If you sell taxable goods or services in Louisiana, you are required to register and collect sales tax. You must apply the correct rate to your products, remit this tax to the state, and keep excellent records. In addition, you must file timely returns and be aware of the Pelican State’s unique rules. The Louisiana sales tax is 9.45%, including state, parish, and city rates. It also includes the French Quarter Economic Development District sales tax rate, an additional 0.245%. The state sales tax applies to most goods and services. However, some services, such as repair and telecommunications, are exempt from the tax.
How to Pay Louisiana Sales Tax?
Louisiana requires businesses that collect sales tax to file and pay it to the state. Here are the ways you can do that:
Online filing and payment: This is the most convenient option. You can file and pay your Louisiana Sales Tax return through the Louisiana Taxpayer Access Point (LaTap). LaTap allows you to submit your return and make a payment electronically using their system, including credit card payments.
Mail-in payment: You can also mail a completed sales tax return along with a check or money order to the Louisiana Department of Revenue. Information on how to do this can be found on the department’s website.
Louisiana Sales Tax Exemptions
A number of products and services are exempt from sales tax in Louisiana, including food for home consumption, prescription drugs, and orthotic or prosthetic devices. However, local taxes may still apply.
Non-profit organizations are also exempt from paying sales tax in Louisiana, but they must register for a state tax-exempt number. Failure to file a sales tax return or pay the applicable taxes on time will result in penalties of up to 25% of the amount due.
Louisiana Sales Tax Exempt Items
The state of Louisiana does not require a seller to collect sales tax on certain items, such as food or prescription drugs. However, the state does tax art, furniture, and other items deemed of special value. This applies to both local and out-of-state artists. The LDR has a detailed FAQ page that covers how the law applies in specific situations.
Sales tax in Louisiana is collected based on the purchaser’s destination, not the origin. Shipping and handling charges that are separately stated or included in the sale price are generally subject to sales tax. The LDR recommends that sellers consult a tax professional for more information about determining if their goods and services are taxable in the state of Louisiana.
Louisiana Sales Tax Due Dates
Once a business has established economic nexus in Louisiana, it must register and begin charging, collecting, and remitting sales tax. A sales tax registration is typically completed online through the Department of Revenue’s website. Once registered, businesses must also remit all collected sales tax by the applicable due date. Returns and payments are filed monthly or quarterly based on the assigned filing frequency. If a business does not file by the assigned deadline, it will incur a late filing penalty of 5% of the net amount of tax due for each 30-day period or fraction thereof, up to 25% of the total tax due.