Press Releases

Shopping Reminder:

Use Tax Due on Out-of-State Catalog and Internet Purchases

December 7, 2000

BATON ROUGE - The Louisiana Department of Revenue is reminding the state''s Christmas shoppers that they are still obligated to report and pay state sales and use tax on out-of-state purchases made from catalogs or the Internet, even when the seller fails to collect the tax.

"Making a purchase from a seller located outside of Louisiana, whether by telephone, mail, or the Internet, does not exempt a Louisiana taxpayer from reporting and paying the state''s sales tax," Revenue Secretary Cynthia Bridges says. "If the seller does not collect the state''s sales tax, the customer must still pay the state an 8% "use" tax. This rate represents 4% state use tax plus 4% local taxes. The local tax share is distributed to local governments."

Bridges says taxpayers can report and pay their use tax obligation on the state individual income tax return that will be mailed in January 2001. "This year, there is a specific line on the front of the return that can be used to report and pay use tax. Taxpayers can also report and pay their use tax by requesting a Consumer Use Tax Worksheet from any office of the Department. The worksheet may also be downloaded from the Department''s web site at http://revenue.louisiana.gov. "For the convenience of the taxpayer, there is a link from the web site''s main page directly to the form," Bridges says.