On January 12, 2023, the Louisiana Board of Tax Appeals held that sales of remote personal electronic storage capacity services were not subject to the New Orleans French Quarter Economic Development District sales and use tax. A federal statute, the Internet Tax Freedom Act, prohibits states and political subdivisions from imposing taxes on Internet access.
Louisiana
Louisiana Court of Appeals determines online travel companies not responsible for tax on hotel bookings
The Fifth Circuit Court of Appeal affirmed the trial court’s ruling that online travel companies (OTCs) did not owe local sales and occupancy taxes on the fees charged by the OTCs to their customers for facilitating the customers’ online reservations with hotels located in Jefferson Parish, Louisiana nor were responsible for remitting the taxes collected…
Louisiana Court of Appeal overrules uneven application of franchise fees
The Louisiana Court of Appeal, Second Circuit ruled that a city franchise fee imposed on a telecommunications company was discriminatory in violation of the federal Telecommunications Act of 1996 (the “Act”) where the fee was charged to a taxpayer pursuant to a bilateral contract but not charged to the taxpayer’s competitor.
The city brought a…
Legal Alert: Louisiana Department of Revenue implements Managed Audit Program to address transfer pricing issues
The Louisiana Department of Revenue (the Department) issued Revenue Information Bulletin No. 21-029 (the Bulletin), inviting corporate income taxpayers to resolve intercompany transfer pricing issues via the Louisiana Transfer Pricing Managed Audit Program (the Program) beginning on November 1, 2021. The purpose of the Program is to “create an efficient and expedited resolution for corporate…
Louisiana creates “digital nomad” income tax exemption
Louisiana codified an individual income tax exemption for “digital nomads.” SB 31 (Effective Jan. 1, 2022). “Digital nomads” are defined as individuals who establish residency in Louisiana after December 31, 2021, have health coverage, and work remotely, full-time for a nonresident business. The exemption applies to 50% of the digital nomad’s gross wages, not to…
Legal Alert: MTC Executive Committee Fall Meeting Update—SITAS Committee Regroups and Amended P.L. 86-272 Statement Moves Forward
On November 20, the Executive Committee of the Multistate Tax Commission (MTC) met via videoconference for its final meeting of 2020. During the meeting, the Committee heard updates from Greg Matson (MTC Executive Director) and each of the MTC’s standing committees, including the State Intercompany Transactions Advisory Service (SITAS) Committee. Here are the highlights.
Krystal…
Louisiana Supreme Court Finds Tax Commission Properly Rejected Over-Valuation of Property
The Louisiana Supreme Court unanimously held that the Louisiana Tax Commission did not act in an arbitrary and capricious manner when it rejected a property tax assessor’s valuation for ad valorem taxes. In 2012, D90 Energy, LLC purchased several wells. For tax years 2013 through 2016, D90 Energy appealed assessments by a Jefferson Davis Parish…
Louisiana Loses Jeopardy!
A Louisiana court of appeals affirmed a trial court decision dismissing for lack of personal jurisdiction the Louisiana Department of Revenue’s (“Department”) petition to collect corporate and franchise taxes on over $3.6 million in royalties from nonresident television production company Jeopardy Productions Inc. (“Jeopardy”). Jeopardy earned royalties from Louisiana between 2011 and 2014 through agreements…
Louisiana House Advances Fantasy Sports Tax Bill
The Louisiana House sent HB 64 to the Senate for consideration. The bill would impose an 8% tax on the net revenue of fantasy sports contests. Louisiana has until its special session ends on June 30 to pass the bill, which would take effect immediately.
Louisiana Enacts Marketplace Facilitator Legislation and Issues Related Guidance
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,…