Louisiana- Enacts Economic Nexus Provisions

Effective Date: TBD with 30 days notice; effective date will be no later than July 1, 2020 – change to Registration within 30 days of meeting threshold or July 30, 2020 for those meeting threshold by June 30, 2020 with collection within 60 days and no later than August 30, 2020 for those register by July 1, 2020

Threshold: Gross revenue exceeds $100,000 or 200 or more separate transactions

Measurement Date: In the previous or current calendar year

Includable Transactions: Gross sales excluding marketplace sales

When You Need to Register Once You Exceed the Threshold: Registration required after passing threshold: remote seller should submit the Form R-1031A within thirty days of surpassing either of the thresholds. Assuming the application is approved, the remote seller should commence collection of sales and use tax on sales for delivery into Louisiana no later than ninety days from the date the remote seller surpassed either of the thresholds.

UPDATE: Louisiana Governor signed H.B. 547 on June 17, 2019 which will require the Louisiana Sales and Use Tax Commission for Remote Sellers to select an enforcement date of no later than July 1, 2020 for the state’s economic nexus ruling and publish a notice of enforcement at least 30 days before that date.

UPDATE: The Louisiana Department of Revenue has released two additional bulletins providing additional administrative guidance for remote sellers as to an effective date for economic nexus and a special combined rate. For more information, read our news item: Louisiana Releases Additional Remote Seller Guidance.

UPDATE: For remote sellers or facilitators that exceed the threshold as of July 1, 2020, an application must be filed no later than July 31, 2020. A marketplace facilitator shall commence collection of tax once they are notified that the Commission has approved the application, no later than 60 days after meeting either of the above criteria or by August 30, 2020. Remote sellers/marketplace facilitators will not be required to register with each Parish but will be required to collect the actual tax for each Parish based on the delivery address.  For those sellers that have been registered as a Direct Marketer and collecting the flat 8.45% rate, their registration will be converted to the Remote Seller registration if their sales have exceeded the threshold.

For more information: Sales Tax Institute

SAles tax institute
June 2018 and june 2020