Proposal introduced to collect sales taxes on retail inventory purchases in Louisiana

A man working at a grocery store holding a tablet computer and doing the inventory. (iStock photo)

A state House Republican leader has introduced a proposal to make retailers pay sales taxes when they buy their inventory, rather than at the point of sale, in an effort to target “nefarious dealers” who hide sales to avoid paying taxes.

Alexandria state Rep. Lance Harris, chair of the House GOP delegation, presented House Bill 63 Tuesday to the House Ways and Means Committee for an informational session. The committee has not yet voted on any legislation.

His proposal would essentially recreate the way Louisiana collected sales taxes before 2009, when the Legislature transitioned to the current system, under which businesses remit and pay sales taxes after they sell products. Prior to the change, retailers were required to pay sales taxes nearly a month earlier, after they purchased inventory from wholesalers.

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