The Direct Marketer Return allows the seller to collect Louisiana state and local sales tax at a flat combined rate and remit such tax on one, centralized monthly return. An out-of-state wine seller must hold a valid wine producer’s, manufacturer’s, or retailer’s license in the state of its domicile in order to sell into Louisiana. Combined with the state sales tax, the highest sales tax rate in Louisiana is 12.95% in Sterlington.
Direct marketing seeks to elicit an immediate response from consumers to generate sales activity. A database of names, often with contact number, demographic information, etc is used to develop a list of targeted entities with existing common interests or traits. Direct mail, telemarketing, and email are types of direct marketing. The main benefits are building continuous relationships with customers and providing privacy from competitors.
Remote Seller Rate and Nexus in Louisiana
What is the remote seller rate in Louisiana?
The Louisiana Sales and Use Tax Commission for Remote Sellers will issue a notice of the enforcement date for remote sellers required to collect state and local sales tax based on the state’s economic nexus rules. Remote sellers previously registered with the Louisiana DOR should receive a notice specifying that their registrations have been transferred to the Commission. Remote sellers must collect the state sales tax of 4.45% and local sales tax at the appropriate local rate.
In 2021, Louisiana enacted a law proposing a constitutional amendment to create a new administrative body which would consolidate all state and local sales tax filings for both in-state and remote businesses. As of June 2022, at least 18,000 remote sellers were registered with the SSUTA organization.
What triggers nexus in Louisiana?
Remote sellers must register a sales tax permit in Louisiana within 30 days of meeting economic nexus thresholds. Louisiana further announced that they would provide guidance in the days leading up to July 1, 2020. What’s the threshold for economic nexus law in Louisiana? Threshold: $100,000 in gross revenue in the state in the previous or current calendar year.
Most of the time, if you are considered a “remote seller” in a state, that state wants you to charge the sales tax rate at your buyer’s destination. Some states allow out-of-state retailers to charge a flat use tax rate.
If a vendor’s transactions are determined to have nexus in Louisiana, the vendor must register for a Louisiana sales tax license and collect appropriate sales taxes from the buyer for all transactions with nexus in the state.
Additional Information
Louisiana typically covers the real estate commission fees from the sale proceeds at closing. Realtor commission rates vary by region, city, or even neighborhood.
Louisiana’s voluntary disclosure program provides unregistered taxpayers the opportunity to self-disclose and pay tax liabilities without penalties in most cases.
If your business has economic nexus in Louisiana, you should register for a sales tax permit. You can learn more about how to get a sales tax permit or hire a team to handle your sales tax work through the services provided on our website.
Note to reader: This blog post was updated on June 3rd, 2023 to remove the 200-transaction count threshold starting August 1, 2023.