Louisiana Removes 200 Transaction Threshold from Economic Nexus Rules

Effective August 1, 2023, Louisiana will no longer have 200 transactions as part of the state’s economic nexus threshold. The repeal was passed unanimously by both of the state’s legislative chambers and signed by the governor. The legislation also changes the state’s economic nexus dollar threshold for marketplace facilitators from $100,000 in gross sales to $100,000 in retail sales, removing wholesale and resale transactions from the marketplace facilitator threshold calculation. The bill also adds language giving the Louisiana Remote Seller Sales Tax Commission 30 days to approve marketplace facilitator applications. Remote retailers will still use GROSS sales to determine if they exceed the economic nexus threshold.

The removed transaction threshold applies both to remote sellers and marketplace facilitators, and will limit the numbers of sellers and facilitators who are required to register within Louisiana. This change follows the trend of states removing their 200 transaction threshold, including South Dakota, the state that first enacted the threshold, which passed legislation to drop their transaction threshold earlier this year.

(Louisiana H.B. H.B. 171)

Posted on June 5, 2023