Louisiana's Supreme Court recently ruled that online marketplaces are not responsible for collecting and remitting sales tax on sales made by third party retailers (i.e., marketplace sellers). Louisiana requires dealers to collect sales tax on retail sales made in the state. Dealers are responsible for remitting this tax to Louisiana's Department of Revenue ("the Department").
The court determined that marketplace facilitators are not "dealers" under Louisiana law. In a retail sale there is only one dealer, and it is the party that is transferring title and physical possession of its own property to the buyer. As a result, facilitators are not responsible for collecting tax on behalf of marketplace sellers.