Sales Tax Statutes and Regulations - Louisiana1_02).pdfficial rulings on local tax matters, we can...

174
Sales Tax Statutes and Regulations This version contains legislative changes through the 2001 2nd Extraordinary Session of the Louisiana Legislature. R-1001 January 2002 THIS BOOKLET CONTAINS: General Information for Filing Louisiana Sales and Use Tax Returns Chapters 2, 2-A, 2-B, and 2-C of Subtitle II of Title 47, Louisiana Revised Statutes of 1950, as amended, Sections 301-335.9 Louisiana Administrative Code, Title 61, Part I, Chapter 43, Sections 4301-4418 Ordinances of the Louisiana Recovery District Ordinance of the Louisiana Tourism Promotion District Table of Tax Rates for Suspended Exemptions

Transcript of Sales Tax Statutes and Regulations - Louisiana1_02).pdfficial rulings on local tax matters, we can...

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Sales Tax Statutesand Regulations

This version contains legislative changes through the2001 2nd Extraordinary Session of the Louisiana Legislature.

R-1001January 2002

THIS BOOKLET CONTAINS:

General Information forFiling Louisiana Salesand Use Tax Returns

Chapters 2, 2-A, 2-B, and 2-C of Subtitle IIof Title 47,Louisiana Revised Statutes of 1950,as amended, Sections 301-335.9

Louisiana Administrative Code,Title 61, Part I, Chapter 43,Sections 4301-4418

Ordinances of theLouisiana Recovery District

Ordinance of the LouisianaTourism Promotion District

Table of Tax Rates forSuspended Exemptions

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Louisiana Sales Tax Law and Regulations i

Foreword

Foreword

This handbook contains general Louisiana sales and use tax information from the Louisiana Tax Guide, thecurrent text of the Louisiana sales and use tax law and regulations, and a table of tax rates for suspendedexemptions. Inconsistencies in spelling, capitalization, and punctuation are due to the differences of thequoted source materials.

Louisiana Revised Statutes 47:301 through 47:335.9 are current through the 2001 2nd Extraordinary Ses-sion of the Louisiana Legislature. Listed after each statute is the pertinent regulation or rule that has beenpromulgated by this department in accordance with the Administrative Procedures Act of 1981. The codi-fied section numbers used for the regulations are those appearing in Title 61, Part I, of the Louisiana Ad-ministrative Code.

Louisiana’s total sales and use tax rate is 4 percent. This rate is comprised of 2 percent tax levied by Re-vised Statute 47:302, 1 percent tax levied by Revised Statute 47:321, .97 percent tax levied by RevisedStatute 47:331, and .03 percent levied by the Tourism Promotion District. Many Louisiana parishes, mu-nicipalities, school boards, and special districts levy and collect additional sales and use taxes at the locallevel. The regulations in this handbook, however, apply only to state sales taxes. While we cannot issue of-ficial rulings on local tax matters, we can provide, upon request, an unofficial list of local sales and use taxrates, along with the addresses and telephone numbers of local tax authorities.

Since July 1, 1986, most exemptions from the Louisiana general sales tax have been either partially or fullysuspended. Currently, exemptions that are not protected from suspension will be subject to a 4 percent taxuntil June 30, 2002. The table on pages 142–155 of this booklet gives a more detailed explanation of thesuspensions and rates for recent years.

This book should answer most questions about Louisiana state sales tax. If you need additional information,please contact our Taxpayer Services Division at (225) 219-7356.

Cynthia BridgesSecretaryLouisiana Department of Revenue

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Contents

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Louisiana Sales Tax Law and Regulations iii

General Information

Who must file . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Registration for filing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Rate of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Sales tax returns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Date payment and return due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Basis of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1Dealers required to register for sales tax purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Advance payment of sales tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Special numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Vendor’s compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Exclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Local Sales/Use Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Applications and General Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Brochures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Exemption Certificates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Tax Return Forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Sales Tax Law and Regulations Contents

R.S. 47:301. Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13LAC 61:I.4301. Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34LAC 61:I.4302. Pollution Control Devices and Systems Excluded from the Definition of "Sale and Retail" . . . . . 46R.S. 47:302. Imposition of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47LAC 61:I.4303. Imposition of Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52House Concurrent Resolution 63 (1987 Regular Session) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53R.S. 47:302.1. Exemptions from lease or rental tax, helicopters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54LAC 61:I.4402. Exemption from Lease or Rental Tax, Helicopters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55R.S. 47:302.2 ... 302.50. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55R.S. 47:303. Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55LAC 61:I.4307. Collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58R.S. 47:303.1. Direct Payment Numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63R.S. 47:304. Treatment of tax by dealer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64LAC 61:I.4311. Treatment of Tax by Dealer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65House Concurrent Resolution 55 (1986 Regular Session) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66House Concurrent Resolution 163 (1988 Regular Session) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66House Concurrent Resolution 160 (1989 Regular Session) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67House Concurrent Resolution 1 (1989 Second Extraordinary Session) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68R.S. 47:305. Exclusions and exemptions from the tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68LAC 61:I.4401. Various Exemptions from the Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72Senate Concurrent Resolution 104 (1985 Regular Session) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76R.S. 47:305.1. Exclusions and exemptions; ships and ships’ supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76LAC 61:I.4403. Ships and Ships’ Supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77R.S. 47:305.2. Exclusions and exemptions; insulin, prescription and nonprescription . . . . . . . . . . . . . . . . . . . . . . 78R.S. 47:305.3. Exclusions and exemptions; seeds used in planting of crops . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78

Contents

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LAC 61:I.4404. Seeds Used in Planting of Crops . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78R.S. 47:305.4. Exclusions and exemptions; casing, drill pipe and tubing used in offshore drilling . . . . . . . . . . . . 79R.S. 47:305.5. Exclusions and exemptions; materials and supplies used in the construction of the

Toledo Bend Dam Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79LAC 61:I.4405. Materials and Supplies Used in the Construction of the Toledo Bend Dam Project . . . . . . . . . . . . 79R.S. 47:305.6. Exclusions and exemptions; Little Theater tickets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79LAC 61:I.4406. Little Theatre Tickets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79R.S. 47:305.7. Exclusions and exemptions; tickets to musical performances of nonprofit musical organizations . 80LAC 61:I.4407. Tickets to Musical Performances of Nonprofit Musical Organizations . . . . . . . . . . . . . . . . . . . . . . 80R.S. 47:305.8. Exclusions and exemptions; pesticides used for agricultural purposes . . . . . . . . . . . . . . . . . . . . . . 80LAC 61:I.4408. Pesticides Used for Agricultural Purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80R.S. 47:305.9. Exclusions and exemptions; motion picture film rental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81LAC 61:I.4409. Motion Picture Film Rental . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81R.S. 47:305.10. Exclusions and exemptions; property purchased for first use outside the state . . . . . . . . . . . . . . . . 81LAC 61:I.4410. Property Purchased for First Use Outside the State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83R.S. 47:305.11. Exclusions and exemptions; contracts prior to and within ninety days of tax levy . . . . . . . . . . . . . 85LAC 61:I.4411. Contracts Prior to and Within 90 Days of Tax Levy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85R.S. 47:305.12. Exclusions and exemptions; fire fighting equipment purchased by bona fide

organized public volunteer fire departments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85LAC 61:I.4412. Fire Fighting Equipment Purchased by Bona Fide Organized Public Volunteer Fire Departments . . . . 85R.S. 47:305.13. Exclusions and exemptions; admissions to entertainments furnished by

certain domestic nonprofit corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86LAC 61:I.4413. Admissions to Entertainment Furnished by Certain Domestic Nonprofit Corporations . . . . . . . . . 86R.S. 47:305.14. Exclusions and exemptions; nonprofit organizations; nature of exemption; limitations;

qualifications; newspapers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 86LAC 61:I.4418. Nonprofit Organizations; Nature of Exemption; Limitations; Qualifications . . . . . . . . . . . . . . . . . 87R.S. 47:305.15. Exclusions and exemptions; sales or purchases by blind persons . . . . . . . . . . . . . . . . . . . . . . . . . . 88R.S. 47:305.16. Exclusions and exemptions; cable television installation and repair . . . . . . . . . . . . . . . . . . . . . . . . 88LAC 61:I.4414. Cable Television Installation and Repair . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88R.S. 47:305.17. Exclusions and exemptions; income from coin-operated washing and drying machines

in a commercial laundromat . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88R.S. 47:305.18. Exclusions and exemptions; fairs, festivals, and expositions sponsored by nonprofit

organizations; nature of exemption; limitations; qualifications . . . . . . . . . . . . . . . . . . . . . . . . . . 88R.S. 47:305.19. Exclusions and exemptions; leased vessels used in the production of minerals . . . . . . . . . . . . . . . 89R.S. 47:305.20. Exclusions and exemptions; Louisiana commercial fishermen . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89R.S. 47:305.21. Exclusions and exemption; equipment, parts, and airplanes purchased by

commuter airlines; definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90R.S. 47:305.22. Exclusions and exemptions; certain self-propelled vehicles removed from inventory . . . . . . . . . . 90LAC 61:I.4415. Certain Self-propelled Vehicles Removed from Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91R.S. 47:305.23. Exclusions and exemptions; leased automobiles and trucks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91R.S. 47:305.24. Exclusions and exemptions; monetized bullion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91R.S. 47:305.25. Exclusions and exemptions; farm equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91R.S. 47:305.26. Exclusions and exemptions; new vehicles furnished by dealers for driver education purposes . . . 92R.S. 47:305.27. Exclusions and exemptions; capital mass transit equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92R.S. 47:305.28. Exclusions and exemptions; gasohol . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92R.S. 47:305.29. Exclusions and exemptions; state; certain local political subdivisions . . . . . . . . . . . . . . . . . . . . . . 92R.S. 47:305.30. Exclusions and exemptions; Plaquemines Parish . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92R.S. 47:305.31. Exclusions and exemptions; equipment facilitating energy conservation,

conversion to alternate fuels . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92R.S. 47:305.32. Exclusions and exemptions; reconstruction of destroyed manufacturing establishments . . . . . . . . 94R.S. 47:305.33. Exclusions and exemptions; nonprofit retirement centers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

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Louisiana Sales Tax Law and Regulations v

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R.S. 47:305.34. Exclusions and exemptions; waterworks district purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94R.S. 47:305.35. Exclusions and exemptions; public housing authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94R.S. 47:305.36. Exclusions and exemptions; motor vehicles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94R.S. 47:305.37. Exclusions and exemptions; diesel fuel, butane, propane, or other liquefied

petroleum gases used for farm purposes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95R.S. 47:305.38. Exclusions and exemptions; sheltered workshop for mentally retarded. . . . . . . . . . . . . . . . . . . . . . 95R.S. 47:305.39. Exclusions and exemptions; butane, propane, or other liquefied petroleum

gases purchased for private residential consumption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95R.S. 47:305.40. Exclusions and exemptions; purchases of Mardi Gras specialty items . . . . . . . . . . . . . . . . . . . . . . 95LAC 61:I.4416. Purchases of Mardi Gras Specialty Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96R.S. 47:305.41. Exclusions and exemptions; Ducks Unlimited; Bass Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96R.S. 47:305.42. Exclusions and exemptions; tickets to ballet performances of nonprofit ballet organizations . . . . 96R.S. 47:305.43. Exclusions and exemptions; nonprofit organizations dedicated to the conservation

of fish or migratory waterfowl; nature of exemption; limitations; qualifications . . . . . . . . . . . . 97R.S. 47:305.44. Exclusions and exemptions; raw materials used in printing process . . . . . . . . . . . . . . . . . . . . . . . . 97R.S. 47:305.45. Exclusions and exemptions; per diem or car hire on freight cars, piggy-back cars,

and rolling stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97R.S. 47:305.46. Exclusions and exemptions; purchases with United States Department of Agriculture Food

Stamp Coupons and purchases made under the Women, Infants, and Children’s Program . . . . 98LAC 61:I.4417. Exclusions and Exemptions; Purchases made with United States Department of Agriculture

Food Stamp Coupons and purchases made under the Women, Infants, and Children’s Program . . . 98R.S. 47:305.47. Exclusions and exemptions; pharmaceutical samples distributed without charge . . . . . . . . . . . . . . 99R.S. 47:305.48. Exemption; automobiles owned by military personnel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99R.S. 47:305.49. Catalog distribution; exemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99R.S. 47:305.50. Exemption; vehicles used in interstate commerce; rail rolling stock manufactured in

this state for use in interstate commerce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99R.S. 47:305.51. Exemption; utilities used by steelworks and blast furnaces . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100R.S. 47:306. Returns and payment of tax; penalty for absorption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100LAC 61:I.4351. Returns and Payment of Tax, Penalty for Absorption of Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104LAC 61:I.4373. Nonresident Contractors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106R.S. 47:306.1. Collection from interstate and foreign transportation dealers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108LAC 61:I.4353. Collection from Interstate and Foreign Transportation Dealers . . . . . . . . . . . . . . . . . . . . . . . . . . . 108R.S. 47:307. Collector’s authority to determine the tax in certain cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109LAC 61:I.4355. Secretary’s Authority to Determine the Tax in Certain Cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110R.S. 47:308. Termination or transfer of business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110LAC 61:I.4357. Termination or Transfer of a Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110R.S. 47:309. Dealers required to keep records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111LAC 61:I.4359. Dealers Required to Keep Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111R.S. 47:309.1. Dealers required to furnish list of purchasers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112R.S. 47:310. Wholesalers and jobbers required to keep records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112LAC 61:I.4361. Wholesalers and Jobbers Required to Keep Records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 112R.S. 47:311. Collector’s authority to examine records of transportation companies . . . . . . . . . . . . . . . . . . . . . 112LAC 61:I.4363. Secretary’s Authority to Examine Records of Transportation Companies . . . . . . . . . . . . . . . . . . 113R.S. 47:312. Failure to pay tax on imported tangible personal property; grounds for attachment . . . . . . . . . . . 113LAC 61:I.4365. Failure to Pay Tax on Imported Tangible Personal Property; Grounds for Attachment . . . . . . . . 113R.S. 47:313. System of import permits; seizure and forfeiture of vehicles used in importing without permit . . . . . 113R.S. 47:314. Failure to pay tax; rule to cease business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114LAC 61:I.4367. Failure to Pay Tax; Rule to Cease Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115R.S. 47:315. Sales returned to dealer; credit or refund of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 115LAC 61:I.4369. Sales Returned to Dealer; Credit or Refund of Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116R.S. 47:315.1. Sales tax refund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117

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Contents

LAC 61:I.4371. Sales Tax Refund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117R.S. 47:315.2. Sales tax refund; new housing construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118R.S. 47:315.3 Sales tax refund; sales and rentals covered by Medicare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118R.S. 47:315.4. Sales and use tax credit; waiver of homestead exemption . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 118R.S. 47:316. Collector to provide forms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119R.S. 47:317. Cost of collection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119R.S. 47:318. Disposition of collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119R.S. 47:321. Imposition of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 120LAC 61:I.4305. Imposition of Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121R.S. 47:322. Collection of the tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121LAC 61:I.4309. Collection of Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121R.S. 47:322.1 ... 322.44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122R.S. 47:323. Disposition of collections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122R.S. 47:324. Disposition of certain collections in Jefferson Parish . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122R.S. 47:325. Disposition of certain collections in Orleans Parish . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122R.S. 47:331. Imposition of tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122R.S. 47:332. Collection of the tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125R.S. 47:332.1 ... 332.50. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125R.S. 47:333. Use tax on limestone aggregate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125R.S. 47:335.1. Short Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125R.S. 47:335.2. Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125R.S. 47:335.3. Policy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126R.S. 47:335.4. Multistate discussions; Streamlined Sales and Use Tax Agreement . . . . . . . . . . . . . . . . . . . . . . . 126R.S. 47:335.5. Louisiana law unmodified . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126R.S. 47:335.6. Agreement pre-requisites . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 126R.S. 47:335.7. Cooperating sovereigns . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127R.S. 47:335.8. Agreement beneficiaries; standing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127R.S. 47:335.9. Certified Service Provider . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127

Sales Tax Ordinances

Louisiana Tourism Promotion District Sales and Use Tax Ordinance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130Louisiana Recovery District Sales Tax Ordinance Passed Effective July 1, 1988. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132Louisiana Recovery District Ordinance Passed Effective July 1, 1993 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135Louisiana Recovery District Ordinance Passed Effective July 1, 1994 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136Louisiana Recovery District Ordinance Passed Effective July 1, 1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137Louisiana Recovery District Defeasance Resolution (Effective September 30, 1996) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138

Table of Tax Rates for Suspended Exemptions

R.S. 4:168–51:1787. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 157

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General Information

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1Louisiana Sales Tax Law and Regulations

Who must fileThe state general sales tax is payable by users,consumers, lessees, and persons receiving servicestaxable under the law. If a seller or lessor qualifiesas a dealer under the definition of the term at R.S.47:301(4), that party must apply for a sales taxcertificate, collect the proper taxes from customers,and file returns with the Department of Revenue. Aseller or lessor will qualify as a dealer subject to taxcollection requirements if that person leases, rents,or sells tangible personal property in the state,furnishes services in the state that are taxableunder the statute, holds property in the state forresale, maintains a business location in the state,operates in the state through full-time or part-timeresident or nonresident salesmen or agents, main-tains an inventory in the state of tangible personalproperty for lease or rental, or delivers in a vehicleowned or operated by the seller.

Registration for filingThe CR-1 registration form should be requested,completed, and submitted at least one month priorto opening for business to ensure the timely receiptof the sales tax certificate and tax return forms forfiling.

Rate of taxThe aggregate four percent (4%) state sales tax rateconsists of three point ninety seven percent (3.97%)Louisiana state sales tax, and point zero threepercent (.03%) Louisiana Tourism Promotion Dis-trict sales tax. Prior to October 1, 1996, the aggre-gate four percent (4%) state sales tax rate consistedof two point ninety seven percent (2.97%) Louisianastate sales tax, point zero three percent (.03%)Louisiana Tourism Promotion District sales tax,and one percent (1%) Louisiana Recovery Districtsales tax. From July 1, 1986 through June 30,2002, certain traditionally exempt transactions aresubject to state sales tax ranging from one to fourpercent (1% - 4%).

Sales tax returnsAll new accounts are required to file state sales taxreturns on a monthly basis. Dealers whose sales taxliabilities average less than $250 per month afterfiling six returns may apply to file returns on a

quarterly basis. Monthly and quarterly filers mustfile timely returns, even if no tax liabilities are due.

Taxpayers whose only sales or use tax liabilitiesconsist of taxes due on their purchases, will beissued use tax certificates. These taxpayers will berequired to file returns only for those periods inwhich taxes are due.

All information pertinent to the business requiredby the sales tax reporting form must be included onthe return. This will include not only information asto how the tax liability was calculated, but also thereturn period, the signature of the preparer, thesignature of the business owner, and the datesigned. Instructions for preparing the sales taxreturn are mailed with each form.

Date payment and return dueSales tax returns are due, along with any paymentof taxes due to the Department of Revenue, on orbefore the twentieth of the month following the closeof the calendar month or calendar quarter of thereporting period.

Basis of taxThe state general sales tax is payable on the salesprice [R.S. 47:301(13)] in the case of a transactionsubject to a sales tax, and on the cost price [R.S.47:301(3)] in the case of a transaction subject to usetax. The taxable base will include the total amountfor which tangible personal property is sold, includ-ing any services rendered by the seller in connec-tion with the sale, the gross amount charged for thelease or rental of tangible personal property, andthe gross amount charged for taxable services.

The state general sales and use tax is levied on thefollowing transactions:

(1) The sale of tangible personal property at retailin this state;

(2) The use, consumption, distribution, or storagefor use or consumption in this state of anytangible personal property;

(3) The lease or rental within this state of any itemor article of tangible personal property; and,

(4) The sale of services as defined in the statutesunder R.S. 47:301(14): the furnishing of rooms

General Information

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by hotels; the sale of admissions to places ofamusement and to athletic and recreationalevents, and the furnishing of privileges of ac-cess to amusement, entertainment, athletic, orrecreational facilities; the furnishing of storageor parking privileges by auto hotels and park-ing lots; the furnishing of printing and over-printing; the furnishing of laundry, cleaning,pressing, and dyeing services; the furnishingof cold-storage space and the preparation ofproperty for such storage; the furnishing ofrepairs to tangible personal property; and thefurnishing of telecommunications services.

Dealers required to register for sales taxpurposesIf a dealer properly invoices and collects the taxfrom his customer, the customer’s tax paymentresponsibility on the transaction is ended, providedthat the customer retains evidence to show that thetax was properly paid. When a purchase is madefrom a seller who is not required to collect the tax,or who for any reason fails to collect the tax, thepurchaser is responsible for a use-tax payment tobe reported directly to the department. When adealer fails to properly collect the sales or use taxfrom his customer, both parties remain liable forthe tax until it is finally paid, and the departmentmay proceed against either party for the amountdue. A direct use-tax payment is due also on thelower of the original cost price or market value ofproperty imported into the state for use on whichLouisiana sales or use tax has not previously beenpaid. Credit for sales or use taxes paid in otherstates is allowable, under certain conditions, againstthe Louisiana use tax.

Advance payment of sales taxThe law contains an advance sales tax provisionunder which manufacturers, distributors, and otherpersons making wholesale sales must collect thetax on sales of tangible personal property to otherdealers for resale. Dealers paying the advance taxmay deduct the actual amount paid on their salestax returns as a credit against the tax due on theirresale of the property.

Special numbersCertain taxpayers may qualify for special numbersso they will not be required to pay sales tax on

purchases from vendors. Wholesalers and some re-tailers qualify for a “W” number under R.S. 47:306(B).In order to qualify, 50 percent or more of the dealer’ssales must not constitute retail sales. The use of thespecial number is limited to the purchase of resaleinventory only.

A direct pay (DP) number is available under R.S.47:303.1 for dealers who have average purchasesfor a three-year period of $15 million dollars. Thisallows the dealer, mainly an industrial manufac-turing facility, to make all purchases tax free fromtheir supplier and report the tax due directly to theDepartment of Revenue.

Vendor’s compensationCompensation of one and one-tenth percent (1.1%)of the tax is allowed dealers filing sales and/or usetax returns within the time prescribed by the stat-ute.

ExclusionsCertain types of transactions have been excludedfrom the definitions in R.S. 47:301 making the taxinapplicable to them. Exclusions enacted after June30, 1988, were subject to the one percent (1%)Louisiana Recovery District tax that expired Sep-tember 30, 1996. These transactions no longerbear the tax.

(1) The isolated or occasional sale of tangiblepersonal property (other than motor vehiclessubject to license and title) by a person notengaged in such business. [R.S. 47:301(1),47:301(10)(c), and 47:303(B)(4)]

(2) Cash discounts and rebates given by a vendoror manufacturer on any new motor vehicle.[R.S. 47:301(3)(e) and 47:301(13)(b)]

(3) Amounts paid by manufacturers directly todealers of the manufacturers’ products for thepurpose of reducing the sales price of theproduct if the sales price is actually reduced.[R.S. 47:301(3)(g) and R.S. 47:301(13(e))]

(4) Sales or purchases of certain tangible personalproperty acquired for lease or rental in arm’s-length transactions according to the followingtimetable:

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3Louisiana Sales Tax Law and Regulations

(a) Effective July 1, 1990, automobiles acquiredfor lease in terms of at least 180 days.

(b) Effective January 1, 1991, all automobilesacquired for lease or rental, regardless of term.[R.S. 47:301(10)(a), R.S. 47:301(18)(a)]

(c) Effective July 1, 1991, all tangible personalproperty acquired for lease or rental [R.S.47:301(7)(a), 47:301(10)(a), and 47:301(18)(a)]

(5) The lease or rental made for the purpose of re-lease or re-rental of casing, tools, pipe, drillpipe, tubing, etc., used in connection with theoperating, drilling, completion, or reworking ofoil, gas, sulphur, or other mineral wells. [R.S.47:301(7)(b)]

(6) The lease or rental of property to be used in theperformance of a contract with the UnitedStates Navy for the construction or overhaul ofa United States Navy vessel, and sales of ser-vices that are performed pursuant to such acontract. [R.S. 47:301(7)(c) and 47:301(14)(h)]

(7) The lease or sale of airplanes or airplane equip-ment and the sale of airplane parts byLouisiana domiciled commuter airlines.[R.S. 47:301(7)(d) and 47:301(10)(k)]

(8) Sales and rentals of tangible personal propertyand services to hospitals that provide free careto all patients. [R.S. 47:301(7)(e), 47:301(10)(p),47:301(18)(c) and 47:301(21)]

(9) The lease, rental, or purchase of educationalmaterials or equipment used for class roominstruction by approved parochial and privateelementary and secondary schools. (Suspended7/1/00 - 6/30/01) [R.S. 47:301(7)(f),47:301(10)(q), and 47:301(18)(e)]

(10) The lease, rental, or purchase of tangible per-sonal property by Boy’s State of Louisiana,Inc., and Girl’s State of Louisiana, Inc. [R.S.47:301(7)(g), and 47:301(10)(r), 47:301(18)(f)]

(11) The lease or rental of motor vehicles of licensedmotor vehicle dealers for the free use by theircustomers. [R.S. 47:301(7)(h)]

(12) Sales and rentals of tangible personal propertyand services to independent institutions ofhigher education. [R.S. 47:301(8)(b)]

(13) Purchases, leases, storage, or use of tangiblepersonal property and services by the state orany of its agencies, boards or commissions,any instrumentality of the state, or its politicalsubdivisions, or any parish, city, or other po-litical subdivision. [R.S. 47:301(8)(c)]

(14) Sales of bibles, songbooks, and literature usedfor religious classes by churches and syna-gogues recognized under IRC 501(c)(3).[R.S. 47:301(8)(d)]

(15) Sales and rentals by the Society of the LittleSisters of the Poor. [R.S. 47:301(8)(e)]

(16) Sales of tangible personal property throughvending machines. [R.S. 47:301(10)(b)]

(17) Sales of electricity for chlor-alkali manufactur-ing processes. [R.S. 47:301(10)(c)]

(18) Sales of human tissue transplants includinghuman organs, bone, skin, cornea, blood, orblood products transplanted from one indi-vidual to another. [R.S. 47:301(10)(d)]

(19) Sales of food items by youth serving organiza-tions chartered by Congress. [R.S. 47:301(10)(h)]

(20) Sales of school buses less than five years old toindependent operators for use in a publicschool system. [R.S. 47:301(10)(i)]

(21) Sales of tangible personal property to qualify-ing food banks. [R.S. 47:301(10)(j)]

(22) Pollution control equipment that has beenapproved by the Department of Revenue andthe Department of Environmental Quality andis intended for reducing potential hazards ofindustrial pollution of air, water, noise, solidwaste, or other hazardous waste. [R.S.47:301(10)(l)]

(23) Aircraft manufactured in Louisiana that havea seating capacity in excess of fifty persons.[R.S. 47:301(10)(m)]

(24) Pelletized paper waste, as defined, when usedas a combustible fuel by an electrical utility orin an industrial application, processing, com-pounding, reuse, or production process. [R.S.47:301(10)(n)]

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4 August 2001

(25) Fire-fighting equipment purchased by bonafide volunteer fire departments.[R.S. 47:301(10)(o)]

(26) The providing of funeral directing services.R.S.47:301(10)(s),47:301(13)(f), 47:301(14)(j)and 47:301(18)(g)]

(26) Where a part of the sale price is represented byan article traded in, the sales tax is payable onthe total purchase price less the market valueof the article traded in. [R.S. 47:301(13)]

(28) The first $50,000 of the sales price of newpoultry production farm equipment.[R.S. 47:301(13)(c)]

(29) Admissions to art, history, and scientific mu-seums; aquariums, zoological parks, botanicalgardens, arboretums, and other places ofamusement that are classified as museums.[R.S. 47:301(14)(b)]

(30) Repairs performed in Louisiana when the re-paired property is delivered out of state.[R.S. 47:301(14)(g)]

(31) The sales or purchase of interstate telecommu-nication services for the operation of a callcenter. [R.S. 47:301(14)(i)]

(32) Monetized bullion having a value of $1,000 ormore. [R.S. 47:301(16)(b)]

(33) Repairs performed by a licensed motor vehicledealer on vehicles subsequent to the lapse ofan applicable warranty, where the work is doneat no charge to the owner of the vehicle.[R.S. 47:301(16)(c)]

(34) The sale or purchase of pharmaceuticals ad-ministered to livestock for agricultural pur-poses. [R.S. 47:301(16)(f)]

(35) The sale or purchase of used manufacturedhomes and 54 percent of the cost of newmanufactured homes (Effective as of July 1,2001). [R.S. 47:301(16)(g)]

(36) Tangible personal property created or derivedas a residue or byproduct (other than refinerygas) from the processing of raw materials forresale when used by the manufacturer of suchproperty. [R.S. 47:301(18)(d)]

ExemptionsThe various statutory exemptions provided underR.S. 47:305 have been partially and temporarilysuspended from July 1, 1986, to the present date.Exemptions enacted after June 30, 1988, were notexempt from the one percent (1%) Louisiana Recov-ery District tax, which was in effect from July 1,1988, through September 30, 1996. For detailedinformation concerning which particular exemp-tions are affected and the applicable dates andrates, contact the Sales Tax Division, TaxpayerServices Division, at 225•219•7356.

(1) Gross proceeds derived from the sale in thisstate of livestock, poultry, and other farmproducts direct from the farm, provided thatsuch sales are made directly by the producers.[R.S. 47:305(A)(1)]

(2) Animal feeds and feed additives used to sustainanimals that are held for commercial, business,or agricultural purposes. [R.S. 47:305(A)(4)]

(3) Materials, equipment, supplies, fuel, and re-lated items (except vessels) used in the produc-tion or harvesting of crawfish and catfish.[R.S. 47:305(A)(5) and 47:305(A)(6)]

(4) Livestock and livestock products, poultry andpoultry products, farm, range, and agricul-tural products when produced by the farmerand used by him and members of his family.[R.S. 47:305(B)]

(5) Gasoline, steam, water (not including mineralwater or carbonated water, or any water put upin bottles, jugs, or containers, all of which arenot exempted), electric power or energy, mate-rials and energy sources used to fuel the gen-eration of electric power when the electricpower is to be sold by or used by an industrialmanufacturing plant for self-consumption orcogeneration, newspapers, fertilizer and con-tainers used for farm products when sold directlyto the farmer, natural gas, all energy sourcesother than refinery gas used for boiler fuel, newautomobiles, new trucks, new aircraft withdrawnfrom stock by factory-authorized dealers, andused automobiles and trucks withdrawn fromstock by new or used motor vehicle dealers,with the approval of the secretary of Revenueand titled in the dealer’s name for use asdemonstrators. [R.S. 47:305(D)(1)(a-i)]

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5Louisiana Sales Tax Law and Regulations

(6) Drugs prescribed by a physician or dentist forpersonal consumption or use; orthotic andprosthetic devices and wheelchairs and wheel-chair lifts prescribed by physicians for per-sonal consumption or use; ostomy, colostomy,ileostomy devices and appliances; the pur-chase or rental by private individuals of mate-rials and supplies for home renal dialysis;insulin; patient aids prescribed by physiciansfor home use; patient aids prescribed by chiro-practors for home use; orthotic devices, pros-thetic devices, prostheses, and restorativematerials used or prescribed by dentists; allmedical devices prescribed by a registeredphysician. [R.S. 47:305(D)(1)(j-m, s-t),47:305(G), and R.S. 47:305.2]

(7) Sales of food for preparation and consumption inthe home. The exemption will extend to fooditems that are pre-packaged in larger than single-serving size, or which require or are generallyintended for further preparation by the purchas-ers prior to consumption. Food sales by restau-rants, drive-ins, snack bars, candy and nutcounters, private clubs, and similar establish-ments are not covered by the exemption.

