Louisiana- Legislature Passes Marketplace Collection Bill

On May 28, 2020, the Louisiana Legislature passed S.B. 138, which, if signed by the Governor, will require marketplace facilitators to collect and remit state and local sales and use taxes if they exceed an economic nexus threshold of $100,000 in sales or 200 transactions in the state in the current or previous calendar year.

S.B. 138 was enacted in response to a Louisiana Supreme Court decision that stated a marketplace facilitator was not a “dealer” liable for Jefferson Parish sales tax on marketplace sales made by third-parties.

Under the bill, a person is a marketplace facilitator if it facilitates a sale for a marketplace seller through a marketplace by any of the following:

  • Offering for sale through any means, by a marketplace seller, tangible personal property or sales of services for delivery into Louisiana.
  • Collecting payment from the purchaser and transmitting all or part of the payment to the marketplace seller, regardless of whether the person receives compensation or other consideration in exchange for facilitating the sale or providing any other service directly or indirectly through any agreement or arrangement with one or more third parties.

The bill’s exceptions from the definition of a marketplace facilitator include third-party payment processors, advertising services platforms or forums, or any person who offers or facilitates the furnishing of hotels or other lodging or of rental of cars.

For more information: JD Supra

JD Supra
June 1, 2020