Frequently Asked Questions

Consumer Use Tax

1. What is Louisiana consumer use tax?

   The Louisiana consumer use tax is a transactional tax that is due when a purchaser buys taxable tangible personal property or taxable services online, by catalog, or through other remote means. If the purchaser buys taxable property or services and the remote retailer does not charge Louisiana state or local sales tax, the purchaser is obligated to pay consumer use tax to the Louisiana Department of Revenue (“Department”) if the property or service is delivered to an address within Louisiana.

2. What purchases are subject to consumer use tax?

   Consumer use tax applies to the purchases of taxable property or services from remote retailers when Louisiana state or local sales tax was not charged. Taxable purchases from remote retailers generally include purchases from catalogs, television shopping networks, firms selling over the internet, and retailers located outside of Louisiana.

   Certain purchases of property and services, such as food for home consumption and prescriptions, are not subject to consumer use tax.

3. Can I file the Louisiana Consumer Use Tax return online?

   If you have filed an individual income tax return with the State of Louisiana, you can file Form R-1035, Louisiana Consumer Use Tax Return through the Louisiana Department of Revenue’s LaTAP online program. Taxpayers who have filed an individual income tax return will have an individual income tax account with the Department and using the individual income tax account information, can register for a LaTAP account. Once registered, taxpayers must add the Individual Income Tax account to their LaTAP registration. After the Individual Income Tax account is added to the taxpayer’s LaTAP account, taxpayers can follow the online instructions to file Form R-1035.

4. What is a remote seller?

   A remote seller is a seller who sells for sale at retail, use, consumption, distribution, or for storage to be used for consumption or distribution any taxable tangible personal property, products transferred electronically, or services for delivery within Louisiana but does not have physical presence in Louisiana.

   If a seller has physical presence in Louisiana, the seller is considered a dealer as defined by LA R.S. 47:301(4) and subject to state and local collection and remittance requirements.

   For more information, read 18-002 Remote Sellers Information Bulletin 18-002: Definition of Remote Seller and Further Guidance to Remote Sellers

5. What is the consumer use tax rate?

   For taxable purchases made on or after July 1, 2018, the consumer use tax is a combined state and local rate of 8.45 percent. Consumer use tax is calculated at this rate regardless of whether the actual combined state and local rate in your area is equal to, higher than, or lower than 8.45 percent. The 8.45 percent is allocated at 4.45 percent to the state and 4 percent to local jurisdictions. The Department distributes the 4 percent portion to local governments throughout the state.

6. What is the minimum purchase amount that I have to pay consumer use tax on?

   Consumer use tax is due on all taxable purchases of property or services on which sales tax was due but not charged and collected by the remote retailer. No minimum threshold exists.

7. Who is responsible for payment of consumer use tax?

   The original purchaser of the property or service is responsible for payment of the consumer use tax.

8. If the recipient of the merchandise is not the original purchaser (i.e., the merchandise was a gift from the purchaser and shipped to the recipient to a Louisiana address), is the recipient responsible for the consumer use tax?

   No, the original purchaser of the property or service is responsible for payment of the consumer use tax. For example, if a purchaser buys a product online as a gift and instructs the remote retailer to ship the gift to the recipient’s Louisiana address, the purchaser is responsible for payment of consumer use tax. The gift recipient does not owe consumer use tax on the purchase.

9. How will I be notified if I owe consumer use tax?

   Consumer use tax is due on all taxable purchases made when sales tax is not charged and collected by the remote seller. To assist with compliance, Act 569 of the 2016 Regular Session of the Louisiana Legislature established notification and reporting requirements for retail sales made in Louisiana by remote retailers. Remote retailers selling between $50,000 to $100,000 in Louisiana sales must send notifications to Louisiana purchasers by January 31 of each year. However, purchasers are still required to pay consumer use tax on taxable purchases not reported by remote retailers.

10. Since the remote retailers are required to send annual statements to the Department by March 1, will a database be set up where I can view my purchase amounts and calculate my consumer use tax?

    No, the Department cannot provide information received from the remote retailers.

11. How will I receive my notification from the remote retailer?

    You should receive your notification by first class or certified mail. If authorized by the purchaser, notifications may be sent electronically. The envelope (if by first class or certified mail) or subject line (if by electronic mail) must include the words “IMPORTANT TAX DOCUMENT ENCLOSED”.

12. I recently received a notification from a remote retailer stating certain purchases may be subject to Louisiana consumer use tax. What should I do?

    Review your notification for accuracy. If you agree with the purchase amounts listed, calculate 8.45 percent of the total purchase amount to determine your consumer use tax due.

    For example, if a notification from Retailer A indicates you have combined taxable purchases of $1,500.00, your consumer use tax due is $127 ($1,500.00 x .0845).

    Your total taxable purchases are subject to consumer use tax regardless as to whether those taxable purchases were included on your notification.

    For example, if you have additional taxable purchases from Retailer A in the amount of $400.00 that were not included in the notification, your total consumer use tax due is $161 [($1,500.00 + $400.00) x .0845].

13. Do I round total taxable purchases and consumer use tax?

    Yes, when calculating the total taxable purchases and consumer use tax, round the amounts to the nearest whole dollar.

    If your taxable purchases total $97.68, round to $98.00. If your consumer use tax is $8.28 ($98.00 x .0845), the amount due is $8.00.

    If your taxable purchases total $106.28, round to $106.00. If your consumer use tax is $8.96 ($106.00 x .0845), the amount due is $9.00.

14. I purchased a gift basket from a remote retailer. It contains food and other items such as candles and napkins. Since food is not subject to state tax, do I owe any consumer use tax?

    Yes, you do. When nontaxable items (food for home consumption) are bundled with taxable items (candles, napkins, etc.) and all items are included in a single sales price, consumer use tax is due on the sales price of the entire item (gift basket).