Sales of meals furnished to the staff and stu-dents of educational institutions, includingkindergartens; the staff and patients of hospi-tals; the staff, inmates, and patients of mentalinstitutions; boarders of rooming houses; andoccasional meals furnished in connection withor by educational, religious, or medical organi-zations. This exemption will apply only if themeals are sold in facilities not open to outsid-ers or the general public and are consumed onthe premises where purchased.[R.S. 47:305(D)(1)(n-r) and 47:305(D)(2-3)]

(8) Bona fide interstate commerce. [R.S. 47:305(E)]

(9) The sales, use, or lease taxes on amounts paidby television broadcasters for the right to ex-hibit or broadcast copyrighted material, film,video, audit tapes, etc. [R.S. 47:305(F)]

(10) Sales of materials, equipment, and machinerythat enter into and become component parts ofships, vessels, or barges, including commer-cial fishing vessels, drilling ships, and drillingbarges of fifty tons load displacement and over;the gross proceeds from the sale of such ships,vessels, or barges sold by the builder thereof.[R.S. 47:305.1(A)]

(11) Materials and supplies purchased by the own-ers and operators of ships or vessels operat-ing exclusively in foreign or interstatecommerce where such materials and sup-plies are loaded upon the ship or vesselsoperating exclusively in foreign or interstatecoastwise commerce; the materials and sup-plies used in such repairs, where such mate-rials and supplies enter into and become acomponent part of such ships or vessels; laun-dry services performed for the owners or opera-tors of such ships or vessels operatingexclusively in foreign or interstate coastwisecommerce, where the laundered articles are tobe used in the course of the operation of suchships or vessels. [R.S. 47:305.1(B)]

(12) Seeds used in planting crops (does not includeseeds used in planting a garden to producefood for personal consumption by the planterand his family). [R.S. 47:305.3]

(13) Sales of admission tickets by Little Theaterorganizations. [R.S. 47:305.6]

(14) Tickets to musical performances of Louisiananonprofit musical organizations. This exemp-tion shall not apply to performances given byout-of-state or nonresident symphony compa-nies, nor shall this exemption apply to anyperformance intended to yield a profit to thepromoters thereof. [R.S. 47:305.7]

(15) Pesticides used for agricultural purposes (in-cluding, but not limited to insecticides, herbi-cides, and fungicides). [R.S. 47:305.8]

(16) Motion picture film rental by an operator of amotion picture theater. [R.S. 47:305.9]

(17) Property purchased for use outside the state(under certain conditions). [R.S. 47:305.10]

(18) Sale of admissions to entertainment eventsfurnished by recognized domestic nonprofitcharitable, educational, and religious organi-zations when the entire proceeds from suchsales, except for necessary expenses con-nected with the entertainment events, areused for the purposes for which the organiza-tions furnishing the events were organized.[R.S. 47:305.13]

(19) Admissions (including outside gate admissions),parking fees, and sales of tangible personal

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property at events sponsored by domestic,civic, educational, historical, charitable, fra-ternal, or religious organizations, which arenonprofit, when the entire proceeds, except forthe necessary expenses connected therewith,are used for educational, charitable, religious,or historical restoration purposes includingthe furtherance of the organization’s purpose.Sales by thrift shops located on military instal-lations are included in this exemption as aresales of newspapers by religious organizationsprovided the sales price does not exceed thecost to publish the newspaper. [R.S. 47:305.14]

(20) Sales or purchases by blind persons andcertain organizations that provide training toblind persons and that have received ap-proval from the Department of Revenue. [R.S.47:305.15]

(21) Cable television installation and repair.[R.S. 47:305.16]

(22) Income from coin-operated washing and dry-ing machines in commercial laundromats. [R.S.47:305.17]

(23) Outside gate admissions to grounds and park-ing fees at fairs, festivals, and expositionssponsored by nonprofit organizations, notincluding regular commercial ventures thatare in competition with retail merchants. [R.S.47:305.18]

(24) The lease of vessels for use in the production ofminerals. [R.S. 47:305.19]

(25) Purchases of repair parts, repair services, op-erating materials and supplies, diesel fuel, andlubricants for use on commercial fishing ves-sels operated by Louisiana domiciled and resi-dent licensed commercial fishermen, or for useby seafood processing facilities that own, lease,or contract with a qualified vessel. [R.S.47:305.20]

(26) Units of mobile, motorized, self-propelled, earth-moving farm and construction equipment areexempted from the use tax when removed fromresale inventory by licensed dealers as a methodof promoting the sale. [R.S. 47:305.22]

(27) The first fifty thousand dollars ($50,000) of thesales price of each item and attachment ofspecified types of farm equipment used in the

production and harvesting of food and fiber isexempted. The tax is payable on the portion ofthe sales price in excess of the exempt amount.[R.S. 47:305.25]

(28) New vehicles furnished by dealers on a free-loan basis for driver education programs ac-credited by the Louisiana Department ofEducation. [R.S. 47:305.26]

(29) The sale or purchase of gasohol with at leastten percent alcohol if such alcohol was pro-duced in Louisiana from agricultural com-modities. [R.S. 47:305.28]

(30) Purchases, leases, or rentals of certain “energyconservation property.” Application for theexemption must be submitted to and approvedby the Board of Commerce and Industry. Thisexemption expired December 31, 1989. [R.S.47:305.31]

(31) Purchases of materials for the construction ofand supplies for the operation of certain not-for-profit retirement centers. [R.S. 47:305.33]

(32) The purchase or importation of motor ve-hicles, trailers, or semitrailers to be leased orrented at reasonable market rates by quali-fied lessors for use on public roadways. Thetax is due on all receipts from the lease orrental of the property. [R.S. 47:305.36]

(33) Diesel fuel, butane, propane, and other lique-fied petroleum gases used or consumed forfarm purposes. [R.S. 47:305.37]

(34) Tangible personal property sold, used or con-sumed, distributed, or stored for use or con-sumption by sheltered workshops licensed bythe Louisiana Department of Social Services asday developmental centers for the mentallyretarded. [R.S. 47:305.38]

(35) Butane, propane, and liquefied petroleum gasespurchased by consumers for the private resi-dential purpose of cooking and heating. [R.S.47:305.39]

(36) Specialty items for use in connection withMardi Gras activities. Specialty items ex-empted are those items designed for thecarnival that bear the organization’s name orinsignia. [R.S. 47:305.40]

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7Louisiana Sales Tax Law and Regulations

(37) Sales, purchases, rentals, or services receivedby Ducks Unlimited or Bass Life. [R.S.47:305.41]

(38) Admission tickets sold by any domestic non-profit organization engaged in the prepara-tion and presentation of the performing arts.[R.S. 47:305.42]

(39) Sales made by a nonprofit organization dedi-cated exclusively to the conservation of fish ormigratory waterfowl. [R.S. 47:305.43]

(40) Sales of certain materials and chemicals usedby commercial printers, such as artwork, dies,etc. [R.S. 47:305.44]

(41) Piggy-back cars and rolling stock owned, op-erated, or leased in Louisiana and per diem orcar-hire charges on freight cars. [R.S.47:305.45]

(42) Sales of food paid for with USDA food couponsor WIC (Women, Infants, and Children) pro-gram vouchers. [R.S. 47:305.46]

(43) Pharmaceutical samples distributed free ofcharge in Louisiana. [R.S. 47:305.47]

(44) Motor vehicles purchased in another state byactive duty military personnel, under certainconditions. [R.S. 47:305.48]

(45) Catalogs that are distributed free of chargewithin Louisiana. [R.S. 47:305.49]

(46) Purchases of trucks with a gross weight of26,000 pounds or more, trailers and semi-trailers as defined in R.S. 47:451, and con-tract carrier buses that are used at least 80%of the time in interstate commerce. [R.S.47:305.50(A)]

(47) Purchases of railroad rolling stock manufac-tured in this state for use in interstate com-merce. [R.S. 47:305.50(B)]

(48) The sale or purchase of utilities used by steel-works and blast furnaces, which are classifiedas SIC 3312 by the Standard Industrial Clas-sification Code. [R.S. 47:305.51]

PenaltiesSevere penalties, including fines and/or imprison-ment, are provided under the Louisiana statutes forfailure to comply. Specific penalties and amountsare described in R.S. 47:306, 1602, 1604, 1604.1,1604.2, and 1606.

Local Sales/Use TaxesParishes, municipalities, school boards, and othergoverning authorities are authorized to imposesales/use taxes. These sales/use taxes are in addi-tion to those imposed by Louisiana, and are admin-istered and collected at the local level separatelyfrom the taxes collected by the Department ofRevenue. There are many similarities between statesales/use tax statutes and local sales/use taxordinances, but there are also many differences,especially in regard to the applicability of exemp-tions. Questions concerning local sales/use taxesshould be directed to local authorities. A list of theaddresses for local sales tax authorities is providedby the Department’s Taxpayer Services.

FormsThe following forms are used in sales tax adminis-tration. Copies of forms pertaining to your businessor customers can be obtained from any office of thedepartment. Copies of some forms may also bedownloaded from the department’s website atwww.rev.state.la.us.

Applications and General Forms

R-1003 List of Local Sales Tax Collecting Agen-cies and Rates

R-1020 Designation of Construction Contrac-tor as Agent of a Governmental Entity

R-1022 Application for Offshore NumberR-1027 Sales Tax Registration CertificateR-1048 Application for Exemption from Collec-

tion of Louisiana Sales Tax at CertainFund Raising Activities

R-1050PC Instructions - Pollution Control RefundGuidelines

R-1051PC Instructions - Natural Disaster andFlood Damage Refund Guidelines

R-1052PC Instructions - Enterprise Zone RebateGuidelines

R-1061L Application - Authority to Remit Lease/Rental Sales Tax Directly to the Depart-ment of Revenue

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R-1083 Sales Tax Rate ScheduleR-1130 Schedule - List of General Contractors

and SubcontractorsR-1312L Application - Mardi Gras Exemption

(Suspended until July 1, 2002)R-1318 Application for Advance Sales Tax Ex-

emption “W” numberR-1331 Tax Payment Certification for Boat Reg-

istrationR-1334 Application by Commercial Fisherman

for ExemptionR-1339 Nonresident Contractor (4 page Set)R-1340 Certification of Resident/Nonresident

(2 pg Set)R-1341 Instruction Sheet For Contract Comple-

tion (3 pg Set)R-1341A Schedule - Contract Completion FormR-1342 Contractor Tax Registration Numbers

and Contract InformationR-1343 Contractor/Subcontractor Surety Bond

(2 pg Set)R-1343A Application - Contractor/Subcontrac-

tor Surety BondR-1345 Application for Exemption by Seafood

Processing FacilityR-1349 Application for Refund – Pollution

ControlR-1362 Claim for Refund – Property Destroyed by

Natural DisasterR-1362I Instructions - General Information for

Refund Claims resulting from PropertyDamage caused by a Natural Disasteror Flood

R-1362S Sales Tax Refund Schedule DisasterLoss of Tangible Personal Property(LGST-D-76)

R-1363 Claim for Refund – Titled Assets De-stroyed by Natural Disaster(LGST-D-76M)

R-1365 Schedule - List of Subcontractors andSuppliers

R-1368 Certification of the Purchase of MotorBoats in Louisiana for Registration inAnother State by a Nonresident

R-1369A Application - Exemption on Purchasesby Qualified Churches

R-1370L Application for Motor Vehicle LessorExemption “L” Number

R-1372 Application for Exclusion on Pur-chases or Leases by Certain Parochialand Private Elementary and SecondarySchools (Suspended until July 1, 2001)

R-1374L Application - Agreement to TelefileR-1378 Application - Contractor Registration

and Bond Information

R-1379 Instructions - Medical Device RefundGuidelines

R-1380 Manufacturer's Direct Pay ApplicationR-16018 Central Registration Application Book-

let (CR-1)R-20127L Claim for RefundR-20128 Request for Waiver of a Penalty for

DelinquencyR-20193L Authorization Agreement for Electronic

Funds Transfer of Tax PaymentR-20193I Instructions for Authorization Agree-

ment for Electronic Funds Transfer ofTax Payment

R-20194 Information on Electronic Funds Trans-fer Program

R-20201 Louisiana Electronic Funds TransferGuidelines

Brochures

R-20068 Flea Markets, Craft Shows, and Itiner-ant Vendors Sales Tax

R-20073 New Business GuideR-20161 Rights of the TaxpayerR-20162 Louisiana Tax FactsR-20164 Motor Vehicle Sales TaxR-20165 Sales Tax: Restaurants, Lounges, and

NightclubsR-20170 Sales Tax Brochure for Furniture and

Appliance DealersR-20171 Sales Tax Brochure for Farm Imple-

ment and Heavy Equipment DealersR-20207 SEATA Information Sharing Program

Brochure

Exemption Certificates

R-1006 Exemption Certificate – Covering Pur-chases of Food Products for Prepara-tion and Consumption in the Home andin Certain Institutions (Suspended untilJuly 1, 2002)

R-1007 Exemption Certificate – Purchases bySellers of Livestock, Livestock Prod-ucts, and Commercial Growers

R-1009 Exemption Certificate – Shipbuilders ofVessels over Fifty (50) Tons Load Dis-placement (LGST-51A)

R-1010 Exemption Certificate – For Ships andVessels Operating in Interstate Com-merce (LGST-51B)

R-1013 Exemption Certificate – For-hire Carri-ers in Interstate/Foreign Commerce(LGST-12)

R-1018 Exemption Certificate – Mobile Homes

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9Louisiana Sales Tax Law and Regulations

R-1023 Exemption Certificate – Purchases byCompanies with O/S Number for Off-shore Use (LGST-9 O/S)

R-1028 Exemption Certificate – Purchases byWholesalers and Manufacturers forResale or Further Processing (LGST-9)

R-1032 Exemption Certificate - ConstructionContractors Designated as Agents ofGovernmental Agencies

R-1041 Exemption Certificate - Institutional orRetail Dealer Purchases of Medical-Related Property

R-1054 Exemption Certificate – Purchases byElectrical Cooperatives (LGST 950) (Sus-pended until July 1, 2002)

R-1056 Exemption Certificate – Purchases byState Agencies and Certain PoliticalSubdivisions

R-1059 Exemption Certificate - Exemption forpurchases by Boys State/Girls State

R-1060 Exemption Certificate – Purchases ofCertain Farm Equipment

R-1062L Exemption Certificate - Authority toRemit Lease/Rental Sales Tax Directlyto the Department of Revenue

R-1065 Exemption Certificate - Non-Road Util-ity Vehicles used on Commercial Farms

R-1079 Resale Certificate – Foreign Purchasers(LGST-9A)

R-1096 Exemption Certificate – Offshore Area(LGST-9D)

R-1310 Exemption Certificate – Purchases ofVehicles for Lease or Rental (LGST-9L)

R-1311 Resale Certificate – Motor Vehicles(LGST-9C)

R-1319 Exemption Certificate – Purchases ofTangible Personal Property for Harvest-ing Catfish and Crawfish (LGST-30) (Sus-pended until July 1, 2002)

R-1322 Exemption Certificate – Purchases byHolders of Direct Payment Permit Num-bers (LGST-DP)

R-1332 Exemption Certificate – Purchases of Tele-communications Services for Resale

R-1335 Exemption Certificate – CommercialFishermen

R-1336 Vendor’s Certificate of Exemption forCommercial Fishermen

R-1344 Exemption Certificate – Tangible Per-sonal Property for Rent or Lease (LGST-61)

R-1346 Exemption Certificate – Purchases byQualified Seafood Processing Facilities

R-1351 Certificate of Direct Pay for Leases andRentals in the Offshore Area

R-1352 Exemption Certificate – Purchases byCommercial Printers of Certain Items(LGST-9P) (Suspended until July 1,2002)

R-1353 Exemption Certificate – Rent for Re-rent (LGST-9RR)

R-1354 Exemption Certificate - Admissions byNon-Profit Symphony Organizations(Suspended until July 1, 2002)

R-1355 Exemption Certificate – Purchases byBlind Vendors (LGST 78)

R-1356 Exemption Certificate – Purchases byFederal Government (LGST-100)

R-1357 Exemption Certificate – Purchases byCredit Unions (LGST 100A)

R-1358 Exemption Certificate - Contractors forthe Federal Government

R-1359 Exemption Certificate – Certain Purchasesby Bona Fide Organized Volunteer FireDepartments (LGST 564)

R-1360 Exemption Certificate - Purchase ofMardi Gras specialty items by qualifiedcarnivals and non-profit organizations( Suspended until July 1, 2002)

R-1361 Exemption Certificate - Purchases byNon-Profit Retirement Centers (Sus-pended until July 1, 2002)

R-1364 Statement of Exemption From BondingRequirements – Nonresident Contrac-tor Program

R-1366 Exemption Certificate - Purchases byManufacturers using the Direct IronProcess

R-1367 Exemption Certificate – Purchases ofCertain Trucks, Trailers and BussesUsed in Interstate Commerce

R-1373 Exemption Certificate – Purchases orLeases by Certain Parochial and Pri-vate Elementary and Secondary Schools(Suspended until July 1, 2002)

R-1376L Exemption Certificate - GovernmentAgencies Exemption for Hotels

Tax Return Forms

R-1029 Monthly Sales Tax ReturnR-1029DS Hotel/Motel Sales Tax ReturnR-1029HM Hotel/Motel – Recovery DistrictR-1029I Sales Tax Return – General Instruc-

tionsR-1030 Service Contractor Tax and Tour Tax

ReturnR-1031 Catalogs Sales Tax ReturnR-1325 Hotel Occupancy Tax and Food and

Beverage Tax ReturnR-1329 Automobile Rental Excise Tax Return

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AssistanceTaxpayer Services DivisionSales Tax SectionLouisiana Department of RevenuePost Office Box 201Baton Rouge, LA 70821•0201225•219•7356 (Assistance)

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11Louisiana Sales Tax Law and Regulations

Sales TaxLaw and

Regulations

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12 August 2001

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Louisiana Sales Tax Law and Regulations 13

R.S. 47:301. DefinitionsAs used in this Chapter the following words,terms, and phrases have the meaning ascribed tothem in this Section, unless the context clearlyindicates a different meaning:

(1) “Business” includes any activity engaged in byany person or caused to be engaged in by him withthe object of gain, benefit, or advantage, eitherdirect or indirect. The term “business” shall not beconstrued to include the occasional and isolatedsales by a person who does not hold himself outas engaged in business.

(2) “Collector” means the Collector of Revenue forthe State of Louisiana and includes his dulyauthorized assistants.

(3)(a) “Cost price” means the actual cost of thearticles of tangible personal property without anydeductions therefrom on account of the cost ofmaterials used, labor, or service cost, exceptthose service costs for installing the articles oftangible personal property if such cost is sepa-rately billed to the customer at the time of instal-lation, transportation charges, or any otherexpenses whatsoever, or the reasonable marketvalue of the tangible personal property at the timeit becomes susceptible to the use tax, whicheveris less.

(b) In the case of tangible personal property whichhas acquired a Louisiana tax situs and is thereaf-ter transported outside the state of Louisiana forrepairs performed outside the state of Louisianaand is thereafter returned to the state of Louisi-ana, the cost price shall be deemed to be theactual cost of any parts and/or materials used inperforming such repairs, if applicable labor chargesare separately stated on the invoice. If the appli-cable labor charges are not separately stated onthe invoice, it shall be presumed that the costprice is the total charge reflected on the invoice.

(c) “Cost price” shall not include the supplyingand installation of board roads to oil field opera-tors if the installation charges are separatelybilled to the customer at the time of installation.

(d)(i) In the case of interchangeable componentslocated in Louisiana, a taxpayer may elect todetermine the cost price of such components asfollows:

(aa) The taxpayer shall send to the secretarywritten notice of the calendar month selected bythe taxpayer as the first month for the determina-tion of cost price under this Paragraph (the “FirstMonth”). The taxpayer may select any month. Thetaxpayer shall send to the secretary notice of anelection to designate a First Month on the first dayof the designated First Month, or ninety days fromJuly 1, 1990, whichever is later.

(bb) For the First Month and each month thereaf-ter, cost price shall be based and use tax shall bepaid only on one-sixtieth of the aggregate costprice of the interchangeable components deployedand earning revenue within Louisiana during themonth, without regard to any credit or otherconsideration for Louisiana state, political subdi-vision, or school board use tax previously paid onsuch interchangeable components.

(cc) Any election made under this Paragraph shallbe irrevocable for a period of sixty consecutivemonths inclusive of the First Month. If at any timeafter the sixty-month period the taxpayer revokesits election, no credit or other consideration foruse taxes paid pursuant thereto shall be appliedto any use tax liability arising after such revoca-tion.

(ii)(aa) For purposes of this Paragraph, “inter-changeable component” means a component thatis used or stored for use in measurement-while-drilling instruments or systems manufactured orassembled by the taxpayer, which measurement-while-drilling instruments or systems collectivelygenerate eighty percent or more of their annualrevenue from their use outside of the state.

(bb) “Measurement-while-drilling instruments orsystems” means instruments or systems whichmeasure information from a downhole location ina borehole, transmit the information to the sur-face during the process of drilling the boreholeusing a wireless technique, and receive and de-code the information on the surface.

(iii) The method for determining cost price ofinterchangeable components provided for in thisParagraph shall apply to any use taxes imposedby a local political subdivision or school board.For purposes of that application, the words “po-litical subdivision” or “school board” as the casemay be, shall be substituted for the words “Loui-siana” or “State” in each instance where thosewords appear in this Paragraph and an appropri-ate official of the local political subdivision or

R.S. 47:301(3)(d)

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school board shall be designated to receive thenotices required by this Paragraph.Added by Acts 1990, No. 719, eff. July 1, 1990.

(e) “Cost price” shall not include any amountdesignated as a cash discount or a rebate by avendor or manufacturer of any new vehicle sub-ject to the motor vehicle license tax. For purposesof this Paragraph “rebate” means any amountoffered by the vendor or manufacturer as a deduc-tion from the listed retail price of the vehicle.Enacted by Acts 1991, No. 350, eff. Sept. 6, 1991.

(f) The “cost price” of refinery gas shall be fifty-twocents per thousand cubic feet multiplied by afraction the numerator of which shall be theposted price for a barrel of West Texas Intermedi-ate Crude Oil on December first of the precedingcalendar year and the denominator of which shallbe twenty-nine dollars, and provided further thatsuch cost price shall be the maximum valueplaced upon refinery gas by the state and by anypolitical subdivision under any authority or grantof power to levy and collect use taxes.Added by Acts 1996, No. 29, eff. July 1, 1996.

(g) “Cost price”, for purposes of the use tax im-posed by the state and its political subdivisions,shall exclude any amount that a manufacturerpays directly to a dealer of the manufacturer’sproduct for the purpose of reducing and thatactually results in an equivalent reduction in theretail “cost price” of that product. This exclusionshall not apply to the value of the coupons thatdealers accept from purchases as part payment ofthe “sales price” and that are redeemable by thedealers through manufacturers or their agents.The value of such coupons is deemed to be part ofthe “cost price” of the product purchased throughthe use of the coupons.Added by Acts 1996, No. 33, eff. July 1, 1996.

(4) “Dealer” includes every person who manufac-tures or produces tangible personal property forsale at retail, for use, or consumption, or distribu-tion, or for storage to be used or consumed in thisstate. “Dealer” is further defined to mean:

(a) Every person, who imports, or causes to beimported, tangible personal property from anystate or foreign country for sale at retail, for use,or consumption, or distribution, or for storage tobe used or consumed in this state.

(b) Every person who sells at retail, or who offersfor sale at retail, or who has in his possession forsale at retail, or for use, or consumption, or

distribution, or storage to be used or consumed inthis state, tangible personal property as definedherein.

(c) Any person who has sold at retail, or used, orconsumed, or distributed, or stored for use orconsumption in this state, tangible personal prop-erty and who cannot prove that the tax levied bythis Chapter has been paid on the sale at retail,the use, the consumption, the distribution, or thestorage of said tangible personal property.

(d)(i) Any person who leases or rents tangiblepersonal property for a consideration, permittingthe use or possession of the said property withouttransferring title thereto.

(ii) However, a person who leases or rents tangiblepersonal property to customers who provide in-formation to such person that they will use theproperty only offshore beyond the territorial lim-its of the state shall not be included in the term“dealer” for purposes of the collection of the rentalor lease tax of the state, statewide political subdi-visions, and other political subdivisions on suchlease or rental contracts. For purposes of thisItem “use” means the operational or functionaluse of the property and not other uses related toits possession such as transportation, mainte-nance, and repair. It is the intention of this Itemthat the customers of such persons shall remitany tax due on the lease or rental of such propertydirectly to the state and local taxing bodies towhom they are due.Added by Acts 1994, No. 8, eff. June 1, 1994.

(e) Any person who is the lessee or rentee oftangible personal property and who pays to theowner of such property a consideration for the useor possession of such property without acquiringtitle thereto.

(f) Any person, who sells or furnishes any of theservices subject to tax under this Chapter.

(g) Any person, as used in this act, who purchasesor receives any of the services subject to tax underthis Chapter.

(h) Any person engaging in business in this state.“Engaging in business in this state” means andincludes any of the following methods of transact-ing business: maintaining directly, indirectly, orthrough a subsidiary, an office, distribution house,sales house, warehouse, or other place of busi-ness or by having an agent, salesman, or solicitoroperating within the state under the authority of

R.S. 47:301(3)(e)

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Louisiana Sales Tax Law and Regulations 15

the seller or its subsidiary irrespective of whethersuch place of business, agent, salesman, or solici-tor is located in this state permanently or tempo-rarily or whether such seller or subsidiary isqualified to do business in this state, or anyperson who makes deliveries of tangible personalproperty into the state other than by a common orcontract carrier.

(i) Any person who sells at retail any tangiblepersonal property to a vending machine operatorfor resale through coin-operated vending ma-chines.

(j) Any person who makes deliveries of tangiblepersonal property into the state in a vehicleowned or operated by said person.

(k) The term “dealer” shall not include lessors ofrailroad rolling stock used either for freight orpassenger purposes. However, the term “dealer”shall include lessees, other than a railway com-pany or railroad corporation, of such propertyand such lessees shall be responsible for thecollection and payment of all state and local salesand use taxes.Added by Acts 1990, No. 444, eff. Sept. 7, 1990.

(l) The term “dealer” shall include every personwho engages in regular or systematic solicitationof a consumer market in this state by the distri-bution of catalogs, periodicals, advertising fliers,or other advertising, or by means of print, radio ortelevision media, by mail, telegraphy, telephone,computer data base, cable, optic, microwave, orother communication system.Added by Acts 1990, No. 478, eff. Sept. 7, 1990.

(5) “Gross sales” means the sum total of all retailsales of tangible personal property, without anydeduction whatsoever of any kind or characterexcept as provided in this Chapter.

(6)(a) “Hotel” means and includes any establish-ment engaged in the business of furnishing sleep-ing rooms, cottages, or cabins to transient guests,where such establishment consists of six or moresleeping rooms, cottages, or cabins at a singlebusiness location.

(b) For purposes of the sales and use taxes of alltax authorities in this state, the term “hotel” asdefined herein shall not include camp and retreatfacilities owned and operated for religious pur-poses by nonprofit religious organizations, whichincludes recognized domestic nonprofit corpora-tions organized for religious purposes, provided

that the net revenue derived from the organization’sproperty is devoted wholly to religious purposes.For purposes of this Paragraph, the term “hotel”shall include camp and retreat facilities whichsell rooms or other accomodations to transientguests. However, “transient guest” for purposesof this Paragraph shall not include guests whoparticipate in organized religious activities whichtake place at such camp or retreat facilities. It isthe intention of the legislature to tax the furnish-ing of rooms to those who merely purchase lodg-ing at such facilities.Added by Acts 1998, No. 40, eff. August 15, 1998.

(7)(a) “Lease or rental” means the leasing orrenting of tangible personal property and thepossession or use thereof by the lessee or renter,for a consideration, without transfer of the title ofsuch property. For the purpose of the leasing orrenting of automobiles, “lease” means the leasingof automobiles and the possession or use thereofby the lessee, for a consideration, without thetransfer of the title of such property for a onehundred eighty-day period or more. “Rental”means the renting of automobiles and the posses-sion or use thereof by the renter, for a consider-ation, without the transfer of the title of suchproperty for a period less than one hundred eightydays.Amended by Acts 1990, No. 140, eff. July 1, 1990.

(b) The term “lease or rental”, however, as hereindefined, shall not mean or include the lease orrental made for the purposes of re-lease or re-rental of casing tools and pipe, drill pipe, tubing,compressors, tanks, pumps, power units, otherdrilling or related equipment used in connectionwith the operating, drilling, completion, or re-working of oil, gas, sulphur, or other mineralwells.

(c) The term “lease or rental”, as herein definedshall not mean or include a lease or rental ofproperty to be used in performance of a contractwith the United States Department of the Navy forconstruction or overhaul of U.S. Naval vessels.Amended by Acts 1989, No. 833, eff. Sept. 3,1989.

(d) The term “lease or rental”, as herein defined,shall not mean the lease or rental of airplanes orairplane equipment by a commuter airline domi-ciled in Louisiana.Enacted by Acts 1991, No. 772, eff. July 1, 1991.

(e) For purposes of state and political subdivisionsales and use tax, the term “lease or rental”, as

R.S. 47:301(7)(e)

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16 August 2001

herein defined, shall not mean the lease or rentalof items, including but not limited to supplies andequipment, which are reasonably necessary forthe operation of free hospitals.Added by Acts 1994, No. 6, eff. July 1, 1994.

The text of R.S. 47:301(7)(f) does not apply to

transactions occurring from July 1, 2000

through June 30, 2001. It applies to transac-

tions occurring from July 1, 2001 through

June 30, 2003.

(f) For purposes of state and political subdivisionsales and use tax, “lease or rental” shall not meanthe lease or rental of educational materials orequipment used for classroom instruction byapproved parochial and private elementary andsecondary schools which comply with the courtorder from the Dodd Brumfield decision andsection 501(c)(3) of the Internal Revenue Code,limited to books, workbooks, computers, com-puter software, films, videos, and audio tapes.Added by Acts 1996, No. 15, eff. July 1, 1997through June 30, 1998. Amended by Acts 1998,No. 47, eff. July 1, 1998 until July 1, 2000.Amended by Acts 2000, No. 33, eff. July 1, 2000.

(g) For purposes of state and political subdivisionsales and use tax, “lease or rental” shall not meanthe lease or rental of tangible personal property toBoys State of Louisiana, Inc. and Girls State ofLouisiana, Inc. which is used by such organiza-tions for their educational and public serviceprograms for youth.Added by Acts 1996, No. 20, eff. July 1, 1996.

(h) For purposes of state and political subdivisionsales and use tax, the term “lease or rental” shallnot mean or include the lease or rental of motorvehicles by licensed motor vehicle dealers, asdefined in R.S. 32:1252(14), or vehicle manufac-turers, as defined in R.S. 32:1252(11), for theiruse in furnishing such leased or rented motorvehicles to their customers in performance oftheir obligations under warranty agreements as-sociated with the purchase of a motor vehicle orwhen the applicable warranty has lapsed and theleased or rented motor vehicle is provided to thecustomer at no charge.Added by Acts 1998, No. 49, eff. August 1, 1998.

(i) For purposes of sales and use taxes levied andimposed by local governmental subdivisions,school boards, and other political subdivisionswhose boundaries are not coterminous with those

of the state, “lease or rental” by a person shall notmean or include the lease or rental of tangiblepersonal property if such lease or rental is madeunder the provisions of Medicare.Added by Acts 2001, No. 60, eff. July 1, 2001.

(8)(a) “Person”, except as provided in Subpara-graph (c), includes any individual, firm, copart-nership, joint adventure, association, corporation,estate, trust, business trust, receiver, syndicate,this state, any parish, city and parish, municipal-ity, district or other political subdivision thereofor any board, agency, instrumentality, or othergroup or combination acting as a unit, and theplural as well as the singular number.

(b) For purposes of the payment of state sales oruse tax on the lease or rental or the purchase oftangible personal property or services, “person”shall not include a regionally accredited indepen-dent institution of higher education which is amember of the Louisiana Association of Indepen-dent Colleges and Universities, if such lease orrental or purchase is directly related to the edu-cational mission of such institution. However, theterm “person” shall include such institution forpurposes of the payment of tax on sales by suchinstitution if the sales are not otherwise exempt.Amended by Acts 1990, No. 1064, eff. July 1,1990.

(c) For purposes of the payment of the state salesand use tax and the sales and use tax levied byany political subdivision, “person” shall not in-clude this state, any parish, city and parish,municipality, district, or other political subdivi-sion thereof, or any agency, board, commission,or instrumentality of this state or its politicalsubdivisions.Amended by Acts 1991, No. 1029, eff. Sept. 1,1991.

(d)(i) For purposes of the payment of the statesales and use tax and the sales and use tax leviedby any political subdivision, the term “person”shall not include a church or synagogue that isrecognized by the United States Internal RevenueService as entitled to exemption under Section501(c)(3) of the United States Internal RevenueCode.

(ii) The secretary of the Department of Revenueand Taxation shall promulgate rules and regula-tions defining the terms “church” and “syna-gogue” for purposes of this exclusion. Thedefinitions shall be consistent with the criteriaestablished by the U.S. Internal Revenue Service

ijkpoiuretwerqweas;dlfkj

R.S. 47:301(7)(f)

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Louisiana Sales Tax Law and Regulations 17

R.S. 47:301(10)(a)

in identifying organizations that qualify for churchstatus for federal income tax purposes.

(iii) No church or synagogue shall claim exemp-tion or exclusion from the state sales and use taxor the sales and use tax levied by any politicalsubdivision before having obtained a certificate ofauthorization from the secretary of the Depart-ment of Revenue and Taxation. The secretaryshall develop applications for such certificates.The certificates shall be issued without charge tothe institutions that qualify.

(iv) The exclusion from the sales and use taxauthorized by this Subparagraph shall apply onlyto purchases of bibles, song books, or literatureused for religious instruction classes.Added by Acts 1996, No. 28, eff. July 1, 1996.

(e)(i) For purposes of the payment of the statesales and use tax and the sales and use tax leviedby any political subdivision, the term “person”shall not include the Society of the Little Sisters ofthe Poor.

(ii) The secretary of the Department of Revenueshall promulgate rules and regulations for pur-poses of this exclusion. The definitions shall beconsistent with the criteria established by theU.S. Internal Revenue Service in identifying tax-exempt status for federal income tax purposes.

(iii) No member of the Society of the Little Sistersof the Poor shall claim exemption or exclusionfrom the state sales and use tax or the sales anduse tax levied by any political subdivision beforehaving obtained a certificate of authorizationfrom the secretary of the Department of Revenue.The secretary shall develop applications for suchcertificates. The certificates shall be issued with-out charge to the entities which qualify.Added by Acts 1998, No. 40, eff. August 15, 1998.

(9) “Purchaser” means and includes any personwho acquires or receives any tangible personalproperty, or the privilege of using any tangiblepersonal property, or receives any services pursu-ant to a transaction subject to tax under thisChapter.

The following version of R.S. 47:301(10)(a)(i)

and (ii) is effective until July 1, 2002.

(10)(a)(i) For the purposes of the imposition of thestate sales and use tax, “retail sale” or “sale at

retail” means a sale to a consumer or to any otherperson for any purpose other than for resale astangible personal property, or for the lease ofmotor vehicles in an arm’s length transaction,and shall mean and include all such transactionsas the secretary, upon investigation, finds to be inlieu of sales; provided that sales for resale or forlease of motor vehicles in an arm’s length trans-action must be made in strict compliance with therules and regulations. Any dealer making a salefor resale or for the lease of motor vehicles, whichis not in strict compliance with the rules andregulations, shall himself be liable for and pay thetax.

(ii) For purposes of the imposition of the sales anduse tax levied by a political subdivision or schoolboard, “retail sale” or “sale at retail” shall mean asale to a consumer or to any other person for anypurpose other than for resale as tangible personalproperty, or for the lease of motor vehicles in anarm’s length transaction, and shall mean andinclude all such transactions as the collector,upon investigation, finds to be in lieu of sales;provided that sales for resale or for lease of motorvehicles in an arm’s length transaction must bemade in strict compliance with the rules and regu-lations. Any dealer making a sale for resale or forthe lease of motor vehicles, which is not in strictcompliance with the rules and regulations shallhimself be liable for and pay the tax.Amended by Acts 1996, No. 12, eff. July 1, 1996until July 1, 1998. Amended by Acts 1998, No. 10,eff. July 1, 1998 until July 1, 2000.Amended by Acts 2000, No. 28, eff. July 1, 2000through July 1, 2002.

The following version of R.S. 47:301(10)(a)(i)

and (ii) is effective July 1, 2002.

(10)(a)(i) For purposes of the imposition ofthe state sales and use tax “retail sale” or“sale at retail” means a sale to a consumeror to any other person for any purposeother than for resale as tangible personalproperty, or for the lease of automobiles inan arm’s length transaction, and shallmean and include all such transactions asthe secretary, upon investigation, finds tobe in lieu of sales; provided that sales forresale or for lease of automobiles in anarm’s length transaction must be made instrict compliance with the rules and regu-lations. Any dealer making a sale for re-sale or for the lease of automobiles, which

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18 August 2001

is not in strict compliance with the rulesand regulations, shall himself be liable forand pay the tax.

(ii) For purposes of the imposition of thesales and use tax levied by a politicalsubdivision or school board, “retail sale”or “sale at retail” shall mean a sale to aconsumer or to any other person for anypurpose other than for resale in the formof tangible personal property, and shallmean and include all such transactions asthe collector, upon investigation, finds tobe in lieu of sales; provided that sales forresale must be made in strict compliancewith the rules and regulations. Any dealermaking a sale for resale, which is not instrict compliance with the rules and regu-lations shall himself be liable for and paythe tax.Amended by Acts 1998, No. 10, eff. July 1,1998 until July 1, 2000.

