Louisiana – Dealer Discount Reduced and Use Tax Provisions Enacted

SALT Report 2606 – Recently enacted legislation in Louisiana reduces the compensation amount that vendor’s may deduct for reporting and remitting sales tax to the Department of Revenue. Effective July 1, 2013 a dealer may deduct 0.935% of the amount of tax due and remitted to the Department. This amount is reduced from the previously allowed deduction of 1.1%.

In addition, the Bill now provides that the deduction may only be taken if the return is timely filed and paid. Previously, the return was only required to be timely paid. Finally, the Bill removes the $100 cap on the amount of dealer compensation allowed per month.

Use Tax Collections

The Bill includes a new provision that states that, “It is the duty of the Secretary of the Department of Revenue to collect all consumer use taxes that may be due upon the sale by a remote seller of tangible personal property or services in Louisiana. The Secretary is authorized and directed to employ all means available to ensure the collection of the tax in an equitable, efficient, and effective manner.”

For Further Information

Louisiana State Legislature – House Bill 653, Laws 2013