“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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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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