Amended by Acts 2000, No. 28, eff. July 1, 2002

(iii) “Retail sale” or “sale at retail” for purposes ofsales and use taxes imposed by the state ontransactions involving the sale for rental of auto-mobiles which take place on or after January 1,1991, and by political subdivisions on such trans-actions on or after July 1, 1996, and state salesand use taxes imposed on transactions involvingthe lease or rental of tangible personal propertyother than automobiles which take place on orafter July 1, 1991, means a sale to a consumer orto any other person for any purpose other than forresale as tangible personal property, or for leaseor rental in an arm’s length transaction in theform of tangible personal property, and shallmean and include all such transactions as thesecretary, upon investigation, finds to be in lieu ofsales; provided that sales for resale or for lease orrental in an arm’s length transaction must bemade in strict compliance with the rules andregulations. Any dealer making a sale for resale orfor lease or rental, which is not in strict compli-ance with the rules and regulations, shall himselfbe liable for and pay the tax. For purposes of theimposition of the tax imposed by any politicalsubdivision of the state, for the period beginningon July 1, 1999, and ending on June 30, 2000, theterm “retail sale” or “sale at retail” shall notinclude one-fourth of the sales price of any tan-gible personal property which is sold in order to beleased or rented in an arm’s length transaction inthe form of tangible personal property. For pur-poses of the imposition of the tax imposed by anypolitical subdivision of the state, for the period

beginning on July 1, 2000, and ending on June30, 2001, the term “retail sale” or “sale at retail”shall not include one-half of the sales price of anytangible personal property which is sold in orderto be leased or rented in an arm’s length transac-tion in the form of tangible personal property. Forpurposes of the imposition of the tax imposed byany political subdivision of the state, for theperiod beginning on July 1, 2001, and ending onJune 30, 2002, the term “retail sale” or “sale atretail” shall not include three-fourths of the salesprice of any tangible personal property which issold in order to be leased or rented in an arm’slength transaction in the form of tangible per-sonal property. Beginning July 1, 2002, for thepurposes of imposition of the tax levied by anypolitical subdivision of the state, the term “retailsale” or “sale at retail” shall not include the sale ofany tangible personal property which is sold inorder to be leased or rented in an arm’s lengthtransaction in the form of tangible personal prop-erty.Amended by Acts 1999, No. 1266, eff. July 12,1999.

(iv) “Retail sale” or “sale at retail”, for purposes ofsales and use taxes imposed by the state ontransactions involving the sale for rental of auto-mobiles which take place prior to January 1,1991, and by political subdivisions on such trans-actions prior to July 1, 1996, and imposed ontransactions involving the lease or rental of tan-gible personal property other than autos whichtake place prior to July 1, 1991, and for purposesof local sales and use taxes levied by politicalsubdivisions except for transactions involving thesale for rental of automobiles on or after July 1,1996, means a sale to a consumer or to any otherperson for any purpose other than for resale in theform of tangible personal property, and shallmean and include all such transactions as thesecretary, upon investigation, finds to be in lieu ofsales; provided that sales for resale must be madein strict compliance with the rules and regula-tions. Any dealer making a sale for resale, whichis not in strict compliance with the rules andregulations, shall himself be liable for and pay thetax. However, contrary provisions of law notwith-standing, any political subdivision may, by ordi-nance, adopt the definition of “retail sale” or “saleat retail” provided in Item (iii) of this Subpara-graph for purposes of the imposition of its salesand use tax.

(b) The sale of tangible personal property to adealer who purchases said property for resalethrough coin-operated vending machines shall be

R.S. 47:301(10)(b)

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Louisiana Sales Tax Law and Regulations 19

considered a “sale at retail”, subject to the taxlevied by R.S. 47:302(A) and R.S. 47:321(A). Thesubsequent resale of the property by the dealerthrough coin-operated vending machines shallnot be considered a “sale at retail”.

(c)(i) The term “sale at retail” does not include saleof materials for further processing into articles oftangible personal property for sale at retail. Natu-ral gas when used in the production of iron in theprocess known as the “direct reduced iron pro-cess” is not a catalyst and is recognized by thelegislature to be a material for further processinginto an article of tangible personal property forsale at retail.Added by Acts 1995, No. 284, eff. July 1, 1995.

(ii) The term “sale at retail” does not include salesof electricity for chlor-alkali manufacturing pro-cesses, nor does it include an isolated or occa-sional sale of tangible personal property by aperson not engaged in such business.

(d) The term “sale at retail” does not include thesale of any human tissue transplants, which shallbe defined to include all human organs, bone,skin, cornea, blood, or blood products trans-planted from one individual into another recipi-ent individual.

(e) The term “sale at retail” does not include thesale of raw agricultural commodities, includingbut not limited to feed, seed, and fertilizer, to beutilized in preparing, finishing, manufacturing,or producing crops or animals for market. TheDepartment of Agriculture and Forestry shalldevelop and promulgate guidelines to determinewho meets this definition. Any person meetingsuch guidelines shall receive a certificate from theDepartment of Agriculture and Forestry indicat-ing that such person is eligible to purchase suchitems without paying tax thereon. The guidelinespromulgated pursuant to this Paragraph shallnot become effective prior to January 1, 1995.Added by Acts 1994, No. 29.

(f) Notwithstanding any other law to the contrary,for purposes of the imposition of the sales and usetax of any political subdivision, the sale of avehicle subject to the Vehicle Registration LicenseTax Law (R.S. 47:451 et seq.) shall be deemed tobe a “retail sale” or a “sale at retail”:

(i) In the political subdivision of the principalresidence of the purchaser if the vehicle is pur-chased for private use, or

(ii) In the political subdivision of the principallocation of the business if the vehicle is purchasedfor commercial use, unless the vehicle purchasedfor commercial use is assigned, garaged, andused outside of such political subdivision, inwhich case the sale shall be deemed a “retail sale”or a “sale at retail” in the political subdivisionwhere the vehicle is assigned, garaged, and used.Added by Acts 1989, No. 264, eff. August 1, 1989.

(g) The term “retail sale” does not include a sale ofcorporeal movable property which is intended forfuture sale to the United States government or itsagencies, when title to such property is trans-ferred to the United States government or itsagencies prior to the incorporation of that prop-erty into a final product.Added by Acts 1989, No. 833, eff. Sept. 3, 1989.

(h) The term “sale at retail” does not include thesale of food items by youth serving organizationschartered by congress.Added by Acts 1989, No. 10, eff. Sept. 8, 1989.

(i) The term “sale at retail” does not include thepurchase of a new school bus or a used school buswhich is less than five years old by an indepen-dent operator, when such bus is to be usedexclusively in a public school system. This exclu-sion shall apply to all sales and use taxes levied byany local political subdivision.Added by Acts 1990, No. 724, eff. July 1, 1990.

(j) The term “sale at retail” does not include thesale of tangible personal property to food banks,as defined in R.S. 9:2799.Added by Acts 1990, No. 817, eff. Sept. 7, 1990,and Acts 1992, No. 514, eff. August 21, 1992.

(k) The term “sale at retail” shall not include thesale of airplanes or airplane equipment or parts toa commuter airline domiciled in Louisiana.Enacted by Acts 1991, No. 772, eff. July 1, 1991.

(l) For purposes of the state sales and use tax, theterm “sale at retail” shall not include the sale of apollution control device or system. Pollution con-trol device or system shall mean any tangiblepersonal property approved by the Department ofRevenue and the Department of EnvironmentalQuality and sold or leased and used or intendedfor the purpose of eliminating, preventing, treat-ing, or reducing the volume or toxicity or potentialhazards of industrial pollution of air, water,groundwater, noise, solid waste, or hazardouswaste in the state of Louisiana. For the purposesof any sales and use tax levied by a political

R.S. 47:301(10)(l)

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20 August 2001

subdivision, the term “sale at retail” shall includethe sale of a pollution control device or system. Inorder to qualify, the pollution control device orsystem must demonstrate either: a net decreasein the volume or toxicity or potential hazards ofpollution as a result of the installation of thedevice or system; or that installation is necessaryto comply with federal or state environmentallaws or regulations.Enacted by Acts 1991, No. 1019, eff. Sept. 6,1991.

(m) The term “sale at retail” shall not include thesales of Louisiana manufactured or assembledpassenger aircraft with a capacity in excess of fiftypersons, if, after all transportation, includingtransportation by the purchaser, has been com-pleted, the aircraft is ultimately received by thepurchaser outside of Louisiana.Added by Acts 1992, No. 226, eff. August 21,1992.

(n) For purposes of sales and use taxes imposedor levied by the state or any political subdivisionthereof, the term “sale at retail” shall not includethe sales of pelletized paper waste when pur-chased for use as combustible fuel by an electricutility or in an industrial manufacturing, pro-cessing, compounding, reuse, or production pro-cess, including the generation of electricity orprocess steam, at a fixed location in this state.However, such sale shall not be excluded unlessthe purchaser has signed a certificate stating thatthe fuel purchased is for the exclusive use desig-nated herein. For purposes of this Subparagraph,“pelletized paper waste” means pellets producedfrom discarded waste paper that has been di-verted or removed from solid waste which is notmarketable for recycling and which is wetted,extruded, shredded, or formulated into compactpellets or various sizes for use as a supplementalfuel in a permitted boiler.Added by Acts 1992, No. 926, eff. July 1, 1993.

(o) For the purposes of sales and use taxes im-posed or levied by the state or any local govern-mental subdivision or school board, the term“sale at retail” shall not include the sale or pur-chase of equipment used in fire fighting by bonafide volunteer and public fire departments.Added by Acts 1994, No. 926, eff. July 1, 1992.Amended by Acts 1998, No. 37, eff. June 24,1998.

(p) For purposes of state and political subdivisionsales and use tax, the term “sale at retail” shallnot include the sale of items, including but not

limited to supplies and equipment, or the sale ofservices as provided in this Section, which arereasonably necessary for the operation of freehospitals.Added by Acts 1994, No. 6, eff. July 1, 1994.Amended by Acts 1996, No. 43, eff. July 1, 1996.

The text of R.S. 47:301(10)(q) does not apply to

transactions occurring from July 1, 2000

through June 30, 2001. It applies to transac-

tions occurring from July 1, 2001 through

June 30, 2003.

(q) For purposes of state and political subdivisionsales and use tax, the term “sale at retail” shallnot include:

(i) The sale of tangible personal property by ap-proved parochial and private elementary andsecondary schools which comply with the courtorder from the Dodd Brumfield decision andsection 501(c)(3) of the Internal Revenue Code, orstudents, administrators, or teachers, or otheremployees of the school, if the money from suchsales, less reasonable and necessary expensesassociated with the sale, is used solely and exclu-sively to support the school or its program orcurricula. This exclusion shall not be construedto allow tax-free sales to students or their familiesby promoters or regular commercial dealersthrough the use of schools, school faculty, orschool facilities.

(ii) The sale to approved parochial and privateelementary and secondary schools which complywith the court order from the Dodd Brumfielddecision and section 501(c)(3) of the InternalRevenue Code of educational materials or equip-ment used for classroom instruction limited tobooks, workbooks, computers, computer soft-ware, films, videos, and audio tapes.Added by Acts 1996, No. 15, eff. July 1, 1997 untilJuly 1, 1998.Amended by Acts 1998, No. 47, eff. July 1, 1998until July 1, 2000.Amended by Acts 2000, No. 33, eff. July 1, 2000

(r) For purposes of state and political subdivisionsales and use tax, the term “sale at retail” shallnot include the sale of tangible personal propertyto Boys State of Louisiana, Inc. and Girls State ofLouisiana, Inc. which is used by such organiza-tions for their educational and public serviceprograms for youth.Added by Acts 1996, No. 20, eff. July 1, 1996.

R.S. 47:301(10)(m)

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Louisiana Sales Tax Law and Regulations 21

(s) The term “sale at retail” or “retail sale”, forpurposes of sales and use taxes imposed by thestate or any political subdivision or other taxingentity, shall not include any charge, fee, money,or other consideration received, given, or paid forthe performance of funeral directing services. Forpurposes of this Subparagraph, “funeral direct-ing services” means the operation of a funeralhome, or by way of illustration and not limitation,any service whatsoever connected with the man-agement of funerals, or the supervision of hearsesor funeral cars, the cleaning or dressing of deadhuman bodies for burial, and the performance orsupervision of any service or act connected withthe management of funerals from time of deathuntil the body or bodies are delivered to thecemetery, crematorium, or other agent for thepurpose of disposition. However, such servicesshall not mean or include the sale, lease, rental,or use of any tangible personal property as thoseterms are defined in this Section.Added by Acts 2000, No. 47, eff. July 1, 2000.

(t) For purposes of sales and use taxes levied byany political subdivision of the state, the term“sale at retail” shall not include the transfer of titleto or possession of telephone directories by anadvertising company that is not affiliated with aprovider of telephone services if the telephonedirectories will be distributed free of charge to therecipients of the telephone directories.Added by Acts 2001, No. 874, eff. June 26, 2001.

(u) For purposes of sales and use taxes levied andimposed by local governmental subdivisions,school boards, and other political subdivisionswhose boundaries are not coterminous with thoseof the state, “sale at retail” by a person shall notmean or include the sale of tangible personalproperty if such sale is made under the provisionsof Medicare.Added by Acts 2001, No. 60, eff. July 1, 2001.

(11) “Retailer” means and includes every personengaged in the business of making sales at retailor for distribution, or use or consumption, orstorage to be used or consumed in this state.

(12) “Sale” means any transfer of title or posses-sion, or both, exchange, barter, conditional orotherwise, in any manner or by any means what-soever, of tangible personal property, for a consid-eration, and includes the fabrication of tangiblepersonal property for consumers who furnish,either directly or indirectly, the materials used infabrication work, and the furnishing, preparingor serving, for a consideration, of any tangible

personal property, consumed on the premises ofthe person furnishing, preparing or serving suchtangible personal property. A transaction wherebythe possession of property is transferred but theseller retains title as security for the payment ofthe price shall be deemed a sale.

(13)(a) “Sales price” means the total amount forwhich tangible personal property is sold, less themarket value of any article traded in includingany services, except services for financing, thatare a part of the sale valued in money, whetherpaid in money or otherwise, and includes the costof materials used, labor or service costs, exceptcosts for financing which shall not exceed thelegal interest rate and a service charge not toexceed six percent of the amount financed, andlosses; provided that cash discounts allowed andtaken on sales shall not be included, nor shall thesales price include the amount charged for laboror services rendered in installing, applying, re-modeling, or repairing property sold.

(b) The term ”sales price” shall not include anyamount designated as a cash discount or a rebateby the vendor or manufacturer of any new vehiclesubject to the motor vehicle license tax. Forpurposes of this Paragraph ”rebate” means anyamount offered by a vendor or manufacturer as adeduction from the listed retail price of the ve-hicle.Amended by Acts 1991, No. 350, eff. July 8, 1991.

(c) “Sales price” shall not include the first fiftythousand dollars of the sale price of new farmequipment used in poultry production.Amended by Acts 1991, No. 388, eff. July 8, 1991.

(d) Notwithstanding any other provision of law tothe contrary, for purposes of state and politicalsubdivision sales and use tax, the “sales price” ofrefinery gas and other petroleum byproduct, ex-cept for feedstock, not ultimately consumed as anenergy source by the person who owns the facilityin which the refinery gas or other petroleumbyproduct is created as provided for in Subpara-graph (18)(d) of this Section, but sold to anotherperson, whether at retail, wholesale, or for furtherprocessing, shall be the average of the monthlyspot market price per thousand cubic feet ofnatural gas delivered into pipelines in Louisianaas reported by the Natural Gas Clearing Houseand as determined by the Department of Revenueand Taxation for natural gas severance tax pur-poses at the time of such sale, or the price forwhich such property is actually sold, whichever isgreater, and such sale shall be taxable.

R.S. 47:301(13)(d)

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22 August 2001

Added by Acts 1996, No. 29, eff. July 1, 1996.

(e) The term “sales price”, for purposes of the salestax imposed by the state and its political subdivi-sions, shall exclude any amount that a manufac-turer pays directly to a dealer of the manufacturer’sproduct for the purpose of reducing and thatactually results in an equivalent reduction in theretail “sales price” of that product. This exclusionshall not apply to the value of the manufacturer’scoupons that dealers accept from purchasers aspart payment of the “sales price” and that areredeemable by the dealers through manufactur-ers or their agents. The value of such coupons isdeemed to be part of the “sales price” of theproduct purchased through the use of the cou-pons.Added by Acts 1996, No. 33, eff. July 1, 1996.

(f) The term “sales price” shall exclude any charge,fee, money, or other consideration received, givenor paid for the performance of funeral directingservices as defined in Subparagraph (10)(s) of thisSection.Added by Acts 2000, No. 47, eff. July 1, 2000.

(14) “Sales of services” means and includes thefollowing:

(a) The furnishing of sleeping rooms, cottages orcabins by hotels.

(b)(i) The sale of admissions to places of amuse-ment, to athletic entertainment other than that ofschools, colleges, and universities, and recre-ational events, and the furnishing, for dues, fees,or other consideration of the privilege of access toclubs or the privilege of having access to or the useof amusement, entertainment, athletic, or recre-ational facilities; but the term “sales of services”shall not include membership fees or dues ofnonprofit, civic organizations, including by way ofillustration and not of limitation the Young Men’sChristian Association, the Catholic Youth Orga-nization, and the Young Women’s Christian Asso-ciation.

(ii) Places of amusement shall not include “muse-ums”, which are hereby defined as public orprivate nonprofit institutions which are orga-nized on a permanent basis for essentially educa-tional or aesthetic purposes and which useprofessional staff to do all the following:

Note: Section 1. It is the intention of the

Legislature that the provisions of Act 796 of

the 1989 Regular Session of the Legislature

restate and clarify that sales of admissions to

“museums”, as that term is defined by

R.S.47:301(14)(b)(ii), were not intended to have

been included in the application of the sales

tax since the original enactment of such tax,

and that, therefore, the provisions of Act 796

shall be remedial, shall have retroactive effect

and shall apply to admissions to such muse-

ums sold prior to September 3, 1989, as well as

admissions sold after that date. The Depart-

ment shall cease to attempt to collect sales tax

on admissions to such museums sold prior to

September 3, 1989 and shall withdraw tax

assessments and terminate litigation seeking

to collect tax on such admissions or seeking a

return of taxes on such admissions collected

under protest.

Section 2. No taxpayer shall be due a refund

pursuant to this Section unless it shall have

paid any taxes under protest and instituted

suit for the refund of those taxes prior to

January 1, 1990.

Section 3. This Act shall become effective

upon signature by the governor or, if not

signed by the governor, upon expiration of the

time for bills to become law.

Enacted by Acts 1991, No. 172.

(aa) Own or use tangible objects, whether animateor inanimate.

(bb) Care for those objects.

(cc) Exhibit them to the public on a regular basis.

(iii) Museums include but are not limited to thefollowing institutions:

(aa) Museums relating to art, history, includinghistoric buildings, natural history, science, andtechnology.

(bb) Aquariums and zoological parks.

(cc) Botanical gardens and arboretums.

(dd) Nature centers.

(ee) Planetariums.Amended by Acts 1989, No. 796, §1, eff. Sept. 3,1989.

(iv) For purposes of the sales and use taxes of alltax authorities in the state, the term “places of

R.S. 47:301(13)(e)

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Louisiana Sales Tax Law and Regulations 23

amusement” as used herein shall not includecamp and retreat facilities owned and operatedfor religious purposes by nonprofit religious orga-nizations, which includes recognized domesticnonprofit corporations organized for religiouspurposes, provided that the net revenue derivedfrom the organization’s property is devoted whollyto religious purposes.Added by Acts 1998, No. 40, eff. August 15, 1998.

(c) The furnishing of storage or parking privilegesby auto hotels and parking lots;

(d) The furnishing of printing or overprinting,lithographic, multilith, blue printing, photostat-ing or other similar services of reproducing writ-ten or graphic matter;

(e) The furnishing of laundry, cleaning, pressingand dyeing services, including by way of exten-sion and not of limitation, the cleaning and reno-vation of clothing, furs, furniture, carpets andrugs, and the furnishing of storage space forclothing, furs and rugs.

(f) The furnishing of cold storage space and thefurnishing of the service of preparing tangiblepersonal property for cold storage, where suchservice is incidental to the operation of storagefacilities; and

(g)(i) The furnishing of repairs to tangible personalproperty, including but not restricted to the re-pair and servicing of automobiles and other ve-hicles, electrical and mechanical appliances andequipment, watches, jewelry, refrigerators, ra-dios, shoes, and office appliances and equipment.Charges for the furnishing of repairs to tangiblepersonal property may be excluded from sales ofservices, as defined in this Subparagraph, whenthe repaired property is delivered to the customerin another state either by common carrier or therepair dealer’s own vehicle, however, as to air-craft, delivery may be by the best available means.This exclusion shall not apply to sales and usetaxes levied by any parish, municipality or schoolboard. However, any parish, municipality or schoolboard may apply the exclusion as defined in thisSubparagraph to sales or use taxes levied by anysuch parish, municipality, or school board. Off-shore areas shall not be considered another statefor the purpose of this Subparagraph.Amended by Acts 1990, No. 409, eff. Sept. 7,1990.

(ii) For the purposes of this Subparagraph, tan-gible personal property shall include machinery,

appliances, and equipment which have been de-clared immovable by declaration under the provi-sions of Article 467 of the Louisiana Civil Code,and things which have been separated from land,buildings, or other constructions permanentlyattached to the ground or their component partsas defined in Article 466 of the Civil Code.

(h) The term “sale of service” shall not include anaction performed pursuant to a contract with theUnited States Department of the Navy for con-struction or overhaul of U.S. Naval vessels.Added by Acts 1989, No. 833, eff. Sept. 3, 1989.

(i)(i) The furnishing of telecommunication ser-vices for compensation.

(ii) Except as otherwise provided in this Subpara-graph, the term “ telecommunication services”means:

(aa) Local telephone service, private communica-tion service, toll telephone service, including suchservice provided by alternate operator serviceproviders, and teletypewriter or computer ex-change service.

Text of subitem (14)(i)(ii)(bb) effective until

August 2, 2002.

(bb) Cellular mobile telephone or telecommunica-tion service, specialized mobile radio or pagingservice, and any other form of mobile or portableone- way or two-way communication.

Text of subitem (14)(i)(ii)(bb) as amended by

Acts 2001, No. 1175 §1, effective August 2,

2002 until or unless repealed on date of final

judgment that substantially limits or impairs

essential elements of §§ 1 or 2 of Act 1175.

(bb) Mobile telecommunications service whichmeans a mobile service that is provided for profit,is an interconnected service, and is available tothe public or to such classes of eligible users as tobe effectively available to a substantial portion ofthe public; or which is the functional equivalent ofsuch a mobile service. Mobile telecommunica-tions services provided by a customer’s homeservice provider shall be subject to the tax im-posed by this Chapter when the customer’s placeof primary use is in this state. In the case of mobiletelecommunications service:

R.S. 47:301(14)(i)

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24 August 2001

(I) “Charges for mobile telecommunications ser-vice” means any charge for, or associated with,the provision of mobile telecommunications ser-vice, or any charge for, or associated with, aservice provided as an adjunct to a mobile tele-communications service, that is billed to thecustomer by or for the customer’s home serviceprovider regardless of whether individual trans-missions originate or terminate within the li-censed service area of the home service provider.

(II) “Customer” means any person or entity thatcontracts with a home service provider or the enduser of the mobile telecommunications service ifthe end user is not the person or entity thatcontracts with the home service provider for mo-bile telecommunications service.

(III) “Designated database provider” means a cor-poration, association, or other entity represent-ing all of the political subdivisions of the state andthat is:

(aaa) Responsible for providing an electronic da-tabase if the state has not provided the database.

(bbb) Approved by municipal and parish govern-ing authorities of the state whose responsibility itwould otherwise be to provide the electronic data-base.

(IV) “Electronic database” means the databaseprovided to the home service provider. The elec-tronic database may be provided by the state or ifthe state does not provide such a database tohome service providers, then by the designateddatabase provider.

(aaa) Such electronic database, whether providedby the state or the designated database provider,shall be provided in a format approved by theAmerican National Standards Institute’s Accred-ited Standards Committee X12, that, allowing forde minimis deviations, designates for each streetaddress in the state, including to the extentpracticable, any multiple postal street addressesapplicable to one street location, the appropriatetaxing jurisdictions, and the appropriate code foreach taxing jurisdiction, for each level of taxingjurisdiction, identified by one nationwide stan-dard numeric code. Such electronic databaseshall also provide the appropriate code for eachstreet address with respect to political subdivi-sions that are not taxing jurisdictions when rea-sonably needed to determine the proper taxingjurisdiction. The nationwide standard numericcodes shall contain the same number of numeric

digits with each digit or combination of digitsreferring to the same level of taxing jurisdictionthroughout the United States using a formatsimilar to FIPS 55-3 or other appropriate stan-dard approved by the Federation of Tax Adminis-trators and the Multistate Tax Commission, ortheir respective successors. Each address mustbe provided in standard postal format.

(bbb) The state or the designated database pro-vider that provides or maintains the electronicdatabase shall provide notice of the availability ofthe then current electronic database and anysubsequent revisions thereof, by publication inthe manner normally employed for the publica-tion of informational tax, charge, or fee notices totaxpayers in the state.

(ccc) The home service provider using the datacontained in the electronic database shall not beliable for any tax, charge, or fee liability thatotherwise would be due solely as a result of anyerror or omission in the database provided by thestate or designated database provider, subject tothe provisions of R.S. 47:301(14)(i)(ii)(bb)(XI)(fff)and (ggg). The home service provider shall reflectchanges made to the database during the calen-dar quarter no later than thirty days after the endof the quarter.

(ddd) If neither the state nor designated databaseprovider provides an electronic database, a homeservice provider shall not be liable for any tax,charge, or fee liability in the state that otherwisewould be due solely as a result of an assignmentof a street address to an incorrect taxing jurisdic-tion if, subject to R.S. 47:301(14)(i)(ii)(bb)(XI)(fff)and (ggg), the home service provider employs anenhanced zip code to assign each street addressto a specific taxing jurisdiction for each level oftaxing jurisdiction and exercises due diligence ateach level of taxing jurisdiction to ensure thateach such street address is assigned to the cor-rect taxing jurisdiction. If an enhanced zip codeoverlaps boundaries of taxing jurisdictions of thesame level, the home service provider must desig-nate one specific jurisdiction within such en-hanced zip code for use in taxing the activity forsuch enhanced zip code for each level of taxingjurisdiction. Any enhanced zip code assignmentchanged in accordance with R.S.47:301(14)(i)(ii)(bb)(XI)(fff) or (ggg) is deemed to bein compliance with this Section. The protectionprovided in this Subsubitem (IV)(ddd) given tohome service providers that are in compliancewith this Subsubitem (IV)(ddd) shall apply untilthe later of eighteen months after the nationwide

R.S. 47:301(14)(i)

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Louisiana Sales Tax Law and Regulations 25

standard numeric code described in R.S.47:301(14)(i)(ii)(bb)(IV)(aaa) has been approvedby the Federation of Tax Administrators and theMultistate Tax Commission; or six months afterthe state or a designated database provider in thestate provides such electronic database.

(eee) For purposes of R.S.47:301(14)(i)(ii)(bb)(IV)(ddd), there is a rebuttablepresumption that a home service provider hasexercised due diligence if such home service pro-vider demonstrates that it has expended reason-able resources to implement and maintain anappropriately detailed electronic database of streetaddress assignments to taxing jurisdictions; imple-mented and maintained reasonable internal con-trols to promptly correct misassignments of streetaddresses to taxing jurisdictions; and used allreasonable obtainable and usable data pertainingto municipal annexations, incorporations, reor-ganizations and any other changes in jurisdic-tional boundaries that materially affect theaccuracy of such database.

(V) “Enhanced zip code” means a United Statespostal zip code of 9 or more digits.

(VI) “Home service provider” means the facilities-based carrier or reseller with which the customercontracts for the provision of mobile telecommu-nications services.

(VII) “Interconnected” means a direct or indirectconnection through automatic or manual means,by wire, microwave, or other technologies such asstore and forward, to permit the transmission orreception of messages or signals to or from pointsin the public switched network.

(VIII)(aaa) “Interconnected service” means a ser-vice that is interconnected with the public switchednetwork or interconnected with the public switchednetwork through an interconnected service pro-vider that gives subscribers the capability tocommunicate to or receive communication fromall other users on the public switched network orfor which a request for interconnection is pendingwith the Federal Communications Commission.

(bbb) A mobile service is deemed to offer intercon-nected service even if the service allows subscrib-ers to access the public switched network onlyduring specified hours of the day, or if the serviceprovides general access to points on the publicswitched network but also restricts access incertain limited ways. Interconnected service doesnot include any interface between a licensee’s

facilities and the public switched network exclu-sively for a licensee’s internal control purposes.

(IX) “Licensed service area” means the geographicarea in which the home service provider is autho-rized by law or contract to provide mobile telecom-munications service to the customer.

(X) “Mobile service” means a radio communica-tion service carried on between mobile stations orreceivers and land stations, and by mobile sta-tions communicating among themselves, and in-cludes:

(aaa) One-way and two-way radio communica-tions services.

(bbb) A mobile service that provides a regularlyinteracting group of base, mobile, portable, andassociated control and relay stations, whetherlicensed on an individual, cooperative, or mul-tiple basis, for private one-way or two- way landmobile radio communications by eligible usersover designated areas of operation.

(ccc) Any service for which a license issued by theFederal Communications Commission is requiredin a personal communications service.

(XI) “Place of primary use” of mobile telecommu-nications service shall be the street address rep-resentative of where the customer’s use of mobiletelecommunications service primarily occurs.

(aaa) This address must be within the licensedservice area of the home service provider andmust be either the residential or the primarybusiness street address of the customer.

(bbb) The home service provider shall be respon-sible for obtaining and maintaining the customer’splace of primary use.

(ccc) The home service provider shall be entitled totreat the address used by the home service pro-vider for tax purposes for any customer under aservice contract or agreement in effect on August1, 2002, as that customer’s place of primary usefor the remaining term of such service contract oragreement, excluding any extension or renewal ofsuch service contract or agreement, for purposesof determining the taxing jurisdictions to whichtaxes, charges, or fees on charges for mobiletelecommunications services are remitted unlessa taxing jurisdiction or the state has given thehome service provider a notice of determination

R.S. 47:301(14)(i)

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26 August 2001

as set forth in R.S. 47:301(14)(i)(ii)(bb)(XI)(fff) or(ggg).

(ddd) If the home service provider’s reliance oninformation provided by its customer is in goodfaith, it shall be entitled to rely on the applicableresidential or business street address supplied bythe customer as the place of primary use unlessa taxing jurisdiction or the state has given thehome service provider a notice of determinationas set forth in R.S. 47:301(14)(i)(ii)(bb)(XI)(fff) or(ggg).

(eee) If the home service provider’s reliance oninformation provided by its customer regardingthe customer’s place of primary use is in goodfaith, it shall not be liable for any additional taxes,charges, or fees based on a different determina-tion of the place of primary use for taxes, charges,or fees that are customarily passed on to thecustomer as a separate itemized charge unless ataxing jurisdiction or the state has given the homeservice provider a notice of determination as setforth in R.S. 47:301(14)(i)(ii)(bb)(XI)(fff) or (ggg).

(fff) A taxing jurisdiction, or the state on behalf ofany taxing jurisdiction or taxing jurisdictionswithin the state, may determine that the addressused for purposes of determining the taxing juris-dictions to which taxes, charges, or fees for mobiletelecommunications services are remitted doesnot meet the definition of place of primary use andgive binding notice to the home service provider tochange the place of primary use on a prospectivebasis from the date of notice of determination.However, if the taxing jurisdiction making suchdetermination is not the state, such taxing juris-diction shall obtain the consent of all affectedtaxing jurisdictions within the state and shall givethe customer an opportunity to demonstrate inaccordance with applicable state or local tax,charge, or fee administrative procedures that theaddress is the customer’s place of primary usebefore giving such notice of determination.

(ggg) A taxing jurisdiction, or the state on behalfof any taxing jurisdiction or taxing jurisdictionswithin the state, may determine that the assign-ment of a taxing jurisdiction by a home serviceprovider under R.S. 47:301(14)(i)(ii)(bb)(IV)(ddd)does not reflect the correct taxing jurisdiction andgive binding notice to the home service provider tochange the assignment on a prospective basisfrom the date of notice of determination. However,if the taxing jurisdiction making the determina-tion is not the state, it must obtain the consent ofall affected taxing jurisdiction s within the state

and give the home service provider an opportunityto demonstrate in accordance with applicablestate or local tax, charge, or fee administrativeprocedures that the assignment reflects the cor-rect taxing jurisdiction before giving such noticeof determination.

(hhh) If a customer believes that an amount of taxor assignment of place of primary use or taxingjurisdiction included on a billing is erroneous,before seeking any other remedy the customershall notify the home service provider in writing.The customer shall include in this written notifi-cation the street address for his place of primaryuse, the account name and number for which thecustomer seeks a correction of the tax assign-ment, a description of the error asserted by thecustomer, and any other information that thehome service provider reasonably requires toprocess the request. Within sixty days of receivinga notice under this Section, the home serviceprovider shall review its records and the elec-tronic database or enhanced zip code used todetermine the customer’s taxing jurisdiction. Ifthis review shows that the amount of tax, assign-ment of place of primary use, or taxing jurisdic-tion is in error, the home service provider shallcorrect the error and refund or credit the amountof tax erroneously collected from the customer fora period of up to two years. If this review showsthat the amount of tax, assignment of place ofprimary use, or taxing jurisdiction is correct, thehome service provider shall provide a writtenexplanation to the customer.

(iii) If the customer is dissatisfied with the re-sponse of the home service provider under thisSection, the customer may seek a correction orrefund from the taxing jurisdiction affected.

(XII) “Prepaid telephone calling service” meansthe right to exclusively purchase telecommunica-tions services that must be paid for in advance,and that enable the origination of calls using anaccess number, authorization code, or both,whether manually or electronically dialed, if theremaining amount of units of service that havebeen prepaid is known by the provider of theprepaid service on a continuous basis.

(XIII) “Reseller”

(aaa) Means a provider who purchases telecom-munications services from another telecommuni-cations service provider and then resells, uses asa component part of, or integrates the purchased

R.S. 47:301(14)(i)

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Louisiana Sales Tax Law and Regulations 27

services into a mobile telecommunications ser-vice; and

(bbb) Does not include a serving carrier withwhich a home service provider arranges for theservices to its customers outside the home serviceprovider’s licensed service area.

