re: New Louisiana law aims to get taxes owed by online shoppers

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Sounds really simple but it isn't going to work like that. I buy a one time item and return it to a store I don't shop at. You think the State is going to take my American Express invoice word for it? No they will want a receipt which is something most people in Louisiana will lose or forget about.

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I have no idea what you're saying here.

American Express does not give you an invoice. And why would you return an item you bought to a store you "don't shop at"?

And it is just a simple as I described it. I know because I've done it that way on my state income taxes for many years.

Good to see the state is focused on the real issues

Gaucho your posting has taken a dive since LucasP committed sepuku. We need you to step your game up

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The retailer sends you a notification (NOT a "collection bill") of how much you spent using them and how much in sales taxes were not collected by them.

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Is there any guidance or parameters on the retailers' reporting requirements to customers (similar to 1099 requirements, i.e issue a 1099 to any vendor you paid $600+ to during the year)?

While 1099s are a federal rule, I cannot imagine the state having either the authority or ability to track/demand out of state businesses notify their customers, especially if they're out of Louisiana and not large commercial enterprises.

Louisiana isn't going to be able to track a $12 purchase someone makes on eBay, and isn't really concerned with this small stuff anyway. I imagine they're looking for commercial transactions over $10,000+ to even be worthwhile for enforcement.

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Are they going to ask the internet to provide every website that shipped an item to Louisiana?

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Huh?

The link in the OP explains the process:

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Under the new law, retailers also must send annual reports to the revenue department, which can cross-check the information with tax returns.

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What is state sales tax, 4.5%?

I love when y'all forget that gaucho literally lies in every post. Y'all let him get you guys all worked up for nothing.

I believe they call it a "Use Tax" because the item is delivered to and presumably used in this state.

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How does the state of Louisiana have a right to that money if there is nothing about the sale that occurs in LA?

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The law has required the online retailer to have a physical presence within the state in order for the retailer to collect the sales tax at the time of the sale.

With Amazon's purchase of Whole Foods last year, it means any state with a Whole Foods store now has Amazon located in the state.

However, if you buy something from a third-party vendor on the Amazon website and that outside vendor does not have a physical presence in Louisiana, Amazon is not required to collect sales tax at the time of purchase. That's when it's up to you to track your un-taxed purchase and report it when you file you Louisiana income tax return.

When you say "nothing about the sale that occurs in Louisiana," the buyer is located in Louisiana and the goods are being shipped to Louisiana.

But the shipping process involves state taxes, doesn't it? My receiving the product in LA entitles the state to taxes how?