Walmart is not obligated to pay E-Commerce Sales Tax: Louisiana High Court

Walmart - Ecommerce - Sales - Tax - Taxscan

The High Court of Louisiana ruled that Walmart does not have to pay Ecommerce Sales Tax to a local parish. Further, it was also contended that Walmart has not paid Ecommerce Sales Tax over the years and Walmart was only one state out of 64 which did not pay Ecommerce Sales Tax.

Washington D.C. plus 38 states are currently governing the facilitator laws which require the marketplace to remit and collect the e-commerce sales tax on behalf of the third party.

The Supreme Court of Louisiana ruled that Walmart.com does not have to pay e-commerce sales tax to a local parish, however this decision of the Supreme Court did not have a grave impact on the market facilitators, this is because of the Wayfair decision given by U.S. Supreme Court.

As per the ruling of the High Court of Louisiana, the lower courts were incorrect in finding that Walmart.com met the essentials of ‘dealer’ under the Louisiana law.

On the comparison made between the online marketplace and the auctioneer by the Louisiana Supreme Court and stated that as per the Louisiana Law auctioneer are not the parties to the sales but merely facilitators of sale.

Like the laws of Louisiana which consider the auctioneer as the facilitators of sale and not the seller many other states also took the auctioneer as the facilitators of the sale and not the actual seller, and for the purpose of collection of the taxes the states enacted and enforced a law which imposes a collection obligation on the auctioneer.

Therefore, it was added that the marketplace has long made that they are not obligated to collect and remit the sales tax in accordance with the general laws of Louisiana.

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