(XIV) “Serving carrier” means a facilities-basedcarrier providing mobile telecommunications ser-vice to a customer outside a home service provider’sor reseller’s licensed service area.

(XV)(aaa) If a mobile telecommunications serviceis not subject to the taxes levied by the statepursuant to R.S. 47:302(C) and R.S. 47:331(C) ortaxes levied by other taxing jurisdictions, and ifthe amount paid or charged for such mobiletelecommunications service is aggregated withand not separately stated from the amount paidor charged for any service that is subject to suchtaxes, then the nontaxable mobile telecommuni-cations service shall be treated as being subject tosuch taxes unless the home service provider canreasonably identify the amount paid or chargedfor the mobile telecommunications service notsubject to such taxes from its books and recordskept in the regular course of business.

(bbb) If a mobile telecommunications service isnot subject to the taxes levied by the state pursu-ant to R.S. 47:302(C) and 331(C) or by othertaxing jurisdictions, a customer may not relyupon the nontaxability of such mobile telecom-munications service unless the customer’s homeservice provider separately states the amountcharged for such nontaxable mobile telecommu-nications service or the home service providerelects, after receiving a written request from thecustomer in the form required by the provider, toprovide verifiable data based upon the homeservice provider’s books and records that are keptin the regular course of business that reasonablyidentifies the amount charged or paid for suchnontaxable mobile telecommunications service.

Text of subitem (14)(i)(ii)(bb) as amended by

Acts 2001, No. 1175, § 3, effective on date of

final judgment that substantially limits or

impairs essential elements of §§ 1 or 2 of Act

1175.

(bb) Cellular mobile telephone or telecommunica-tion service, specialized mobile radio or pagingservice, and any other form of mobile or portableone- way or two-way communication.

Text of clause (14)(i)(ii)(cc)(I) effective until

August 2, 2002.

(cc)(I) Interstate telecommunication services; how-ever, only the amounts paid for interstate tele-communication services which either originate orterminate in this state and which are charged toa service address in this state, regardless of wheresuch amounts are billed or paid, shall be subjectto the tax imposed by this Chapter.

Text of clause (14)(i)(ii)(cc)(I) as amended by

Acts 2001, No. 1175, § 1, effective August 2,

2002 until or unless repealed on date of final

judgment that substantially limits or impairs

essential elements of §§ 1 or 2 of Act 1175.

(cc)(I) Interstate telecommunication services; how-ever, only the amounts paid for interstate tele-communication services which either originate orterminate in this state and which are charged toa service address in this state, regardless of wheresuch amounts are billed or paid, shall be subjectto the tax imposed by this Chapter. Notwithstand-ing the foregoing, all mobile telecommunicationsservices shall be taxed as set forth in Subitem(14)(i)(ii)(bb) of this Section.

Text of clause (14)(i)(ii)(cc)(I) as amended by

Acts 2001, No. 1175, § 3, effective on date of

final judgment that substantially limits or

impairs essential elements of §§ 1 or 2 of Act

1175.

(cc)(I) Interstate telecommunication services; how-ever, only the amounts paid for interstate tele-communication services which either originate orterminate in this state and which are charged toa service address in this state, regardless of wheresuch amounts are billed or paid, shall be subjectto the tax imposed by this Chapter.

(II) Notwithstanding any provision of law to thecontrary, with respect to sales of interstate tele-communication services to any person for use inthe operation of one or more call centers:

(aaa) The tax imposed pursuant to this Chaptershall not apply to such sales reflected on billssubmitted prior to July 1, 2003.

R.S. 47:301(14)(i)

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28 August 2001

(bbb) The tax imposed pursuant to this Chaptershall not exceed twenty-five thousand dollars percalendar year with respect to such sales reflectedon bills submitted on or after July 1, 2003.

(ccc) For purposes of applying the limitation setforth in R.S. 47:301(14)(i)(ii)(cc)(II)(bbb), all enti-ties wholly owned by the same person or entityshall be considered a single person.

(III) For purposes of R.S. 47:301(14)(i)(ii)(cc)(II),the term “call center” means one or more loca-tions that utilize telecommunication services inone or more of the following activities: customerservices, soliciting sales, reactivating dormantaccounts, conducting surveys or research, fundraising, collection of receivables, receiving reser-vations, receiving orders, or taking orders. Thelimitations set forth in R.S. 47:301(14)(i)(ii)(cc)(II)shall apply only to holders of a direct paymentnumber issued by the department pursuant toR.S. 47:303.1. In order to obtain such directpayment number, the applicant must establishthat it satisfies the criteria set forth in R.S. 47:301(14)(i)(ii)(cc)(II). The provisions of R.S. 47:47:303.1(B)(1) and (3) shall not apply to anyapplication for a direct payment number underR.S. 47:301 (14)(i)(ii)(cc)(II). The department shallnot issue any refunds of taxes paid prior toreceiving a direct payment number.

(dd) Charges for the connection of or change toany of the services described in Subitems (aa),(bb), or (cc) of this Item.

(iii) The term “telecommunication services” shallnot include:

(aa) Telecommunication services paid for by in-serting coins in coin-operated telephones avail-able to the public;

(bb) Any excise, franchise, or similar tax or like feeor assessment levied by the United States, by thestate of Louisiana, or by any political subdivisionas defined in Article VI, Section 44(2) of theConstitution of Louisiana, upon the purchase,sale, use, or consumption of any telecommunica-tion services, which tax, fee, or assessment iscollected by the seller from the purchaser.

(cc) Repealed by Acts 2000, No. 22, § 9, effectiveJune 15, 2000.

Subitem (14)(i)(iii)(cc) as enacted by Acts 2000,

No. 22, § 8, effective pursuant to § 14 of Act 22

following legislative or judicial determination.

(cc) Any interstate telecommunication services,or any telecommunication services for which ratesare approved by or subject to approval by theFederal Communications Commission, includinginterstate subscriber line charges.

Text of subitem (14)(i)(iii)(dd) effective until

August 2, 2002.

(dd) The furnishing of any telecommunicationservices for resale, including charges for the useof intercompany facilities pursuant to sharednetwork facility arrangements, access chargespaid by intrastate or interstate interexchangetelecommunications carriers and interconnec-tion charges paid by providers of cellular, mobile,and paging telecommunication services, providedthat any dealer making a sale of telecommunica-tion services for resale shall obtain a certificatefrom the purchaser of such services certifyingthat such services are purchased for the purposeof resale, the form of the certification to be deter-mined by rules and regulations to be promulgatedby the secretary.

Text of subitem (14)(i)(ii)(dd) as amended by

Acts 2001, No. 1175, § 1, effective August 2,

2002 until or unless repealed on date of final

judgment that substantially limits or impairs

essential elements of §§ 1 or 2 of Act 1175.

(dd) The furnishing of any telecommunicationservices for resale, including charges for the useof intercompany facilities pursuant to sharednetwork facility arrangements, access chargespaid by intrastate or interstate interexchangetelecommunications carriers and interconnec-tion charges paid by providers of any mobiletelecommunications service, provided that anydealer making a sale of telecommunication ser-vices for resale shall obtain a certificate from thepurchaser of such services certifying that suchservices are purchased for the purpose of resale,the form of the certification to be determined byrules and regulations to be promulgated by thesecretary.

R.S. 47:301(14)(i)

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Louisiana Sales Tax Law and Regulations 29

Text of subitem (14)(i)(ii)(dd) as amended by

Acts 2001, No. 1175, § 3, effective on date of

final judgment that substantially limits or

impairs essential elements of §§ 1 or 2 of Act

1175.

(dd) The furnishing of any telecommunicationservices for resale, including charges for the useof intercompany facilities pursuant to sharednetwork facility arrangements, access chargespaid by intrastate or interstate interexchangetelecommunications carriers and interconnec-tion charges paid by providers of cellular, mobile,and paging telecommunication services, providedthat any dealer making a sale of telecommunica-tion services for resale shall obtain a certificatefrom the purchaser of such services certifyingthat such services are purchased for the purposeof resale, the form of the certification to be deter-mined by rules and regulations to be promulgatedby the secretary.

(ee) Services or transactions defined in this Sub-paragraph among entities classified as membersof an affiliated group as provided by federal law(26 U.S.C. Section 1504), provided, however, thatthese provisions shall not apply to any servicesthat would have been taxable under this Chapteras it existed on October 1, 1990.

(ff) Information and data services, including stor-age of data or information for subsequent re-trieval, the retrieval of data or information, or theprocessing, or reception and processing, of dataor information intended to change its form orcontent.

For effective date of subitem (14)(i)(iii)(gg) as

enacted by Acts 1998, No. 58 and by Acts

2000, No. 22, § 8, see subparagraph (16)(d).

(gg) Telecommunication services paid for in ad-vance by the purchase of a prepaid telephonecalling card or prepaid authorization number asprovided for in Subparagraph (16)(d) of this Sec-tion.

(iv) For the purposes of this Subparagraph, thefollowing definitions shall apply:

(aa) The term “local telephone service” means theaccess to a local telephone system and the privi-lege of telephonic-quality communication withsubstantially all persons having telephone or

radio telephone stations constituting a part ofsuch local telephone system.

(bb) The term “teletypewriter or computer ex-change service” means the access from a teletype-writer, telephone, computer, or other data stationand the privilege of intercommunication by suchstation with substantially all persons having tele-typewriter, telephone, computer, or other datastations constituting a part of the same teletype-writer or computer exchange system. The term“teletypewriter or computer exchange service”does not include the storage of data or informa-tion for subsequent retrieval, the retrieval of dataor information, or the processing, or receptionand processing, of data or information intendedto change its form or content.

(cc) The term “toll telephone service” means: atelephonic-quality communication for which thereis a toll charge that varies in amount according tothe distance and elapsed transmission time ofeach individual communication; or a service thatentitles the subscriber or user, upon the paymentof a periodic charge that is determined as a flatamount or upon the basis of total elapsed trans-mission time, or upon some combination thereof,to the privilege of an unlimited number of tele-phonic communications to or from all or a sub-stantial portion of the persons having telephoneor radio telephone stations in a specified areawhich is outside the local telephone system areain which the station provided with this service islocated. The term “toll telephone service” includesintrastate wide-area telephone service charges.

(dd) The term “private communication service”means a communication service furnished to aregular subscriber or user that entitles the sub-scriber or user to exclusive or priority use of acommunication channel or group of channels, orto the use of an intercommunication system forthe subscriber’s stations, regardless of whethersuch channel, groups of channels, or intercom-munication system may be connected throughswitching with a service described in subitems(aa), (bb), or (cc) of this Item (iv); switching capac-ity, extension lines, and stations, or other associ-ated services which are provided in connectionwith, and which are necessary or unique to theuse of, channels or systems described in thisclause; or the channel mileage which connects atelephone station located outside a local tele-phone system area with a central office in suchlocal telephone system.

R.S. 47:301(14)(i)

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30 August 2001

(ee) The term “alternate operator service provider”means any reseller of toll telephone service, asdefined in subitem (cc) of this Item (iv), thatprovides live or mechanical operator assistance tothe end user of such toll telephone service.

(ff) The term “interstate telecommunication ser-vices” means any telecommunication service whichoriginates in this state but does not terminate inthis state or which terminates in this state butdoes not originate in this state.

Text of item (14)(i)(v) effective until repeal

following legislative or judicial determination

as specified in Acts 2000, No. 22, § 14.

(v) To prevent actual multistate taxation of aninterstate telecommunication service subject totaxation under this Chapter, any taxpayer, uponproof that such taxpayer has paid a tax in anotherstate on such service, shall be allowed a creditagainst the tax imposed by this Chapter to theextent of the amount of such tax paid in suchother state.

(vi)(aa) Local political subdivisions are prohibitedfrom levying a sales and use tax on telecommuni-cation services not in effect on July 1, 1990.

(bb) The provisions of this Subparagraph shallnot be construed to prohibit the levy or collectionof any franchise, excise, gross receipts, or similartax or assessment by any political subdivision ofthe state as defined in Article VI, Section 44(2) ofthe Constitution of Louisiana.

(j) Notwithstanding any provision of law to thecontrary, for purposes of sales or use taxation bythe state or any local political subdivision, theterm “sales of services” shall not mean or includeany funeral directing services as defined in Sub-paragraph (10)(s) of this Section. Subject to ap-proval by the House Committee on Ways andMeans and the Senate Committee on Revenueand Fiscal Affairs, the state Department of Rev-enue shall devise a formula for the calculation ofthe tax.Added by Acts 2000, No. 47, eff. July 1, 2000.

(15) “Storage” means and includes any keeping orretention in this state of tangible personal prop-erty for use or consumption in this state or for anypurpose other than for sale at retail in the regularcourse of business.

(16)(a) “Tangible personal property” means andincludes personal property which may be seen,weighed, measured, felt or touched, or is in anyother manner perceptible to the senses.

(b) The term “tangible personal property” shall notinclude:

(i) Stocks, bonds, notes, or other obligations orsecurities.

(ii) Gold, silver, or numismatic coins, or platinum,gold, or silver bullion having a total value of onethousand dollars or more.

(iii) Proprietary geophysical survey information orgeophysical data analysis furnished under a re-stricted use agreement even though transferredin the form of tangible personal property.

(c) The term “tangible personal property” shall notinclude the repair of a vehicle by a licensed motorvehicle dealer which is performed subsequent tothe lapse of the applicable warranty on thatvehicle and at no charge to the owner of thevehicle. For the purpose of assessing a sales anduse tax on this transaction, no valuation shall beassigned to the services performed or the partsused in the repair.Amended by Acts 1991, No. 292, eff. July 1, 1992,and Acts 1992, No. 884, eff. Aug. 21, 1992.

(d)(i) Notwithstanding any provision of law to thecontrary and for state purposes only, any sale ofa prepaid telephone calling card or prepaid au-thorization number, or both, shall be deemed tobe the sale of tangible personal property.

Text of item (16)(d)(ii) effective until August 2,

2002.

(ii) Unless the sale of a prepaid telephone callingcard or prepaid authorization number occurs atthe vendor’s place of business, it shall be conclu-sively presumed that the retail sale has occurredat the customer’s shipping address. The reautho-rization of a prepaid telephone calling card or aprepaid authorization number shall be conclu-sively presumed to be a retail sale which occurs atthe customer’s billing address.

Text of item (16)(d)(ii) as amended by Acts

2001, No. 1175, § 1, effective August 2, 2002

until or unless repealed on date of final judg-

R.S. 47:301(14)(j)

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Louisiana Sales Tax Law and Regulations 31

ment that substantially limits or impairs es-

sential elements of §§ 1 or 2 of Act 1175.

(ii) Unless the sale of a prepaid telephone callingcard or prepaid authorization number occurs atthe vendor’s place of business, it shall be conclu-sively presumed that the retail sale has occurredat the customer’s shipping address. The reautho-rization of a prepaid telephone calling card or aprepaid authorization number shall be conclu-sively presumed to be a retail sale which occurs atthe customer’s billing address, except in the caseof the reauthorization of a prepaid calling card ora prepaid authorization number used exclusivelyfor mobile telecommunications service in whichcase it shall be conclusively presumed to be aretail sale which occurs at the mobile telecommu-nications service customer’s place of primary use.

Text of item (16)(d)(ii) as amended by Acts

2001, No. 1175, § 3, effective on date of final

judgment that substantially limits or impairs

essential elements of §§ 1 or 2 of Act 1175.

(ii) Unless the sale of a prepaid telephone callingcard or prepaid authorization number occurs atthe vendor’s place of business, it shall be conclu-sively presumed that the retail sale has occurredat the customer’s shipping address. The reautho-rization of a prepaid telephone calling card or aprepaid authorization number shall be conclu-sively presumed to be a retail sale which occurs atthe customer’s billing address.

(e) The term “tangible personal property” shall notinclude work products which are written on pa-per, stored on magnetic or optical media, ortransmitted by electronic device, when such workproducts are created in the normal course ofbusiness by any person licensed or regulated bythe provisions of Title 37 of the Louisiana RevisedStatutes of 1950, unless such work products areduplicated without modification for sale to mul-tiple purchasers. This exclusion shall not apply towork products which consist of the creation,modification, updating, or licensing of computersoftware.Added by Acts 1998, No. 46, eff. June 24, 1998

(f) The term “tangible personal property” shall notinclude pharmaceuticals administered to live-stock used for agricultural purposes. All suchpharmaceuticals shall be registered with the Loui-siana Department of Agriculture and Forestry.Amended by Acts 2000, No. 33, eff. July 1, 2000.

The effective date of Acts 2000, No. 30, Sec-

tion 2, was changed to July 1, 2001, by Acts

2001, No. XX, Section 7, eff. July 1, 2001.

(g)(i) Except as otherwise provided in this Sub-paragraph, the term “tangible personal property”shall not include manufactured homes for whichcertification has been made as required by Sec-tion 5415 of Title 42 of the United States Code.

(ii) For purposes of this Subparagraph, “manufac-tured home” means a structure as defined inSection 5402 of Title 42 of the United States Code.For purposes of this Subparagraph, “manufac-tured home” shall also mean any structure whichmeets all the requirements of a manufacturedhome as defined in Section 5402 of Title 42 of theUnited States Code except the size requirementsand with respect to which the manufacturervoluntarily files a certification required by thesecretary of the United States Department ofHousing and Urban Development or required bythe fire marshal of the state of Louisiana. “Manu-factured home” shall not include any self-pro-pelled recreational vehicle.

(iii) The term “tangible personal property” shallinclude a new manufactured home, for the initialsale from a dealer to a consumer, but only to theextent that forty-six percent of the retail salesprice shall be so considered as “tangible personalproperty”. Thereafter, each subsequent resale ofa manufactured home or mobile home shall notbe considered as “tangible personal property”.

(iv) The provisions of this Subparagraph shall beapplicable to the sales and use taxes levied by thestate only.Added by Acts 2000, No. 30, eff. when a judge-ment in Shirley M. Avants, et al v. John NeelyKennedy, No. 434575, Division D, NineteenthJudicial District Court, Parish of East BatonRouge, State of Louisiana, becomes final andnonappealable or a written compromise settle-ment disposing of all claims is finalized andsigned.

(17) “Off-road vehicle” is any vehicle manufac-tured for off road use which is issued amanufacturer’s statement of origin that cannotbe issued a registration certificate and license tooperate on the public roads of this state becauseat the time of manufacture the vehicle does notmeet the safety requirements prescribed byR.S.32:1301 through R.S.32:1310. This includesvehicles that are issued a title only by the Vehicle

R.S. 47:301(17)

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32 August 2001

Registration Bureau, Department of Public Safetyand Corrections, such as all terrain vehicles andrecreational and sport vehicles, but it does notinclude off road vehicles used for farm purposes,farm equipment, or heavy construction equip-ment.Amended by Acts 1989, No. 331, eff. Sept. 3,1989.

Note: Acts 1996, No. 12 amended R.S.

47:301(10)(a)(i) and (ii) and R.S. 47:301(18)(a)(i)

and (ii) to exclude “motor vehicles” purchased

for subsequent lease or rental from sales and

use tax until July 1, 1998. Acts 1998, No. 10

amended Acts 1996, No. 12, Section 3 to

extend this exclusion until July 1, 2000. How-

ever, Acts 1998, No. 22, which provides an

exclusion for food donated to a food bank,

replaced “motor vehicles” with “automobiles”

in R.S. 47:301(18)(a)(i) and (ii). Acts 2000, No.

28 subsequently amended Acts 1996, No. 12,

Section 3 to extend the exclusion until July 1,

2002.

(18)(a)(i) For purposes of the imposition of thestate sales and use tax, “use” means and includesthe exercise of any right or power over tangiblepersonal property incident to the ownershipthereof, except that it shall not include the sale atretail of that property in the regular course ofbusiness or the donation to a school in the statewhich meets the definition provided in R.S. 17:236or to a public or recognized independent institu-tion of higher education in the state of propertypreviously purchased for resale in the regularcourse of a business. The term “use” shall notinclude the purchase, the importation, the con-sumption, the distribution, or the storage of au-tomobiles to be leased in an arm’s lengthtransaction, nor shall the term “use” include thedonation of food items to a food bank as definedin R.S. 9:2799(B).

(ii) For purposes of the imposition of the sales anduse tax levied by a political subdivision or schoolboard, “use” shall mean and include the exerciseof any right or power over tangible personalproperty incident to the ownership thereof, exceptthat it shall not include the sale at retail of thatproperty in the regular course of business or thedonation to a school in the state which meets thedefinition provided in R.S. 17:236 or to a public orrecognized independent institution of higher edu-cation in the state of property previously pur-chased for resale in the regular course of abusiness. The term “use” shall not include the

donation of food items to a food bank as definedin R.S. 9:2799(B).Amended by Acts 1998, No. 22, eff. July 1, 1998.Amended by Acts 2000, No. 28, eff. July 1, 2000through July 1, 2002.Amended by Acts 2000, No. 44, eff June 28, 2000.

Acts 2000, No. 44, Section 2, provides that

Acts 1998, No. 22, Section 2, regarding dona-

tions to food banks, shall apply to all dona-

tions made on, before or after July 1, 1998.

(iii) The term “use”, for purposes of sales and usetaxes imposed by the state on the use for rental ofautomobiles which take place on or after January1, 1991, and by political subdivisions on such useon or after July 1, 1996, and state sales and usetaxes imposed on the use for lease or rental oftangible personal property other than automo-biles which take place on or after July 1, 1991,shall not include the purchase, the importation,the consumption, the distribution, or the storageof tangible personal property to be leased orrented in an arm’s length transaction as tangiblepersonal property. For purposes of the impositionof the tax levied by any political subdivision of thestate, for the period beginning July 1, 1999, andending on June 30, 2000, the term “use” shall notinclude one-fourth of the cost price of any tangiblepersonal property which is purchased, imported,consumed, distributed, or stored and which is tobe leased or rented in an arm’s length transactionin the form of tangible personal property. Forpurposes of the imposition of the tax levied by anypolitical subdivision of the state, for the periodbeginning July 1, 2000, and ending on June 30,2001, the term “use” shall not include one-half ofthe cost price of any tangible personal propertywhich is purchased, imported, consumed, dis-tributed, or stored and which is to be leased orrented in an arm’s length transaction in the formof tangible personal property. For purposes of theimposition of the tax levied by any political sub-division of the state, for the period beginning July1, 2001, and ending on June 30, 2002, the term“use” shall not include three-fourths of the costprice of any tangible personal property which ispurchased, imported, consumed, distributed, orstored and which is to be leased or rented in anarm’s length transaction in the form of tangiblepersonal property. Beginning July 1, 2002, forpurposes of the imposition of the tax levied by anypolitical subdivision of the state, the term “use”shall not include the purchase, the importation,the consumption, the distribution, or the storageof any tangible personal property which is to be

R.S. 47:301(18)

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Louisiana Sales Tax Law and Regulations 33

leased or rented in an arm’s length transaction inthe form of tangible personal property.Amended by Acts 1999, No. 1266, eff. July 12,1999.

(iv) The term “use”, for purposes of sales and usetaxes imposed by the state on the use for rentalautomobiles which take place prior to January 1,1991, and by political subdivisions on such useprior to July 1, 1996, and imposed on the use forlease or rental of tangible personal property otherthan automobiles which take place prior to July 1,1991, and for purposes of local sales and usetaxes levied by political subdivisions, except forany use for rental automobiles on or after July 1,1996, shall include the purchase, the importa-tion, the consumption, the distribution, or thestorage of tangible personal property to be leasedor rented in an arm’s length transaction as tan-gible personal property.Amended by Acts 1990, No. 140, eff. July 1, 1990;Acts 1990, No. 1030, eff. Jan. 1, 1991.

(b) Notwithstanding any other law to the contrary,for purposes of the imposition of the sales and usetax of any political subdivision, the use of avehicle subject to the Vehicle Registration LicenseTax Law (R.S. 47:451 et seq.) shall be deemed tobe a “use”:

(i) In the political subdivision of the principalresidence of the purchaser if the vehicle is pur-chased for private use, or

(ii) In the political subdivision of the principallocation of the business if the vehicle is purchasedfor commercial use, unless the vehicle purchasedfor commercial use is assigned, garaged, andused outside of such political subdivision, inwhich case the use shall be deemed a use in thepolitical subdivision where the vehicle is assigned,garaged, and used.Amended by Acts 1989, No. 264, eff. August 1,1989.

(c) For purposes of state and political subdivisionsales and use tax, “use” shall not include theexercise of any right or power by a free hospitalover items including but not limited to suppliesand equipment, which are reasonable necessaryfor the operation of the free hospital.Added by Acts 1994, No. 6, eff. July 1, 1994.

(d)(i) Notwithstanding any other provision of lawto the contrary, and except as provided in Item (iii)of this Subparagraph, for purposes of state andpolitical subdivision sales and use tax, “use”

means and includes the exercise of any right orpower over tangible personal property incident tothe ownership thereof, except that it shall notinclude the further processing of tangible per-sonal property into articles of tangible personalproperty for sale.

(ii) Except as provided in Item (iii) of this Subpara-graph for refinery gas, for purposes of state andpolitical subdivision use tax, “use” shall not in-clude the storage, consumption, or the exercise ofany other right of ownership over tangible per-sonal property which is created or derived as aresidue or byproduct of such processing. Suchresidue or byproduct shall include but shall notbe limited to catalyst cracker coke derived fromcrude oil, wood chips, bark, and liquor derivedfrom the processing of sawlogs or pulpwood tim-ber, or bagasse derived from sugarcane. If petro-leum byproducts other than feedstock is sold toanother person, whether at retail, wholesale, orfor further processing, such sale shall be taxableand the value shall be as provided for in Subpara-graph (13)(d) of this Section.

(iii) Notwithstanding any other provision of law tothe contrary, and notwithstanding the provisionsof this Subparagraph, “use” shall include theexercise of any right of ownership over the con-sumption, the distribution, and the storage foruse or consumption in this state of refinery gas,except the sale to another person, whether atretail or wholesale, only if the refinery gas isultimately consumed as an energy source by theperson who owns the facility in which it is createdand is not sold. Notwithstanding any other law tothe contrary, the use of refinery gas shall be taxedat the cost price value provided in Subparagraph(3)(f) of this Section. If refinery gas, except forfeedstock, is sold to another person, whether atretail, wholesale, or for further processing, suchsale shall be taxable and the value shall be asprovided for in Subparagraph (13)(d) of this Sec-tion. The provisions of this Item (d)(iii) shall notapply to feedstock.Added by Acts 1996, No. 29, eff. July 2, 1996through June 30, 1998.

The text of R.S. 47:301(18)(e) does not apply to

transactions occurring from July 1, 2000

through June 30, 2001. It applies to transac-

tions occurring from July 1, 2001 through

June 30, 2003.

R.S. 47:301(18)(d)

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34 August 2001

(e) For purposes of state and political subdivisionsales and use tax, “use” shall not include thepurchase of or the exercise of any right or powerover:

(i) Tangible personal property sold by approvedparochial and private elementary and secondaryschools which comply with the court order fromthe Dodd Brumfield decision and Section 501(c)(3)of the Internal Revenue Code, or students, admin-istrators, or teachers, or other employees of theschool, if the money from such sales, less reason-able and necessary expenses associated with thesale, is used solely and exclusively to support theschool or its program or curricula.

(ii) Educational materials or equipment used forclassroom instruction by approved parochial andprivate elementary and secondary schools whichcomply with the court order from the DoddBrumfield decision and Section 501(c)(3) of theInternal Revenue Code, limited to books, work-books, computers, computer software, films, vid-eos, and audio tapes.Added by Acts 1996, No. 15, eff. July 1, 1997 untilJuly 1, 1998.Amended by Acts 1998, No. 47, eff. July 1, 1998until July 1, 2000.Amended by Acts 2000, No. 33, eff. July 1, 2000.

(f) For purposes of state and political subdivisionsales and use tax, “use” shall not include thepurchase of or the exercise of any right or powerover tangible personal property used by BoysState of Louisiana, Inc. and Girls State of Louisi-ana, Inc. for their educational and public serviceprograms for youth.Added by Acts 1996, No. 20, eff. July 1, 1996.

(g) Notwithstanding any provision of law to thecontrary, for purposes of sales or use taxation bythe state or any local political subdivision, theterm “use” shall not mean or include any funeraldirecting services as defined in Subparagraph(10)(s) of this Section.Added by Acts 2000, No. 47, eff. July 1, 2000.

(h) For purposes of sales and use taxes levied byany political subdivision of the state, the term“use” shall not include the exercise of any right ofownership in or the distribution of telephonedirectories acquired by an advertising companythat is not affiliated with a provider of telephoneservices if the telephone directories will be distrib-uted free of charge to the recipients of the tele-phone directories.Added by Acts 2001, No. 874, eff. June 26, 2001.

(19) “Use tax” includes the use, the consumption,the distribution, and the storage as herein de-fined. No use tax shall be due to or collected by:

(a) The state on tangible personal property used,consumed, distributed, or stored for use or con-sumption in the state if the sale of such propertywould have been exempted or excluded from salestax at the time such property became subject tothe taxing jurisdiction of the state.

(b) Any political subdivision on tangible personalproperty used, consumed, distributed, or storedfor use or consumption in such political subdivi-sion if the sale of such property would have beenexempted or excluded from sales tax at the timesuch property became subject to the taxing juris-diction of the political subdivision.Amended by Acts 1990, No. 403.

(20) “Drugs” includes all pharmaceuticals andmedical devices which are prescribed for use inthe treatment of any medical disease.

(21) “Free hospital” means a hospital that doesnot charge any patients for health care providedby the hospital.Added by Acts 1994, No. 6, eff. July 1, 1994.

LAC 61:I.4301. DefinitionsA. General. Words and phrases shall be read withtheir context and the specific section of law towhich they are applicable. They shall be construedaccording to the common usage of the language.Technical words and phrases, and such others asmay have acquired a peculiar meaning in the fieldof taxation shall be construed according to suchpeculiar meaning. The word “shall” is mandatoryand the word “may” is permissive. Unless other-wise clearly indicated, words used in singularinclude the plural and words used in the pluralinclude the singular.

B. Words, terms and phrases defined in R.S.47:301(1) through R.S. 47:301(20), inclusive, havethe meaning ascribed to them therein and asfurther provided in §4301.C.

C. All examples included in the text of these rulesand regulations are for illustration only and in nocase should they be construed to impose a limita-tion.

Businessa. “Business” as used in this Chapter covers anyactivity reasonably expected to result in gain,

R.S. 47:301(18)(e)

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Louisiana Sales Tax Law and Regulations 35

benefit or advantages, either directly or indirectly;the fact that operations resulted in a loss or did notprovide the expected benefits or advantages wouldnot eliminate an activity from the “business” clas-sification. It is intended that some degree of conti-nuity, regularity or permanency be involved so thatthe doing of any single act pertaining or related toa particular business would not be consideredengaging in or carrying on that business; a seriesof such acts would be so considered.

b. Continuous employment, occupation, or profes-sion engaged in for livelihood which occupies themajority of time and attention, or activity in whichtime and capital are invested on future outcomeare within the meaning of business just as barteror exchange of things, rights or services for valueare within the meaning of business. It is not neces-sary for any activity to constitute the sole occupa-tion to remain within the intended definition.

c. The term “business” does not include isolatedand occasional sales by persons who do not holdthemselves out as engaged in business. This exclu-sion clearly applies to sales made by the owners ofproperty who had acquired the property for use orconsumption, and is not engaged in selling similarproperty on a repeated or continuing basis.

d. Whether an activity constitutes the carrying onof a business demands an analysis of the continu-ing nature of the activity, and may change withrespect to any particular person. By way of ex-ample, trustees or receivers conducting a continu-ing retail merchandising activity, even though solelyby court order, would be construed to be in themerchandising business, while the sale conductedby the same trustees or receivers in order to liqui-date the business pursuant to a later court orderwould not be construed to be carrying on a busi-ness. Further, the occasional sale of used equip-ment made by a person engaged in the equipmentrental business would not be construed to consti-tute the business of selling equipment, but if thesame lessor of equipment frequently, routinely orcontinuously offered used equipment for sale, thenhe would be construed to be engaged in thatbusiness.

Collectora. As used in this Chapter, “collector” means thecollector of revenue of the state of Louisiana andincludes his duly authorized assistants. Any dulyauthorized representative of the collector, whenacting under his authority and direction, has thesame powers and responsibilities as the collector,but only to the extent so delegated.

b. Similarly, as used in this Chapter, “secretary”means the secretary of the Department of Revenueand Taxation of the state of Louisiana, and issynonymous with “collector”.

c. The authority to make assessments, impose orwaive penalties, enter into agreements legallybinding upon the department relative to extensionsof time, for filing, running of prescriptive periods,installment payments of tax liability, and the filingand release of assessments and liens has beendelegated extremely sparingly. Most employees ofthe department do not have authority to performthese functions on behalf of the secretary. Ques-tions involving any of those legal actions should beaddressed directly to the secretary, who has thesole power to delegate his authority in those areas.

d. No action taken by any employee shall bebinding upon the secretary unless specific author-ity has been delegated to the employee for the typeof action taken.

Cost Pricea. “Cost price” is defined by R.S. 47:301(3) to meanthe lesser of:i. the reasonable market value of the tangiblepersonal property at the time it becomes suscep-tible to the use tax; or

ii. the actual cost of the article subject to the use taxliability.

iii. The lessor of the two values applies, regardlessof the manner by which the property was acquired,whether by purchase, by manufacture, or other-wise, and regardless of whether acquired withinthe state or outside the state.

b. The statutory requirement for a comparisonbetween reasonable market value and actual costnecessarily demands that both elements beingcompared be on a comparable basis.

c. For purposes of the comparison, the reasonablemarket value of tangible personal property is theamount a willing seller would receive from a willingbuyer in an arms-length exchange of similar prop-erty at or near the location of the property beingvalued. The amount which would be realized froma forced sale is not acceptable as the market valuefor this purpose.

d. In arriving at actual cost of tangible personalproperty for the purpose of the required compari-son, all labor and overhead costs which are billedto the purchaser of the property, except for sepa-

LAC 61:I.4301.C

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36 August 2001

rately stated installation charges, are included. Inthe case of property manufactured; fabricated and/or altered to perform a specific function prior to thetax incident, every item of cost must be included.Thus, material, labor, overhead, and any othercost of any nature whatsoever must be included.However; labor, overhead, and other costs whichrepresent services rendered to the property by theowner or his employees are not to be included.Employees, for purposes of this Paragraph aredefined to mean personnel who are on the propertyowner’s payroll on a permanent basis, and not forthe sole purpose of completing the immediate tasksof rendering their services to the property in ques-tion, and for which all payroll taxes are withheldand remitted by the property owner. The onlytransportation charges which are to be included inthe cost are the transportation charges which canbe identified as part of the acquisition cost ofmaterials, and only in cases wherein the transpor-tation was either performed or arranged by thevendor of the materials.

e. Although the point of tax incidence is at thelocation of use, the transportation charges fortransporting the property from the owner’s locationof storage to the point of tax incidence is notincluded in the cost.

f. In the case of property withdrawn from stock bya manufacturer holding similar property for resale,no element of profit will be added to cost in calcu-lating the amount to be used in comparison withmarket value.

g. Since installation is not included as a taxableservice under this Chapter, the cost of installingtangible personal property should not be includedin “cost price” if such cost were separately billed oraccounted for at the time of installation so as toafford positive identification. In the absence ofseparate billing or accounting for installation costs,they will be included in arriving at “actual cost”.R.S. 47:301(3)(c) specifically provides that the sepa-rately stated charge made by oil field board roaddealers for the initial furnishing and installation ofboard roads shall not be included in the “costprice” of the rental or sale.

