Louisiana: Sales Tax Handbook
What purchases are taxable in Louisiana?
The taxability of various transactions (like services and shipping) can vary from state to state, as do policies on subjects such as whether excise taxes or installation fees included in the purchase price are also subject sales tax. This reference is here to help answer your questions about what is and is not subject to the Louisiana sales tax.
Contents1.) Taxability of Goods and Services
- General Louisiana taxability guidelines
- Are services subject to sales tax?
- Is shipping & handling subject to sales tax?
- Are drop shipped items taxable?
Section 1: Taxability of Goods and Services
What transactions are generally subject to sales tax in Louisiana?
In the state of Louisiana, legally sales tax is required to be collected from tangible, physical products being sold to a consumer.
Are services subject to sales tax in Louisiana?
The state of Louisiana does not usually collect sales taxes on the majority of services performed. However, certain services do have sales tax apply. This is defined in the Revised Statute 47:3014, the services are :"the furnishing of sleeping rooms by hotels; the sale of admissions to places of amusement and to athletic and recreational events, and the furnishing of privileges of access to amusement, entertainment, athletic, or recreational facilities; the furnishing of storage or parking privileges by auto hotels and parking lots; the furnishing of printing and over printing; the furnishing of laundry, cleaning, pressing, and dyeing services; the furnishing of cold storage space and the preparation of property for such storage; the furnishing of repairs to tangible personal property; and the furnishing of telecommunications services."
You can find a table describing the taxability of common types of services later on this page.Top
Are shipping & handling subject to sales tax in Louisiana?
In the state of Louisiana, the laws regarding tax on shipping and handling are slightly complicated. If the shipping cost of the item being shipped is stated separately on the invoice, no shipping charge is necessary.
It must be noted that if the item is ordered from another business and it must be shipped first to you, and then to the customer, any shipping or handling charges paid by you would be passed on to the customer.
Are drop shipments subject to sales tax in Louisiana?
"Drop shipping" refers to the common business practice in which a vendor, often in a different state, makes a sale of a product which is shipped to the end-user by a third party supplier hired by the initial vendor. In Louisiana, drop shipments are generally subject to state sales taxes.
Section 2: Taxability of Various Items in Louisiana
This table shows the taxability of various goods and services in Louisiana. If you are interested in the sales tax on vehicle sales, see the car sales tax page instead. Scroll to view the full table, and click any category for more details.
|Products on Amazon.com||EXEMPT|
|Food and Meals|
|Grocery Food||EXEMPT *|
|Leases and Rentals|
|Motor Vehicles||EXEMPT *|
|Tangible Media Property||TAXABLE|
|Manufacturing and Machinery|
|Utilities & Fuel||EXEMPT *|
|Medical Goods and Services|
|Medical Devices||EXEMPT *|
|Newspapers and Magazines|
|General Occasional Sales||EXEMPT *|
|Optional Maintenance Contracts|
|General Optional Maintenance Contracts||TAXABLE|
|Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts||EXEMPT|
|Pollution Control Equipment|
|General Pollution Control Equipment||TAXABLE *|
|Janitorial Services||TAXABLE *|
|Software and Digital Products|
|Canned Software - Delivered on Tangible Media||TAXABLE|
|Canned Software - Downloaded||TAXABLE|
|Custom Software - Delivered on Tangible Media||EXEMPT|
|Custom Software - Downloaded||EXEMPT|
|Customization of Canned Software||EXEMPT *|
|Digital Products||TAXABLE *|
|Vending Machine Sales|
* See notes in category taxability page for details
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