There have been indications of further lawsuits. (Eastern District of Louisiana, Halstead Bead, Inc. v. Lewis et al 2:21-cv-02106, filed November 15, 2021)

Posted on November 29, 2021