Who Pays Sales Tax in Louisiana?

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Louisiana Sales Tax Overview

  • Statewide Sales Tax Rate: 4.45% enacted in 1938.
  • Local Sales Tax: Municipal governments can add 0% to 7%.
  • Total Sales Tax: Ranges from 4.45% to 11.45%.

Tax Exemptions and Taxable Items in Louisiana

  • Sales tax does not apply to groceries, utilities, and prescription drugs.
  • Services like hotel rooms, printing, telecommunications, and repairs are taxed.

Sales Tax Collection and Registration

  • Businesses selling taxable goods and services in Louisiana must collect sales tax from customers and remit it to the state.
  • Register for a seller’s permit once sales exceed the $100,000 threshold.

Taxable and Exempt Items

  • Labor for repairs is taxed, construction labor is not.

How to Handle Tax-Exempt Customers

  • Obtain and keep their valid sales tax exemption certificate on file for at least three years.
  • Verify the organization’s name, address, and exemption status.

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