BATON ROUGE – The Louisiana Department of Revenue (LDR) reminds shoppers on Black Friday, Cyber Monday, and throughout the year that “online” does not mean “tax-free.” Louisiana’s Consumer Use Tax applies to purchases from out-0f-state vendors who do not charge sales tax. This occurs frequently when shopping online or with catalogues or television shopping networks.
When out-of-state vendors do not charge sales tax, Louisiana state law requires the shopper to report and pay the Consumer Use Tax. The tax is calculated at a rate of 8 percent, payable directly to the Department of Revenue.
The Consumer Use Tax helps to protect Louisiana businesses from unfair competition with online retailers and other out-of-state vendors who don’t charge sales tax. And it helps to provide the money for vital state services such as education, health care and public safety.