Louisiana Sales Tax Changes for DTC

Wine Institute has just learned that wineries that sell and ship wine directly to consumers in Louisiana may be subject to additional local sales and use tax obligations under Louisiana’s remote seller economic nexus rules. Out-of-state direct wine shipper permittees must register with the Louisiana Sales and Use Tax Commission for Remote Sellers and collect and remit state and local sales taxes through the Commission if they meet the definition of remote seller and have over $100,000 gross revenue from sales delivered into Louisiana or 200 or more separate transactions for delivery into Louisiana during the preceding calendar year. The Department of Revenue has provided specific guidance to help out-of-state direct wine shippers determine if they must register with the Commission as a remote seller:

Revenue Information Bulletin 20-018 Certain Wine Direct Shippers Required to Register with the Louisiana Sales and Use Tax Commission for Remote Sellers

All wine direct shippers, including remote sellers, are still required to collect and remit the 4.45% Louisiana state sales and excise taxes regardless of physical presence or economic nexus. Additionally, wine direct shippers must obtain authorization from the Department of Revenue to ship DTC sales into Louisiana and a permit from the Louisiana Office of Alcohol and Tobacco Control and submit excise tax payments and monthly reports to the Department. More information on Louisiana’s direct shipping rules and links to guidance documents are available on the Louisiana DTC page of Wine Institute’s website.