June 15, 2020. Due to the enactment of SB 138, a sales and use tax collection requirement for marketplace facilitators takes effect in Louisiana on July 1, 2020.
Certain remote sellers must register with the Louisiana Sales and Use Tax Commission for Remote Sellers and collect and remit Louisiana state and local sales tax starting July 1, 2020, according to a recent Louisiana Department of Revenue announcement.
The collection requirement applies to remote retailers with economic nexus with Louisiana, i.e., out-of-state sellers with no physical presence in Louisiana whose sales into the state in the current or previous calendar year meet or exceed one or both of the following economic nexus thresholds:
- More than $100,000 in gross revenue from sales of tangible personal property, products transferred electronically, or services; or
- At least 200 separate transactions of tangible personal property, products transferred electronically, or services
This has been a long time coming. Louisiana enacted an economic nexus law on June 12, 2018 — approximately 10 days before the Supreme Court of the United States granted states the authority to tax remote sales with its decision on South Dakota v. Wayfair, Inc. (June 21, 2018). The state was to start enforcing the law January 1, 2019, but in December 2018, it changed the enforcement date to “a date to be determined in 2019.” Remote sellers were promised “at least thirty days’ notice prior to the commencement of mandatory collection and remittance requirements.”
Notice has now been given.
Come July 1, remote retailers must register with the commission within 30 days of meeting one of the economic nexus thresholds described above. They must start collecting state and local sales and use tax by the commission, which will be “no later than 60 days after surpassing either of the criteria.” Applications, tax returns, and remittances must be filed and paid electronically.
