How are sales sourced?

Sourcing generally refers to where a sale is deemed to take place.

Tangible personal property (TPP), digital products and services, are all generally sourced as follows:

1. If received by the buyer at the seller's business location, the sale is sourced to that business location.

2. If not received at the seller's business location, the sale is sourced to the location of receipt by the purchaser or purchaser’s designee.

3. If the location of receipt by the purchaser (or designee) is unknown, the sale is sourced to the purchaser's address contained in the business records of the seller.

4. If no address is available in the seller's business records, the sale is sourced to the purchaser's address obtained at the time of sale (e.g., the purchaser's payment instrument).

5. If no address is obtained at the time of sale, then the sale is sourced to:

   1. For TPP - the location from which TPP was shipped
   2. For digital products - the address from which the digital product was first available for transmission by the seller
   3. For services - the address from which the service was provided.

Notwithstanding the above:

1. Repairs to tangible personal property are always sourced to where the repairs are performed.

2. Drop shipments are sourced to the location of the transfer of title or possession, whichever occurs first.

3. Abstracts of title created by persons with a place of business in Louisiana are sourced to the person’s principal place of business in Louisiana.

4. Purchases of multiple listing services by real estate licensees and brokers are sourced to the location of the licensee’s or broker’s Louisiana regional real estate office.

Different rules apply for sourcing leases of tangible personal property, vehicles, and telecommunication services. See R.S. 47:301.4(B)(3), (C) and (D).