Louisiana residents who made purchases from remote retailers last year for which sales tax was not collected will begin receiving notifications from those retailers about use taxes due on those purchases.
Act 569 of the 2016 Regular Session of the Louisiana Legislature requires remote retailers making sales of goods or services delivered to Louisiana addresses to notify shoppers about purchases that are subject to state use tax. The use tax applies to any transaction in which the state sales tax was not charged at the time of purchase, even if the retailer does not send a notice to the purchaser.
The annual notices, to be mailed by January 31 each year:
- Provide the total amount paid by the purchaser for purchases in that preceding calendar year;
- Contain a listing of the dates and amounts of purchases, if available;
- Explain whether the property or service is exempt from sales and use taxes, if known by the retailer;
- Clearly disclose the name of the retailer; and
- Include a clear statement that Louisiana use tax may be due on the purchases made from the retailer and that Louisiana law requires the payment of an individual’s use tax liability on the individual income tax return or the Consumer Use Tax Return (R-1035).
The notice includes instructions for the purchaser in reporting and paying the use tax. It can be reported on the state resident or nonresident Individual Income Tax Return or on the Consumer Use Tax Return, available at www.revenue.louisiana.gov/FORMS. Taxpayers who file their taxes through a paid preparer should provide the preparer with a copy of the notice.
The notification, sent by first class mail or certified mail, will arrive in an envelope marked “IMPORTANT TAX DOCUMENT ENCLOSED.” It may also be sent electronically if the purchaser authorized the remote retailer to do so in writing.
In addition to the notices sent to purchasers, remote retailers must provide the same information to the Louisiana Department of Revenue.
Read Revenue Information Bulletin 18-006 for more information.