Dealera. Chapter 2 of Subtitle II of Title 47 of the RevisedStatutes of 1950, as amended, imposes a tax uponthe sales of tangible personal property in thisstate, the use, consumption, distribution and thestorage for use or consumption in this state oftangible personal property, the lease or rentalwithin this state of tangible personal property, and

upon the sales of certain services. The tax in eachinstance is collectible from the dealer.

b. In view of the total reliance of the sales taxstatutes upon the dealer for collection of the tax,the law meticulously ascribes to the term dealerthe broadest possible meaning relevant to thetaxes imposed by this Chapter. R.S.47:301(4)clearly holds either party to any transaction, use,consumption, storage, or lease involving tangiblepersonal property and either the performer or re-cipient of services liable for payment of the taxthrough the broad statutory definition of dealer.

c. R.S. 47:301(4) includes as a dealer every personwho manufactures or produces tangible personalproperty for sale at retail, use, consumption, distri-bution or for storage to be used or consumed in thisstate. Thus, the firm which manufactures or pro-duces a product used or consumed by it in theconduct of its business becomes a dealer for salesand use tax purposes, even though none of thatparticular product is offered for sale.

d. Any person who imports property into the state,or who causes property to be imported into thestate is a dealer for purposes of the sales and usetax whether the property is to be used, consumed,distributed, or for storage to be used or consumedin the state, or is intended for resale.

e. Persons who sell tangible personal property,who hold such property for sale, or who have soldtangible personal property are dealers. Similarly,any person who has used, consumed, distributedor stored tangible personal property for use orconsumption in the state is defined as a dealer,unless it can be proved that sales or use tax haspreviously been paid to the state of Louisiana tothe extent required by this Chapter on the particu-lar item.

f. Both the lessor (or rentor) and the lessee (orrentee) are defined as dealers by the statute, asare both the person who performs services of anature subject to tax and the person for whom theservices are performed. See R.S. 47:301(14) andLAC 61:I.4301.C. Sales of Services for a list of theservices subject to the tax.

g. Dealer also includes any person engaging inbusiness in the state. See R.S. 47:301(1) and LAC61:I.4301.C. Business for the definition of busi-ness as used in this Chapter. Engaging in busi-ness is further defined to include the maintainingof an office, distribution house, sales house, ware-house or other place of business, either directly,

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indirectly, or through a subsidiary or through aseller authorizing an agent, salesman or solicitor tooperate within the state or by permitting a subsid-iary to authorize the solicitation activity. Engagingin business also includes making deliveries oftangible personal property into the state by anymeans other than by a common or contract carrier.Qualification to do business within the state is notamong the considerations of whether a person isengaged in business for this purpose. Neither is itmaterial whether the place of business or person-nel are permanent or temporary in nature.

h. Persons who sell tangible personal property tooperators of vending machines are dealers, andsuch sales are taxable sales at retail, as definedunder §4301.C. Retail Sale or Sale at Retail. Avending machine operator is also a dealer, ascontemplated by this Paragraph; however, hissales of tangible personal property through coin-operated vending machines are not retail sales.

i. R.S. 47:301(4)(i) also includes in the definition ofdealer any person who makes deliveries of tan-gible personal property into the state in a vehiclewhich is owned or operated by that person.

DrugsR.S. 47:301(20) applies a broader definition ofdrugs than the term indicates in common usage,for purposes of applying the exemption which isoffered under R.S. 47:305(D)(1)(j) and (s). Thisdefinition encompasses not only pharmaceuticalremedies and chemical compounds, but also medi-cal devices which are prescribed for use in thetreatment of any medical disease. Devices whichdo not properly fall into the already establishedcategories of orthotic or prosthetic devices or pa-tient aids, could qualify for this category of tangiblepersonal property. Examples of these would bepace-makers and heart catheters.

Gross Salesa. Gross sales as used in this Chapter is construedto mean the total of the sales prices for eachindividual item or article of tangible personal prop-erty subject to the tax imposed by R.S. 47:302, R.S.47:321, and R.S. 47:331 with no reduction for anypurpose, unless specifically provided by statute.

b. The only deductions allowed from the total of thesales prices of all items of tangible personal prop-erty subject to tax are those provided in R.S.47:305(C) and in R.S. 47:315.

c. R.S. 47:305(C) permits the total sales price of anarticle of tangible personal property to be reduced

by the part of the selling price represented by anarticle traded in. The allowed deduction is not toexceed the market value of the item traded in. Forthis purpose, the market value is the amount awilling seller would receive from a willing buyer inan arms length exchange of similar property at ornear the location of the property being traded.

d. R.S. 47:315 allows the total of sales prices of allitems of tangible personal property subject to thetax to be reduced by the selling price of any articleof property returned to the seller in such manner asto cancel the transaction. Repossessions of prop-erty sold on the installment basis because of fail-ure by the purchaser to make agreed installmentpayments do not constitute a return of merchan-dise allowable as a deduction from gross salesand the sales price for the subsequent sale ofrepossessed property is fully taxable and must beincluded in gross sales.

e. For sales of certain property specifically ex-empted from all or a part of the tax imposed by thisChapter, see R.S. 47:301(10) with respect to isolatedor occasional sales made by a person not engagedin the business of making such sales, R.S. 47:305with respect to the sales of livestock, poultry andother farm products by the producer and the salesof agricultural products as a raw material forfurther processing before the sale at retail to theultimate consumer, R.S. 47:305(D) and R.S.47:305.1 through R.S.47:305.46 for various otherexemptions and R.S. 47:321 for the partial exemp-tion of drugs prescribed by a physician for per-sonal consumption or use and food purchased forconsumption off the premises where purchased.

Hotela. The term hotel has been defined in this Chapterto be somewhat more restrictive than normallyconstrued, both as to use of the facility and relativesize. Only those establishments engaged in thebusiness of furnishing sleeping rooms, cottages orcabins primarily to transient guests consisting ofsix or more guest or sleeping rooms at a singlebusiness location meet the statutory definition. Ifan establishment has less than six sleeping rooms,cottages or cabins at a single business location orif more than one-half of the guests are permanent,regardless of the number of sleeping rooms, cot-tages or cabins, the establishment is not a hotel forpurposes of this Chapter.

b. In determining whether an establishment fur-nishes sleeping rooms primarily to transient guests,each guest must be considered individually. Aguest who engages his lodging and pays his bill on

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38 August 2001

a monthly basis and who remains as a guest fortwo consecutive months is considered to be apermanent guest and not transient. Guests whoremain for any lesser period are considered tran-sient.

c. In the case of an establishment having twodistinct types of accommodations, sleeping roomsand apartments containing cooking and eatingfacilities, the apartments are not considered indetermining whether the establishment meets thedefinition for a hotel. For example, an establish-ment having 12 apartments and five sleepingrooms for transients is not within the hotel require-ments. However, an establishment having 12 apart-ments, five sleeping rooms occupied by or used bytransient guests and four sleeping rooms occupiedby permanent guests does meet the definition of ahotel since the apartments are completely disre-garded, there are more than six sleeping rooms,and the majority of the sleeping rooms are rentedto transient guests.

Lease or Rentala. General. The terms lease or rental as used inthis Chapter have the commonly accepted mean-ing, that is, the granting of possession or use oftangible personal property by the owner thereof toanother person for a consideration without thetransfer of title to the property. Re-leases or sub-leases and re-rentals or sub-rentals are also con-sidered as leases or rentals.

b. Exceptions. Some arrangements or agreementsfor the use of tangible personal property, whetherspecifically mentioned in the statute or implied bythe nature of the agreement or arrangement, arenot considered leases or rentals. The types ar-rangements or agreements that are not defined asleases or rentals are:

i. the lease or rental for re-lease or re-rental ofproperty to be used in connection with the operat-ing, drilling, completion, or reworking of oil, gas,sulphur, or other mineral wells. The lease or rentalfor re-lease or re-rental of casing tools, pipe, drillpipe, tubing, compressors, tanks, pumps, powerunits, and other drilling or related equipment quali-fies for exclusion if the property is to be used for oneof the specified purposes. The re-lease or re-rentalto the ultimate user is not exempt;

ii. the lease or rental of property with an operator.When the owner of the property exerts control overthe property by the furnishing of an operator, he isin fact performing a service and not leasing orrenting. As an example, the owners of various

types of equipment such as boats, draglines, trucks,tractors, or automobiles may furnish the equip-ment to the user complete with an operator. In thissituation, the owner of the equipment is performinga service, even though the person paying the feedirects the specific use of the equipment. Theowner, through furnishing the operator, has re-tained sufficient control over the property to re-move it from the rented or leased category. The factthat a separate charge is made for the salary of theoperator is immaterial. This is not to say that whenthe owner of the property furnishes advisory orengineering personnel, with or without charge, tothe lessee that the agreement would not qualify asa lease or rental. For instance, the fact that acomputer manufacturer furnished a full-time engi-neer, a full-time programmer, and a full-time com-puter operator to an installation having its ownprogrammers and operators would not change thenature of the lease covering the equipment. Simi-larly, an engineer or superintendent furnishedwith the equipment does not alter the rental chargesfor use of the equipment, if the owner would beunable to operate the equipment without personnelfurnished by the lessee;

iii. agreements, joint ventures, arrangements, orpartnerships between exhibitors (movie theateroperators) and film distributors that place signifi-cant restrictions on the use of the movies and onthe proceeds from the use of the movies. Forexample, an agreement between an exhibitor anda film distributor that stipulates that the proceedsfrom the showing of the film are to be shared, butalso specifies the amount to be charged to themovie patron, the number of and/or the time ofshowings, or the types or sizes of the facilitieswhere the film is shown would not qualify as alease or rental because of the restrictions placed onthe parties.

PersonAs used in this Chapter, the word person includesboth natural persons, or human beings, and artifi-cial persons, including corporations, estates, trusts,business trusts, syndicates, cities and parishes,parishes, municipalities, this state, any district orpolitical subdivision, department or division thereof,any board, agency, or other instrumentality thereof,acting unilaterally or as a group or combination, aswell as receivers, referees in bankruptcy, agricul-tural associations, labor unions, firms, copartner-ships, joint ventures, associations, singularly or inthe plural, who have the legal right or duty, whetherexplicit, implied or assumed, to perform any of thetransactions described in this Chapter. The classi-fication of any of the above under other tax statutes

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as exempt has no bearing whatsoever under thesales tax law. As examples, religious, charitable,educational, scientific, civic, social or fraternalorganizations or institutions, as well as hospitalsand similar establishments or institutions may beexempt from certain other tax laws by specificstatutory provision, but are nonetheless consid-ered a person for purposes of this Chapter.

Purchasera. Purchaser is defined to include not only personswho acquire tangible personal property in a trans-action subject to the tax imposed by this Chapter,but also any person who acquires or receives theprivilege of using any tangible personal property,as in the case of property rented from others, or anyperson who receives services of a nature subject totax.

b. The term is construed to complement dealer asdefined in R.S. 47:301(4) and the secretary mayproceed against either for any tax due.

Retail Sale or Sale at Retaila. The major tax levied by this Chapter is imposedupon retail sales or sales at retail, which contem-plates the taxing of any transaction by which titleto tangible personal property is transferred for aconsideration, whether paid in cash or otherwise,to a person for any purpose other than for resale.

b. While specific exemptions are provided in thethird paragraph of R.S. 47:301(10) with respect tosales of materials for further processing into ar-ticles for resale and with respect to casual, isolatedor occasional sales, and other exemptions areprovided for sales of particular items or classes ofproperty by R.S. 47:305, R.S. 47:305.1 throughR.S. 47:305.46, the intent of the law is to classifyevery sale made to the final user or consumer forany imaginable purpose, other than for resale, asa retail sale or a sale at retail. For purposes of R.S.47:301(10), whether a transaction is exempt fromtaxation by statute, jurisprudence, or by constitu-tion has no bearing on classification of the transac-tion.

c. Sales of tangible personal property to operatorsof coin-operated vending machines are sales atretail. Thus, dealers who resell tangible personalproperty through coin-operated vending machinesare treated as consumers of the articles of propertythey purchase for resale by vending machine andare liable for sales or use tax on their acquisitioncost of the articles. The resale of the propertythrough vending machines is not a retail sale, and

is not subject to the taxes imposed under thisChapter.

d. Sales of materials for further processing intoarticles of tangible personal property for subse-quent sale at retail do not constitute retail sales.This exemption does not cover materials which areused in any process by which tangible personalproperty is produced, but only those materialswhich themselves are further processed into tan-gible personal property. Whether materials arefurther processed or simply used in the processingactivity will depend entirely upon an analysis ofthe end product. Although any particular materialsmay be fully used, consumed, absorbed, dissi-pated or otherwise completely disappear duringprocessing, if it does not become a recognizableand identifiable component which is of some ben-efit to the end product, it is not exempt under thisprovision. The fact that a material remained as arecognizable component of an end product by acci-dent because the cost of removal from the endproduct was prohibitive, or for any other reason, ifit does not benefit the property by its presence, itwas not material for further processing and thesale is not exempt under this provision.

d. It is not the intention of this Chapter to impose atax on an isolated or occasional sale, frequentlytermed a casual sale, except with respect to thesale of motor vehicles, which are specifically cov-ered by R.S. 47:303(4). The primary considerationin determining whether a sale meets exemptionrequirements is whether the seller is in the busi-ness, or holds himself to be in the business, ofselling merchandise or tangible personal propertyof similar nature, and not solely upon the fre-quency of the transactions. As examples, a firmengaged in the retail grocery business who sold acash register originally acquired for their own useis not engaged in the business of selling cashregisters, and the sale would be exempt; an officemachine firm who sold carpeting acquired for theirown use is not in the business of selling carpets,and the sale would be exempt; the periodic sale ofarticles by auction to recover storage, repair orlabor liens unpaid by the owner of the property areexempt, provided the person forcing the sale doesnot hold himself out to be in the business of sellingsuch merchandise. If the person causing the sale ofproperty by auction takes title to the property priorto sale, it will be presumed that he has becomeengaged in the business and the sales will betaxable.

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Retailera. The term retailer as used in this Chapter not onlycovers persons engaged in the business (as de-fined in R.S. 47:301(1) and LAC 61:I.4301.C. Busi-ness) of making retail sales or sales at retail (asdefined in R.S. 47:301(10) and LAC 61:I.4301.C.Retail Sale or Sale of Retail), but also includes anyperson engaged in the business of transferring titleto tangible personal property for a consideration toothers for their use or consumption, or for distribu-tion or for storage to be used or consumed in thisstate.

b. The term does not include persons who makeisolated or occasional sales and who do not holdthemselves out to be in the business of selling theparticular kind or type of property involved in acasual sale.

Salea. Whenever the title to or possession of property isexchanged or transferred by one person to anotherfor a consideration, the transaction constitutes asale for sales tax purposes, even though the trans-fer is made on a conditional basis. The form ofconsideration is not a material factor. In the case ofa person engaged in the business of fabricatingmaterials into tangible personal property, the en-tire process for completing the finished product,including the fabrication labor, constitutes a sale.Similarly, if a person engaged in the business offabricating materials into tangible personal prop-erty uses materials furnished by the person forwhom the work is being performed, the fabricationof the materials is included in the definition ofsales.

b. If a person prepares, furnishes, or serves tan-gible personal property which is consumed on hispremises, those activities, i.e., the furnishing, thepreparation, and the serving constitutes a sale forpurposes of this act, whether billed as one item orbilled separately. If the property is not consumedon the preparer’s premises, preparing or serving isnot a part of the sale under this act, if and only if,a separate charge is made for the preparation andserving. All consumables served by a caterer at thecustomer’s premises or designated location areincludible in sales; the preparation and serving areincludible only if no separate charge is made forthe service element. If a lump sum bill is rendered,the entire amount thereof must be included insales.

c. A sale has been consummated for purposes ofthis Chapter even though the seller may retain

legal title to the property as security to ensure fullpayment of the selling price.

Sales Price -a. R.S. 47:301(13)(a) defines sales price as thetotal amount, including cash, credit, property, orservices, that is received or paid for the sale oftangible personal property. Any part of the salesprice that is related to costs incurred by the vendorto bring the product to market or make the productavailable to customers becomes part of the taxbase and is subject to sales tax even if a separatecharge is made on the invoice.

i. Costs included in the sales price are:

(a). materials used;

(b). resale inventory;

(c). freight or shipping costs from the supplier to thevendor, or from the vendor to the customer wherethe transportation by the vendor is an essential ornecessary element of the agreement of sale, aswould normally be true in transactions for the saleand delivery of ready-mixed concrete or similarproducts:

(i). these transportation expenses are incurred bya seller in acquiring tangible personal property forsale or in transporting tangible personal propertyto the place of sale and form part of the seller’soverhead and

(ii). cannot be excluded from the taxable sales priceeven when separately stated to the purchaser;

(d). utilities;

(e). insurance;

(f). financing for business operations;

(g). labor;

(h). overhead;

(i). service costs:

(i). handling charges are considered service costs,and

(ii). are distinguishable from charges for transpor-tation under the definition of sales price and re-lated court decisions;

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(j). costs incurred by a vendor that are charged forthe procurement or purchasing of tangible per-sonal property on behalf of the customer; and

(k). excise taxes imposed on the producer, proces-sor, manufacturer, or importer as these taxes be-come a part of the dealer’s cost.

ii. The following are examples of charges not con-sidered part of the sales price because they are notrelated to costs incurred by the vendor to bring theproduct to market:

(a). freight, shipping, or delivery charges from thevendor or the vendor’s agent directly to the cus-tomer after the sale has taken place when thefollowing two conditions are met:

(i). The seller of the tangible personal propertyseparately states the charges for the actual deliv-ery or transportation of the sold property from theplace of the sale to the destination designated bythe purchaser.

(ii). On the invoices for the sale and transportationof tangible personal property, the place of the saleof the property, and the fact that the transportationis rendered subsequent to the sale and purchaseand for the buyer’s account, must be clearly deter-minable.

(b). federal retailers’ excise tax that must be col-lected from the consumer or user.

(i). If these taxes are billed to the user or customerseparately, they should be excluded from the taxbase.

(ii). However, if the retailers’ excise tax is not billedseparately, the total selling price, including theexcise tax, is taxable.iii. R.S. 47:301(13)(a) specifically excludes the fol-lowing charges from the definition of sales priceprovided they are separately stated:

(a). The market value of an item traded in on thesale, as specified in R.S. 47:301(13)(a).

(i). The trade-in item must be one the vendor wouldnormally accept in the course of business and mustbe similar to the item being purchased. An exampleof this is trading in a motorcycle on the purchase ofa pickup truck.

(ii). Exchanging an item that is not similar to theitem being purchased will be treated as a barter orexchange agreement as described in R.S.

47:301(12). An example of this would be the ownerof a clothing store providing suits to the owner of anappliance store in return for a dishwasher. In thisinstance, each selling party must report the trans-action on his sales tax return.

(iii). The transfer of ownership of the trade-in mustoccur simultaneously with the sales transaction.

(iv). The trade-in value must be established prior tothe sale.

(b). Interest charges not exceeding the legal inter-est rate to finance the sale.

(c). Service charges for financing, up to six percentof the amount financed.

(d). Cash discounts allowed by the vendor if thecustomer takes advantage of the discount.

(e). Labor to install the tangible personal property.

(f). Charges by a seller for installing property thathe has sold.

(i). Installing includes the charge by the seller ofmovable property for setting up that property on orthe attachment of that property to other movable orimmovable property that is already owned or pos-sessed by the purchaser.

(ii). Examples of the types of installation chargesthat are excludable from sales price under thisprovision are the charges for setting up an appli-ance in a home or business, or the first-time attach-ment of a new mobile telephone, new radio, or newspeakers to a customer-owned vehicle that previ-ously was without such property.

(iii). Exclusion is not intended, however, for thecharges for removal and replacement of worn ormalfunctioning components of movables, such asthe removal and replacement of tires and batteriesin vehicles. These types of services constitute re-pairs to movables that are defined in R.S.47:301(14)(g) as taxable “sales of services.”

(g). Charges to set up the property on the taxpayer’spremises.

(h). Charges for remodeling or repairing the prop-erty sold if:

(i). these services are provided prior to the sale;

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(ii). the vendor sends the property to another dealeror service provider for remodeling or repair andpays sales taxes on these taxable services; and

(iii). the services are separately itemized and iden-tified in the billing to the customer.

(iv). If the remodeling or repairing is performed bythe vendor either:

[a]. prior to the sale or

[b]. after the sale but before the customer takespossession of the item, then these would be costsof the vendor incurred to bring the product tomarket or make a product available to customersand would become part of the tax base.

(v). Any services performed after the property is inthe possession of the customer are taxable underR.S. 47:301(14).

iv. In all instances where an expense is required tobe separately stated, the effect of combining thecharge with another taxable item included in thesales price will subject the entire amount to salestax.

v. R.S. 47:301(13)(b) provides an exclusion fromsales price for the amounts of cash discounts andrebates that manufacturers and vendors of newvehicles offer to purchasers of vehicles.

(a). The exclusion will apply both to the discountsand rebates that are based on vehicle make andmodel, as well as to the discounts and rebates thatare based on customer usage of manufacturer-issued credit cards.

(b). In order for this exclusion to apply, the cus-tomer must assign the discount or rebate to theselling dealer of the vehicle, so that the discount orrebate results directly in a reduction of the price tobe paid for the vehicle.

(c). In cases where a customer accepts a rebate ordiscount in cash, and does not assign the amountto the selling dealer as a deduction from the listedretail price of the vehicle, the exclusion from salesprice will not apply.

vi. R.S. 47:301(13)(c) excludes from taxable salesprice the first $50,000 paid for new farm equip-ment used in poultry production.

(a). This exclusion applies only to the price ofproperty that is identifiable at the time of sale as

being for use in poultry production.

(b). The exemption is available only to commercialproducers who sell poultry or the products ofpoultry in commercial quantities.

(c). The portion of the sales price of any item ofcommercial farm equipment in excess of $50,000will be included in the taxable sales price.

vii. R.S. 47:301(13)(e) excludes the value of pay-ments made directly to retail dealers by manufac-turers seeking a reduction in the price retail dealerscharge for the manufacturers’ products. Thesepayments, often called buy downs, are applied bythe retail dealer to the selling prices of themanufacturer’s products. Retail dealers must col-lect the tax on the discounted sales price afterapplying the manufacturers’ payments.

viii. In cases where all or a part of the purchaseprice of tangible personal property is paid to theselling dealer by the presentation of a coupon, thedetermination of the taxable sales price will de-pend on the type of coupon that is presented.

(a). Manufacturer’s coupons that the selling dealeraccepts from the customer and can be redeemedthrough a manufacturer or coupon agent are notallowed as a reduction of the sales price. Becausethe retailer’s total compensation includes theamount paid by the customer after presenting thecoupon and the amount reimbursed by the manu-facturer for the coupon’s face value, the tax isbased on the actual selling price of the item beforethe discount for the coupon.

(b). The retailer’s own coupons, which the sellingdealer is unable to redeem through another party,provides a cash discount that can be excluded fromthe sales price. The sales tax on a sale involvingthis type of coupon will be computed on the pricepaid after an allowance for the selling dealer’scoupon discount.

ix. R.S. 47:301(13)(f) provides that sales priceexcludes any consideration received, given, orpaid for the performance of funeral directing ser-vices. The term funeral directing services is de-fined and further discussed at R.S. 47:301(10)(s).

(a). No exclusion from taxation is allowed on thesale, lease, or rental, of tangible personal propertyby funeral directors to customers, or

(b) on the purchase, lease, use, consumption, dis-tribution, or storage for use of tangible personal

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property by funeral directors in connection withtheir performance of professional services.

b. R.S. 47:301(13)(d) provides that, in the case ofthe sale by a manufacturer of refinery gas or otherpetroleum byproducts that are to be used by thepurchasers as other than feedstock, the taxablesales price shall be the greater of:

i. the actual sales price of the byproducts, or

ii. the average monthly spot market price perthousand cubic feet of natural gas delivered intopipelines in Louisiana, as reported by the NaturalGas Clearing House at the time of such sale.

Sales of Servicesa. The Louisiana Sales Tax Law basically treatsthe furnishing of services and permission to usecertain kinds of property the same as the sale ofmerchandise, and the law classifies those items assales of services. Only those services specificallyitemized under the provisions of R.S. 47:301(14)(a)- (g), are taxable.

b. The entire amount charged to a customer for anyof the taxable items listed in R.S. 47:301(14)(a) - (g)is taxable if billed in a lump sum. Although the lawprovides many exemptions, unless they are spe-cifically identified and segregated in billings tocustomers, the entire charge will be subject to thetax. Whether the consideration paid for sales ofservices is in the form of cash or otherwise isimmaterial.

c. R.S. 47:301(14)(a) includes the furnishing ofsleeping rooms, cottages, or cabins by hotels assales of services. Hotels have been defined in R.S.47:301(6) and the regulation issued under LAC61:I.4301.C.Hotel. If an establishment meets thedefinition of a hotel as defined in the pertinentSubsection, all charges for the furnishing of roomsin that establishment, other than to permanent full-time occupants, constitute sales of services underthis Chapter.

d. Under the provisions of R.S. 47:301(14)(b) chargesfor admissions to places of amusement, entertain-ment, recreation, or athletic events, except thosesponsored by schools, colleges, or universities, areclassified as sales of services and as such aretaxable under this Chapter. Note that only thoseevents which are sponsored by schools, colleges,and universities are exempt. The same admissionscharged by charitable, religious, social and otherorganizations are taxable, unless specifically ex-empted under some other provision.

i. Fees or other consideration and dues paid for theprivilege of obtaining access to clubs are similarlyclassified as sales of services under this particularsection of the law. Such dues, fees, or other consid-eration are taxable even though some personalservices may be rendered by the owner of the clubafter access thereto has been obtained. Dues, fees,or other consideration paid for the privilege ofhaving access to places of amusement, entertain-ment, athletic, or recreational facilities are alsoincluded in the definition of sales of service.

ii. The cost of stock or certificates of membershiprequired to be purchased prior to becoming a mem-ber of a club is not included in sales of services ifthe club member has the prerogative (sic) of dis-posing of the stock or certificate of membershipwhen he ceases to utilize the club or facilities. If amember is required to surrender his stock or certifi-cate of membership upon leaving a club, then thepurchase price is considered nothing more than afee for his participation and is classified as salesof services.

e. R.S. 47:301(14)(c) includes the furnishing ofstorage or parking privileges by auto hotels orparking lots as taxable sales of services. Parkinglots are held to include facilities for the parking oftransient trailers. For purposes of this determina-tion, trailers will be presumed to be transientunless the parking space is engaged for a period inexcess of 30 consecutive days at any one time andprovided the trailers have not been removed fromtheir wheels and placed on permanent foundation.Some hotels advertise free parking facilities fortheir guests and it is presumed that the room ratecharged the guests is sufficiently high to cover thecost of parking, in which event the charge would betaxed under the provisions of R.S. 47:301(14)(a).This charge is taxable under R.S. 47:301(14)(a) ifincluded in the room rate or under R.S. 47:301(14)(c)if billed separately.

f. R.S. 47:301(14)(d) provides that the furnishing ofprinting or overprinting, lithograph and multilith,blue printing, photostating, or other similar ser-vices of reproducing written or graphic matter,shall be included under sales of services. Gener-ally, the activities of persons engaged in this typeof business fall within two basic categories. Thefirst is the production of tangible personal prop-erty, whereby raw materials are converted intoitems such as circulars, books, envelopes, folders,posters and other types of merchandise which aresold directly to their customer. These transactionsfall within the definition of sales at R.S. 47:301(12)and are taxable as sales of tangible personal

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property. The materials used by the printer in theproduction of the end product are covered by theexemption provided in R.S. 47:301(10), and areexempt to the printer at the time of purchase byhim. In addition, R.S. 47:305.44 provides an ex-emption for raw materials and certain consumableswhich are consumed by a printer. The second basicbusiness activity engaged in by printers whichsubject them to the provisions of the sales tax lawis the furnishing of services. This classificationcovers printing done on materials furnished by theprinter’s customers which are returned to the cus-tomer upon completion of the printer’s service. Incases where plates, mats, photographs, or othersimilar items are used in the performance of eithera pure service as intended by R.S. 47:301(14)(d) orwhether in the production of tangible personalproperty, if those materials are delivered to theprinter’s customer and a charge therefore is made,this transaction constitutes a sale of tangible per-sonal property and is taxable. In cases where thematerials are delivered to the customer and nocharge is made, it is presumed that the charge forservices or the charge for other printed matterdelivered to the customer is sufficiently high toinclude the billing for those materials.

g. R.S. 47:301(14)(e) deals with the furnishing ofrestoration, renovation, and cleaning services. Un-der that statute, the furnishing of laundry service,pressing and dyeing service, washateria, dryingservice, or cleaning service is defined as sales ofservices, making them taxable under this Chapter.

i. In the case of a business of washing automobiles,trucks, or other mobile equipment, if the owner ofthe establishment furnishes either personnel whoassist in the cleaning or mechanical devices whichperform the cleaning, the service is taxable. How-ever, if the customer simply uses equipment madeavailable to him by the establishment and does hisown cleaning, then there has been no taxablecleaning service rendered by the owner of thebusiness and there is no taxable transaction underR.S. 47:301 (14)(e).

ii. The restoration, renovation, and cleaning ofother tangible personal property such as pipe,tanks, and barges is also a taxable service underthis Chapter, either under this Paragraph or underR.S. 47:301(14)(g) as a repair, since such servicesare performed in order to rejuvenate or re-enablethe property and restore it to a desired perfor-mance standard.

iii. In addition to the various services describedabove, R.S. 47:301(14)(e) also defines the furnish-

ing of storage space for clothing, furs, and rugs assales of services. All charges for the furnishing ofsuch storage space are taxable regardless ofwhether or not the owner of the business is en-gaged solely in that activity or the furnishing ofspace is purely incidental to the operation of someother business.

h. R.S. 47:301(14)(f) deals with the furnishing ofcold storage space and with the furnishing of theservice of preparing property for cold storage. Bothof those items are defined as sales of service. Coldstorage space is any enclosed space in which thetemperature and/or humidity are regulated andcontrolled. This does not mean that the tempera-ture must be reduced below that of the outsideatmosphere, but simply that it must be undercontrol to the extent necessary for proper preserva-tion of the items stored therein. The service ofpreparing tangible personal property for cold stor-age is included in sales of service only if thatservice is incidental to the operation of cold storagefacilities.

i. R.S. 47:301(14)(g)(i) includes as sales of servicesthe furnishing of repairs to tangible personal prop-erty. By clear illustration in the statute, both repairand routine servicing of all kinds of tangible per-sonal property are included as taxable services.All repairs performed within Louisiana on tangiblepersonal property are taxable sales of servicesexcept for repaired property which is returned to acustomer located in another state by common car-rier or by the repair dealer’s vehicle. The charge forrepairs to property returned to a customer’s loca-tion in the offshore area are taxable regardless ofthe mode of transportation. Repair services per-formed outside the State of Louisiana to propertywhich is normally or permanently located hereexcept for its removal for repair, would not betaxable under this provision. However, if propertyis shipped outside the state for repairs, any addi-tions made thereto may subject the property to theuse tax imposed by R.S. 47:302(A)(2) upon itsreturn to the state. If personnel normally attachedto a repair installation within the state go outsidethe state, for instance, to a location offshore whichis clearly outside the limits of the State of Louisianato perform repairs, those repairs are not taxableunder this Chapter.

i. Prepaid repairs such as maintenance contractsand other similar transactions are included insales of services under this Paragraph, if thetangible personal property to which they apply islocated in Louisiana and the agreement calls for

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any necessary repairs to be performed at thelocation of the property.

ii. R.S. 47:301(14)(g)(ii) provides that tangible per-sonal property, for purposes of sales of services,shall include machinery, appliances, and equip-ment which have been declared immovable underthe provisions of Article 467 of the Louisiana CivilCode. It also includes things incorporate into land,buildings, or other construction, which have beenseparated from the land, buildings, or other con-struction. Similarly, the component parts of build-ings and other construction, as defined by Article466 of the Louisiana Civil Code, are movableproperty when they are separated from the build-ing or other construction, and repairs thereto areincludable in taxable sales of services.

StorageSince storage for use or consumption of tangiblepersonal property is taxed under the provisions ofR.S. 47:302, R.S. 47:321, and R.S. 47:331, theterm storage is defined herein to exclude storage ofproperty which will later be sold at retail and taxedbecause of the sale. The term does not require thekeeping of property in a warehouse but includesthe keeping or retention or stockpiling of propertyin any manner whether indoors or out. If propertyhas come to rest in this state and will later be usedor consumed here, it meets the definition of storagefor purposes of this Chapter.

