Requires registration, permitting, tax collection, and reporting by certain persons doing business, and facilitating and maintaining a market in Louisiana (Item #30)
Impact
The legislation significantly impacts state laws concerning tax obligations, particularly by creating clear guidelines about what constitutes doing business in Louisiana. It establishes a rebuttable presumption that a dealer has nexus in the state once their cumulative sales exceed $50,000 annually, requiring them to register with the Department of Revenue. This measure facilitates the state's authority to collect sales taxes effectively and reduces ambiguity regarding online sales transactions and their taxation.
Summary
House Bill 110 establishes comprehensive requirements regarding the collection and remittance of sales and use taxes for various businesses involved in retail sales within Louisiana. It introduces key definitions such as 'dealer', 'marketplace dealer', 'marketplace provider', and 'referrer', which clarify the roles different entities play in sales processes. The bill aims to ensure that businesses operating in Louisiana, including those facilitated through online marketplaces, comply with state tax requirements.
Sentiment
The sentiment around HB 110 appears to be mixed. Supporters view it as a necessary update to Louisiana's tax laws that modernizes tax collection practices and addresses the complexities introduced by e-commerce. On the other hand, some stakeholders express concern about the potential burden these requirements may impose on smaller vendors and online businesses, fearing that compliance costs may outweigh the benefits for these sellers.
Contention
Notable points of contention include the implications of increased regulatory requirements on small businesses. Critics of the bill argue that the new registration and reporting obligations may disincentivize smaller businesses from operating in Louisiana, thus potentially stifling economic growth. Additionally, issues regarding the enforcement of compliance for remote sellers and marketplace providers are debated, particularly concerning liability expectations for referrers who facilitate sales without direct engagement.
Requires online or catalog retailers that are not domiciled in Louisiana to provide notice to Louisiana purchasers that Louisiana sales and use taxes may be due on the purchases (Item #30)
To establish a framework upon which to repeal the property tax on business inventories and offshore vessels as well as the state income tax credits associated therewith through the repeal of a state sales and use tax, the levy of a limited, temporary state sales and use tax, and limitations on the applicability of certain exclusions and exemptions from certain state sales and use taxes (Items #31 and 36) (OR SEE FISC NOTE GF RV)
Sales tax: collections; certain requirements imposed on marketplace facilitators related to tax collections; provide exceptions and waivers. Amends sec. 5c of 1937 PA 94 (MCL 205.95c).