Louisiana State Tax Updates

Our Dash of SALT Blog provides the most recent developments and changes in state and local tax regulations. Here are the latest updates for Louisiana.

September 28, 2026

Louisiana Updates Market-Based Sourcing Rules

Authored by: Ryan Schupp and Aaron Balken, Principal

Effective September 20, 2026, the Louisiana Department of Revenue amended LAC 61:I.1135 and 1136, revising the corporate income tax apportionment rules for sales other than tangible personal property. Under the updated market-based sourcing framework, receipts from services and intangibles are assigned to Louisiana if, and to the extent that, the taxpayer’s market for the sale is in Louisiana. Additionally, the updates indicate that a multistate business should use reasonable approximation of location of the sale when the information is not readily available, address receipts from sales of immovable property and leases or licenses of intangible property, and conform the sales-factor calculation to current statutory requirements, including changes implemented by Act 430 of the 2023 Regular Session.

If you have questions about the sourcing update or how your business may be affected, please reach out to a member of the Withum SALT Team.

September 28, 2026

Louisiana Streamlines Final Corporate Income Tax Returns

Authored by: Ryan Schupp and Aaron Balken, Principal

Effective September 20, 2026, the Louisiana Department of Revenue amended LAC 61:I.1148 to eliminate specified documentation requirements associated with filing a final corporation income tax return upon liquidation or dissolution. These changes made by the Department are intended to streamline the process of closing a corporation’s account with the Department and also updates references to corporate return due dates. Corporations should note that the change reduces supporting-document requirements; it does not eliminate the obligation to file an accurate final return and pay any tax due.

If your business is liquidating, dissolving, or otherwise ceasing operations, reach out to a member of the Withum SALT Team to evaluate the final-return and account-closure requirements.

February 16, 2026

Updates on Required Documents for Louisiana Pass-Through Entity 

Authored by: Ryan Schupp and Penny Sweeting, CPA

On February 10, 2026, Louisiana issued Revenue Information Bulletin No. 26-007 regarding the documents required to be submitted by members of an entity that makes a pass-through entity tax election. Previously, shareholders, partners, and members of the entity were required to submit both a Form R-6981 (Statement of Owner’s Share of Entity Level Tax Items) and a pro forma federal income tax return or a nonresidential/part-year resident worksheet. Effective for the 2025 tax year, the pro forma return or worksheet will no longer be required unless requested by the department.  

If you have questions about Pass-Through Entity Taxes, please reach out to a member of the Withum SALT Team. 

November 10, 2025

Louisiana Expands Sales Tax to Digital Goods and Services

Authored by:Breea Boylan, CPA andCourtney Easterday, MSA

The Louisiana Department of Revenue recently released updated guidance titled “Sales and Use Tax on Digital Products and Related Services,” outlining significant changes that became effective pursuant to Act 10 of the 2024 Third Extraordinary session on January 1, 2025. Under the new rules, digital goods that meet the definition of products transferred electronically are now subject to sales and use tax. These include:

Additionally, any otherwise taxable tangible personal property delivered electronically is considered a taxable digital product.

The guidance also reaffirms the taxability of prewritten computer access services and information services, collectively referred to as “digital products and services.” Some of these highlighted products and services may have been taxable under prior law, but the updated guidance provides clarity and expands definitions.

Businesses selling digital content or related services to Louisiana customers should review the updated guidance and evaluate their current offerings to determine if they fall within the expanded tax base.

For more details, visit the official Louisiana Department of Revenue page: Sales and Use Tax on Digital Products and Related Services.

If you have questions about how states are taxing digital goods and services, please reach out to a member of the Withum SALT Team.

March 5, 2025

Louisiana Issues Instructions on Use Tax on Vehicles Registered by New Residents

Authored by: Chao Zhang and Katie Nguyen, CPA

The Louisiana Department of Revenue capped the use tax for new residents registering motor vehicles to $90. Louisiana charges sales and use tax on all vehicles registered in the state and gives a credit for taxes paid in another state if that state offers a similar credit. The credit is calculated using the other state’s tax rate on the cost price subject to Louisiana tax at registration. For vehicles registered on or after January 1, 2025, the $90 cap applies only if the vehicle is mainly for personal use, was registered or leased in another state under the new resident’s name, and is registered in Louisiana within 90 days of arrival. Individuals moving to the Sportsman’s Paradise should make sure to promptly register their motor vehicles to make sure they can cap their use tax at $90.

If you have questions about state sales and use tax, please reach out to a member of the Withum SALT Team.

November 4, 2024

Louisiana Addresses Promotional Items Provided by Casinos

Authored by: Emilia Jarrin and Katie Nguyen, CPA

On September 26, 2024, The Louisiana Department of Revenue issued its Notice to Taxpayers related to promotional items provided by casinos to customers on a discounted and/or complimentary basis, including (but not limited to) rooms, meals, parking/valet, and VIP experiences. Pursuant to the Notice, Casinos are obligated to collect and remit sales tax on the discounted/promotional price actually paid by the customer. If the customer is provided a promotional item free of charge, no sales tax is due from the customer.

The Notice does not address the use tax that may be due by the casino on promotional items given to customers and/or sold at a discounted price. Casinos may be obligated to self-assess use tax in certain circumstances on promotional items that are sold on a discounted basis and/or given away.

If you have questions about sales and use tax, please reach out to a member of the Withum SALT Team.

Disclaimer: Please note this is the information that is readily available at this time, it is subject to change so please consult your Withum tax advisor.