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 294 Original 2016 Regular Session Hilferty
Abstract: Requires retailers not currently registered to collect and remit La. sales and use taxes to
provide notice to La. residents who make electronic purchases that La. sales and use tax is
due on nonexempt purchases.
Proposed law requires online and catalog retailers outside of La. to give notice to customers that they
may owe sales and use taxes to the state for purchases made through their website, online auction
site, or catalogs.
Proposed law defines "noncollecting retailers" as any retailer not currently registered to collect and
remit state sales and use taxes who sells tangible personal property, services, or products
electronically from outside of La. to be shipped to La. for use, storage, or consumption and who is
not required to collect La. sales and use taxes.
Proposed law requires that the noncollecting retailer's notice contain information such as that the
purchase is subject to state sales and use tax unless specifically exempted, that the purchase is not
exempt merely because it was purchased over the internet, by catalog, or other remote means, and
that the tax may be reported and paid on the La. use tax form.
Proposed law specifies that the notice required by proposed law shall be placed on a page necessary
to facilitate the applicable transaction such as on the order form if the purchase is made via catalog
or on the electronic order confirmation if the purchase is made over the internet. The notice shall
include the following reference:
"See important Louisiana sales and use tax information regarding the tax you may owe
directly to the state of La."
Proposed law exempts, with the exception of notification on an invoice, de minimis online auction
websites and de minimis retailers which have total gross sales in La. of less than $100,000 which
reasonably expect La. sales in the current year to be less than $100,000, from the requirements of
proposed law.
Proposed law prohibits a retailer that does not collect the sales tax from claiming that the purchases
are tax free and prohibits criminal penalties or civil liabilities for failure to comply with the
requirements of proposed law.
(Adds R.S. 47:306(F))