As expected, states are moving quickly to expand their tax collection capabilities in light of the Supreme Court’s decision in South Dakota v. Wayfair, with Louisiana being the first state to make a big splash. Specifically, in their 2018 special session, the legislature passed a bill (HB 17) re-defining the term “dealer” to include remote sellers that have more than $100,000 in sales or make more than 200 separate sales into Louisiana. While Louisiana created a Sales and Use Tax Commission on Remote Sellers to study the issue, Revenue Information Bulletin 18-019 makes it clear these changes nonetheless go into effect July 1, 2018.
Under the new regime, which looks a little like the Alabama Voluntary Use Tax Program, tax is collected at the special rate of 8.45%. By way of a simplification, standard local taxes are not collected and all funds are remitted to the state directly via Form R-1031. No local filing is required. Stay tuned to the Sovos Regulatory Feed for further developments in Louisiana and other states.