For states and municipal governments around the US, sales tax is a significant source of income. Sales tax is levied in Louisiana on the purchase of tangible personal property, some services, and the leasing or renting of such property. The location and type of good or service being sold might affect the sales tax rate. We will cover the sales tax rates in Lafayette, LA and other Louisiana cities in this article, along with other pertinent issues.
The current Lafayette sales tax rate is 8.45%. This applies to the 4.45% state sales tax, the 4% Lafayette Parish sales tax, and the 0% Lafayette City sales tax. This means that if you purchase a taxable good in Lafayette for $100, you will be required to pay $8.45 in sales tax.
The current sales tax rate in Baton Rouge is 9.45%. The 4.45% state sales tax, the 5% East Baton Rouge Parish sales tax, and the 0% Baton Rouge city sales tax are all included in this. Accordingly, you will have to pay $9.45 in sales tax in Baton Rouge if you purchase a taxable good costing $100.
Over the years, there have been various changes to the Louisiana sales tax rate. Since April 1, 2016, a state sales tax of 4.45% has been in force. The state sales tax rate before that was 4%. The municipal laws and ballot initiatives may alter the sales tax rate in Lafayette and other cities. Do I Have Nexus in Louisiana as a result?
You might have nexus in Louisiana if your company has operations there. Nexus describes a relationship between a company and a state that could make it necessary for the company to collect and remit sales tax. If your company has a physical location in Louisiana, such as a shop, warehouse, or office, nexus can be formed. If you have nexus in Louisiana and sell taxable goods or services online, you are required to collect and remit sales tax on those sales. How Can I Start Selling Remotely in Louisiana?
You can still be obligated to collect and submit sales tax in Louisiana if you are a remote seller, which means you offer goods or services online without having a physical presence in the state. A law requiring the collection and remittance of sales tax was adopted in Louisiana in June 2018 and applies to remote sellers with more than $100,000 in sales or 200 or more transactions within the state. You must apply for a sales tax permit with the Louisiana Department of Revenue in order to sell remotely in Louisiana.
In conclusion, the location and kind of good or service being sold might affect the sales tax rates. Currently, the sales tax rate in Lafayette, Louisiana, is 8.45%, whereas it is 9.45% in Baton Rouge, Louisiana. The state sales tax rate in Louisiana has evolved over the years, and it is currently 4.45% as of April 1, 2016. Businesses are obligated to collect and submit sales tax if they have nexus in Louisiana and either have a physical presence there or satisfy specific sales requirements. Remote vendors must also collect and remit sales tax if their sales in Louisiana total more than $100,000 or 200 or more transactions.