Louisiana

As an e-commerce seller, you will need to collect sales tax in Louisiana if you have:

(1) gross revenue exceeding $100,000 or 200 or more separate transactions during the current calendar or immediately preceding calendar year (economic nexus),

(2) Physical presence in Louisiana (physical nexus).

Below, we will highlight some of the basic provisions of Louisiana sales tax law.

What is the tax rate range for Louisiana?

State: Louisiana’s general sales tax rate is 4.45%.

Local: Local jurisdictions can range from 0% to 8.5%.

Louisiana Association of Tax Administrators (LATA)

Do you have physical or economic nexus in Louisiana?

Physical nexus. Certain business activities create physical nexus in Louisiana. If you have physical nexus, you are required to collect and remit sales tax on all taxable sales that are shipped to Louisiana. Physical presence includes, but is not limited to, the following activities in Louisiana, whether done permanently or temporarily, directly or indirectly or through an agent or subsidiary:

owning or operating retail spaces;
owning, leasing, maintaining, occupying, or using, an office, place of distribution, sales or sample room, warehouse or storage place or other place of business;
having an employee, representative, agent, salesman, canvasser or solicitor operating in Louisiana under the authority of the retailer or subsidiary; and
storage of property in third party facility.

What is physical presence? (#3 in Frequently Asked Questions)

Economic nexus. Louisiana recognizes economic nexus for any vendor with $100,000 or more in gross revenue or 200 or more transactions into the state during the current calendar or immediately preceding calendar year. Once you have economic nexus established, you will be obligated to collect sales tax from buyers in the state.

Remote sellers are required to register with the Louisiana Sales and Use Tax Commission for Remote Sellers (“Commission”) no than 30 calendar days after meeting the economic nexus thresholds
Remote sellers shall commence collection of state and local sales and use tax at actual rates and bases, once notified the Commission has approved the application, no later than 60 days after surpassing either of the criteria
Remote sellers only use direct sales for delivery into Louisiana to calculate whether the economic nexus thresholds have been met.
Sales made through a marketplace may be excluded because those sales determine whether the marketplace itself meets the economic nexus thresholds.

Frequently Asked Questions - Louisiana Sales and Use Tax on Remote Sales

What are examples of sales of taxable items?