Louisiana has adopted corporate income tax regulations governing market-based sourcing for the purpose of attributing sales other than sales of tangible personal property. The Department of Revenue regulations provide additional guidance and clarify the sourcing rule.
Guidance Issued for Market-Based Sourcing Enacted in 2016
Under Louisiana law, sales other than sales of tangible personal property are to be sourced to Louisiana for sales factor purposes if the taxpayer’s market for the sale is in Louisiana.
In addition, a sale is excluded from the numerator and the denominator of the sales factor if:
- the taxpayer is not taxable in the state to which the sale is assigned; or
- the state of assignment cannot be reasonably determined or approximated.
LAC 61:I.1135 and 61:I.1136, Louisiana Department of Revenue, December 20, 2018