§ 47:340.1 — Marketplace facilitators; collection and remittance of state and local sales and use

Louisiana § 47:340.1

• Jurisdiction: Louisiana
• Title 47: Revenue and Taxation

Text

§340.1. Marketplace facilitators; collection and remittance of state and local sales and use
tax
A. Definitions. For purposes of this Section, the following words and phrases shall
have the following meanings, unless the context clearly indicates otherwise:
(1) "Accommodations intermediary" means a person other than the owner, operator,
or manager of a sleeping room, cottage, cabin, room, suite, condominium, townhouse, rental
house, or other accommodation who facilitates the furnishing of an accommodation to a
transient guest through a marketplace owned, operated, or otherwise controlled by the person.
An accommodations intermediary shall be considered a "marketplace facilitator" pursuant
to the provisions of Subparagraph (7)(a) of this Subsection. An accommodations
intermediary shall not include any person included in Subparagraph (7)(b) of this Subsection.
(2) "Affiliate" means an entity that owns more than five percent of the other entity
or both entities are subject to the control of a common entity that owns more than five
percent of each of the other entities.
(3) "Commission" means the Louisiana Sales and Use Tax Commission for Remote
Sellers set forth in this Chapter.
(4) "Local occupancy tax" means a tax levied by a local taxing authority upon the
furnishing or occupancy of sleeping rooms, hotel rooms, motel rooms, overnight camping
facilities, or any other similar accommodation or establishment authorized under the
Louisiana Revised Statutes of 1950, including but not limited to Title 33 and Title 47, to levy
occupancy taxes.
(5) "Local taxing authority" means parishes, municipalities, special taxing districts,
political subdivisions, parish governing bodies, and commissions created pursuant to R.S.
33:4574(B) that are authorized under the Louisiana Revised Statutes of 1950, including but
not limited to Title 33 and Title 47, to levy occupancy taxes.
(6) "Marketplace" means any physical or electronic platform or forum, owned,
operated, or otherwise controlled by the marketplace facilitator, through which a marketplace
seller may sell or offer for sale tangible personal property, digital products, or sales of
services for delivery into Louisiana.
(7)(a) "Marketplace facilitator" means any person, including an accommodations
intermediary, that facilitates a sale for a marketplace seller through a marketplace, owned,
operated, or otherwise controlled by the person, by any of the following:
(i) Offering for sale through any means, by a marketplace seller, tangible personal
property or sales of services for delivery into Louisiana.
(ii) Collecting payment from the purchaser and transmitting all or part of the
payment to the marketplace seller, regardless of whether the person receives compensation
or other consideration in exchange for facilitating the sale or providing any other service
directly or indirectly through any agreement or arrangement with one or more third parties.
(b) "Marketplace facilitator" shall not include any of the following:
(i) A payment processor that only handles the processing of payments between the
marketplace facilitator and the purchaser.
(ii) A platform or forum that provides advertising services, including listing products
for sale, so long as the advertising service platform or forum does not also engage directly
or indirectly through one or more affiliated persons in the activities described in Item (a)(ii)
of this Paragraph.
(iii) A derivatives clearing organization, a designated contract market, foreign board
of trade or swap execution facility, registered with the Commodity Futures Trading
Commission (CFTC registered platforms), and any clearing members, futures commission
merchants, or brokers when using the services of CFTC registered platforms.
(iv) Repealed by Acts 2025, No. 433, §2, eff. July 1, 2025.
(v) Shared hotel brand.
(8) "Marketplace seller" means a person who sells or offers for sale tangible personal
property, digital products, or sales of services for delivery into Louisiana through a
marketplace that is owned, operated, or controlled by a marketplace facilitator.
(9) "Remote sale" means a sale made by a remote seller or a sale facilitated by a
marketplace facilitator.
(10) "Remote seller" means a seller who sells for sale at retail, use, consumption,
distribution, or for storage to be used for consumption or distribution any taxable tangible
personal property, digital products, or services for delivery within Louisiana, but does not
have a physical presence in Louisiana.
(11) "Secretary" means the secretary of the Department of Revenue.
(12) "Shared hotel brand" means an identifying trademark that an owner, operator,
