“Online” doesn’t mean “tax-free”

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.

Shoppers can report the Consumer Use Tax on their state individual income tax returns, or they can use the Consumer Use Tax return, available at www.revenue.louisiana.gov/taxforms.

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Louisiana’s Consumer Use Tax helps local businesses compete with online, mail-order retailers

BATON ROUGE – The Louisiana Department of Revenue (LDR) reminds holiday shoppers that “online” does not mean “tax-free.”  Louisiana’s consumer use tax applies to purchases in which a retailer does not charge sales tax.  This happens typically during transactions with online and mail-order retailers, or television shopping networks, that do not have physical locations in Louisiana.

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.  LDR redistributes 4 percent of the revenue to local governments.

The Consumer Use Tax protects Louisiana businesses from unfair competition with out-of-state vendors who don’t charge sales tax. It also helps to provide the funds for vital state services such as education, public safety and roads and bridges.

Purchases subject to the Consumer Use Tax include:

  • Appliances
  • Books
  • Clothing
  • Computers
  • CDs and DVDs
  • Electronics
  • Furniture
  • Music and movie downloads
  • Software
  • Tobacco products

You can report the Consumer Use Tax annually when filing your Louisiana individual income tax return. Or you can use the Consumer Use Tax Return, available with more information at www.revenue.louisiana.gov/ConsumerUse.

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“Online” doesn’t mean “tax free”

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‘Online’ doesn’t mean ‘tax-free’; Consumer use tax applies to online purchases

BATON ROUGE – The Louisiana Department of Revenue (LDR) reminds shoppers that “online” does not mean “tax-free” when making purchases during the holiday season, or any other time of year. Louisiana’s Consumer Use Tax applies to transactions in which the retailer does not charge sales tax. This happens most frequently when making purchases from online and mail-order retailers, or television shopping networks that do not have physical locations in Louisiana.

When out-of-state vendors do not charge sales tax to purchases, Louisiana state law requires the shopper to report and pay the Consumer Use Tax. This tax protects Louisiana businesses from unfair competition from out-of-state retailers who don’t charge sales tax. It also helps to provide the vital funds that the state needs to maintain Louisiana’s schools, public safety, and roads and bridges.

The Consumer Use Tax is calculated at a rate of 8 percent, payable directly to the Department of Revenue. LDR redistributes 4 percent of the revenue to local governments.

Purchases subject to the Consumer Use Tax include:

  • Appliances
  • Books
  • Clothing
  • Computers
  • DVDs and CDs
  • Electronics
  • Furniture
  • Music and movie downloads
  • Software
  • Tobacco products

You can report the Consumer Use Tax annually when filing your Louisiana Individual Income Tax Return. You can also use the Consumer Use Tax Return (Form R-1035), available along with more information at www.revenue.louisiana.gov/ConsumerUse.

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Louisiana’s Consumer Use Tax – ‘Online’ doesn’t mean ‘tax-free’

Louisiana’s Consumer Use Tax helps local businesses compete with out-of-state retailers who don’t charge sales tax.

It provides funds for vital state services.

And it’s the law.

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Louisiana’s Consumer Use Tax: “Online” doesn’t mean “tax-free”

The Louisiana Department of Revenue (LDR) reminds shoppers during the holiday gift-buying season that “online” does not mean “tax-free,” even if the seller applies no sales tax to the purchase.  Products purchased from out-of-state vendors such as online retailers, mail-order companies, and television shopping networks are subject to Louisiana’s Consumer Use Tax. 

State law [La. R.S. 47:302(K)], calculates the Consumer Use Tax at a rate of 8 percent, payable directly to the Department of Revenue.  LDR redistributes 4 percent of the revenue to local governments.

Purchases subject to the Consumer Use Tax include:

  • Appliances
  • Books
  • CDs and DVDs
  • Clothing
  • Computers
  • Electronics
  • Software

You can report and pay the Consumer Use Tax annually when filing your Louisiana Individual Income Tax Return.  You can also use the Consumer Use Tax Return (Form R-1035), which is available on the Tax Forms page at revenue.louisiana.gov.  The Consumer Use Tax Return is due on the 20th day of the month following the month in which you made your purchases.  For example, if you buy a new computer online on December 14, your Consumer Use Tax Return is due by January 20.

In addition to raising needed revenue for the state, the Consumer Use Tax prevents out-of-state companies from enjoying an unfair advantage over Louisiana retailers who have to charge sales tax on all transactions.

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