Louisiana Enacts Use Tax Notice and Reporting Requirements

Effective July 1, 2017, remote sellers must notify Louisiana purchasers at the time of sale that a purchase is subject to Louisiana use tax unless it is specifically exempt and there is no specific exemption for purchases made over the Internet, by catalog, or by other remote means. The notice must also include a statement that Louisiana law requires that use tax liability be paid annually on the individual income tax return or through other means as may be required by administrative rule. Per the legislation, “remote retailer” means a retailer that purposefully avails itself of the benefits of an economic market in Louisiana or who has any other minimum contacts with the state and who:

• Is not required by law to register as a dealer or to collect Louisiana sales or use tax,
• Makes retail sales of tangible personal property or taxable services in Louisiana and the cumulative annual gross receipts of the retailer and its affiliates from those Louisiana sales exceed $50,000 per calendar year, and
• Does not collect and remit Louisiana sales and use tax on retail sales in the state.

By January 31st of each year, a remote seller must send to each Louisiana purchaser an annual notice containing the total amount paid by the purchaser to the retailer for property or taxable services in the preceding calendar year. The notice must list the dates and amounts of purchases if available, state whether the property or service is exempt from tax if known by the retailer, give the name of the retailer, and state that Louisiana use tax may be due.

By March 1st of each year, a remote seller must file with the Louisiana Department of Revenue an annual statement for each Louisiana purchaser which includes the total amount paid by the purchaser to that retailer for property or taxable services in the preceding calendar year. The statement shall not contain detail as to the property or services purchased. (Act 569 (H.B. 1121), Laws 2016, effective July 1, 2017)