or manager is expressly licensed to operate a hotel under, in accordance with the terms of a
hotel franchise or management agreement.
B. Duties of marketplace facilitators. A marketplace facilitator shall be considered
the dealer for each remote sale for delivery into Louisiana and transacted on a marketplace
on behalf of a marketplace seller. A marketplace facilitator shall be responsible for all
obligations imposed on dealers under this Subtitle and shall keep records and information
required by the commission to ensure proper collection and remittance of sales and use tax,
including but not limited to exemption certificates and information from the marketplace
seller that may be used to determine the taxability of remote sales.
C. Calculation of remote sales and criteria.
(1) A marketplace facilitator shall collect and remit state and local sales and use tax
on all taxable remote sales for delivery into Louisiana that the marketplace facilitator
transacts on its own behalf or facilitates on behalf of a marketplace seller regardless of
whether the marketplace seller is a dealer, has registered as a dealer in Louisiana, or
otherwise would have been required to collect state and local sales and use tax if the remote
sale had not been facilitated by the marketplace facilitator. For purposes of this Subtitle, a
marketplace facilitator shall have the same rights and duties as a remote seller.
(2) The requirement of Paragraph (1) of this Subsection shall apply only to a
marketplace facilitator that makes or facilitates remote sales for delivery in Louisiana if,
during the previous or current calendar year, the marketplace facilitator's gross revenue for
retail sales delivered into Louisiana exceeded one hundred thousand dollars. Once the
marketplace facilitator's sales exceed one hundred thousand dollars during a calendar year,
the marketplace facilitator shall be deemed a dealer for all sales occurring thereafter.
(3) In determining whether the condition established in Paragraph (2) of this
Subsection has been met, only remote sales that are retail sales, as defined in R.S. 47:301,
shall be considered. However, a marketplace facilitator may voluntarily register for and
collect state and local sales and use tax as a dealer regardless of whether the marketplace
facilitator meets the condition established in Paragraph (2) of this Subsection.
D. Timing of application and collection.
No later than thirty calendar days after meeting the condition established in Paragraph
(C)(2) of this Section, a marketplace facilitator shall submit an application for approval to
collect state and local sales and use tax on remote sales for delivery into Louisiana to the
commission on a form prescribed by the commission. The commission shall approve or deny
the application and shall notify the marketplace facilitator of the approval or denial no later
than thirty business days after receiving the complete application. A marketplace facilitator
shall commence collection of state and local sales and use tax, once notified of the
commission's approval of the application, no later than sixty days after meeting the condition
established in Paragraph (C)(2) of this Section.
E. Administration of requirements to collect and remit state and local sales and use
tax.
(1) For remote sales transacted on a marketplace, the marketplace facilitator shall be
responsible for the determination of taxability of remote sales for delivery into Louisiana.
Except as provided in Paragraph (2) of this Subsection, the marketplace facilitator shall
collect and remit to the commission state and local sales and use tax based on the applicable
state and local rates and bases.
(2)(a) If a marketplace facilitator fails to collect tax as required by this Subsection
due to incorrect or insufficient information provided by the marketplace seller, the
marketplace facilitator shall be relieved of liability for failure to collect or remit the tax
provided that the relief under this Paragraph shall not exceed five percent of the total sales
tax due from sales made or facilitated in this state by the marketplace facilitator. If the
marketplace facilitator is relieved of liability under this Paragraph, the marketplace seller
shall be liable for any amount of uncollected or unremitted tax due.
(b) No relief authorized by this Paragraph shall be permitted for remote sales made
by a marketplace seller who is affiliated with the marketplace facilitator. For purposes of this
Section, persons or entities shall be considered affiliated if one entity owns more than five
percent of the other entity or both entities are subject to the control of a common entity that
owns more than five percent of each of the entities.
(3) The state and local sales and use tax required to be collected by the marketplace
