Louisiana recently enacted HOUSE BILL NO. 171, which has made significant changes to the state’s sales and use tax laws for remote retailers. These changes primarily involve the elimination of the 200 transaction count threshold and the adjustment of what is included in the $100,000 revenue threshold. The bill will be in effect August 1st, 2023.
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The most significant change is the repeal of the 200-transaction threshold, which previously determined if a remote retailer was required to collect and remit sales and use taxes on remote transactions.
Additionally, the $100,000 revenue threshold now only applies to gross revenue from retail sales, rather than all sales. This means that sales for resale and wholesale transactions are no longer included in the calculation.
Businesses that no longer cross Louisiana’s economic nexus threshold may close their sales tax account with the state if they do not have other forms of nexus with the state (for example, physical presence).
The new law, sponsored by Representative Gerald “Beau” Beaullieu IV, has been signed by the Governor and will become effective on August 1, 2023.