Online shopping doesn't mean 'tax free'

On a day when there are many sales for online holiday shoppers, the Louisiana Department of Revenue reminds shoppers that they’re required to pay taxes on their purchases regardless of whether online vendors charge sales tax.
Louisiana’s consumer use tax applies to purchases from out-of-state vendors who do not charge sales tax, according to a news release on the department of revenue’s website.
This occurs frequently when shopping online or with catalogues or TV shopping networks, the release said.
When out-of-state vendors do not charge sales tax, Louisiana state law requires the shopper to report and pay the consumer use tax. The tax is calculated at a rate of 8 percent, payable directly to the Louisiana Department of Revenue, the release said.
St. Mary Parish Sales and Use Tax Director Jeff LaGrange said businesses that have a physical presence in Louisiana are required to pay sales taxes on items purchased online.
Still, even some businesses that aren’t required to pay state sales taxes on online purchases choose to pay them anyway, LaGrange said.
The consumer use tax helps to protect Louisiana businesses from unfair competition with online retailers and other out-of-state vendors who don’t charge sales tax, and helps provide the money for vital state services, such as education, health care and public safety, the release said.
Shoppers can report the consumer use tax on their state individual income tax returns, or they can use the consumer use tax return, available at www.revenue.louisiana.gov/taxforms.