Louisiana had planned to require online retailers in other states to collect sales taxes come Jan. 1.
But that’s not likely to happen as the commission setting up the system to do so is still arguing over definitions that would decide whether some businesses should register with state or with local taxing authorities.
Meeting the day after Cyber Monday and five weeks before the new mandatory taxes on sales internet sales were supposed to go into effect, the Louisiana Sales and Use Tax Commission for Remote Sellers continued Tuesday to try to untangle the details of what constitutes a “remote seller.” How that definition is written will decide whether state or local government will collect some of the sales taxes on products bought over the Internet from retailers not located in Louisiana.
Before the state can mandate out-of-state businesses to collect sales taxes, the commission needs to sort out the definitions, then approve a directive that will regulate how those online taxes are collected and distributed. The commission also must approve an enforcement mechanism to ensure internet retailers without a physical presence in Louisiana collect the taxes on their sales as required.
And the commission still hasn’t chosen a provider to set up the software so that vendors can easily tell how much tax to charge. That’s also waiting for the completion of the directive.
by Mark Ballard
November 27, 2018