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Louisiana remote seller use tax notification requirement


 Louisiana could soon impose use tax notification requirements on certain remote retailers.

Update 9.1.2016: It's a done deal. Louisiana's use tax notification requirement takes effect on July 1, 2017. In the final version of the bill, the requirement applies to retailers with annual sales exceeding $50,000. 

Lawmakers in Louisiana have sent to the governor a bill seeking to establish Colorado-style notice and reporting requirements for remote sellers doing business in the state. The measure was overwhelming approved by both the House and Senate. If Governor John Bel Edwards also approves it, the notification requirements would take effect July 1, 2017.

Notify the Department of Revenue

Under H.B. 1121, any dealer selling property or services to Louisiana residents must, upon request, provide to the secretary of the Department of Revenue a list of such sales, containing the names and addresses of the purchasers and the amount of the sale, provided both the following are true:

  • The aggregate value per sale exceeds $250
  • The property is delivered into Louisiana or the beneficial use of the service occurs in Louisiana

Sellers will be reimbursed by the Department of Revenue “an amount equal to the reasonable cost of reproducing the list.”

In addition, remote retailers who made retail sales of tangible personal property or taxable services in Louisiana during the immediately preceding calendar year must send to the Department of Revenue by March 1 of each year “an annual statement for each purchaser which includes the total amount paid by the purchaser to the retailer in the immediately preceding calendar year.” Retailers with Louisiana sales in excess of $100,000 $50,000 in the immediately preceding calendar year may be required to provide this information to the department electronically.

Notify the purchaser                                     

By January 31 of each year, remote retailers must provide Louisiana purchasers with “an annual notice containing the total amount paid by the purchaser for purchases in that preceding calendar year…. If available, the annual notice shall include a listing of the dates and amounts of purchasers, and if known by the retailer, whether the property or service is exempt from sales and use taxes.” This notice must be separately sent by first class mail, certified mail or electronic mail (purchaser’s choice) and marked “IMPORTANT TAX DOCUMENT ENCLOSED.”

The measure also requires remote retailers to “notify the Louisiana purchaser that the purchase is subject to Louisiana use tax unless it is specifically exempt, and that there is no exemption specifically based on the fact that a purchase is made over the internet, by catalog, or by other remote means. Purchasers must also be informed that “Louisiana law requires the use tax liability be paid annually on the individual income tax returns.”

If enacted, the use tax notification requirement will work hand in hand with Louisiana’s recent internet sales tax to increase remote sales and use tax revenue.

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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.