September 29, 2020

Volume X, Number 273

September 28, 2020

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Attention Remote Sellers and Marketplace Facilitators: Louisiana Requirements Begin Wednesday, July 1, 2020

Beginning July 1, 2020, the Louisiana Sales and Use Tax Commission for Remote Sellers (Commission) will be required to enforce collections of Louisiana state and local sales/use taxes by qualifying “remote sellers” and “marketplace facilitators.”

As a follow-up to our recent Jones Walker SALT webinar on this topic, the following is a list of action items and relevant dates/deadlines for various remote sellers and marketplace facilitators after the Commission’s July 1 enforcement implementation date:

  • On or before July 1, 2020, remote sellers and marketplace facilitators must review their Louisiana-sourced sales transactions and determine whether the relevant economic nexus thresholds have been met (either $100,000 in total gross sales into the state or 200 separate sales transactions into the state in the prior calendar year or within the current calendar year).

  • Those remote sellers and marketplace facilitators who are not already registered with the Louisiana Department of Revenue (LDR) as a “Direct Marketer” and who have economic nexus as of July 1 must register with the Commission by July 31, 2020, and must begin collecting state and local sales/use taxes (at applicable local rates) by September 1, 2020. We expect the Commission to provide a list of the applicable local rates on its website for use by remote sellers and marketplace facilitators in the near future.

  • Remote sellers and marketplace facilitators who are already registered with the LDR as Direct Marketers and who meet the economic nexus thresholds will be automatically registered with the Commission (moving away from Direct Marketer return) and will also have until September 1, 2020, to begin collecting state and local sales/use taxes (at applicable local rates).

  • Remote sellers and marketplace facilitators (including those already registered as Direct Marketers) who did not reach the economic nexus thresholds last year and have not yet reached the thresholds in the current year as of July 1, 2020, will be required to register with the Commission within 30 days of the date in which they actually surpass one of the economic thresholds, and will have 60 days from surpassing that economic nexus threshold to begin collecting state and local sales/use taxes (at applicable local rates).

  • Additionally, any remote seller who has not reached either of the economic nexus thresholds and is not otherwise required to collect and remit sales/use taxes as a “dealer” in Louisiana will still have to comply with the state’s separate notice and information reporting requirements set forth in La. R.S. 47:309.1 if the remote seller has more than $50,000 in sales per calendar year.

For more information on the upcoming requirements, please see the Commission’s recently published FAQs.

© 2020 Jones Walker LLPNational Law Review, Volume X, Number 181

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About this Author

Andre Burvant, Tax, Estate Practice Group, Jones Walker Law FIrm, CPA
Partner

Andre Burvant is a partner in the firm's Tax & Estates Practice Group. He is a Certified Public Accountant in addition to being licensed to practice law in Louisiana. His practice includes state and local tax planning, audit defense, tax refunds and credits, and tax controversy work against the Louisiana Department of Revenue and local parish taxing agencies. Mr. Burvant has represented clients in tax controversies before the Louisiana Board of Tax Appeals and in state and federal courts.

 

504.582.8466
Matthew Mantle, State, Local Tax, Louisiana, Jones Walker Law FIrm
Partner

Matthew Mantle is a partner in the firm’s Tax & Estates Practice Group and practices with the State & Local Tax Team out of the firm's New Orleans office.

Matt concentrates primarily on state and local tax matters in Louisiana, Alabama, and on a multistate basis, representing firm clients throughout the Gulf South in all areas of state and local tax. His practice includes tax and business planning, audits, administrative appeals, judicial appeals, identification and utilization of tax incentives, governmental relations, and tax legislation. He has also represented firm clients on various unclaimed property matters. Matt was recently recognized in "Chambers USA–America's Leading Lawyers for Business" in the area of Corporate/M&A: Tax.

504.582.8418
Cami J. Fergus Associate Jones Walker New Orleans Tax State Local Tax
Associate

Cami Fergus is an associate in the Tax Practice Group. Prior to joining Jones Walker, Cami served as an extern for the Internal Revenue Service Chief Counsel and was a tax preparer for the Voluntary Income Tax Assistance Program. She also worked for the Honorable Robin M. Giarrusso of the Orleans Parish Civil District Court.

Cami also previously studied at the Karl Franzens Universität in Graz, Austria.

504-582-8135