Louisiana Sales Tax – Vendor’s Compensation Rate

Effective July 1, 2013, the vendor’s compensation rate has changed to .935%.  The change in vendor’s compensation is effective with the July sales tax return due August 20, 2013.

The line numbers for vendor’s compensation are:

  • Line 10 of the Louisiana Sales Tax Return (Form R-1029)
  • Line 13A of the Louisiana Hotel/Motel Sales Tax Return (Statewide Hotel/Motel sales tax returns, except Orleans and Jefferson parishes)
  • Line 11A of Column A and D  of the Louisiana Stadium and Exhibition District and Ernest N. Morial Exhibition Hall Authority Hotel/Motel Sales Tax Return.

Act 425 of the 2013 Regular Session of the Louisiana Legislature amended R.S. 47:306(A)(3) to change the vendor’s compensation rate allowed to dealers who remit sales tax from 1.1 percent to .935 percent.    The compensation is allowed only on returns which are timely filed and paid.   Questions concerning the vendor’s compensation rate should be directed to the Louisiana Department of Revenue’s Special Programs Division at (225) 219-7462, option 3, or by email to Sales.Inquiries@LA.gov.

Additional changes to the general sales tax form (R-1029) include:

  • Allowable deductions for sales to loggers and paper and wood manufacturers must be reported on Line 22 (Sales/purchases/leases/rentals of manufacturing machinery or equipment), instead of Line 23.
  • Allowable deductions for sales of gasoline, diesel, and motor fuel must be reported on Line 23.  Note: Sales of these items for resale must be reported on Line 31.

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