State Sales Tax Nexus and General Overview

Need to Understand a State's Sales Tax Situation? Here it is...

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Louisiana (LA)

LA Sales Tax - Name of Tax and General Application:

Louisiana imposes a tax on retail sales of tangible personal property as well as specified services. This tax is called a "sales tax". Additionally, there is a tax imposed on the use, consumption, distribution or storage of tangible personal property in the state. This tax is called a "use tax" and is imposed only when no sales tax has been paid.

LA Nexus - General Requirements:

The word "nexus" means a link or connection. If you are determined to have nexus to a U.S. state then you are subject to that state's sales and use tax rules and must collect and remit sales tax to the state. This is known as a "filing obligation."

Each state has a different definition of nexus. However, if the answer to any of the following questions is yes, it is likely that a company has nexus as legally defined in most U.S. States.

Does the company own property in the state? Does the company have employees living in the state? Does the company regularly send employees in the state to perform services? Does the company have an agent acting on behalf of the company in the state?

Louisiana requires retailers who engage in any activity with the object of gain, benefit or advantage to collect and pay sales or use tax. Nexus applies to retailers who have an office or other place of business, or an agent, salesman or other representative operating within the state or making deliveries of tangible personal property into the state other than by common carriers.

LA Local Tax - Do Localities Impose Tax?

Yes, Louisiana imposes local sales tax.

LA Resale Certificate Renewal Agreements:

Resale certificates in Louisiana need to be issued with each purchase. When a resale certificate has been issued, the purchaser is liable for any tax that is later found to be due.

LA Resale Certificate Renewal Periods

There is no mention of any expiration or renewal period for resale certificates in Louisiana.

LA Statute of Limitations

Three years from the end of the calendar year in which the tax payment was due.