Does Louisiana Charge Sales Tax on Services?
byJune 29, 2022
The majority of U.S. states require merchants to charge sales tax on tangible personal property (TPP), otherwise known as physical goods. Many states also implement sales and use tax on digital goods and SaaS. Because the economy has shifted over time from a manufacturing economy to a service economy, states are now looking to generate revenue by taxing services.
Here’s what merchants need to know about taxing services in the state of Louisiana.
Are services taxable in Louisiana?
Services in Louisiana are generally not taxable, with important exceptions:
- furnishing of sleeping rooms by hotels
- 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
- furnishing of storage or parking privileges by auto hotels and parking lots
- furnishing of printing and overprinting
- furnishing of laundry, cleaning, pressing, and dyeing services
- furnishing of cold storage space and the preparation of property for such storage
- furnishing of repairs to tangible personal property
- furnishing of telecommunications services
Please keep in mind that this is a guideline, and you should consult with a sales tax professional to determine if the services your business provides should be subject to state sales tax. For an in-depth look at Louisiana sales tax, the Louisiana Department of Revenue has more details.
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