Local sales and use tax issues continue to be a major frustration for businesses as they try to identify and resolve sales and use tax compliance as a result of the Wayfair Supreme Court case that established economic nexus criteria.  Many states with local sales and use tax attempt to be taxpayer friendly and provide a single registration and return process to report and remit taxes for both state and local purposes.  However, some states and their localities continue to require separate registrations and filings for the state and for each separate locality which can be a nightmare for taxpayers.

Louisiana has separate registration and filing requirements for the state and the various localities. The state attempted to consolidate these requirements at the state level, but this legislation was not passed.  Louisiana is again attempting to have legislation passed through a referendum vote in House Bill 681 on November 8, 2022.  The hope is this upcoming vote will have better results.  After the initial legislation failed to pass, the state was sued by an online retailer for having an arbitrary sales tax subsystem that creates challenges for businesses trying to comply with the current requirements.

Pivot Strategic Consulting works with businesses to identify and resolve various state and local filing requirements as a result of economic nexus created by the Wayfair case.  The goal for states and localities should be to make life as simple as possible for businesses to comply with their state tax requirements and have a centralized registration and reporting mechanism.

If you have any questions or concerns, contact Jason Skrinak at jason@pivotsalt.com