Press Releases

“Online” doesn’t mean “tax-free”

November 26, 2013

BATON ROUGE – The Louisiana Department of Revenue (LDR) reminds shoppers on Black Friday, Cyber Monday, and throughout the year that “online” does not mean “tax-free.” Louisiana’s Consumer Use Tax applies to purchases from out-0f-state vendors who do not charge sales tax. This occurs frequently when shopping online or with catalogues or television shopping networks.

When out-of-state vendors do not charge sales tax, Louisiana state law requires the shopper to report and pay the Consumer Use Tax. The tax is calculated at a rate of 8 percent, payable directly to the Department of Revenue.

The Consumer Use Tax helps to protect Louisiana businesses from unfair competition with online retailers and other out-of-state vendors who don’t charge sales tax. And it helps to provide the money for vital state services such as education, health care and public safety.

Shoppers can report the Consumer Use Tax on their state individual income tax returns, or they can use the Consumer Use Tax return, available at www.revenue.louisiana.gov/taxforms.