Press Releases

Purchases from out-of-state retailers subject to Consumer Use Tax

Department of Revenue says “Online” doesn’t mean “tax-free”

December 9, 2009

The Louisiana Department of Revenue (LDR) reminds shoppers during the holiday gift-buying season that “online” does not mean “tax-free,” even if the seller applies no sales tax to the purchase. Products purchased from out-of-state vendors such as online retailers, mail-order companies, and television shopping networks are subject to Louisiana’s Consumer Use Tax.


State law [La. R.S. 47:302(K)], calculates the Consumer Use Tax at a rate of 8 percent, payable directly to the Department of Revenue. LDR redistributes 4 percent of the revenue to local governments.


Purchases subject to the Consumer Use Tax include:


• Appliances
• Books
• CDs and DVDs
• Clothing
• Computers
• Electronics
• Software


You can report and pay the Consumer Use Tax annually when filing your Louisiana Individual Income Tax Return. You can also use the Consumer Use Tax Return (Form R-1035), which is available on the Tax Forms page at revenue.louisiana.gov. The Consumer Use Tax Return is due on the 20th day of the month following the month in which you made your purchases. For example, if you buy a new computer online on December 14, your Consumer Use Tax Return is due by January 20.


In addition to raising needed revenue for the state, the Consumer Use Tax prevents out-of-state companies from enjoying an unfair advantage over Louisiana retailers who have to charge sales tax on all transactions.