Louisiana Sales Tax on Services, Installation, etc Louisiana: Sales Tax Handbook

Louisiana:

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.

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.

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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.

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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.

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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.

Category Exemption Status
Amazon Purchases
Products on Amazon.com EXEMPT
Clothing
General Clothing TAXABLE
Food and Meals
Catering TAXABLE *
Grocery Food EXEMPT *
Leases and Rentals
Motor Vehicles EXEMPT *
Tangible Media Property TAXABLE
Manufacturing and Machinery
Machinery EXEMPT *
Raw Materials EXEMPT
Utilities & Fuel EXEMPT *
Medical Goods and Services
Medical Devices EXEMPT *
Medical Services EXEMPT
Medicines TAXABLE
Newspapers and Magazines
Newspapers EXEMPT
Periodicals TAXABLE
Occasional Sales
General Occasional Sales EXEMPT *
Motor Vehicles TAXABLE
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 *
Services
Janitorial Services TAXABLE *
Transportation Services EXEMPT
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 *
Trade-Ins
General Trade-Ins EXEMPT
Vending Machine Sales
Food EXEMPT *
Merchandise EXEMPT *

* See notes in category taxability page for details



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Source: http://www.salestaxhandbook.com/louisiana/sales-tax-taxability