Louisiana not on track to tax online sales

Louisiana is not compliant with a U.S. Supreme Court decision outlining how states can go about requiring online retailers to collect sales taxes on products sold within their borders, according to an analysis by the Washington-based Tax Foundation.

Louisiana has multiple jurisdictions that collect and administer sales taxes, the foundation’s study says. Louisiana established Jan. 1 to enforce online taxation plans, but those plans likely wouldn’t survive a legal challenge, according to the Tax Foundation.

To pass legal muster, the high court suggested that states needed to establish a taxing regime that exempts retailers with limited transactions in the state; adhere to conformity rules set by the Streamlined Sales and Use Tax Agreement; and have a single sales tax administration with the state.

Twenty-three states are fully or nearly compliant with the Wayfair checklist, but the remaining states have several items out of sync with the court decision, according to the study authored by Joseph Bishop-Henchman, the foundation’s executive vice president.

Five states – Alaska, Delaware, Montana, New Hampshire and Oregon – have no sales tax.



Which states are ready to tax online sales?

State / Territory Compliant With Wayfair Checklist? Enforcement Date Established?
Alabama No; legislative changes required Oct. 1, 2018
Arizona No; legislative changes required No
Arkansas Mostly compliant; proceed with caution No
California No; legislative changes required No
Colorado No May 31, 2019
Connecticut No; legislative changes required Dec. 1, 2018
D.C. No; legislative changes required Pending
Florida No; legislative changes required No
Georgia Yes Jan. 1, 2019
Hawaii No; legislative changes required July 1, 2018
Idaho No; legislative changes required No
Illinois No; legislative changes required Oct. 1, 2018
Indiana Yes Oct. 1, 2018
Iowa Yes Jan. 1, 2019
Kansas Mostly compliant; proceed with caution No
Kentucky Yes Oct. 1, 2018
Louisiana No Jan. 1, 2019
Maine No; legislative changes required July 1, 2018
Maryland No; legislative changes required Pending
Massachusetts No; legislative changes required In court
Michigan Mostly compliant; proceed with caution Oct. 1, 2018
Minnesota Yes Oct. 1, 2018
Mississippi No; legislative changes required Sept. 1, 2018
Missouri No; legislative changes required No
Nebraska Mostly compliant; proceed with caution Jan. 1, 2019
Nevada Yes Nov. 1, 2018
New Jersey Yes Nov. 1, 2018
New Mexico No; legislative changes required No
New York No; legislative changes required No
North Carolina Mostly compliant; proceed with caution Nov. 1, 2018
North Dakota Yes Oct. 1, 2018
Ohio Mostly compliant; proceed with caution In court
Oklahoma Mostly compliant; proceed with caution July 1, 2018
Pennsylvania No; legislative changes required In effect before Wayfair ruling
Rhode Island No; legislative changes required In effect before Wayfair ruling
South Carolina No; legislative changes required Pending
South Dakota Yes Nov. 1, 2018
Tennessee No; legislative changes required July 1, 2018
Texas No; legislative changes required No
Utah Yes Jan. 1, 2019
Vermont Yes July 1, 2018
Virginia No; legislative changes required No
Washington Mostly compliant; proceed with caution Oct. 1, 2018
West Virginia Yes Jan. 1, 2019
Wisconsin Mostly compliant; proceed with caution Oct. 1, 2018
Wyoming Yes Pending

Source: Tax Foundation

This article was first published on Watchdog.org.

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