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By Nushin Huq
Amazon.com Inc. will begin collecting and remitting state and local sales tax on purchases shipped to Louisiana in 2017, after the state’s new tax regime was implicitly endorsed by a recent U.S. Supreme Court ruling.
The high court earlier this month declined to review a Colorado law that imposes reporting and notification requirements on out-of-state retailers, a law similar to one passed in Louisiana in July ( Direct Mktg. Ass’n v Brohl , 2016 BL 411370, U.S., No. 16-267, cert. denied 12/12/16 ; Brohl v. Direct Mktg. Ass’n , 2016 BL 411383, U.S., No. 16-458, cert. denied 12/12/16 ).
Louisiana passed two laws pertaining to online sales during 2016: Act 22 during the first special session, which expands the definition of nexus to include online retailers; and Act 569 during the regular session, which establishes reporting requirements. The new laws are essentially mirror New York and Colorado statutes. More state laws are expected in light of the high court’s decision, and Alabama already has announced plans to introduce a similar reporting regime next year.
Louisiana’s laws are part of a flurry of state activity designed to capture greater revenue from remote retailers. Several e-retailers, including Wayfair Inc., have contested regimes in Alabama and South Dakota. But Amazon, largely speaking, has complied with the new laws.
With Louisiana, the top e-retailer now will collect taxes from online sales in 32 states and the District of Columbia. The company lacks a physical presence in many of these states.
Specifically, Act 569 requires remote sellers with gross receipts greater than $50,000 that don’t collect state and local sales tax to notify the purchaser that tax is due and provide an annual report of customer names and purchase amounts to the Louisiana Department of Revenue.
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Text of the reporting requirements law is at http://src.bna.com/kU2.
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