The Louisiana Department of Revenue has issued guidance on the calculation of use tax on vehicles registered by new residents. (Louisiana Revenue Information Bulletin No. 25-011, 02/13/2025.)
Louisiana sales and use tax is levied on all motor vehicles registered in Louisiana subject to a credit for taxes paid on the vehicle in another state, provided that the other state grants a similar credit. The credit is calculated by applying the rate paid in the other state to the cost price subject to Louisiana use tax at the time of registration and is applied against the Louisiana state and local use tax.
For qualifying vehicles registered on or after January 1, 2025, La. Rev. Stat. Ann. §47:302(D)(1) provides that after application of the credits, the use tax owed on a motor vehicle registered by a new resident of Louisiana cannot exceed $90. To qualify, all of the following conditions must be met: (1) the vehicle is used primarily for personal purposes; (2) the vehicle was previously registered in the name of the new resident in any other state or was previously leased to the new resident in another state; and (3) the vehicle is registered within 90 days of being brought into Louisiana.
If the credits granted reduce the use tax to less than $90, the taxpayer owes that lower amount. The cap imposed by La. Rev. Stat. Ann. §47:302(D)(1) only applies if the amount due after credits exceeds $90.
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