Tangible Personal Propertya. General. With the exception of certain provisionsof R.S. 47:301(14) relating to the furnishing ofservices, the question of whether an item consti-tutes tangible personal property is of utmost impor-tance in determining whether its sale, use, storage,consumption, rental, or lease is subject to taxunder the provisions of this Chapter. Under perti-nent provisions of the Louisiana Civil Code, tan-gible personal property must be construed to betangible movable property. Thus, if property ismovable and meets the definition of tangible per-sonal property contained in this Section, it is tan-gible personal property. R.S. 47:301(16) definestangible personal property to be any propertywhich may be seen, weighed, felt, or touched, or isin any manner perceptible to the senses.

b. Exceptions. R.S. 47:301(16) provides for specificexceptions from the definition of tangible personalproperty. The term tangible personal propertyshall not include:

i. stocks, bonds, notes, or other obligations orsecurities;

ii. gold, silver, or numismatic coins, or platinum,gold, or silver bullion having a total value of $1,000or more;

iii. proprietary geophysical survey information orgeophysical data analysis furnished under a re-strictive use agreement even if transferred in theform of tangible personal property; or

iv. repairs of a motor vehicle by a licensed motorvehicle dealer that is performed subsequent to thelapse of an applicable warranty on that vehicleand at no charge to the owner of the vehicle. Theservices performed on this repair, along with theparts used will not have any value for sales anduse tax. The dealer performing this repair must belicensed as a dealer in motor vehicles through theNew Motor Vehicle Commission or the Used MotorVehicle Commission. The repair must be associ-ated with a warranty extended by the manufac-turer.

c. Movable Versus Immovable. The nature of theproperty may change from movable to immovableor from immovable to movable so that its characterat the moment of a transaction or activity must beestablished, in order to determine the taxability ofthat transaction or activity. As an example, amovable piece of machinery may be attached to abuilding in such manner that it cannot be removedwithout doing damage to the machinery or to thebuilding. In this case, the character of the propertywill have changed from movable to immovable. If,however, the machinery is attached in such a waythat it may be removed from the building withoutdoing damage to either it or the building, its char-acter upon being separated reverts to movableproperty.

d. Repairs of Immovable Property. The distinctionbetween movable and immovable property is ofparticular importance in determining whether re-pairs to property are taxable. If equipment ormachinery removed from real property has beendamaged, the item constitutes tangible personalproperty and repairs made thereto are taxable.

Usea. Use under this Chapter is intended to include notonly the commonly accepted concept of use butalso to cover the consumption, the distribution, orthe storage, or the exercise of any right of powerover tangible personal property. Since tax is im-posed on the sale of tangible personal property,use has been defined to specifically exclude prop-erty sold at retail in the regular course of business.

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b. Neither does use apply to materials or propertywhich are combined with other materials to forman article of tangible personal property which willsubsequently be sold at retail. In this instance, thetax on those materials will be collected on the retailsale. It is necessary, however, that materials ex-cluded from the definition of use because theywere consumed in creating a new piece of tangiblepersonal property be identifiable in new propertyand not merely expended during the course of theprocessing. All such expended materials have beenused by the processor or manufacturer and aretaxable to him at the time of purchase by him.

Use Tax - the tax paid under this Chapter for theuse, consumption, distribution, or storage for use,distribution, or consumption within this state inlieu of sales taxes. This is the tax required to bepaid if no sales tax has been paid on tangiblepersonal property which is used, consumed, dis-tributed, or stored for use within this state.

LAC 61:I.4302. Pollution Control Devicesand Systems Excluded from theDefinition of "Sale and Retail"A. This Section describes the conditions underwhich certain sale or lease transactions involvingtangible personal property used for pollution con-trol purposes may be excluded from the definitionof “sale at retail” for purposes of the three percenttax levied by this Chapter and the Louisiana Tour-ism Promotion District. It contains the qualifica-tions which must be met by the property underconsideration, the requirements which are imposedupon the applicant for the tax relief granted underthis act, and the procedures to be followed inapplying for the relief.

B. Definitions. For purposes of this Section, thefollowing terms shall have the meaning ascribedherein:

Pollution Control Device or System - any one ormore pieces of tangible personal property which isintended and installed for the purpose of eliminat-ing, preventing, treating, or reducing the volume ortoxicity or potential hazards of industrial pollutionof air, water, groundwater, noise, solid waste, orhazardous waste in the state of Louisiana andwhich has been approved by the Department ofEnvironmental Quality and the Department of Rev-enue and Taxation for the tax relief granted by thisact.

Pollution - the environment of the state by anymeans that would tend to degrade the chemical,physical, biological, or radiological integrity of suchenvironment. Pollution includes solid waste, haz-ardous waste, sludge, chemical waste, radiologi-cal wastes, noise, and any other pollutants resultingfrom industrial emissions, discharges, or releasesinto air, water, or land.

Act or This Act - Act 1019 of the 1991 RegularSession of the Louisiana Legislature.

Industrial Application - the use, construction, orinstallation of a pollution control device or systemby a business which is primarily engaged in theexploration for or mining of minerals, the manufac-ture or processing of raw materials into tangiblepersonal property for resale, or the processing,treatment, disposition, control or containment, ofpolluting materials produced by another business.

C. Qualifications. To qualify for the tax relief pro-vided under this Act, a pollution control device orsystem must comply with the following require-ments:

1. It must demonstrate to the Department of Envi-ronmental Quality its efficacy to a particular pro-cess or application. The equipment must beapproved by both the Department of Environmen-tal Quality and the Department of Revenue andTaxation in order to be excluded from the definitionof sale at retail for state sales and use tax pur-poses.

2. It (or the applicant) must demonstrate either:

a. a net decrease in the volume or toxicity orpotential hazards of pollution as a result of theinstallation of the device or system; or

b. that installation is necessary to comply withfederal or state environmental laws or regulations.

3. It must be intended for use in an industrialapplication. Use in residential, commercial, recre-ational, or other applications do not qualify.

D. Restrictions. This exclusion and the tax reliefprovided under this Act does not apply to:

1. modifications to processes carried out primarilyfor reasons other than the reduction of pollution;

2. installation or replacement of existing processunits carried out primarily for reasons other thanthe reduction of pollution;

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3. vehicles used to assist in operations.

E. Application and Documentation

1. Applicants seeking relief under this Act mustsubmit an application to the Department of Rev-enue and Taxation for a certification of the pollu-tion control device or system.

2. The respective departments may require theapplicant to provide cost estimates, engineeringdrawings, equipment specification sheets, and anyother documentation necessary to establish theidentity and value of the property qualifying for theexclusion. The documentation must be sufficient toenable the Department of Environmental Quality toestablish the efficacy of the pollution control deviceor system, and to allow the Department of Revenueand Taxation to ascertain the allowable tax relief.

3. After receiving certification from the Departmentof Environmental Quality, a certificate of tax exclu-sion and/or refund of taxes paid on approvedpollution control equipment will be issued by theDepartment of Revenue and Taxation. Applicantsmust assemble and consolidate all invoices onpurchases made by themselves and their subcon-tractors. Refunds will not be issued to subcontrac-tors.

a. Owners and/or operators of qualifying pollutioncontrol devices or systems may apply for certifica-tion and refund of taxes paid on or after September6, 1991, and prior to the date of certification.

b. In order for a pollution control device or systemto qualify as tax free at the time of purchase,applicants must have received a certification ofapproval from the Department of EnvironmentalQuality and the Department of Revenue and Taxa-tion prior to the purchase or lease of the equipment.The applicant, or contractors who are duly autho-rized to act as an agent of the applicant, maypresent an approved certification in lieu of the taxat the time of purchase.

c. If the application for the tax exemption on thepollution control device or system cannot be pro-cessed and approved before purchases are madeor property is imported into the state for the project,the state sales or use tax shall be paid at the timeof purchase or importation. Tax refunds will beissued upon approval of the project and the filing ofproper claims. Applicants filing for refunds willhave purchased and installed, or intend to install,the pollution control device or system.

4. The owner and/or operator must report the finalcost of the pollution control devices or systems tothe Department of Revenue and Taxation. Auditsand inspections may be performed by the respec-tive departments to ascertain the efficacy of theequipment. The tax refund will be forfeited if thepollution control device or system does not meetthe requirements of this Act.

5. Approval of the equipment for a sales tax refunddoes not relieve the applicant from obtaining anyother permits otherwise required for the pollutioncontrol device or system, including permits to in-stall or construct prior to start of construction.

6. Each application for tax relief must be signed byan officer, principal, or other person authorized toact in the behalf of the applicant, and must beaccompanied by a certification affidavit executedby the owner and/or operator and a certificationaffidavit executed by a professional engineer. Bothcertification affidavits will be prepared on theapplication form supplied by the Department ofRevenue and Taxation.

F. ConfidentialityApplications and all documentation and cost infor-mation which are submitted to the Department ofRevenue and Taxation under this Act are consid-ered confidential taxpayer information under theprovisions of R.S. 47:1508. Information which per-tains to pollution control devices or systems costswill be maintained only at the office of the Depart-ment of Revenue and Taxation.

R.S. 47:302. Imposition of taxA. There is hereby levied a tax upon the sale atretail, the use, the consumption, the distribution,and the storage for use or consumption in thisstate, of each item or article of tangible personalproperty, as defined herein, the levy of said tax tobe as follows:

(1) At the rate of two per centum (2%) of the salesprice of each item or article of tangible personalproperty when sold at retail in this state; the taxto be computed on gross sales for the purpose ofremitting the amount of tax due the state, and toinclude each and every retail sale.

(2) At the rate of two per centum (2%) of the costprice of each item or article of tangible personalproperty when the same is not sold but is used,consumed, distributed, or stored for use or con-

R.S. 47:302(A)(2)

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sumption in this state; provided there shall be noduplication of the tax.Acts 1948, No. 9, eff. June 7, 1948.

B. There is hereby levied a tax upon the lease orrental within this state of each item or article oftangible personal property, as defined herein; thelevy of said tax to be as follows:

(1) At the rate of two per centum (2%) of the grossproceeds derived from the lease or rental of tan-gible personal property, as defined herein, wherethe lease or rental of such property is an estab-lished business, or part of an established busi-ness, or the same is incidental or germane to thesaid business.

(2) At the rate of two per centum (2%) of themonthly lease or rental price paid by lessee orrentee, or contracted or agreed to be paid bylessee or rentee to the owner of the tangiblepersonal property.

Acts 1948, No. 9, eff. June 7, 1948.

Text of subsection C effective until August 2,

2002.

C. There is hereby levied a tax upon all sales ofservices, as herein defined, in this State, at therate of two per centum (2%) of the amounts paidor charged for such services.

The tax levied in this Section shall be collectedfrom the dealer, as defined herein, shall be paid atthe time and in the manner hereinafter provided,and shall be, in addition to all over taxes, whetherlevied in the form of excise, license, or privilegetaxes, and shall be in addition to taxes leviedunder the provisions of Chapter 3 of Subtitle II ofthis Title.

Acts 1948, No. 9, eff. June 7, 1948.

Text of subsection C effective August 2, 2002

until April 1, 2016, unless repealed following

legislative or judicial determination as speci-

fied in Acts 2001, No. 1175, § 5.

C. (1) There is hereby levied a tax upon all sales ofservices, as herein defined, in this state, at therate of two percent of the amounts paid or chargedfor such services.

(2) Notwithstanding any provision of law to thecontrary, effective on April 1, 2016, as provided byAct 22 of the 2000 Regular Session, the tax leviedby this Section shall not apply to the furnishing ofinterstate telecommunication services, as definedin R.S. 47:301(14)(i)(iv)(ff), which are reflected onbills submitted by telecommunication serviceproviders to their customers which are dated onand after that date, regardless of when suchservices were provided.

(3) The tax levied in this Section shall be collectedfrom the dealer, as defined herein, shall be paid atthe time and in the manner hereinafter provided,and shall be, in addition to all other taxes, whetherlevied in the form of excise, license, or privilegetaxes, and shall be in addition to taxes leviedunder the provisions of Chapter 3 of Subtitle II ofthis Title.

(4) In the case of mobile telecommunicationsservices, charges for the services which are billedby or for the customer’s home service providershall be deemed to be provided by the customer’shome service provider and are subject to the taximposed by this Paragraph if the customer’s placeof primary use is located in the state.

Text of subsection C as amended by Acts 2001,

No. 1175, § 3, effective pursuant to Acts 2001,

No. 1175, § 5, following judicial determination

substantially limiting or impairing essential

elements of Sections 1 or 2 of Act 1175.

C. (1) There is hereby levied a tax upon all sales ofservices, as herein defined, in this state, at therate of two percent of the amounts paid or chargedfor such services.

(2) Notwithstanding any provision of law to thecontrary, effective on April 1, 2016, as provided byAct 22 of the 2000 Regular Session, the tax leviedby this Section shall not apply to the furnishing ofinterstate telecommunication services, as definedin R.S. 47:301(14)(i)(iv)(ff), which are reflected onbills submitted by telecommunication serviceproviders to their customers which are dated onand after that date, regardless of when suchservices were provided.

(3) The tax levied in this Section shall be collectedfrom the dealer, as defined herein, shall be paid atthe time and in the manner hereinafter provided,and shall be, in addition to all other taxes, whetherlevied in the form of excise, license, or privilegetaxes, and shall be in addition to taxes levied

R.S. 47:302(B)

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under the provisions of Chapter 3 of Subtitle II ofthis Title.

Text of subsection C effective April 1, 2016.

C. (1) There is hereby levied a tax upon all sales ofservices, as herein defined, in this state, at therate of two percent of the amounts paid or chargedfor such services.

(2) Notwithstanding any provision of law to thecontrary, the tax levied by this Section shall notapply to the furnishing of interstate telecommu-nication services, as defined in R.S.47:301(14)(i)(iv)(ff).

(3) The tax levied in this Section shall be collectedfrom the dealer, as defined herein, shall be paid atthe time and in the manner hereinafter provided,and shall be, in addition to all other taxes, whetherlevied in the form of excise, license, or privilegetaxes, and shall be in addition to taxes leviedunder the provisions of Chapter 3 of Subtitle II ofthis Title.Amended by Acts 2000, No. 22, eff. June 15,2000; Acts 2001, No. 1175, eff. August 2, 2002.

D. Notwithstanding any other provision of law tothe contrary, no state sales or use tax nor anysuch tax levied by a political subdivision shall belevied on any advertising service rendered by anadvertising business, including but not limited toadvertising agencies, design firms, and print andbroadcast media, or any member, agent, or em-ployee thereof, to any client whether or not suchservice also involves a transfer to the client oftangible personal property. However, a transfer ofmass-produced advertising items by an advertis-ing business which manufactures the items itselfto a client for the client’s use, which transferinvolves the furnishing of minimal services otherthan manufacturing services by the advertisingbusiness shall be a taxable sale or use of tangiblepersonal property; provided that in no event shalltax be levied on charges for creative serviceswhich are separately invoiced.Added by Acts 1987, No. 869, eff. January 1,1982.

E. No exemption from the state sales and use taxgranted after the effective date of this Act andgranted pursuant to the provisions of this Chap-ter or Chapter 2-A of Title 47 of the LouisianaRevised Statutes of 1950 shall be applicable toany sales and use tax levied by any local govern-

mental subdivision or school board unless thestate exemption specifically provides that it ap-plies to such sales and use tax levies. In theabsence of any such specific application of thestate exemption to sales and use tax levies of anylocal governmental subdivision or school board,any state exemption granted pursuant to theprovisions of this Chapter or Chapter 2-A of Title47 of the Louisiana Revised Statutes of 1950 shallbe applicable only to the levy and collection of thestate sales and use tax.Added by Acts 1978, No. 205, eff. June 29, 1978.

F. Notwithstanding any other provision of law tothe contrary, including but not limited to anycontrary provisions of this Chapter, for the periodAugust 1, 1988 through June 30, 1989, theexemptions to the tax levied pursuant to theprovisions of this Section, except for those exemp-tions provided by R.S. 39:467 and 468, R.S.47:305(A)(1), (B), (D)(1)(f), (j), (k), (l), (m), (s), (G),305.1, 305.2, 305.3, 305.8, 305.15, 305.20,305.37, 305.38, 305.46, and R.S. 51:1787, shallbe inapplicable, inoperable and of no effect.Added by Acts 1988, No. 842, eff. August 1, 1988.

G. Notwithstanding any other provision of law tothe contrary, including but not limited to anycontrary provisions of this Chapter, for the periodJuly 1, 1990 through June 30, 1991, the exemp-tions to the two percent tax levied pursuant to theprovisions of this Section, except for those exemp-tions provided by R.S. 39:467 and 39:468, R.S.47:305(A)(1), (B), (D)(1)(f), (j), (k), (l), (m), (s), (G),47:305.1, 47:305.2, 47:305.3, 47:305.8,47:305.10, 47:305.14, 47:305.15, 47:305.20,47:305.37, 47:305.38, 47:305.46, and R.S.51:1787, shall be inapplicable, inoperable, and ofno effect.Added by Acts 1990, No. 155, eff. July 1, 1990;Amended by Acts 1990, No. 386, eff. July 10,1990.

H. Notwithstanding any other provisions to thecontrary, including but not limited to any con-trary provisions of this Chapter, for the periodJuly 1, 1991 through June 30, 1992, the exemp-tions to the tax levied pursuant to the provisionsof this Section, except for those exemptions pro-vided by R.S. 39:467 and 468, R.S. 47:305(A)(1),(B), (D)(1)(f), (j), (k), (l), (m), (s), (G), 305.1, 305.2,305.3, 305.8, 305.10, 305.14, 305.15, 305.20,305.25(A)(1) and (2), 305.37, 305.38, 305.46, andR.S. 51:1787, shall be inapplicable, inoperable,and of no effect.Added by Acts 1991, No. 4, eff. July 1, 1991.

R.S. 47:302(H)

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I. Notwithstanding any other provision of law tothe contrary, including but not limited to anycontrary provisions of this Chapter, for the periodJuly 1, 1992 through June 30, 1994, the exemp-tions to the tax levied pursuant to the provisionsof this Section, except for those exemptions pro-vided by R.S. 39:467 and 468, R.S. 47:305(A)(1),(B), (D)(1)(f), (j), (k), (l), (m), (s), (G), 305.1, 305.2,305.3, 305.8, 305.10, 305.14, 305.15, 305.20,305.25(A)(1) and (2), 305.37, 305.38, 305.46, andR.S. 51:1787, shall be inapplicable, inoperable,and of no effect.Added by Acts 1992, No. 563, eff. July 1, 1992.

J. Notwithstanding any other provisions of law tothe contrary, including the provisions of Subsec-tion I of this Section as proposed by House Bill568 of the 1992 Regular Session, the provisions ofR.S. 47:305(D)(1)(t) shall remain in effect for theperiod beginning on July 1, 1992 and ending onJune 30, 1994.Added by Acts 1992, No. 926, eff. July 1, 1992.

K. An additional tax shall be levied as follows:

(1) At the rate of four percent of the sales price ofeach item or article of tangible personal propertywhen sold at retail in this state; the tax to becomputed on gross sales for the purpose of remit-ting the amount of tax due the state, and toinclude each and every retail sale.

(2) At the rate of four percent of the cost price ofeach item or article of tangible personal propertywhen the same is not sold but is used, consumed,distributed, or stored for use or consumption inthis state; provided there shall be no duplicationof the tax.

(3) The tax levied under this Subsection shall bein addition to the tax levied upon such salesunder Subsection A of this Section and any othertax levied under other Sections of this Chapter,and shall be subject to the same definitions,exemptions, tax credits, penalties, and limita-tions now or hereafter prescribed in this Chapter.

(4) The tax levied under this Subsection shall bepaid in lieu of any sales or use tax which wouldotherwise be levied and collected by a local politi-cal jurisdiction of this state.

(5) The tax levied under this Subsection shall belevied and collected only from vendors who qualifyas a “dealer” in this state solely by virtue ofengaging in regular or systematic solicitation of aconsumer market in this state by the distribution

of catalogs, periodicals, advertising fliers, or otheradvertising, or by means of print, radio, or televi-sion media, including but not limited to televisionshopping channels, by mail, telegraphy, tele-phone, computer database, cable, optic, micro-wave, or other communication system.

(6) The taxes levied under this Subsection shall becollected by the Department of Revenue, advisedby a sales and use tax commission consisting ofseven members appointed as follows: two mem-bers appointed by the Louisiana Municipal Asso-ciation; two members appointed by the LouisianaSchool Boards Association; two members ap-pointed by the Police Jury Association of Louisi-ana; and one member appointed by the LouisianaAssociation of Tax Administrators. The secretaryshall assess a collection fee, not to exceed onepercent of the proceeds of the tax, as reimburse-ment for the actual cost of collection of the tax.The department shall keep the commission in-formed on a regular basis of the collection anddistribution of the taxes collected.

(7) Pursuant to an appropriation by the legisla-ture, the secretary shall distribute the proceeds ofthe tax to the central local sales and use taxcollector or, if none, the parish governing author-ity according to population. The central localsales and use tax collector or the parish governingauthority shall at no charge distribute the taxproceeds received from the secretary to eachpolitical subdivision within the parish which lev-ies a sales and use tax or receives a portion of theproceeds of a parishwide sales and use tax levy, inaccordance with each such political subdivision’spro rata share of local sales and use tax receiptscollected on all other transactions subject to localsales and use taxes during the most recent statefiscal year for which data is available within thirtydays of receipt of the proceeds.Added by Acts 1994, no. 18, eff. August 15, 1994.

L. Notwithstanding any other provision of law tothe contrary, including but not limited to anycontrary provisions of this Chapter, for the periodJuly 1, 1994 through June 30, 1996, the exemp-tions to the tax levied pursuant to the provisionsof this Section, except for those exemptions pro-vided by R.S. 39:467 and 468, R.S. 47:305(A)(1),(B), (D)(1)(f), (j), (k), (l), (m), (s), and (t), and (G),305.1, 305.2, 305.3, 305.8, 305.10, 305.14,305.15, 305.20, 305.25(A)(1) and (2), 305.37,305.38, and 305.46, and R.S. 51:1787, shall beinapplicable, inoperable, and of no effect.Added by Acts 1994, No. 20, eff. July 1, 1994.

R.S. 47:302(I)

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Louisiana Sales Tax Law and Regulations 51

M. Notwithstanding any other provision of law tothe contrary, including but not limited to anycontrary provisions of this Chapter, for the periodJuly 1, 1996 through June 30, 1998, the exemp-tions to the tax levied pursuant to the provisionsof this Section, except for those exemptions pro-vided by R.S. 39:467 and 468, R.S. 47:305(A)(1),(B), (D)(1)(f), (j), (k), (l), (m), (s), and (t), and (G),305.1, 305.2, 305.3, 305.8, 305.10, 305.14,305.15, 305.20, 305.25(A)(1) and (2), 305.37,305.38, 305.46, and 305.50, and R.S. 51:1787,shall be inapplicable, inoperable, and of no effect.Added by Acts 1996, No. 5, eff. July 1, 1996.

N. Notwithstanding any other provision of law tothe contrary, including but not limited to anycontrary provisions of this Chapter, for the periodJuly 1, 1998 through June 30, 2000, the exemp-tions to the tax levied pursuant to the provisionsof this Section, except for those exemptions pro-vided by R.S. 39:467 and 468, R.S. 47:305(A)(1),(B), (D)(1)(f), (j), (k), (l), (m), (s), and (t), and (G),305.1, 305.2, 305.3, 305.8, 305.10, 305.14,305.15, 305.20, 305.25(A)(1) and (2), 305.37,305.38, 305.46, and 305.50, and R.S. 51:1787,shall be inapplicable, inoperable, and of no effect.Added by Acts 1998, No. 1, eff. July 1, 1998.

O. Notwithstanding any other provision of law tothe contrary, including but not limited to anycontrary provisions of this Chapter, for the periodJuly 1, 2000 through June 30, 2002, the exemp-tions to the tax levied pursuant to the provisionsof this Section, except for those exemptions pro-vided by R.S. 39:467 and 468, R.S. 47:305(A)(1),(B), (D)(1)(f), (j), (k), (l), (m), (s), and (t), and (G),305.1, 305.2, 305.3, 305.8, 305.10, 305.14,305.15, 305.20, 305.25(A)(1) and (2), 305.37,305.38, 305.46, and 305.50, and R.S. 51:1787,shall be inapplicable, inoperable, and of no effect.Added by Acts 2000, 1st Ex. Sess., No 18, eff. July1, 2000.

P. Notwithstanding any other provision of law tothe contrary, the exemption provided in R.S.47:305.51 shall be applicable, operable, and ef-fective for the period April 1, 2001 through June30, 2002.Added by Acts 2001, 1st Ex. Sess., No. 5, eff.March 27, 2001.

Suspension of Exemptions—1990Acts 1990, No. 386, § 1, enacts R.S. 47:302(G)

and 47:331(E), suspending certain sales and

use tax exemptions for the period of July 10,

1990 through June 30, 1991. Sections 2 to 5

of Acts 1990, No. 386 provide:

“Section 2. Notwithstanding any provision of

law to the contrary, the implementation of

this Act shall be deemed an emergency for

purposes of the Louisiana Procurement Code.

All purchases, including but not limited to the

procurement of printing and other services,

necessary for the implementation of this Act

shall be made by the central purchasing agency

pursuant to the emergency procurement pro-

cedures as provided in R.S. 39:1598 and appli-

cable rules and regulations. The emergency

conditions shall be deemed to have ceased on

August 1, 1990, and further purchases of print-

ing and other services shall no longer be made

pursuant to the provisions of R.S. 39:1598.

Section 3. The collection of such taxes upon

previously exempt transactions by the dealer

in accordance with the provisions of R.S.

47:303 shall not be impaired by any rule,

regulation, or order of any public body, agency

or authority.

Section 4. Each merchant or dealer who shall

incur a cost to reprogram cash registers, in-

cluding computer programming, as a result of

a change in the state sales and use tax rate of

base shall be allowed a deduction against the

tax due and accounted for and remitted to the

secretary. The deduction for such costs shall

not exceed twenty-five dollars per each cash

register reprogrammed, and such costs must

be invoiced and filed with the merchant’s or

dealer’s tax return.

Section 5. The provisions of Sections 1 and 3

of this Act shall become effective on July 10,

1990; all other provisions of this Act shall

become effective upon signature by the gover-

nor or, if not signed by the governor, upon

expiration of the time for bills to became law

without signature of the governor, as provided

in Article III, Section 18 of the Constitution of

Louisiana. It is the intention of the legislature

that the tax exemptions made inapplicable,

inoperative, and of no effect for the period

July 10, 1990 through June 30, 1991, by

virtue of Section 1 of this Act shall resume,

commence, and become effective on July 1,

1991.”

Suspension of ExemptionsActs 1990, No. 155, § 2, provided in part:

R.S. 47:302(P)

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52 August 2001

“It is the intention of the legislature that the

exemptions made inapplicable, inoperative,

and of no effect for the period July 1, 1990

through July 18, 1990 shall resume, com-

mence, and become effective on July 19, 1990.”

LAC 61:I.4303. Imposition of TaxA.1. R.S. 47:302(A) imposes a tax at the rate of 2percent upon the sale at retail or the use, consump-tion, distribution or storage for use or consumptionin this state of each article of tangible personalproperty, as each of those terms are defined in R.S.47:301. R.S. 47:321(A) and R.S. 47:331(A) eachimpose an additional one percent tax on the samebasis, making the combined state sales tax rate 4percent. If Louisiana sales tax has been paid uponthe transfer of title to tangible personal property,then there will be no tax on the use, consumption,distribution, or storage for use or consumption ofthe item in this state by the purchaser, since R.S.47:302 provides that there shall be no duplicationof the tax.

2. Each and every item of tangible personal prop-erty sold at retail in this state is subject to the taximposed by this Chapter unless a specific exemp-tion is set forth in the statute. The tax is computedon gross sales and must include each and everyretail sale. When tangible personal property isused, consumed, distributed, or stored for use orconsumption in this state on which, for any reasonwhatsoever, no Louisiana sales tax has been paid,then the tax will be imposed on such use, consump-tion, distribution or storage. The tax paid underthis provision is commonly referred to as use tax asdistinguished from sales tax. R.S. 47:302(A)(2)provides that the use tax will be 2 percent of thecost price of each item or article of tangible per-sonal property subject to the use tax, and R.S.47:321(A) and R.S. 47:331(A) provide for an addi-tional 2 percent. It is important that R.S. 47:301(3)and the regulation issued under LAC 61:I.4301.C.Cost Price be thoroughly analyzed prior to arrivingat the basis upon which the use tax will be com-puted.

B. Tax on Lease or Rentals

1. General Rule

a. Revised Statute 47:302(B) provides that theLouisiana lease tax shall be paid on leases “withinthis state” and R.S. 47:301(7) defines lease orrental as “the leasing or renting of tangible per-sonal property and the possession or use thereof

by the lessee or renter, for consideration, withouttransfer of the title of such property.” Therefore, theLouisiana lease tax is due when a lessee pos-sesses or uses leased tangible personal propertywithin Louisiana, regardless of where the lessorand lessee entered into the lease contract or wherethe lessor transferred possession of the leasedproperty to the lessee.

b. Lease also means rental for the purposes of thisSubsection.

c. Lease payments on leases within Louisiana aresubject to the tax rate provided in Title 47 of theRevised Statutes. The tax rate must be applied toeach payment, whether made monthly or accord-ing to some other schedule.

d. A lessor of leased property, as a dealer andagent for the Department of Revenue (department),shall collect the lease tax from the lessee of theleased property. The lessor must report lease pay-ments on a cash-receipt basis as provided in R.S.47:306(A)(2).

e. Gross proceeds derived from the lease of tan-gible personal property within Louisiana are sub-ject to the lease tax whether the leasing of tangiblepersonal property is the established business ofthe taxpayer or is only incidental to the taxpayer’sestablished business. Operating expenses andmaintenance costs for keeping leased property inrepair cannot be deducted from gross proceeds inarriving at the taxable base.

2. Exceptions to the General Rule

a. Revised Statute 47:305(E)(1) provides that: “noris it the intention of this Chapter [Chapter 2 of Title47 of the Revised Statutes] to levy a tax on bonafide interstate commerce.”

The lease tax imposed under R.S. 47:302(B) is atax levied under Chapter 2 of Title 47 of the RevisedStatutes. Therefore, the lease tax is not due on thelease of tangible personal property for those peri-ods of time that it is used in bona fide interstatecommerce, whether the use in bona fide interstatecommerce is in Louisiana or outside of Louisiana.

b. If the lessee used the leased tangible personalproperty both in bona fide interstate commerce(whether within or without Louisiana) and inintrastate commerce in Louisiana, the lease tax isdue only on the portion of the lease paymentsattributable to operational usage in Louisiana inintrastate commerce. What constitutes operational

LAC 61:I.4303

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Louisiana Sales Tax Law and Regulations 53

usage shall be based on industry custom and thetype of property at issue (e.g., flight time, vehiclemiles). If average operational usage in Louisianaintrastate commerce is equal to or less than 10percent of total operational usage during a leasepayment billing period, the leased property shallbe deemed to be used exclusively in interstatecommerce, and no lease tax shall be due for thatperiod. Average operational usage in Louisianaintrastate commerce shall be determined by aratio, the numerator of which is total Louisianaintrastate operational use, and the denominator ofwhich is total operational use (both intrastate andinterstate). If average operational usage in Louisi-ana intrastate commerce is equal to or greater than90 percent of total operational usage during alease payment billing period, the leased propertyshall be deemed to be used in Louisiana intrastatecommerce, and lease tax shall be due on the entirelease payment for that period. Average operationalusage in bona fide interstate commerce shall bedetermined by a ratio, the numerator of which istotal bona fide interstate operational use, and thedenominator of which is total operational use (bothintrastate and interstate). Nothing in this Subpara-graph shall be construed to prohibit the depart-ment from imposing a lease tax on leased propertystored in Louisiana for use in intrastate commercein Louisiana.

c. The lease tax is not due if the leased property isleased for use and actually used in an offshorearea beyond the territorial limit of Louisiana. Inorder for this exclusion to apply, the leased prop-erty may not be used within Louisiana and thelessee must complete an LGST-9B Sales Tax Ex-emption Certificate stating that the leased prop-erty will be used in a specific offshore area. Thedefinition of use, for the purposes of Paragraph 2,is found in R.S. 47:301(4)(d)(ii).

d. The department shall authorize lessees, whoare registered with the department on a form to beprovided by the department, and who used leasedproperty in whole or in part outside Louisianaand/or in whole or in part in bona fide interstatecommerce (whether within or without Louisiana),to issue exemption certificates to the lessors of theleased property for such use. A lessor receivingsuch an exemption certificate shall not be requiredto collect the lease tax for such leases, and lesseesissuing such exemption certificates shall be re-sponsible for reporting lease payments and payingthe lease tax to the department for leases in accor-dance with the provisions of this regulation.

C. R.S. 47:302(C) imposes a tax of 2 percent of thetotal amount paid or charged for furnishing of theselected services set forth in R.S. 47:301(14). Inaddition to the 2 percent tax levied under theprovisions of R.S. 47:302(C), an additional 2 per-cent tax is levied under the provisions of R.S.47:321(C) and R.S. 47:331(C). Only those servicesdefined as sales of services under the provisions ofR.S. 47:301(14) are subject to the tax. In the caseof all three tax imposition sections, only thoseservices which are performed within the state ofLouisiana are subject to the tax. Services per-formed outside the limits of the state, whether inanother state or in a disputed zone offshore whichis ultimately held to be outside the boundary of thestate of Louisiana even though the normal base ofoperations may be within the state of Louisiana,are not subject to the tax.

D. The taxes imposed by R.S. 47:302 and by R.S.47:321 and R.S. 47:331 are in addition to all othertaxes, whether levied in the form of an excise tax,a license tax, a privilege tax, or a gross receipts tax,and shall be in addition to taxes levied under theprovisions of Chapter 3 of Subtitle II of Title 47which is the Louisiana occupational license taxlaw.

House Concurrent Resolution 63(1987 Regular Session)A Concurrent Resolution

To urge and request the Department of Rev-

enue and Taxation to take certain actions with

regard to attempted collection of sales and use

taxes on certain nontaxable services performed

by advertising businesses for their clients and

to urge and request the Senate Committee on

Revenue and Fiscal Affairs and the House

Committee on Ways and Means to study the

matter.

WHEREAS, the sales and use tax is a tax on the

sale, use, or lease of tangible personal property

and not a tax on services except as specifically

enumerated as a “taxable service” in R.S.

47:301(14); and

WHEREAS, providing advertising services to

clients by advertising businesses is not enu-

merated as a “taxable service” in R.S.

47:301(14); and

WHEREAS, the advertising businesses within

the state, including but not limited to adver-

tising agencies, design firms, and print and

HCR 63

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54 August 2001

broadcast media, furnish nontaxable services

to their clients and as part of furnishing those

services often provide their clients with tan-

gible personal property such as film, video

tapes, scripts, brochures, bumper stickers,

and pamphlets; and

WHEREAS, it was not the intention of the

Legislature in enacting the state’s sales and

use tax laws to levy a tax on such transactions;

and

WHEREAS, the Department of Revenue and

Taxation is currently attempting to assess and

collect sales and use tax on these transac-

tions; and

WHEREAS, the Department of Revenue and

Taxation has not attempted to collect sales

and use tax on such services in the past; and

WHEREAS, the current sales and use tax pro-

visions contain certain ambiguities regarding

the taxability of these transactions which

need clarification and the Department of Rev-

enue and Taxation has not promulgated any

rule notifying taxpayers of its change in inter-

pretation of this substantive law as required

by the Administrative Procedure Act in R.S.

49:951(6), and the Department should desist

from attempting to collect taxes in the face of

such ambiguities.

