Louisiana use tax notification and reporting requirements

As of July 1, 2017, non-collecting remote retailers are subject to new use tax notification and reporting requirements in Louisiana. These requirements apply to non-collecting retailers who aren’t required to register as a dealer in Louisiana, and who make more than $50,000 (per calendar year) in retail sales of tangible personal property or taxable services in Louisiana.

Louisiana is one of several states now mandating use tax notification and reporting. Similar policies have been enacted in Alabama, Colorado, Oklahoma, Pennsylvania, Puerto Rico, Rhode Island, Vermont, and Washington.

At the time of sale, qualifying non-collecting retailers must inform Louisiana consumers that:

• An online purchase of tangible personal property and taxable services is subject to Louisiana use tax unless specifically exempt.
• There is no exemption specifically due to the fact that a purchase is made over the internet, by catalog, or other remote means.

In addition to the above notification requirements, non-collecting retailers must, by Jan. 31 of each year, send all Louisiana purchasers an annual notice with all the following information:

• The total amount paid by the purchaser for purchases delivered into Louisiana in the preceding calendar year
• A list of the dates and amounts of purchases, if available
• The taxability of the property or service, if known
• The name of the retailer
• “A clear statement that Louisiana use tax may be due on the purchases made from the retailer and that Louisiana law requires the payment of an individual’s use tax liability on the individual income tax return or the Consumer Use Tax Return.”

The above must be sent via first class mail and marked “Important Tax Document Enclosed.” Alternatively, it may be sent electronically, if authorized by the purchaser.

Non-collecting retailers must also send an annual statement for each purchaser to the Louisiana Department of Revenue. These must be mailed by March 1 of each year and include “the total amount paid by the purchaser to that retailer in the immediately preceding calendar year.”

However, the department is emphatic that no additional details be provided: “Under no circumstances shall the statement contain detail as to specific property or services purchased.”

Retailers with sales of more than $100,000 in the preceding calendar year are required to remit these statements electronically through the Louisiana Taxpayer Access Point (LaTAP).

This new policy is due to the enactment of HB1121, effective July 1, 2017. See the Louisiana Department of Revenue Information Bulletin No. 18-006 for more details.