DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 355 Original 2015 Regular Session Pugh
Abstract: Expands the definition of "dealer" to include persons who have certain substantial
relationships and similarities with La. retailers or who engage in business in La. through the
use of certain affiliated agents.
Present law provides various definitions of "dealer" with respect to sales and use tax law and defines
"engaging in business in a taxing jurisdiction".
Proposed law retains present law but expands the definition of "engaging in business in the taxing
jurisdiction" to include:
(1)The solicitation of business through an independent contractor or any other representative
pursuant to an agreement with a La. resident or business under which the resident or
business, for a commission, referral fee, or other consideration of any kind, directly or
indirectly refers potential customers, whether by link on an internet website or otherwise, to
the seller.
(2)If, for the immediately preceding four quarterly periods, the cumulative total of such person's
gross receipts from sales of property delivered in this state exceeds $200,000 and such person
made more than 100 sales of property delivered in this state, unless such person can
demonstrate, to the satisfaction of the secretary, that he cannot reasonably be expected to
have gross receipts in excess of $200,000 or more than 100 sales of property delivered in this
state for the next succeeding four quarterly periods.
Proposed law retains present law but expands the definition of "dealer" to include a person who
meets any of the following criteria:
(1)Sells the same or substantially similar line of products as a La. retailer under the same or
substantially similar business name.
(2)The facilities or employees of the La. retailer are used to advertise or promote sales by the
person to La. purchasers and to support the maintenance of a market in La.
(3)Solicits business and develops a market in La. through an agent or other representative
through an agreement for a commission, referral fee, or other consideration who engages in
activities in La. that inure to the benefit of the person in the person's development or
maintenance of a market for its goods or services in La., to the extent that those activities of the agent are sufficient to satisfy the nexus requirement of the U.S. Constitution.
(4)Holds a substantial ownership interest, directly or through a subsidiary, in a retailer
maintaining sales locations in La. or who is owned in whole or in substantial part by a retailer
maintaining sales locations in La.
Proposed law requires persons who meet the definition of a dealer under proposed law to
electronically file tax returns and remittances to the state and local taxing authorities.
Present law levies an additional 4% state sales and use tax to be collected only by dealers who
qualify as a dealer in this state solely by virtue of engaging in regular or systematic solicitation of
a consumer market in La. by the distribution of catalogs, periodicals, advertising fliers, or other
advertising, or by means of print, radio, or telephone media, including but not limited to television
shopping channels, by mail, telegraphy, telephone, computer database, cable optic, microwave, or
other communication system.
Proposed law specifies that present law regarding the levy and collection of the additional 4% sales
and use tax shall apply to persons who are defined as dealers pursuant to proposed law.
Provisions of proposed law apply prospectively.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:301(4)(h); Adds R.S. 47:301(m))