THEREFORE, BE IT RESOLVED that the Leg-

islature of Louisiana does hereby urge and

request the Department of Revenue and Taxa-

tion to do all of the following:

(1) Cease attempting to collect sales and use

tax on services rendered to clients of advertis-

ing businesses, including but not limited to

advertising agencies, design firms, and print

and broadcast media, whether or not such

services also involve a transfer to the client of

tangible personal property.

(2) To advise in writing all advertising busi-

nesses currently under assessment or audit

that the department is withdrawing assess-

ments or will exclude from audit assessments

of sales and use tax on transactions which

involve the transfer of advertising-related tan-

gible personal property.

(3) Withdraw such assessments.

(4) Report in writing to the chairman of the

Senate Revenue and Fiscal Affairs Committee

and the House Committee on Ways and Means

by June 15, 1987, on whether the actions

requested by this Resolution have been com-

pleted, on the reasons for any failure to per-

form any or all of the actions requested by this

Resolution, and on the basic form of the writ-

ing sent to advertising businesses advising

them of the withdrawal of assessments pursu-

ant to this Resolution.

(5) Prepare proposed regulations and send

them along with the written report requested

in Paragraph 4 of this Resolution to the chair-

man of the committees, which regulations

shall provide for the policy of the Department

regarding charges made by advertising busi-

nesses to their clients as nontaxable services,

whether or not such services also involve the

transfer to the client of tangible personal

property.

(6) Initiate proceedings pursuant to the Ad-

ministrative Procedure Act to promulgate such

regulations after study of the regulations by

the committees.

BE IT FURTHER RESOLVED that the Legisla-

ture of Louisiana does hereby urge and request

the Senate Committee on Revenue and Fiscal

Affairs and the House Committee on Ways and

Means to review the compliance by the Depart-

ment with the request made by this Resolu-

tion; to review the regulations proposed by the

Department; and to study the various prob-

lems in this area in order to recommend reme-

dial legislation.

R.S. 47:302.1. Exemptions from lease orrental tax, helicoptersA. Whenever a helicopter used in the explorationfor or the extraction or production of oil, gas, andother minerals or for providing services to thoseengaged in such extraction, production, or explo-ration is acquired or used through a transactionentitled lease, rental, lease-purchase, or any simi-lar name which for purposes other than salestaxation might be considered a conditional salecontract or a transaction in lieu of sale, suchacquisition or use shall be deemed to be a sale forstate and local sales tax purposes.

B. The tax due on such transactions shall bepayable in equal monthly installments over the

R.S. 47:302.1

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Louisiana Sales Tax Law and Regulations 55

term of the lease, rental, or lease-purchase con-tract.

LAC 61:I.4402. Exemption from Lease orRental Tax, HelicoptersA. This Section [R.S. 47:302.1] provides for specialtreatment of the state and local sales taxes onrental transactions involving helicopters used di-rectly in the exploration for, or the extraction orproduction of, oil, gas, and other minerals, orhelicopters used in providing services to otherbusinesses which are engaged in such activities. Itprovides that any helicopter which is to be usedprimarily for the aforementioned uses may beacquired through a lease transaction, and theentire transaction will be treated as a sale. Thetransaction may be entitled a rental, lease, lease-purchase, sale and lease-back, or any other simi-lar term. In any case, the lessor or rentor shall notincur a sales or use tax liability on the acquisitionof the helicopter for lease, nor on the withdrawal ofa helicopter from resale inventory to be placed inrental service, when the lessee is engaged in theexploration or production of oil, gas, or other min-erals, or related service industries. Unlike rentaltransactions involving other tangible personal prop-erty, the lease contracts involving such helicopterswill not be required to contain language whichguarantees any rights of title to the lessee, nor willit need any obligations to maintain the lease for itsfull term.

B. The sales taxes due on such transactions shallbe payable in equal monthly installments over theentire term of the lease, rather than at the inceptionof the lease agreement, as with rental transactionsinvolving other tangible personal property. In addi-tion, unlike conventional lease transactions, thetax is due and payable by the dealer/lessor for theperiod the receipts are invoiced to the buyer/lessee, and not for the period in which activecollection is made.

C. These transactions shall be taxed as salesunder R.S. 47:302(A), and not as leases under R.S.47:302(B). Thus, the location of intended use of thehelicopters will not determine taxability under thisChapter, as it would in a rental transaction.

R.S. 47:302.2 ... 302.52

Sections 47:302.2 to 302.52 relate to the

dedication of portions of the sales taxes col-

lected on hotel room occupancy in certain

parishes to local purposes within those par-

ishes. Since these sections do not affect the

amount of tax to be collected and remitted,

the sections are not printed in this volume.

R.S. 47:303. CollectionA. Collection from dealer.(1) The tax imposed under R.S. 47:302 shall becollectible from all persons, as hereinafter de-fined, engaged as dealers, as hereinafter defined.

(2) On all tangible personal property imported, orcaused to be imported, from other states or for-eign countries, and used by him, the “dealer”, ashereinafter defined, shall pay the tax imposed bythis Chapter on all articles of tangible personalproperty so imported and used, the same as if thesaid articles had been sold at retail for use orconsumption in this state. For the purposes ofthis Chapter, the use, or consumption, or distri-bution, or storage to be used or consumed in thisstate of tangible personal property, shall each beequivalent to a sale at retail, and the tax shallthereupon immediately levy and be collected inthe manner provided herein, provided there shallbe no duplication of the tax in any event.

(3) A credit against the use tax imposed by thisChapter shall be granted to taxpayers who havepaid a similar tax upon the sale or use of the sametangible personal property in another state. Thecredit provided herein shall be granted only in thecase where the state to which a similar tax hasbeen paid grants a similar credit as providedherein, provided that members of the armedforces who are citizens of this state and whoseorders or enlistment contracts stipulate a periodof active duty of two years or more and whopurchase automobiles outside of the state ofLouisiana while on such tour of active duty shallbe granted such credit in connection with thepurchase of such automobiles whether or not thestate to which such tax thereon has been paidgrants a similar credit as herein provided. Theamount of the credit shall be calculated by mul-tiplying the rate of the similar tax paid in the otherstate by the cost price which is subject to Louisi-ana use tax at the time of the importation of thetangible personal property. The proof of paymentof a similar tax to another state shall be madeaccording to rules and regulations promulgatedby the secretary. In no event shall the credit begreater than the tax imposed by Louisiana uponthe particular tangible personal property which isthe subject of the Louisiana use tax.

R.S. 47:303(A)(3)

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56 August 2001

Amended by Acts 1991, No. 198.

B. Collection of tax on vehicles.The tax imposed by R.S. 47:302(A) on the sale oruse of any motor vehicle, automobile, motorcycle,truck, truck-tractor, trailer, semi-trailer, motorbus, house trailer, or any other vehicle subject tothe vehicle registration license tax shall be col-lected as provided in this Subsection.

(1) The tax levied by R.S. 47:302A on any suchvehicle shall be paid to the vehicle commissioneras the agent of the collector of revenue at the timeof application for a certificate of title or vehicleregistration license and such tax shall be admin-istered and collected by the vehicle commissionerin compliance with rules and regulations issuedby the collector of revenue and in compliance withthe law as construed by the collector of revenue.No certificate of title or vehicle registration licenseshall be issued until this tax has been paid. Thecollector of revenue shall be the only proper partyto defend or to institute any legal action involvingthe tax imposed by R.S. 47:302A on the sale oruse of any motor vehicle, automobile, motorcycle,truck, truck-tractor, trailer, semi-trailer, motorbus, house trailer or any other vehicle subject tothe vehicle registration license tax. (R.S. 47:451et seq.).

(a) The tax levied by R.S. 47:302(A)(1) on the saleof any such vehicle shall be due at the time ofregistration or any transfer of registration asrequired by the Vehicle Registration License TaxLaw (R.S. 47:451 et seq.). However, the vehiclecommissioner shall waive penalties or interest onsales tax on timely filed applications for registra-tion reject-ed due to office of motor vehicles error.

(b) The tax levied by R.S. 47:302(A)(2) on the useof any such vehicle in this state shall be due at thetime first registration in this state is required bythe Vehicle Registration License Tax Law (R.S.47:451 et seq.). However, the vehicle commis-sioner shall waive penalties or interest on use taxon timely filed applications for registrations re-jected due to office of motor vehicles error.Amended by Acts 1992, No. 796, eff. August 21,1992.

(2) Every vendor of such a vehicle shall furnish tothe purchaser at the time of sale a notarizedstatement showing the serial number, motor num-ber, type, year, and model of the vehicle sold, thetotal sales price, any allowance for and a descrip-tion of any vehicle taken in trade, and the totalcash difference paid or to be paid by the pur-

chaser between the vehicles purchased and tradedin and the sales or use tax to be paid, along withsuch other information as the collector of revenuemay by regulation require. All labor parts, acces-sories, and other equipment which are attachedto the vehicle at the time of sale and which areincluded in the sale price are to be considered apart of the vehicle.

(3)(a) It is not the intention of this Subsection togrant an exemption from the sales and use taxlevied in this Title to any sale, use, items, ortransaction which has heretofore been taxable,and this Subsection is not to be construed as sodoing. It is the intent of this Subsection to transferthe collection of state and political subdivisionsales and use taxes on vehicles from the vendor tothe vehicle commissioner as agent for the secre-tary of the Department of Revenue and Taxationand for the collectors of such political subdivisiontaxes and to provide a method of collection of thetax directly from the vendee or user by the vehiclecommissioner as agent of the secretary and suchcollectors.

(b)(i) The vehicle commissioner and the governingbody of any political subdivision as defined inArticle VI, Section 44(2) of the Constitution ofLouisiana, in which a sales or use tax has beenimposed by such political subdivision on the saleor use of motor vehicles, shall enter into anagreement by which the vehicle commissionershall collect such tax on behalf of the politicalsubdivision. Except as provided in Paragraph (5)of this Subsection, no certificate of title or vehicleregistration license shall be issued until suchlocal tax is paid.

(ii) The tax imposed by the political subdivisionson the sale or use of vehicles subject to the VehicleRegistration License Tax Law (R.S. 47:451 et seq.)shall be collected by the vehicle commissionerand distributed to the political subdivisions asprovided for in R.S. 47:301(10)(f) and (18)(b). Thevehicle commissioner shall withhold from anysuch taxes collected for the political subdivisionsone percent of the proceeds of the tax so collected,which shall be used by the commissioner to paythe cost of collecting and remitting the tax to thepolitical subdivisions.

(iii) The vehicle commissioner shall cause to beconducted annually, by the legislative auditor, anaudit or examination of the books and accounts ofsales and use taxes collected by the vehicle com-missioner for each political subdivision. The scopeof the audit shall be sufficient to determine whether

R.S. 47:303(B)

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or not sales and use taxes collected for eachpolitical subdivision have been properly and cor-rectly distributed in accordance with law duringthe period under audit. The cost of such auditshall be prorated to all local political subdivi-sions for whom the vehicle commissioner collectssales and use taxes on the basis of total tax dollarsdistributed to each local political subdivision,and the vehicle commissioner shall withhold thecost of such audit from taxes collected. In theevent the audit determines that adjustments totax distributions are required, the vehicle com-missioner shall adjust future tax distributions toapplicable tax recipient bodies. The prescriptiveperiod for adjustments under this Section shallbe three years from the thirty-first day of Decem-ber of the year in which such taxes became due.

(iv) All such agreements now existing between anypolitical subdivision and the secretary are herebydeclared valid and the function of the secretarythereunder are hereby transferred to the directorof public safety as vehicle commissioner.Amended by Acts 1990, No. 427, eff. Sept. 7,1990.

(4) The provision contained in R.S. 47:301(10) inthe second unnumbered paragraph which ex-cludes isolated or occasional sales from the defi-nition of a sale at retail is not to apply to the saleof vehicles which are the subject of this subsec-tion. Isolated or occasional sales of vehicles arehereby defined to be sales at retail and as such aresubject to the tax.

(5) Notwithstanding the provisions of this Sec-tion, a certificate of title or vehicle registrationlicense may be issued to a purchaser by thesecretary of the Department of Public Safety if heis so authorized in writing by the secretary of theDepartment of Revenue. The secretary of theDepartment of Revenue shall grant such authori-zation upon written application by the purchaserto said secretary showing that:

(a) all state and local taxes and fees due by thepurchaser were paid in good faith at the time ofpurchase to a motor vehicle dealer,

(b) the motor vehicle dealer has not remitted thetaxes and fees to the secretary of the Departmentof Public Safety,

(c) the motor vehicle dealer has refused or isunable to answer a written demand by the pur-chaser that the taxes and fees be paid to thesecretary of the Department of Public Safety, and

(d) the certificate of title or vehicle registrationlicense has not been issued within six monthsafter the date of sale.

A refusal by the secretary of the Department ofRevenue to authorize the issuance of a certificateof title or a vehicle registration license may beappealed to the Board of Tax Appeals within sixtydays from the date the application for a certificateof title is denied by the secretary of the Depart-ment of Revenue.

(6) Those lessors or renters subject to the taxlevied by R.S. 47:551 may directly transfer thecost of any local sales and use taxes paid on anyautomobile purchased for lease or rental by allo-cating such taxes to each automobile rental con-tract. Such allocation shall be determined by aschedule promulgated by the secretary of theDepartment of Revenue and Taxation and shall becollected by such lessors or renters. The scheduleshall be based on automobile purchases in theyear prior to the particular allocation assessed.The secretary shall promulgate such other rulesas he deems necessary to ensure that the alloca-tion provided in this Paragraph is equitable and isnot in excess of the actual local sales taxes paidby such lessors and renters.Added by Acts 1993, No. 569, eff. July 1, 1993.

(7) Whenever a licensed dealer in motor vehiclessells, assigns, or otherwise transfers an agree-ment for the lease of a motor vehicle to a licensedlessor of motor vehicles for whom the licenseddealer has prepared the agreement, the transfershall include all unremitted taxes collected by thelicensed dealer, and the licensed lessor shall havethe sole responsibility for remitting such taxes tothe proper taxing authorities.Amended by Acts 2001, No. 13, eff. August 15,2001.

C. Auctioneers.

All auctioneers shall register as dealers and shalldisplay their registration to the public as a condi-tion of doing business in this state. Such auction-eers or the company which they represent shall beresponsible for the collection of all local and statetaxes on articles sold by them and shall reportand remit to the collector as provided in thisChapter.

D. Collection of tax on motorboats and vessels.

The secretary of the Louisiana Department ofWildlife and Fisheries shall not register or issue a

R.S. 47:303(D)

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58 August 2001

certificate of registration on any new boat orvessel purchased in this state until satisfactoryproof has been presented to him that all salestaxes provided by this Part, and all municipal,school board and/or parish sales taxes, havebeen paid; nor shall he register or issue a certifi-cate of registration on any boat or vessel broughtinto this state until satisfactory proof has beenpresented to him that all use taxes required bythis Part, and all municipal, school board and/orparish use taxes, have been paid.

E. Collection of tax on off-road vehicles.

(1) The vehicle commissioner shall not issue a titleor a certificate of registration on any off-roadvehicle purchased in this state or brought intothis state from another state until satisfactoryproof has been presented to him that all salestaxes required by law have been paid. The pur-chaser of an off-road vehicle from a seller who isnot registered with the Department of PublicSafety and Corrections shall pay the sales tax atthe time the vehicle is titled the same as isrequired for the registration and licensing of othervehicles under the provisions of Subsection B ofthis Section.Amended by Acts, 1993, No. 688, effective Aug.15,1993.

(2) After payment of the taxes due, the commis-sioner shall issue a decal, in a form prescribed,said decal to be affixed to the vehicle, as directed,by the commissioner, which shall be conclusiveproof of registration and payment of the requiredtaxes. All 1987 and later model off-road vehiclessold as new and subsequently sold as used shallbe required to display this decal, commencingSeptember 1, 1986. The decal shall be a two-yearrenewal type and the fees for issuance of new,renewal, transfer, lost, or illegible decals shall bethe same amount as those fees charged for theregistration stickers of other motor vehicles. Fail-ure to have this decal affixed to the off-roadvehicle within thirty days of purchase will resultin a fine, not to exceed fifty dollars, or the im-pounding of the vehicle, or both, and the paymentof all taxes due, if any. All peace officers, includingthe Department of Wildlife and Fisheries, mayrequire proof of registration and shall have con-current jurisdiction to enforce the provisions ofthis Section.

F. Collection of tax on memberships in health andphysical fitness clubs.

The sales tax due under the provisions of thisChapter on contracts for membership in a healthand physical fitness club shall be assessed andshall be due and payable on a monthly basiscomputed on the amount paid each month lessany actual or imputed interest or collection fees orunpaid reserve amounts not received by the healthand fitness club, provided that no sales or use taxof the state or any of its political subdivisions notcollected by such clubs shall be due or payable onamounts collected on such contracts prior to theeffective date of the Act originally enacting thisSubsection.

G. Direct Payment Numbers.

Notwithstanding any provision of law to the con-trary, a Louisiana taxpayer who obtains a DPNumber as provided in R.S. 47:303.1 shall remitsales and use taxes due on purchases and rentalsof tangible personal property and taxable servicesdirectly to the state and local taxing bodies towhom the sales and use taxes are due, and shallnot be liable to remit the tax to the vendor or lessorof the tangible personal property and taxableservices, as provided in R.S. 47:303.1.

LAC 61:I.4307. CollectionA. Collection from Dealers

1. All of the taxes imposed under R.S. 47:302, andthose imposed under R.S. 47:321 and R.S. 47:331are governed by these provisions. Every personengaged as a dealer, which R.S. 47:301 defines tobe either party to a transaction creating a taxliability under this Chapter, is made liable forcollection of the tax. Dealer includes both the sellerand the purchaser of tangible personal property,the person who uses, consumes, distributes orstores tangible personal property in this state to beused or consumed here if a Louisiana sales tax hasnot previously been paid thereon, the lessor orlessee, the rentor or rentee of tangible personalproperty rented or leased within this state, and theperson who performs or furnishes any of the ser-vices covered by R.S. 47:301(14) or the person forwhose benefit the services are furnished.

2. The importation of tangible personal propertyfrom other states or from foreign countries to beused, consumed, distributed, or stored to be usedor consumed in this state is treated the same as ifthe articles had been sold at retail for any of thosepurposes within the state, and such articles arethereby taxable to the person who causes them to

R.S. 47:303(E)

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be imported. This tax levies immediately, and canbe collected immediately. There shall be no tax onthe importer, however, if a Louisiana sales tax hasbeen previously paid. This Section [R.S. 47:303]clearly provides that there shall be no duplicationof the tax.

3. If a tax similar to that imposed by this Chapteris imposed by the state from which property isimported and if the state from which importedallows a credit to persons who import tangiblepersonal property into that state for any sales oruse tax which might have previously been paid tothe state of Louisiana, a credit will be allowedagainst the Louisiana sales or use taxes for the taxpaid to the other state. In order for the credit to beoperative, both of the qualifying conditions must bemet. The importer must have paid a similar taxupon either the sale or use of the same identicalproperty in another state and the other state mustallow a credit similar to this credit. The only excep-tion to the double qualification standard is in thecase of military personnel who are enlisted for twoyears or more who purchase automobiles outsidethe state of Louisiana while on their tour of activeduty. In this instance, the credit will be allowed forthe taxes paid the other state, whether or not thatstate allows a similar credit for Louisiana taxespaid.

4. The use tax imposed by this Chapter is based oneither the cost of the tangible personal propertybeing imported or its fair market value at the pointat which it comes to rest in the state of Louisiana,whichever is the lesser of the two. Most frequently,the value upon which the Louisiana use tax isbased will be less than original cost on which thetaxpayer paid tax in the state of purchase. In thoseinstances, credit will be allowed against the Loui-siana use tax only in an amount equal to the taxrate paid to the other state, as distinguished fromlocal government in the other state, applied to thevalue being taxed under the Louisiana law. Nocredit will be allowed against the Louisiana usetax for taxes paid to political subdivisions in an-other state or to foreign countries. In no event willa credit greater than the tax imposed by Louisianaon any particular piece of tangible personal prop-erty be allowed.

5. In any case in which a taxpayer claims credit fora tax paid to another state, he must be in a positionto prove payment of the tax before the credit will beallowed. The precise proof required will vary withthe nature of the property and the circumstancessurrounding its importation into the state.

B. Collection of Tax on Vehicles

1. In view of the regulatory function performed bythe vehicle commissioner in issuing license platesfor the registration of vehicles and in issuing certifi-cates of title to vehicles, this Subsection providesthat all taxes levied by this Chapter on the sale oruse of vehicles shall be paid to the vehicle commis-sioner as the agent of the secretary before a certifi-cate of title or vehicle registration can be issued.The vehicle commissioner serves as agent for thesecretary only with respect to those vehicles re-quired to be registered and/or titled with thevehicle commissioner. Generally, this covers allvehicles which have been found to be safe forhighway use and can pass safety inspection.While this subsection makes the vehicle commis-sioner the agent of the secretary for purposes ofcollecting the taxes, the secretary is the only properparty to defend or institute any legal action involv-ing the tax imposed by this Chapter with respect toany motor vehicle, automobile, motorcycle, truck,truck-tractor, trailer, semi-trailer, motor bus, housetrailer, or any other vehicle subject to the vehicleregistration or title requirements. Conversely, thesecretary has no authority or jurisdiction whateverin the issuance of vehicle registration licenses orvehicle titles. This is the absolute domain of thevehicle commissioner.

2. The sales tax levied by R.S. 47:302(A)(1) and byR.S. 47:321 and R.S. 47:331 is due at the time ofregistration or transfer of registration as requiredby the vehicle registration license tax law. The usetax levied by R.S. 47:302(A)(2) and R.S. 47:321and R.S. 47:331 on the use of a vehicle in this stateis due at the time first registration in this state isrequired by the vehicle registration license tax law.That law basically requires that a vehicle pur-chased in Louisiana be registered immediatelyupon purchase. Consequently, the sales tax is dueat the time of the purchase transaction. The vehicleregistration license tax law basically provides thatthe vehicle shall be registered in this state immedi-ately upon its importation for use in Louisiana. Theuse tax, therefore, becomes due when the vehiclehas entered the state for use.

3. For purposes of the sales tax, every vendor inthis state is required to furnish to a purchaser atthe time of a sale, a sworn statement fully describ-ing the vehicle including the serial number, themotor number, the type, year, and model of thevehicle, the total sales price, the amount of anyallowance, and a full description of any vehicletaken in trade, the net difference being paid by thepurchaser between the vehicle purchased and the

LAC 61:I.4307.B

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60 August 2001

one traded in, and the amount of sales or use taxto be paid. Every component of the vehicle attachedthereto at the time of the sale and which is includedin the sales price, including any labor, parts,accessories, or other equipment, are considered tobe a part of the vehicle and not a separate item oftangible personal property. The vehicle commis-sioner has the right to examine the statementfurnished to the purchaser at the time of the saleand in any case in which he determines that thetotal sales price or the allowance for the vehicletraded in do not reflect reasonable values, he mayadjust either to reflect the fair market value of thevehicle involved. Generally, this will be done byreference to current values published by the Na-tional Automobile Dealers Association. This re-valuation is solely for the purpose of determiningthe proper amount of sales or use tax due and in noway influences the prices agreed upon betweenthe buyer and the seller. The vehicle commissioneralso has the authority to require affidavits fromeither the vendor or the purchaser, or both, tosupport a contention that some unusual conditionadversely affected the cited sales price. In anyevent, the minimum tax due shall be computed onthe consideration cited as the difference paid bythe purchaser between the vehicle purchased andthe vehicle traded in.

4. In order for a transaction involving motor ve-hicles to qualify for trade-in treatment for sales/use tax purposes, the following additional condi-tions must be met:

a. Ownership of the trade-in vehicle must be trans-ferred to the seller of the new vehicle simulta-neously with or prior to the taking of delivery by thepurchaser of the new vehicle from the seller.

b. In those cases where special equipment must beinstalled on the new vehicle or where delivery ofthe trade-in vehicle cannot be made, an additionalperiod of time will be allowed for the installation ofthe special equipment or delivery of the trade-invehicle provided the new vehicle and the trade-invehicle cannot be in the purchaser’s service at thesame time.

c. The actual trade-in value of the trade-in vehiclemust be established by the purchaser and theseller at or prior to the time of the transfer ofownership of same to the seller, provided suchvalue must be established within ten days afterdelivery.

d. The certificate of title to the trade-in vehicle mustbe in the name of the purchaser of the new vehicle.

e. In the event the new vehicle is not delivered to thepurchaser at the time the trade-in vehicle is deliv-ered to the seller, there must be an obligation on thepart of the purchaser to take delivery from theseller of the new vehicle.

f. The records of both the seller and the purchasermust reflect a complete description of the transac-tion.

g. At the time of transfer of ownership of the newvehicle, the invoice from the seller must reflect notonly the sales price of the new vehicle but also acomplete description of the trade-in vehicle, includ-ing the amount of the actual trade-in value.

h. The sales or use tax due the state of Louisianashall be computed on gross sales price of the newvehicle in the case of a sale, or on the cost price ofthe new vehicle in the case of a transaction subjectto the use tax, less the previously establishedactual trade-in value of the trade-in vehicle.

i. In order to constitute a trade-in to be used as amethod of reducing the sales or use tax, there mustbe a transfer of ownership and the value of thetrade-in vehicle must represent a part of the pur-chase price of the new vehicle. A payment in cash,check or in any other form in lieu of a reduction inor a part of the purchase price of a new vehicle doesnot constitute a trade-in. The accounting principlesused in arriving at the value of any given vehicle forsales or use tax purposes and for trade-in pur-poses must be consistent.

ii. In any case in which a governing body of anyparish or municipality, or the school board of anyparish or municipality, has imposed a sales or usetax on the sale or use of motor vehicles, the vehiclecommissioner is authorized to enter into an agree-ment with the governing body by which the vehiclecommissioner will collect the tax on behalf of thesaid parish, municipality, or school board. Thevehicle commissioner is authorized to withhold 1percent of all such taxes collected for parishes,municipalities, or school boards to be used by thecommissioner to pay the cost of collecting andremitting the balance of the tax to the respectiveparishes, municipalities, and school boards. Suchlocal taxes shall be paid to the vehicle commis-sioner in the same manner as the state sales or usetaxes and no title or vehicle registration shall beissued until the taxes have been paid.

(a).(i). Every dealer who is registered for, collects,and remits the Automobile Rental Excise Tax lev-ied by R.S. 47:551 to the secretary of Revenue and

LAC 61:I.4307.B

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Louisiana Sales Tax Law and Regulations 61

Taxation is permitted, under the provisions of thisSection, to recover the local sales taxes paid onpurchases of automobiles held for rental periods of29 days or less. In accordance with R.S.47:303(B)(6), only those lessors or renters subjectto the 3 percent excise tax may directly transfer thecost of local sales and use taxes paid on any suchautomobiles by allocating a portion to each indi-vidual rental contract. Lessors or renters whoselease or rental contracts exceed 29 days andwhose lease or rental receipts are not subject to the3 percent excise tax are not eligible for this recoveryprovision.

(ii).This provision merely makes this recovery op-tion available to any qualified automobile rentaldealer. It is not mandatory, and rental dealers whodo not wish to employ this recovery method are notrequired to comply with this regulation.

(iii). Any and all sales or use taxes levied bypolitical subdivisions of Louisiana under the provi-sions of Title 33, Chapter 6, Part I, Subpart D, andpaid to the Office of Motor Vehicles on purchases ofautomobiles whose rental receipts are subject tothe 3 percent tax levied under R.S. 47:551 arerecoverable under this provision. Sales taxes lev-ied by the state of Louisiana, any other state, or bypolitical subdivisions of any other state are notrecoverable. Local sales and use taxes paid on anytype of vehicles other than automobiles, vehicleregistration taxes, title and service fees, occupa-tional license taxes, privilege taxes, or ad valoremtaxes are not eligible for recovery under this Sec-tion.

(b). In order to accomplish and facilitate collectionof local sales taxes due, an amount equal to theLocal Sales Tax Recovery Surcharge (LSTRS) of $2per rental day shall be collected and retained bythe owner/lessor of the vehicle from the person/lessee renting the vehicle. Rental transactionshaving a duration of less than 24 hours shall beconsidered a rental day for purposes of collectingthe LSTRS. The vehicle owner/lessor must collectthe LSTRS as a line item on the customer invoice,which is separate from the state and local salesand use tax and the Automobile Rental Excise Tax.The vehicle owner/lessor must not represent theLSTRS to his lessees as a charge that is mandatedby the State of Louisiana or by any political subdi-vision of the state.

(c). The owner/lessor shall remit the sums for localsales taxes due to the vehicle commissioner in theusual and customary manner as provided by law.

(d).(i). To provide for an orderly transition to thelocal sales tax recovery system established in R.S.47:303 (B)(6), each automobile owner/lessor shall,before adding the LSTRS to any rental contract,determine the total amount of local sales and usetax that he paid in the prior calendar year onautomobiles held for rental periods of 29 days orless. The automobile owner/lessor must cease thecollection of the LSTRS from lessees at the time thattotal collections from the LSTRS during the currentcalendar year equal the amount of local sales anduse taxes paid on eligible vehicles during thepreceding calendar year.

(ii). If, notwithstanding the provisions of§4307.B.4.h.iii.(d).(i), actual collections of the LSTRSduring a calendar year exceed the amount neededto reimburse the lessor for recoverable local taxespaid during the preceding calendar year, any suchexcess must be remitted to the Department ofRevenue and Taxation as “excess tax” on thelessor’s monthly return for the Automobile RentalExcise Tax.

(iii). The exemption set forth in R.S. 47:301(10)whereby isolated or occasional sales of tangiblepersonal property are not subject to the taxesimposed by this Chapter if made by a person notengaged in such business does not apply to salesof motor vehicles covered by this Subsection. Iso-lated or occasional sales, also commonly referredto as casual sales, of vehicles are specificallydefined to be sales at retail and subject to the taximposed by this Chapter.

(iv). The vehicle commissioner may require anydealer engaged in the business of selling motorvehicles, automobiles, motorcycles, trucks, truck-tractors, trailers, semi-trailers, motor buses, housetrailers, or any other vehicle subject to the vehicleregistration license tax law or the title registrationlaw to furnish information relative to their sales onany periodic basis designated by the vehicle com-missioner. Such statements shall set forth theserial number, motor number, type, year, model ofthe vehicle sold, the total sales price, any allow-ance for trade-in, a description of the trade-in, thetotal cash difference to be paid by the purchaser,and any sales or use taxes to be paid. The vehiclecommissioner is also authorized to secure what-ever other additional information is necessary forproper administration of this Subsection.

(v). For credits allowed against a tax imposed bythis Chapter for taxes paid to another state, see thethird paragraph of R.S. 47:303(A) and the regula-tions issued thereunder.

LAC 61:I.4307.B

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62 August 2001

(vi). Generally, a certificate of title or vehicle regis-tration shall not be issued to any purchaser for anyvehicle on which the taxes levied by this Chapterhave not been paid. However, R.S. 47:303(B)(5)provides an exception to this rule for the benefit ofpurchasers who have paid the proper taxes due tothe vehicle dealer at the time of sale of the vehicle,and whereby the taxes thus paid were not remittedto the vehicle commissioner. Under this provision,a motor vehicle purchaser who has not been issueda certificate of title or vehicle registration licensewithin six months after the date of the sale, maysubmit a written request to the secretary providingthe following information:

(a). All state and local sales taxes and fees due bythe purchaser were paid in good faith to the motorvehicle dealer at the time of purchase;

(b). The motor vehicle dealer has not yet remittedthe taxes and fees to the vehicle commissioner;

(c). The motor vehicle dealer has refused or isunable to respond to a written demand by thepurchaser for payment of the taxes and fees to thevehicle commissioner;

(d). The certificate of title or vehicle registrationlicense has not been issued within the six monthselapsed since the sale.

If the purchaser’s request appears reasonable,and the facts represented are found to be accurate,the secretary shall authorize the vehicle commis-sioner to issue a certificate of title or a vehicleregistration license. If for any reason thepurchaser’s request is denied by the secretary,such a denial will be in writing, and the purchasermay file an appeal with the Board of Tax Appealswithin 60 days after the date of denial by thesecretary.

C. Collection of Tax from Auctioneers

1. Generally, the sales tax law contemplates asituation in which the owner of property, or aperson having title to property, sells tangible per-sonal property to another person, thereby creatinga taxable transaction. In this instance, the salestax law places a liability upon the seller to collectthe Louisiana sales tax from the purchaser andremit the tax to the secretary. Because of this basicconcept, a special provision has been included R.S.47:303(C) to cover sales which do not fall withinthat general method of doing business. In the caseof auctioneers, the actual owner of the propertyturns it over to the auctioneer who conducts the

sale and consummates the final transfer of title, asa third party, from the owner to the purchaser. Hemay well represent a number of property owners atone auction sale.

2. In view of the unique position occupied byauctioneers with relationship to the owner of theproperty being sold, this Subsection requires thatall auctioneers shall register as dealers and mustdisplay their registration certificate to the public asa condition of doing business in this state. Theauctioneer is then held responsible for collecting allstate and local taxes on articles sold by him and isresponsible for properly reporting and remittingthe amount collected.

D. Collection of Tax on Motorboats and Vessels.

1. This Subsection provides that the secretary ofthe Department of Wildlife and Fisheries shall notissue a certificate of registration on any boat orvessel which is purchased in, or imported into,Louisiana until satisfactory proof is presentedshowing that all state and local sales taxes havebeen paid. This will be in the form of a “taxpayment certification for boat registration”, whichis available through the boat dealer or at any officeof the Department of Revenue and Taxation.

2. In the case of a boat or vessel purchased from aLouisiana dealer, the certificate will be completedand signed by both the purchaser and the dealer,and will include the dealer’s sales tax registrationnumber.

3. In the case of a boat or vessel brought in fromanother state, the certificate must be completedand signed by the purchaser and a revenue deputyof the Department of Revenue and Taxation, andalso by a tax collecting agent of the local govern-ment where the purchaser resides. The properstate and local use taxes will be due, subject tocredit for sales taxes paid in another state, asprovided by Subsection A.

4. In the case of a boat or vessel purchased from anindividual owner who is not engaged in the busi-ness of selling boats or vessels, the certificate mustbe completed and signed by the purchaser and arevenue deputy of the Department of Revenue andTaxation, and by a tax collecting agent of the localgovernment where the purchaser resides. Sales ofboats and vessels by individual owners will beregarded as isolated or occasional sales, and notsubject to the taxes levied by this Chapter. Thepurchaser, however, must provide sufficient docu-mentation to support such a basis for exemption,

LAC 61:I.4307.C

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Louisiana Sales Tax Law and Regulations 63

such as a canceled (sic) check and a notarized billof sale, or the prior owner’s certificate of registra-tion showing his or her transfer of ownership to thepurchaser.

