NEW ORLEANS (WGNO) – Get ready to pay more for your online purchases from Amazon starting Jan. 1.
The online retail giant will begin charging both state and local sales taxes on all of its purchases that are shipped to Louisiana addresses.
How much you pay in sales tax will depend on the address where it is being shipped.
The state sales tax rate is 5 percent as of April 2016. Lawmakers approved a 1 percent sales tax hike this year to cope with a crippling state budget deficit. The 1 percent increase will last through 2018. Local sales tax rates vary.
If you’re in Orleans Parish, you’ll pay 10 percent in sales tax, or 9.75 percent if you’re buying certain foods or prescription drugs.
In Jefferson Parish, the sales tax rate is 9.5 percent. If you’re buying food or prescription drugs, the sales tax on those items is 8.5 percent.
As Louisiana Department of Revenue spokesman Byron Henderson points out, Amazon customers in Louisiana have technically been required to pay sales tax for their online purchases all along, but the Legislature this year changed the reporting requirements and shifted the burden from Louisiana taxpayers to Amazon.
Before the new law took effect, taxpayers were supposed to “self-report” their purchases and pay the sales taxes.
“Instead of the consumer having to keep track of online purchases and report them, Amazon will do it,” Henderson said.
Currently, Amazon collects state sales taxes in 29 states and Washington, D.C.
Amazon is among the largest online retailers in the world. The company was founded in 1994 and is based in Seattle.