Amazon Does Away With Tax-Free Shopping in Louisiana
The party's over Louisiana.
Starting on Jan. 1, 2017, Amazon will begin charging sales tax on all purchases shipped to destinations in Louisiana, bringing an end to the state's glory-filled days of tax-free shopping with the retail giant.
Louisiana Department of Revenue Secretary Kimberly Robinson confirmed to NOLA.com that Amazon will begin collecting both state and local sales taxes for Louisiana based on the address of the recipient. Up until now, consumers were responsible for keeping track of their Amazon purchases throughout the year and self-reporting them on their taxes. Unfortunately, that didn't always happen.
For New Orleans residents, Amazon purchases will now include the state's 5% sales tax as well as up to 5% in city sales taxes, which means in the end they'll be paying 10% more.
So why the change? Earlier this year Louisiana lawmakers passed a bill that gave Amazon and other online retailers a choice between collecting sales tax or dealing with the paperwork of reminding customers how much they owe in taxes every single year. Not surprisingly, they chose the first option.
Louisiana is only the latest state to change its laws. Amazon currently charges sales taxes in 30 states including Florida, Georgia, Kentucky, North Carolina, Tennessee, Texas, Virginia, West and Virginia.