La. R.S. 47:306(A)(3)(a) allows dealers to deduct and retain a percentage of the sales and use tax due for the purpose of compensating the dealer for accounting for and remitting the tax to the state of Louisiana (“vendor’s comp”).

The vendor’s comp rate is 1.05% and remains unchanged. However, vendor’s comp is calculated only on the taxes levied in R.S. 47:302, 321, and 331. Vendor’s comp is not allowed for the taxes levied in R.S. 47:321.1. As a result, beginning January 1, 2025, the effective rate of vendor’s comp is 0.84% (1.05% x (4%/5%)).