Louisiana Small Business Association
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Louisiana Sales Tax Returns Due January 20th

The Louisiana sales and use tax is applied to the following transactions if they occur in the state:

  • Sales of tangible personal property
  • Use of tangible personal property
  • Leasing or rentals of tangible personal property
  • Sales of certain services, including:
    • hotel rooms
    • certain automobile parking services
    • printing
    • laundry and cleaning services
    • repairs to tangible personal property

Businesses that are involved in the above activities must register with the Louisiana Department of Revenue (LDR) for the collection of accounting for, and remittance of the state sales tax.

The sales tax rate is 4%, which is made up of 3.97% Louisiana sales tax and .03% Louisiana Tourism Promotion District sales tax. In addition to the state 4%, some parishes and political subdivisions of the state also levy sales tax. Local sales tax rates are available from the Louisiana Association of Tax Administrators at this link: https://secure.salestaxonline.com/lookup/lookup.aspx.

While the state sales tax and the local sales tax are very similar, there are some differences, especially when it comes to what items are exempt from tax. If your business is responsible for collecting the sales tax, you need to understand what you collect state sales tax on and what you collect local tax on for the parish your business is in.

The LDR will mail your sales tax return to the address you provided them when you registered. Forms are usually mailed on the 25th day of each month. If you do not receive your blank sales tax return by the 5th day of the following month, you should contact the LDR at 225-219-7462 and request that a new form be sent so that you can avoid late-filing charges. Blank sales tax returns can be downloaded through LDR’s website at revenue.louisiana.gov.

Your sales tax return is due along with your sales tax to the LDR on or before the 20th day each month. Please note: Even if you have no taxable sales in a given month, you are still required to file a timely return. If you have received permission from the state to file your sales tax returns quarterly, your return is due on or before the 20th day following the end of the quarter. Businesses whose sales tax liability averages less than $500 per month can apply to file on a quarterly basis after they have filed 6 sales tax returns.

If the due date falls on a weekend or holiday, the return is due the next business day and is considered late the first day thereafter. Late returns and/or payments received after the due date are subject to:

  • disallowance of your vendor ’s compensation (line 10 of the return);
  • interest on the tax due from the due date until the date of payment; and
  • penalties at the rate of 5% of the tax due for each month or portion of a month until the return is filed.

You can receive an extension of the filing deadline for up to 30 days by requesting one in writing with the LDR. However, please be aware that, even if you receive an extension, the state will assess interest at the rate of 1.25% of the tax per month.

If your monthly sales tax payment exceeds $5000, the LDR requires you to pay your sales tax by Electronic Funds Transfer (EFT). You can request a waiver from this requirement by writing the LDR at PO Box 201, Baton Rouge, LA 70821-0201.

There are 3 options to pay your taxes online via EFT:

  1. Louisiana Taxpayer Access Point (LaTAP) System.
    LaTAP allows you to view your company’s account, file returns, and make payments using a single logon. This is the only option that allows you to file your return and pay your tax at the same time, using the same system.
  2. Business Tax Online Payments.
    This option allows you to pay your sales tax online through the LDR’s website. You cannot file your tax return through this website option.
  3. Credit or Debit Card Payments.
    You can make a tax payment using your credit or debit card at LDR’s website. A convenience charge of 2.49% will be added. You cannot file your tax return through this website option.

Please note: If you choose to make your tax payments using Business Tax Online or by using a credit card at the LDR’s website, you still are required to timely file your tax return. If you file a paper tax return, you must indicate on the return that the payment was made by EFT.

If you have questions about the sales tax and how it applies to your business, please call the LSBA offices at (844) 242-LSBA (5722) and ask for Karen or Lance.

Published: 12/11/2011

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