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Tax Law

Louisiana Advances Marketplace Bill and Commission Announces Remote Seller Requirements

On May 22, the Louisiana House Ways and Means Committee advanced S.B. 138, which would impose tax collection and remittance obligations on marketplace facilitators if they have either $100,000 of in-state sales or 200 separate transactions into the state. The proposal excepts telecommunication service providers from the definition of marketplace sellers and would allow telecom companies to opt out of handing over collection and remittance responsibilities to facilitators in order to keep collection of 911 and related fees simple. The legislature has until June 1, 2020 (its sine die) to pass the bill.

In addition, the Louisiana Sales and Use Tax Commission for Remote Sellers published an information bulletin announcing that remote sellers must begin registering with the Commission as of July 1, 2020. Remote sellers must submit an application with the Commission for approval to collect state and local sales and use tax within 30 days of meeting the economic nexus threshold. The bulletin indicates that all applications, tax returns, and remittances must be filed and paid electronically. The Commission will serve as the tax collecting entity for the benefit of state and local jurisdictions.