ETA FILES AMICUS BRIEF WITH LOUISIANA SUPREME COURT IN WALMART.COM CASE

ETA filed an amicus brief in the Walmart.com case (DOCKET NO. 2019-C-263) at the Louisiana Supreme Court on Friday, June 21st. The brief largely tracks the amicus ETA previously filed requesting the Supreme Court take up the case.

The case involves a decision by the Louisiana Fifth Circuit Court of Appeals regarding the definition of a “dealer” in a sales transaction.

In this case, for the first time, the Louisiana Fifth Circuit Court of Appeals has redefined the term “dealer” to include an entity that is not a party to the sales transaction, namely Walmart.com, that merely operated the website for merchants to connect with buyers. The Fifth Circuit Court of Appeals has held that a party that simply facilitates the payment process can be considered the dealer, is responsible for assuring that another party is charged the proper sales tax and can be held liable if the transaction between two other parties does not include the proper amount of sales tax.

ETA’s amicus argues that payment processors do not have the information or the infrastructure necessary to collect and remit sales taxes. In fact, payment processors have no role in the sale of goods or services other than to facilitate payment between the parties.

Read ETA’s amicus here.