Louisiana Revised Statutes 47:309.1 – Sales in Louisiana of tangible personal property and taxable services by a dealer or remote retailer; the provision of lists, notices, and statements by a dealer or remote retailer
Terms Used In Louisiana Revised Statutes 47:309.1
- Dealer: includes every person who manufactures or produces tangible personal property for sale at retail, for use, or consumption, or distribution, or for storage to be used or consumed in a taxing jurisdiction. See Louisiana Revised Statutes 47:301
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- person: shall include such institution for purposes of the payment of tax on sales by such institution if the sales are not otherwise exempt. See Louisiana Revised Statutes 47:301
- Personal property: All property that is not real property.
- Purchaser: means and includes any person who acquires or receives any tangible personal property, or the privilege of using any tangible personal property, or receives any services pursuant to a transaction subject to tax under this Chapter. See Louisiana Revised Statutes 47:301
- Retailer: means and includes every person engaged in the business of making sales at retail or for distribution, or use or consumption, or storage to be used or consumed in this state. See Louisiana Revised Statutes 47:301
- Sale: means any transfer of title or possession, or both, exchange, barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property, for a consideration, and includes the fabrication of tangible personal property for consumers who furnish, either directly or indirectly, the materials used in fabrication work, and the furnishing, preparing or serving, for a consideration, of any tangible personal property, consumed on the premises of the person furnishing, preparing or serving such tangible personal property. See Louisiana Revised Statutes 47:301
- Service of process: The service of writs or summonses to the appropriate party.
- Subpoena: A command to a witness to appear and give testimony.
- Subtitle: means and includes all the Chapters in Subtitle II of this Title 47 and any other Title of the Louisiana Revised Statutes of 1950 except the provisions of Chapter 1 of Subtitle IV of Title 47 of the Louisiana Revised Statutes of 1950 and estate taxes for the assessment, collection, administration, and enforcement of taxes, fees, licenses, penalties, and interest due the state of Louisiana which have been delegated to the Department of Revenue. See Louisiana Revised Statutes 47:1501
- Tangible personal property: means and includes personal property which may be seen, weighed, measured, felt or touched, or is in any other manner perceptible to the senses. See Louisiana Revised Statutes 47:301
- use: include the donation of food items to a food bank as defined in Louisiana Revised Statutes 47:301
- Use tax: includes the use, the consumption, the distribution, and the storage as herein defined. See Louisiana Revised Statutes 47:301
A. Listing of sales. Any dealer selling property or services, the aggregate value per sale of which exceeds two hundred fifty dollars, to residents of this state, where the property is delivered into this state or the beneficial use of the service occurs in this state, shall, upon request of the secretary, provide a list of such sales to the secretary of the Department of Revenue. The list shall include the names and addresses of the purchasers and the amount of the sale. The secretary shall pay to any dealer furnishing a list under this Section, an amount equal to the reasonable cost of reproducing the list.
B. Definitions. As used in this Section, the following words and phrases have the following meanings unless the context clearly indicates otherwise:
(1) “Louisiana purchaser” or “purchaser” means a person who purchases tangible personal property or taxable services in a transaction with a remote retailer for property or a service that is delivered for use or benefit in Louisiana, and no Louisiana sales and use tax was collected or paid on the transaction.
(2) “Remote retailer” or “retailer” means a retailer that purposefully avails itself in any way of the benefits of an economic market in Louisiana or who has any other minimum contacts with the state and who meets all of the following criteria:
(a) Is not required by applicable law, ordinance, or regulation to register as a dealer in Louisiana, and thus is not otherwise required to collect Louisiana sales and use taxes.
(b) Makes retail sales of tangible personal property or taxable services where the property is delivered into Louisiana or the beneficial use of the service occurs in Louisiana, and the cumulative annual gross receipts for the retailer and its affiliates from those sales exceeds fifty thousand dollars per calendar year.
(c) Does not collect and remit Louisiana sales and use tax with respect to their retail sales in this state, including the tax imposed under La. Rev. Stat. 47:302(K).
(3) “Secretary” means the secretary of the Department of Revenue.
C. Notification of purchaser. (1) At the time of sale, the remote retailer shall notify the Louisiana purchaser that the purchase is subject to Louisiana use tax unless it is specifically exempt, and that there is no exemption specifically based on the fact that a purchase is made over the internet, by catalog, or by other remote means. Further, the sale notice shall include a statement that Louisiana law requires that use tax liability be paid annually on the individual income tax return, or through other means as may be required by administrative rule by the secretary in accordance with the Administrative Procedure Act, hereinafter referred to as “administrative rule”.
(2) By January thirty-first of each year, a remote retailer shall send to each Louisiana purchaser who has purchased property or services from the retailer in the immediately preceding calendar year an annual notice containing the total amount paid by the purchaser for purchases in that preceding calendar year, and other information required by the secretary as established through administrative rule. If available, the annual notice shall include a listing of the dates and amounts of purchasers, and if known by the retailer, whether the property or service is exempt from sales and use taxes. The annual notice shall clearly disclose the name of the retailer and shall state 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 through other means as may be required by administrative rule. The notification shall be sent by first class mail, certified mail, or electronically at the purchaser’s choice and shall not be included with any other shipment or mailing from the retailer. Further, the exterior of the envelope in which the notice is sent shall include the words “IMPORTANT TAX DOCUMENT ENCLOSED”.
D. Annual statement submitted by remote retailer. By March first of each year a remote retailer who made retail sales of tangible personal property or taxable services to Louisiana purchasers in the immediately preceding calendar year shall file with the secretary an annual statement for each purchaser which includes the total amount paid by the purchaser to that retailer in the immediately preceding calendar year. Under no circumstances shall the statement contain detail as to specific property or services purchased, but it shall include the total amount paid. The statement shall be submitted on forms to be developed and provided by the secretary. The secretary is authorized to require the electronic filing of statements by a remote retailer who had sales in Louisiana in excess of one hundred thousand dollars in the immediately preceding calendar year.
E. Powers and Duties of the secretary. In addition to the powers and duties of the secretary established under Chapter 18 of Subtitle II of this Title, the secretary may, by subpoena, compel witnesses and the production of documents for purposes of enforcement of the requirements of this Section relative to the required notices and annual statements concerning taxable transactions occurring in Louisiana which involve a remote retailer. The secretary may also seek letters rogatory when appropriate for the enforcement of this Section. If the retailer fails to respond to the subpoena, the secretary may request that the subpoena be enforced on the order of a court.
F. Jurisdiction. Any dealer or remote retailer selling property or services to residents of this state, where the property is delivered into this state or the beneficial use of the service occurs in this state, is considered to have consented to the jurisdiction of the courts of Louisiana and the Board of Tax Appeals for the exclusive purpose of enforcing this Section. Notwithstanding any other provision of law to the contrary, service of process upon dealers subject to this Section may be made by service outside this state in the same manner provided for service within this state with the same force and effect as though service had been made within this state.
G. Rules. The secretary may establish specific procedures and requirements concerning purchaser notifications and the filing of annual statements through rules promulgated in accordance with the Administrative Procedure Act.
Acts 1986, No. 734, §1, eff. July 8, 1986; Acts 1997, No. 658, §2; Acts 2016, No. 569, §1, eff. July 1, 2017.