Louisiana Expands Sales Tax to Digital Goods

Effective January 1, 2025, Louisiana sales and use tax now applies to digital products. The definition of “digital products” includes:

• Digital audiovisual works
• Digital audio works
• Digital books
• Digital codes
• Digital applications and games
• Digital periodicals and discussion forums
• “any other otherwise taxable tangible personal property transferred electronically, whether digitally delivered, streamed, or accessed and whether purchased singly, by subscription, or in any other manner, including maintenance, updates, and support”

There is a B2B sales exemption from the new product taxability. Sales of Digital Products to businesses are exempt if the following conditions are met:

• The service or product is purchased or licensed exclusively for commercial purposes
• The service or product is used by the business directly in the production of goods or services for sale to its customers
• The goods or services produced and sold by the business are subject to sales and use tax or to the insurance premium tax

The link to the full text of the bill is here https://www.legis.la.gov/legis/ViewDocument.aspx?d=1391655.

Please note that this is only an overview. For specific guidance, connect with our sales and use tax team here.