As Louisiana’s 2023 regular legislative session came to a close on June 8, 2023, the legislature passed House Bill 171, which amends economic nexus thresholds for remote dealers and marketplace facilitators, effective August 1, 2023.
House Bill 171 amends both the definition of dealer and marketplace facilitator to remove the 200 or more transaction threshold requirement. This change follows the recent trend of states dropping the transaction threshold requirement and limiting the number of remote retailers and marketplace facilitators required to register with the state.
The bill also revises the economic nexus threshold for marketplace facilitators from $100,000 in gross sales to $100,000 in retail sales, removing wholesale and resale sales from the threshold calculation, i.e., taxable sales. Retailers will continue using $100,000 in gross sales when calculating economic nexus thresholds.
Under present law, marketplace facilitators that exceed Louisiana’s economic nexus thresholds are required to submit an application for approval to the Louisiana Sales and Use Tax Commission for Remote Sellers within 30 days after meeting the requirements and start collecting sales and use taxes within 60 days of exceeding the thresholds.
The new law now requires the Commission for Remote Sellers to approve or deny the marketplace facilitator’s application and notify the marketplace facilitator of the commission’s decision within 30 days after receiving the completed application.
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