On June 11, Louisiana’s Governor signed SB 138 into law. The law, which takes effect July 1, will mandate sales tax collection and remittance by marketplace facilitators with either $100,000 of in-state sales or 200 in-state transactions. The law (now known as Act 216) excludes from its requirements third-party payment processors, derivatives clearing organizations, advertising services platforms, businesses reselling hotel rooms, certain lodging platforms, and car rental businesses. It also allows certain marketplace sellers with over $1B in annual revenue to contractually agree with marketplace facilitators to retain collections responsibilities. The collected tax must be reported and remitted to a central entity – the Louisiana Sales and Use Tax Commission for Remote Sellers.
In addition, the Louisiana Sales and Use Tax Commission for Remote Sellers approved a draft information bulletin that will provide guidance for marketplace facilitators and sellers under the provisions of Act 216.