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Louisiana Internet Tax Bill Introduced


 Louisiana: Internet sales tax legislation has been introduced.

Update, 3.16.16: HB 30 was signed by Governor John Bel Edwards on March 15. Remote sales tax takes effect April 1, 2016.

To date, neither the federal government nor the United States Supreme Court has taken on the divisive issue of Internet sales tax. And so, one by one, states are dealing with it themselves by creating remote sales tax laws of their own.

House Bill 30, Louisiana’s measure, was introduced last week. It seeks to create both click-through and affiliate nexus, thereby requiring certain out-of-state sellers to collect and remit Louisiana sales and use tax.

Click-through nexus

Louisiana sales and use tax would have to be collected by a person who solicits business in Louisiana through an independent contractor or other representative pursuant to an agreement with a Louisiana resident or business who, for consideration of any kind, directly or indirectly, refers potential customers, whether by a link on an Internet website, an in-person oral presentation, telemarketing, or otherwise to the seller, provided the cumulative gross receipts from sales of tangible personal property to Louisiana customers exceed $50,000 during the preceding 12 months.

Affiliate nexus

Louisiana sales and use tax would have to be collected by a person who:

  • Sells the same or substantially similar line of products as a Louisiana retailer under the same or substantially similar business name, using the same trademarks, service marks, or trade names that are the same or substantially similar to those used by the Louisiana retailer
  • Solicits business and develops and maintains a market in Louisiana through an “affiliate agent”— an agent, salesman, independent contractor, solicitor, or other representative — for a commission, referral fee or other consideration of any kind
  • Holds a substantial ownership interest, directly or through a subsidiary, in a retailer maintaining sales locations in Louisiana, or to any person who is owned in whole or in part by a retailer maintaining sales locations in Louisiana, or by a parent or subsidiary thereof

HB 30 seeks to impose these new nexus provisions for the tax periods beginning on and after April 1, 2016.

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Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.