How Cyber Monday shopping can affect your taxes
After you’ve cashed in on a few Cyber Monday deals, you may want to take a second look at your receipts.
State law does not require retailers to collect sales taxes on online purchases, though most large retailers do automatically. But if you buy online from a private vendor or mom and pop, such as an account from Etsy, you might not be charged appropriately.
When taxes go uncollected, state law mandates Louisianans report the un-taxed purchase on their state income tax forms using the Consumer Use Tax metric in sections 24A, 24B, and 25. Buyers can also use the Consumer Use Tax form to complete the purchase without waiting to file income taxes.
The Louisiana Department of Revenue recommends retaining receipts for these sorts of purchases. Businesses that do not collect sales taxes are required to send a reminder letter to purchasers by the end of January.
“Louisiana has a pretty dysfunctional, broken system," said Robert Travis Scott with the Public Affairs Research Council.
Scott contends the complications with online purchases in Louisiana are a symptom of a larger problem with the state’s tax code.
"In the end, reforms are really going to help the general public and businesses that want to do operations here.”
By July 2020, online retailers will be required to collect sales taxes on online purchases, making this the final Cyber Monday most consumers will have to be wary of their online receipts.
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