facilitator shall be due and payable monthly. For the purpose of ascertaining the amount of
tax payable, all marketplace facilitators shall transmit to the commission returns on forms
prescribed and prepared by the commission showing the gross sales arising from all
transactions during the preceding calendar month, on or before the twentieth day of the
month following the month in which this tax is required to be collected. These returns shall
show any further information the commission may require to correctly compute and collect
the tax levied. At the time of making the return required pursuant to this Paragraph, every
marketplace facilitator shall compute and remit to the commission the required tax due for
the preceding calendar month, and failure to remit the tax shall cause the tax to become
delinquent. In the event the tax becomes delinquent, interest and penalties imposed by this
Subtitle shall be an obligation to be assessed, collected, and enforced against the marketplace
facilitator in the same manner as if it were a tax due.
(4) As prescribed by regulations of the commission, a marketplace facilitator may
either:
(a) Report the sales and use tax collected, as required by Paragraph (C)(1) of this
Section, on all taxable remote sales for delivery into Louisiana that the marketplace
facilitator facilitates on behalf of a marketplace seller separately from all sales and use tax
collected, as required by Paragraph (C)(1) of this Section, on taxable remote sales for
delivery into Louisiana that the marketplace facilitator transacts on its own behalf or on
behalf of an affiliate, as described in Subparagraph (2)(b) of this Subsection, of the
marketplace facilitator using a separate marketplace facilitator form prescribed and prepared
by the commission.
(b) Report all of the sales and use tax collected, as required by Paragraph (C)(1) of
this Section, on a combined basis and on a form prescribed and prepared by the commission.
(5) The marketplace facilitator shall be the sole person subject to audit for remote
sales made by marketplace sellers but facilitated by the marketplace facilitator. Marketplace
sellers shall not be subject to audit for remote sales facilitated by the marketplace facilitator
except to the extent the marketplace facilitator seeks relief under Paragraph (2) of this
Subsection.
(6) Notwithstanding any law to the contrary, a class action shall not be brought or
maintained against a marketplace facilitator in the Louisiana Board of Tax Appeals or in any
state or federal court by or on behalf of purchasers arising from or related to an overpayment
of sales or use tax collected by the marketplace facilitator under this Section, regardless of
whether the action is characterized as a tax refund claim, provided the marketplace facilitator
did not intentionally collect state and local sales and use tax on remote sales without regard
to applicable state and local rates and bases.
F. Notwithstanding any other provision of law to the contrary, nothing in this Section
shall prohibit the marketplace facilitator and the marketplace seller from contractually
agreeing to have the marketplace seller and its affiliates collect and remit all applicable taxes
and fees if the marketplace seller meets all of the following requirements:
(1) The marketplace seller has annual United States gross sales over one billion
dollars, including the gross sales of any affiliates, and in the case of franchised entities,
including the combined sales of all franchisees of a single franchisor.
(2) The marketplace seller, or its affiliates, is a service supplier as defined by R.S.
33:9109 or is a seller as defined by R.S. 33:9109.1.
(3) The marketplace seller provides evidence to the marketplace facilitator that it is
registered as a dealer defined by R.S. 47:301(4) with the state and local collectors as defined
by R.S. 47:301(2).
(4) The marketplace seller notifies the commission in a manner prescribed by the
commission that the marketplace seller and its affiliates will collect and remit all applicable
taxes and fees on its sales through the marketplace and is liable for failure to collect or remit
applicable taxes and fees on its sales.
G. Beginning January 1, 2026, an accommodations intermediary remitting sales and
use taxes to the commission as a marketplace facilitator shall also remit hotel and motel
occupancy taxes due upon the furnishing of sleeping rooms, cottages, or cabins by hotels to
the commission subject to the same rules, administration, and rights in this Chapter.

Legislative History

Acts 2020, No. 216, §1, eff. July 1 2020; Acts 2023, No. 15, §1; Acts 2024, 3rd Ex. Sess., No. 10, §1, eff. Dec. 4, 2024; Acts 2025, No. 82, §1, eff. July 1, 2025; Acts 2025, No. 433, §§1, 2, eff. July 1, 2025.