    If the individual items are separately billed on the invoice (not included in a single sales price) and you can distinguish between the nontaxable items and the taxable items, then consumer use tax will only be due on those items subject to state sales tax. For example: you purchase cheese, crackers, napkins and service utensils from a remote retailer. Each item has a separate price on the invoice. Only the napkins and service utensils are subject to Louisiana consumer use tax (taxable items). The cheese and crackers would be considered food for home consumption and not subject to consumer use tax.

15. I purchased merchandise and later returned the merchandise back to the vendor. If the vendor included the cost of the returned merchandise on my notification, do I still owe consumer use tax?

    No, if the merchandise was returned to the vendor and a refund or credit was received, consumer use tax is not due. Exchanged merchandise is still subject to consumer use tax.

16. I disagree with the purchase amounts listed on my notification from a remote retailer. What should I do?

    You should review your purchase documentation, including receipts and invoices, to verify amounts listed on the notification. Contact the remote retailer directly to resolve any discrepancies. You do not need to contact the Department.

17. I did not receive a notification from a remote retailer; however, I made purchases subject to consumer use tax. What should I do?

    You are responsible for tracking your purchases from remote retailers and paying the consumer use tax due on those taxable purchases. If you do not receive a notification, you are still required to pay consumer use tax on taxable purchases.

    For example, if you did not receive a notification from Retailer B but you made taxable purchases in the amount of $600, your consumer use tax due is $51 ($600 x .0845).

18. I have determined the correct amount of consumer use tax owed on my taxable purchases, what should I do next?

    You may pay the consumer use tax by one of three methods:

    The first method is to report and pay the consumer use tax on your Louisiana individual income tax return. The consumer use tax is paid in addition to any individual income tax you owe. The due date for filing a Louisiana income tax return is May 15.

    The second method is to report and pay the consumer use tax separately on Form R-1035, Louisiana Consumer Use Tax Return. Form R-1035 may be submitted any time after the taxable purchase(s) is made, but before the May 15 due date of the consumer use tax to avoid interest and penalties. Please see question 24 for additional information.

    The third method is to report and pay the consumer use tax through the use of the Department’s LaTAP online program. Please see Question 3 for additional information.

19. I filed my Louisiana individual income tax return. After filing the return, I received a notification from a remote retailer and I owe consumer use tax. Do I have to amend my tax return?

    No, you may pay the consumer use tax due on Form R-1035, Louisiana Consumer Use Tax Return, instead of amending your tax return. Alternatively, you may amend your tax return to report your consumer use tax.

20. I am a state agency and have purchased items from a remote retailer. Do I owe consumer use tax?

    Under the provisions of R.S. 47:301(8)(c)(i), this state, any parish, city and parish, municipality, district, or other political subdivision thereof, or any agency, board, commission, or instrumentality of this state or its political subdivisions are not subject to the sales and use tax levied by any political subdivisions. Since state agencies are considered a part of the State of Louisiana, no consumer use tax will be due on any purchases made from a remote retailer by a state agency.

    If you are unsure as to whether your organization qualifies for the exemption found in R.S. 47:301(8)(c)(i), please send your question to our Sales.Inquiries@la.gov email box.

21. I am a parish council on aging and have purchased items from a remote retailer. Do I owe consumer use tax?

    Under the provisions of R.S. 47:301(8)(c)(i), this state, any parish, city and parish, municipality, district, or other political subdivision thereof, or any agency, board, commission, or instrumentality of this state or its political subdivisions are not subject to the sales and use tax levied by any political subdivisions. Parish councils on aging are considered an agency of the State of Louisiana. As a result, no consumer use tax will be due on any purchases made from a remote retailer by a parish council on aging.

22. I am not required to file a Louisiana individual income tax return. How do I report consumer use tax?

    If you are not required to file a Louisiana individual income tax return, use Form R-1035, Louisiana Consumer Use Tax Return. This form must be mailed to the Department and payment included for the consumer use tax due.

23. I operate a business and qualify as a dealer; can I use Form R-1035, Louisiana Consumer Use Tax Return, to report consumer use tax?

    No, dealers are required to be registered with the Department for sales tax purposes and can only report consumer use tax on the dealer’s state and local sales tax returns. Form R-1035 may not be used.

    Businesses must file the R-1029 and report use tax on line 2 of the State sales tax return and the applicable parish tax on the appropriate line of the parish tax return.

24. What is the due date for consumer use tax?

    Regardless of filing method, you must pay your consumer use tax by the due date of the Louisiana individual income tax return of the year following the year you purchased taxable property or services. For taxable purchases made during 2017, you must pay the consumer use tax by May 15, 2018. Failure to pay the consumer use tax by the deadline will result in interest and penalties in addition to any consumer use tax due.

25. Will I receive confirmation that payment of my consumer use tax was received and processed?

    No. If the consumer use tax was paid on a Louisiana individual income tax return, you will receive confirmation your income tax return has been submitted/received. If the consumer use tax was paid using LaTAP, you will receive confirmation that the R-1035 Consumer Use Tax return was submitted/received.

26. I received a bill from the Department for consumer use tax that I do not agree with. What should I do?

    Provide documentation, including invoices and receipts, to support your calculation of consumer use tax. Documentation should be mailed to the address listed on your bill.

    For example, you purchase nontaxable property such as food for home consumption. The remote retailer sends you a notification of the purchase and reports the total amount to the Department. (Remember, the remote retailer is prohibited from sending the Department an itemized breakdown of purchases.) If the Department sends a bill for consumer use tax on this nontaxable property, you should provide a copy of the invoice from the remote retailer so the Department can consider the documentation and adjust the bill, if applicable.