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Louisiana Adjusts Sales Tax Economic Nexus Requirements

Tax Development Jun 15, 2023

Louisiana Adjusts Sales Tax Economic Nexus Requirements

On May 30, 2023, Louisiana Governor John Bel Edwards signed House Bill 171,1 which removes the 200-transaction count as a requirement for establishing economic nexus for sales tax. Additionally, the bill changes the dollar threshold from $100,000 in gross sales, to $100,000 in retail sales. This means that sales that are resale or wholesale in nature will no longer count towards the dollar threshold for remote sellers and marketplace facilitators. The new economic nexus rules go into effect on August 1, 2023.

Removal of the transaction threshold has been a trend in states that initially implemented economic nexus thresholds with a dollar threshold and a total transaction threshold. Other states to previously remove the transaction total threshold include Colorado, Maine, North Dakota, Washington, and Wisconsin. The state that started it all, South Dakota, will remove its 200-transaction threshold effective July 1, 2023.



Brian Stromen

Chris Potter

Justin Griffin

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