5. The completed “tax payment certification” formwill then be presented to an office of the Depart-ment of Wildlife and Fisheries to obtain a registra-tion certificate.

E. Collection of Tax on Off-road Vehicles

1. R.S. 47:303(E) points out clearly that off-roadvehicles are subject to the taxes imposed underthis Chapter, and require that a certificate of titlebe obtained from the vehicle commissioner in thesame manner as with other motor vehicles. Theexclusion of motor vehicles from the isolated oroccasional provision which appears in R.S.47:303(B)(4) applies equally to off-road vehicles asit does to cars and trucks. Thus, a purchaser of anoff-road vehicle from a person who is not registeredwith the Department of Revenue and Taxation tocollect and remit sales taxes shall pay the propersales taxes at the time the vehicle is titled.

2. Beginning September 1, 1986, all off-road ve-hicles which are of 1987 model or later manufac-ture must bear evidence of tax payment bydisplaying a decal issued by the vehicle commis-sioner. The decal will be required whether the off-road vehicle is sold as new or used, and must berenewed every two years. The fee for such decalsshall be the same as that charged for license feesof other motor vehicles, whether the decal is fornew issue, renewal, transfer of ownership, orreplacement of a lost or illegible decal.

F. Collection of Tax on Memberships in Health andPhysical Fitness Clubs R.S. 47:303(F) concerns thecollection and remittance of sales taxes for mem-berships in health and physical fitness clubs dueunder R.S. 47:301(14)(b). Generally, the taxes im-posed under this Chapter are to be reported andremitted for the period in which the sale of tangiblepersonal property or the sale of taxable servicesoccurred, regardless of whether or not the vendorhas collected the proceeds or taxes from the cus-tomer. This Subsection, however, provides thatoperators of health and physical fitness clubs mayreport and remit the taxes due on memberships forthe period in which the proceeds are actuallycollected, for those sales of memberships whichare payable over an extended period of time, on amonthly basis. Such extended payment plans typi-cally include actual or imputed interest charges ineach monthly payment. The provisions of this

Subsection provide that only the membership duesare subject to the tax, so that the club operator mayreport as sales of services, and remit taxes on, onlythat portion of the proceeds which represents mem-bership dues, according to the terms of the con-tract. It further provides that if the club operatoruses a collection agency to collect the amounts due,the collection fees withheld from the proceeds aresubtracted from the reported sales of services.When membership contractual payment plans areresold to a financial institution, only the net pro-ceeds received by the club operator will be theamount reported as sales of services for that re-porting period. The discount withheld by the finan-cial institution will be regarded as interest, andwill not be included in the taxable base.

R.S. 47:303.1. Direct Payment NumbersA. Notwithstanding any other law to the contraryexcept for the provisions of R.S. 47:303(B) and (E),the state and local sales and use tax due on thepurchase, importation, or lease of tangible per-sonal property or taxable services by taxpayerswho have obtained a Direct Payment Number,hereinafter referred to as a “DP Number,” shall beremitted directly to the state and appropriatepolitical subdivision by such taxpayer, as pro-vided in this Section. The vendor or lessor oftangible personal property or taxable servicesshall not be responsible for collecting sales anduse tax on such sales or leases, and shall not beliable for such tax as provided in R.S. 47:304(C),upon presentation to him of a valid DP Number bysuch purchaser or lessee, provided that the ven-dor or lessor notes the DP Number on the untaxedcontract or invoice submitted to such purchaserand lessee.

B. A DP Number shall be issued to and shall becontinued to be held by a taxpayer who obtainsthe required approvals and who meets all of thequalifications provided for in this Section and thefollowing qualifications:

(1) The taxpayer’s primary business in the state isthat of a manufacturer of tangible personal prop-erty for resale where such manufacturing occursat a manufacturing establishment or facility withinthe state.

(2) The taxpayer has reported and paid timelysubstantially all of the taxes which the taxpayerbelieves are legally due to the state and its politi-cal subdivisions.

R.S. 47:303.1(B)(2)

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(3) The taxpayer has an annual average of fifteenmillion dollars of taxable purchases or leases oftangible personal property and taxable servicesfor three calendar years prior to the year ofapplication by the taxpayer, and has such anaverage for each subsequent three-year period.

(4) The taxpayer maintains adequate proceduresand practices, records and reports for accrualand timely reporting and paying the state andpolitical subdivision sales and use taxes due.

C. Upon application by a taxpayer to the depart-ment for a DP Number, the department shallnotify by certified mail the local agency or agen-cies charged with collection of the sales and usetax imposed by the political subdivisions in theparish or parishes in which the taxpayer has amanufacturing establishment or facility. The de-partment and the local collection agency or agen-cies shall review the application and shall auditthe taxpayer to determine that the taxpayer meetsthe qualifications provided in Subsection B of thisSection, if the department or local collectionagency or agencies consider such audit neces-sary.

D. If the taxpayer meets the qualifications ofSubsection B and obtains written approval fromthe local agency or agencies charged with thecollection of sales and use tax imposed by thepolitical subdivisions in the parish or parishes inwhich the taxpayer has a manufacturing estab-lishment or facility, the department shall issuethe DP Number to the taxpayer. If the taxpayermeets the qualifications of Subsection B butwritten approval is denied or withheld by the localagency or agencies charged with the collection ofsales and use tax imposed by the political subdi-visions in the parish or parishes in which thetaxpayer has a manufacturing establishment orfacility, the department shall issue a DP Numberto the taxpayer which shall be applicable only forthe purposes of state sales and use tax.

E. The department shall review the proceduresand practices, records and reports of the taxpayerat least once in every three calendar years afterthe year in which the application for the DPNumber is granted, and the department shallaudit the books and records of such taxpayerunless the department decides, in its discretion,that such an audit is not necessary.

F. The DP Number issued by the departmentunder this Section may be revoked by the secre-tary at any time if the taxpayer fails to meet the

qualifications provided in this Section, or if thedepartment receives written notice of the revoca-tion of approval for issuance of the DP Numberfrom all of the local tax collection agencies whichhad previously given their approval pursuant toSubsection D of this Section.

G. The taxpayer may appeal the secretary’s denialor revocation of a DP Number to the board of taxappeals.

H. The department shall promulgate rules andregulations necessary for the implementation ofthis Section.Amended by Acts 1993, No. 895, effective Aug. 15,1993.

R.S. 47:304. Treatment of tax by dealerA. The tax levied in this Chapter shall be collectedby the dealer from the purchaser or consumer,except as provided for the collection of tax onmotor vehicles in R.S. 47:303 and the collection oftax on property leased or rented for use offshorein R.S. 47:301(4)(d)(ii). The dealer shall collect thesales tax on off-road vehicles and remit themdirectly to the Department of Public Safety andCorrections upon application for certificate of titleand registration as required for the registrationand licensing of other vehicles under the provi-sions of Subsection B of this Section. The dealershall collect the sales taxes on off-road vehiclesfrom out-of-state residents who purchase off-road vehicles in this state and remit the salestaxes due directly to the Department of Revenue.Added by Acts 1994, No. 8. eff. June 1, 1994.

B. Every dealer located outside the state makingsales of tangible personal property for distribu-tion, storage, use, or other consumption, in thisstate, shall at the time of making sales collect thetax imposed by this Chapter from the purchaser.

C. Dealers shall, as far as practicable, add theamount of the tax imposed under this chapter inconformity with the schedule or schedules to beprescribed by the collector pursuant to authorityconferred herein, to the sale price or charge,which shall be a debt from the purchaser orconsumer to the dealer, until paid, and shall berecoverable at law in the same manner as otherdebts. Any dealer who neglects, fails or refuses tocollect the tax herein provided, shall be liable forand pay the tax himself.

D. Where the tax collected for any period is inexcess of the tax rate provided by this Title, the

R.S. 47:303.1(B)(3)

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Louisiana Sales Tax Law and Regulations 65

total tax collected must be paid over to the secre-tary, less the compensation to be allowed thedealer as hereinafter set forth. This provisionshall be construed with other provisions of thisChapter and given effect so as to result in thepayment to the secretary of the total tax collectedif in excess of the tax rate provided.

E. Any dealer who fails, neglects, or refuses tocollect the tax herein provided, either by himselfor through his agents or employees, shall, inaddition to the penalty of being liable for andpaying the tax himself, be fined not more than onehundred dollars, or imprisoned for not more thanthree months, or both.

F. (1) No dealer shall advertise or hold out to thepublic, in any manner, directly or indirectly, thathe will absorb all or part of the tax or that he willrelieve the purchaser from the payment of all orany part of the tax unless:

(a) The dealer includes in the advertisement thatany portion of the tax not paid by the purchaserwill be remitted on his behalf by the dealer.

(b) The dealer furnishes the purchaser with writ-ten evidence that the dealer will be liable for andpay any tax the purchaser was relieved frompaying under this Paragraph himself.

(2) If a dealer advertises that any portion of the taxnot paid by the purchaser will be remitted on hisbehalf by the dealer, the purchaser shall not beliable for the payment of that portion of the tax.

(3) Whoever violates this provision with respect toadvertising shall be fined not less than twenty-five dollars nor more than two hundred fiftydollars, or imprisoned for not more than threemonths, or both. For a second or subsequentoffense, the penalty shall be double.Amended by Acts 2001, No. 245, eff. July 1, 2001

G. The dealer or seller is permitted and requiredto state and collect the tax separately from theprice paid by the purchaser.

H. The use of tokens is forbidden. The collectorshall by regulations prescribe the method and theschedule of the amounts to be collected from thepurchasers, lessees or consumers in respect toany receipt upon which a tax is imposed by thischapter or by any political subdivision of the Stateof Louisiana. The amount of tax to be collected bythe dealer and paid by the purchaser shall in each

transaction comply with the schedule so pro-vided.

I. The sums of money collected by the dealer forpayment of sales and use taxes imposed by thestate of Louisiana, or any such taxes imposed byany parish, municipality, or political subdivisionwithin the state, shall be and remain the propertyof the taxing authority and deemed held in trustfor the taxing authority.Enacted by Acts 1991, No. 613. Amended by Acts1993, No. 894, effective June 23, 1993.

LAC 61:I.4311. Treatment of Tax byDealerA. R.S. 47:304 places the primary burden foroperation of the sales tax system upon the seller ofmerchandise, the performer of taxable services,and the rentor or lessor of property, and requiresthat he collect the tax from the purchaser, user orconsumer. If a dealer fails or refuses to collect thetax, he not only becomes liable for payment of thetax, but also subjects himself to the possibility ofbeing fined a maximum of $100 or imprisoned fora period of time not to exceed three months, or both.

B. This primary burden of collecting and remittingsales tax does not apply to the taxes on motorvehicles subject to the vehicle registration licensetax, the collection of which is described in §303(B)(LAC 61:I.4307.B). However, dealers of off-roadmotor vehicles are charged with the responsibilityfor collecting and remitting the tax on sales of allsuch off-road vehicles, notwithstanding that theyare also dealers of motor vehicles subject to regis-tration and licensing by the motor vehicle commis-sioner. Dealers of off-road vehicles shall, in additionto collecting and remitting the tax to the secretaryprovide the purchaser with a notorized (sic) bill ofsale, or other documentation, sufficient to provethat the proper taxes have been paid by the pur-chaser, and to enable the purchaser to obtain acertificate of title from the office of the motor vehiclecommissioner.

C. The seller is required so far as is practical to addthe tax to the selling price or charge. The lawprovides that the tax shall be a debt from thepurchaser or consumer to the dealer, recoverableat law in the same manner as any other debt. Aseller is specifically prohibited from advertising orholding out to the public in any way, directly orindirectly, that he will absorb all or any part of thetax or that he will relieve the purchaser from thepayment of all or any part of the tax. The seller who

LAC 61:I.4311.C

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66 August 2001

violates this provision shall be fined not less than$25 nor more than $250 or imprisoned for not morethan three months, or both. For second or subse-quent offenses, the penalty is doubled. In supportof this provision, the law requires that the dealer orseller must state and collect the tax separatelyfrom the price paid by the purchaser for the mer-chandise or service.

D. All of the above provisions apply equally well tothe dealer who is located outside of the state whomakes sales of tangible personal property into thisstate for distribution, use, storage, or consumptionhere. The out of state dealer is required to collectthe tax at the time of the sale.

E. Certificates of exemption from the taxes im-posed by this Chapter are obtainable from thesecretary by persons making purchases whichmay be exempt in whole or in part at the time ofpurchase or upon which the tax may be deferreduntil some later event which dictates taxability ofthe transaction. While primary responsibility forcollection of the taxes imposed herein rests uponthe seller, the purchaser who furnishes the selleran exemption certificate will be held liable for anytaxes subsequently found to be due.

F. In cases where the total amount of Louisianasales or use taxes collected under this Chapterexceeds the percentage applicable to the particulartype of merchandise or service, any such excessmust be remitted to the secretary.

G. For provisions relating to the amount of taxescollected by a dealer which may be withheld byhim as compensation for collecting, accounting for,and remitting the tax to the secretary, see R.S.47:306.

H. R.S. 47:304 prohibits the use of tokens in theoperation of the sales tax law and provides that thesecretary shall prescribe schedules of the amountsto be collected from purchasers, lessees, or con-sumers with respect to each sale. Such schedulesintegrate the collection of the state and local salestaxes, and their use is mandatory with respect toboth dealers and political subdivisions who im-pose a sales or use tax. The mandatory tablesrequired by this Section will be prepared by theDepartment of Revenue and Taxation at the re-quest of any local taxing jurisdiction, to reflect anyaggregate state and local sales tax rate. Anydealer, as well, may obtain these prepared tax rateschedules from the department.

House Concurrent Resolution 55(1986 Regular Session)Suspension of exemptions. House Concurrent

Resolution No. 55 of the 1986 Regular Session

provides:

WHEREAS, whenever the condition of the State

fisc would permit, the Legislature has at-

tempted to afford tax relief to its citizenry in

the form of various exemptions from the sales

and use tax; and

WHEREAS, due to the unforeseen crisis in oil

and gas production and prices and the result-

ing drop in state revenues, the financial con-

dition of the state is now such that the monies

lost due to these exemptions are critically

needed to avoid cessation of vital services to

those same citizens.

THEREFORE, BE IT RESOLVED that the Leg-

islature of Louisiana hereby suspends the ex-

emptions from the additional one percentum

tax levied pursuant to R.S. 47:331 including

but not limited to the exemptions provided in

Chapter 2 of Subtitle II of Title 47 of the

Louisiana Revised Statutes of 1950 insofar as

they are made applicable to the additional one

percentum tax levied pursuant to R.S. 47:331

by virtue of the provisions of R.S. 47:332 and

suspends R.S. 47:332(B), (C), and (D).

BE IT FURTHER RESOLVED that the collec-

tion of such tax by the dealer in accordance

with the provisions of R.S. 47:303 shall not be

impaired by any rule, regulation, or order of

any public body, agency, or authority.

BE IT FURTHER RESOLVED that this suspen-

sion shall become effective on July 1, 1986,

and shall extend through June 30, 1987.

House Concurrent Resolution 163(1988 Regular Session)A Concurrent Resolution

To suspend from July 1, 1988, through June

30, 1989, the exemptions from the additional

one percentum tax levied pursuant to R.S.

47:331, including but not limited to the ex-

emptions provided in Chapter 2 of Subtitle II

of Title 47 of the Louisiana Revised Statutes of

1950, insofar as they are made applicable to

the additional one percentum tax levied pur-

LAC 61:I.4311.D

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Louisiana Sales Tax Law and Regulations 67

suant to R.S. 47:331 by virtue of the provi-

sions of R.S. 47:332(A) under certain

conditions.

WHEREAS, whenever the condition of the state

fisc would permit, the Legislature of Louisiana

has attempted to afford tax relief to its citi-

zenry in the form of various exemptions from

the sales and use tax; and

WHEREAS, due to a recurring cash flow deficit

and a substantial accumulated general fund

deficit, the financial condition of the state is

such that the monies lost due to these exemp-

tions are critically needed to avoid cessation

of vital services to those same citizens.

THEREFORE, BE IT RESOLVED that the Leg-

islature of Louisiana does hereby suspend the

exemptions from the additional one percentum

tax levied pursuant to R.S. 47:331, including

but not limited to the exemptions provided in

Chapter 2 of Subtitle II of Title 47 of the

Louisiana Revised Statutes of 1950, insofar as

they are made applicable to the additional one

percentum tax levied pursuant to R.S. 47:331

by virtue of the provisions of R.S. 47:332(A),

except for that exemption provided in R.S.

47:305.46, relative to purchases with United

States Department of Agriculture Food Stamp

Coupons and purchases made under the

Women, Infants and Children’s Program.

BE IT FURTHER RESOLVED that the collec-

tion of such tax by the dealer in accordance

with the provisions of R.S. 47:303 shall not be

impaired by any rule, regulation, or order of

any public body, agency, or authority.

BE IT FURTHER RESOLVED that this suspen-

sion shall be effective on July 1, 1988, and

shall extend through June 30, 1989, but if and

only if the sales tax bonds authorized to be

issued by the Louisiana Recovery District pur-

suant to Act 15 of the First Extraordinary

Session of the Louisiana Legislature have been

validated by a court decree which has become

final on or before June 30, 1988, pursuant to

the bond validation law in R.S. 13:5121 through

5130.

[Act 11, Second Extraordinary Session, 1988,

excludes HCR 163 and Act No. 842 from the

exemptions in R.S. 51:1787 and R.S. 39:467

and 468, retroactive to the effective dates of

those instruments.]

House Concurrent Resolution 160(1989 Regular Session)A Concurrent Resolution

To suspend from July 1, 1989, through June

30, 1990, certain exemptions from the taxes

levied pursuant to R.S. 47:302 and 331, in-

cluding but not limited to the exemptions

provided in those portions of Chapter 2 of

Subtitle II of Title 47 of the Louisiana Revised

Statutes of 1950 which provide for exemp-

tions from the taxes imposed there-in, and to

provide for the effective dates of the suspen-

sion.

WHEREAS, whenever the condition of the state

fisc would permit, the Legislature of Louisiana

has attempted to afford tax relief to its citi-

zenry in the form of various exemptions from

the sales and use tax; and

WHEREAS, the financial condition of the state

is such that the monies lost due to these

exemptions are critically needed to avoid ces-

sation of vital services to those same citizens.

THEREFORE, BE IT RESOLVED that the Leg-

islature of Louisiana does hereby suspend the

following:

(1) All of the exemptions, except for the ex-

emptions provided by R.S. 47:305(A)(1), (B),

(D)(1)(f), (j), (k), (l), (m), (s), (G), 305.1, 305.2,

305.3, 305.8, 305.10, 305.15, 305.20, 305.37,

305.38, 305.46, R.S. 39:467 and 468 and R.S.

51:1787, from the two percent tax levied pur-

suant to R.S. 47:302, including but not limited

to those exemptions provided in those por-

tions of Chapter 2 of Subtitle II of Title 47 of

the Louisiana Revised Statutes of 1950 which

provide for exemptions from the taxes im-

posed in that Chapter.

(2) All of the exemptions from the additional

one percent tax levied pursuant to R.S. 47:331,

including but not limited to the exemptions

provided in Chapter 2 of Subtitle II of Title 47

of the Louisiana Revised Statutes of 1950,

insofar as they are made applicable to the

additional one percent tax by the provisions of

R.S. 47:332, except for those exemptions pro-

vided in R.S. 39:467 and 468, R.S. 47:305.10

and 305.46, and R.S. 51:1787.

BE IT FURTHER RESOLVED that the collec-

tion of such taxes upon previously exempt

HCR 160

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68 August 2001

transactions by the dealer in accordance with

the provisions of R.S. 47:303 shall not be

impaired by any rule, regulation, or order of

any public body, agency, or authority.

BE IT FURTHER RESOLVED that the suspen-

sion of the exemption of the two percent tax

levied pursuant to R.S. 47:302 shall become

effective on July 1, 1989, and shall extend

through June 30, 1990.

BE IT FURTHER RESOLVED that the suspen-

sion of the exemption of the one percent tax

levied pursuant to R.S. 47:331 shall become

effective on July 1, 1989 and shall extend

through December 31, 1989.

House Concurrent Resolution 1(1989 Second Extraordinary Session)A Concurrent Resolution

To suspend from July 1, 1989, through June

30, 1990, certain exemptions from the taxes

levied pursuant to R.S. 47:302 and 331, in-

cluding but not limited to the exemptions

provided in those portions of Chapter 2 of

Subtitle II of Title 47 of the Louisiana Revised

Statutes of 1950 which provide for exemp-

tions from the taxes imposed therein, and to

provide for the effective dates of the suspen-

sion.

WHEREAS, whenever the condition of the state

fisc would permit, the Legislature of Louisiana

has attempted to afford tax relief to its citi-

zenry in the form of various exemptions from

the sales and use tax; and

WHEREAS, the financial condition of the state

is such that the monies lost due to these

exemptions are critically needed to avoid ces-

sation of vital services to those same citizens.

THEREFORE, BE IT RESOLVED that the Leg-

islature of Louisiana does hereby suspend the

following:

(1) All of the exemptions, except for the ex-

emptions provided by R.S. 47:305(A)(1), (B),

(D)(1)(f), (j), (k), (l), (m), (s), (G), 305.1, 305.2,

305.3, 305.8, 305.10, 305.15, 305.20, 305.37,

305.38, 305.46, R.S. 39:467 and 468 and R.S.

51:1787, from the two percent tax levied pur-

suant to R.S. 47:302, including but not limited

to those exemptions provided in those por-

tions of Chapter 2 of Subtitle II of Title 47 of

the Louisiana Revised Statutes of 1950 which

provide for exemptions from the taxes im-

posed in that Chapter.

(2) All of the exemptions from the additional

one percent tax levied pursuant to R.S. 47:331,

including but not limited to the exemptions

provided in Chapter 2 of Subtitle II of Title 47

of the Louisiana Revised Statutes of 1950,

insofar as they are made applicable to the

additional one percent tax by the provisions of

R.S. 47:332, except for those exemptions pro-

vided in R.S. 39:467 and 468, R.S. 47:305.10

and 305.46, and R.S. 51:1787.

BE IT FURTHER RESOLVED that the collec-

tion of such taxes upon previously exempt

transactions by the dealer in accordance with

the provisions of R.S. 47:303 shall not be

impaired by any rule, regulation, or order of

any public body, agency, or authority.

BE IT FURTHER RESOLVED that the suspen-

sion of the exemption of the two percent tax

levied pursuant to R.S. 47:302 shall become

effective on July 1, 1989, and shall extend

through June 30, 1990.

BE IT FURTHER RESOLVED that the suspen-

sion of the exemption of the one percent tax

levied pursuant to R.S. 47:331 shall become

effective on July 1, 1989 and shall extend

through December 31, 1989.

R.S. 47:305. Exclusions and exemptionsfrom the taxA. (1) The gross proceeds derived from the sale inthis state of livestock, poultry, and other farmproducts direct from the farm are exempted fromthe tax levied by this Chapter, provided that suchsales are made directly by the producers. Whensales of livestock, poultry, and other farm prod-ucts are made to consumers by any person otherthan the producer, they are not exempted fromthe tax imposed by this Chapter.

(2) The gross proceeds derived from the sale inthis state of livestock at public sales sponsored bybreeders’ or registry associations or livestockauction markets are exempted from the tax leviedby this Chapter. When public sales of livestockare made to consumers by any person other thanthrough a public sale sponsored by a breeders’ orregistry association or a livestock auction market,they are not exempted from the tax imposed by

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Louisiana Sales Tax Law and Regulations 69

this Chapter. This Section shall be construed asexempting race horses entered in races andclaimed at any racing meet held in Louisiana,whether the horse claimed was owned by theoriginal breeder or not.

(3) Every agricultural commodity sold by anyperson, other than a producer, to any otherperson who purchases not for direct consumptionbut for the purpose of acquiring raw product foruse or for sale in the process of preparing, finish-ing, or manufacturing such agricultural com-modity for the ultimate retail consumer trade,shall be exempted from any and all provisions ofthis Chapter, including payment of the tax appli-cable to the sale, storage, use, transfer, or anyother utilization of or handling thereof, exceptwhen such agricultural commodity is actuallysold as a marketable or finished product to theultimate consumer, and in no case shall morethan one tax be exacted. For the purposes of thisSection, “agricultural commodity” means horti-cultural, viticultural, poultry, farm and rangeproducts, and livestock and livestock products.

(4)(a) The purchase of feed and feed additives forthe purpose of sustaining animals which are heldprimarily for commercial, business, or agricul-tural use shall be exempted from the taxes leviedby this Chapter.

(b) For purposes of this Subsection:

(i) “Commercial use” means the purchasing, pro-ducing, or maintaining of animals, includingbreeding stock, for resale;

(ii) “Business use” means the keeping and main-taining of animals which are used in performingservices in conjunction with a business enter-prise, such as sentry dogs and rental horses;

(iii) “Agricultural use” means the maintaining ofwork animals and beasts of burden which areutilized in the activity of producing crops oranimals for market, in the production of food forhuman consumption, in the production of animalhides or other animal products for market, or inthe maintaining of breeding stock for the propa-gation of such agricultural use animals.

(c) This exemption shall not apply to the purchaseof feed or feed additives for animals kept primarilyfor personal, sporting, or other purposes, includ-ing but not limited to purchases for pets of anykind or hunting dogs.

(5) The tax imposed by this Chapter shall notapply to the sale or use of materials, supplies,equipment, fuel, bait, and related items otherthan vessels used in the production or harvestingof crawfish. The person who purchases the ex-empt items shall claim the exemption by execut-ing a certificate at the time of purchase. TheDepartment of Revenue shall provide the certifi-cates to retail merchants. Any merchant who ingood faith, and after examination of the applica-bility of the certificate to that purchase with duecare, neglects or fails to collect the tax hereinprovided, due to the presentation by the pur-chaser of a tax exemption certificate issued by theDepartment of Revenue, including those issuedpursuant to R.S. 47:305.10, shall not be liable forthe payment of the tax.

(6) The tax imposed by this Chapter shall notapply to the sale or use of materials, supplies,equipment, fuel, bait, and related items otherthan vessels used in the production or harvestingof catfish. The person who purchases the exemptitems shall claim the exemption by executing acertificate at the time of purchase. The Depart-ment of Revenue shall provide the certificates toretail merchants. Any merchant who in goodfaith, and after examination of the applicability ofthe certificate to that purchase with due care,neglects or fails to collect the tax herein provided,due to the presentation by the purchaser of a taxexemption certificate issued by the Department ofRevenue and Taxation, shall not be liable for thepayment of the tax.

B. The “use tax,” as defined herein, shall not applyto livestock and livestock products, to poultry andpoultry products, to farm, range and agriculturalproducts when produced by the farmer and usedby him and members of his family.

C. (1) Repealed by Acts 1998, No. 4, eff. June 4,1998.

(2) Where a part of the cost price of a motor vehicleis represented by a motor vehicle returned to thedealer’s inventory, the use tax is payable on thetotal cost price less the wholesale value of thearticle returned.

D. (1) The sale at retail, the use, the consumption,the distribution, and the storage to be used orconsumed in this state of the following tangiblepersonal property is hereby specifically exemptedfrom the tax imposed by this Chapter:

(a) Gasoline;

R.S. 47:305(D)(1)

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70 August 2001

(b) Steam;

(c) Water (not including mineral water or carbon-ated water or any water put in bottles, jugs, orcontainers, all of which are not exempted);

(d) Electric power or energy and any materials orenergy sources used to fuel the generation ofelectric power for resale or used by an industrialmanufacturing plant for self-consumption or co-generation;

(e) Newspapers;

(f) Fertilizer and containers used for farm prod-ucts when sold directly to the farmer;

(g) Natural gas.Amended by Acts 1990, No. 476, eff. July 18,1990.

(h) All energy sources when used for boiler fuelexcept refinery gas.Added by Acts 1996, No. 29, eff. July 1 , 1996through June 30, 1998.Amended by Acts 1998, No. 21, eff. June 29, 1998through June 30, 2000.Amended by Acts 2000, No. 28, eff. July 1, 2000.

(i) New trucks, new automobiles, and new aircraftwithdrawn from stock by factory authorized newtruck, new automobile, and new aircraft dealers,and used trucks and used automobiles with-drawn from stock by new or used motor vehicledealers, with the approval of the secretary of theDepartment of Revenue titled in the dealer’s namefor use as demonstrators;

(j) Drugs prescribed by a physician or dentists;

(k) Orthotic and prosthetic devices and wheel-chairs and wheelchair lifts prescribed by physi-cians or licensed chiropractors for personalconsumption or use.Amended by Acts 1991, No. 495, eff. July 15,1991.

(l) The sale or purchase of any ostomy, ileostomyor colostomy device or any other appliance in-cluding catheters or any related item which isrequired as the result of any surgical procedureby which an artificial opening is created in thehuman body for the elimination of natural waste;

(m) Patient aids prescribed by a physician or alicensed chiropractor for home use;

(n) Food sold for preparation and consumption inthe home including by way of extension and not oflimitation bakery products;

(o) Dairy products;

(p) Soft drinks;

(q) Fresh fruits and vegetables; and

(r) Package foods requiring further preparation bythe purchaser.

(s) Any and all medical devices used exclusively bythe patient in the medical treatment of variousdiseases or administered exclusively to the pa-tient by a physician, nurse, or other health careprofessional or health care facility in the medicaltreatment of various diseases under the supervi-sion of and prescribed by a licensed physician.

Note: Section 2. It is not the intention of this

Act to, nor shall the enactment of this Act be

interpreted so as to, affect any issue relative to

the application of R.S. 47:305(D)(1)(s) to the

sales and use taxes levied by local political

subdivisions.

Amended by Acts 1998, No. 38, eff. June 24,

1998.

(t) Orthotic devices, prosthetic devices, prosthe-ses and restorative materials utilized by or pre-scribed by dentists in connection with health caretreatment or for personal consumption or use.Notwithstanding any other provision of law to thecontrary, the exemptions from the state sales anduse tax provided in this Subparagraph shall beapplicable to any sales and use tax levied by anylocal governmental subdivision or school board.Amended by Acts 1991, No. 1065, eff. August 1,1991.

(u) Adaptive driving equipment and motor vehiclemodifications prescribed for personal use by aphysician, a licensed chiropractor, or a driverrehabilitation specialist licensed by the state.Added by Acts 1998, No. 37, eff. June 24, 1998.

(2) Sales of meals furnished to: the staff andstudents of educational institutions includingkindergartens; the staff and patients of hospitals;the staff, inmates, and patients of mental institu-tions; and boarders of rooming houses, and occa-sional meals furnished in connection with or byeducational, religious, or medical organizations,are exempt from the taxes imposed by the Chap-

R.S. 47:305(D)(2)

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Louisiana Sales Tax Law and Regulations 71

ter if the meals are consumed on the premiseswhere purchased. However, sales by any of theabove in facilities open to outsiders or to thegeneral public are not exempt from the taxesimposed by this Chapter.

(3) Food sales by restaurants, drive-ins, snackbars, candy and nut counters, private clubs, andsales made by an establishment not specificallyexempted elsewhere who furnish facilities for theconsumption of the food on the premises are notexempt from the taxes imposed by this Chapter.

(4) The exemption for food, drugs, orthotic andprosthetic devices, and wheelchairs and wheel-chair lifts prescribed by physicians or licensedchiropractors for personal consumption or use;for patient aids prescribed by a physician orlicensed chiropractor for home use; and ostomy,ileostomy or colostomy devices, or other appli-ances including catheters or related items re-quired as a result of any surgical procedure bywhich an artificial opening is created in the hu-man body for the elimination of natural wasteapplies only to sales taxes imposed by the state ofLouisiana and does not apply to such taxes au-thorized and imposed by any school board, mu-nicipality, or other local taxing authoritynotwithstanding any other provisions of law tothe contrary, and specifically, but not exclusively,R.S. 33:2716.1.Amended by Acts 1991, No. 495, eff. July 15,1991.

NOTE: Section 2 of Act 652 of the 1978 Regu-

lar Session provides as follows: Notwithstand-

ing the provisions of the Act which originated

as House Bill No. 742 of the 1978 Regular

Session (Act 205), the exemptions from the

state sales and use tax provided in R.S.47:305(4)

as enacted in this Act shall be applicable to

such taxes imposed by local taxing authori-

ties, except that those exemptions specifi-

cally made inapplicable to local taxes in this

Act shall not apply to such local taxes.

(5) However sales taxes authorized and imposedby any school board, municipality, or other localtaxing authority shall not apply to the sale ofprescription drugs under the pharmaceutical ven-dor program for Title XIX of the Social Security Actas administered by the Department of Health andHuman Resources of the state of Louisiana.

(6) The exemptions from the state sales and usetax provided in this Subsection in existence as of

the effective date of Act 205 of 1978 shall beapplicable to any sales and use tax levied by anylocal governmental subdivision or school boardexcept as otherwise specifically provided in thisSubsection. Without determining the validity ofany exemptions placed in this Subsection subse-quent to the effective date of Act 205 of 1978, allActs after the 1991 Regular Session placing anexemption in this Subsection which is applicableto a political subdivision must, to be effective,specifically provide in the title and body of the billthat it is applicable to a political subdivision. Theexemptions provided in R.S.47:305(D)(1)(t) arehereby deemed to specifically comply with Act205 of 1978.Amended by Acts 1991, No. 1065, eff. August 1,1991.

E.(1) It is not the intention of this Chapter to levya tax upon articles of property imported into thisstate, or produced or manufactured in this state,for export; nor is it the intention of this Chapter tolevy a tax on bona fide interstate commerce;however, nothing herein shall prevent the collec-tion of the taxes due on sales of tangible personalproperty into this state which are promotedthrough the use of catalogs and other means ofsales promotion and for which federal legislationor federal jurisprudence enables the enforcementof this Chapter upon the conduct of such busi-ness. It is, however, the intention of this Chapterto levy a tax on the sale at retail, the use, theconsumption, the distribution, and the storage tobe used or consumed in this state, of tangiblepersonal property after it has come to rest in thisstate and has become a part of the mass ofproperty in this state. At such time as federallegislation or federal jurisprudence as to sales ininterstate commerce promoted through the use ofcatalogs and other means of sales promotionsenables the enforcement of this Chapter againstvendors that have no other nexus with this state,the following provisions shall apply to such saleson which sales and use tax would not otherwisebe collected.

R.S. 47:305(E)(2), (3), (4), and (5) repealed by Acts1994, No. 18, eff. Aug. 15, 1994.

F. The sales, use and lease taxes imposed by thisChapter shall not apply to the amounts paid byradio and television broadcasters for the right toexhibit or broadcast copyrighted material and theuse of film, video or audio tapes, records or anyother means supplied by licensors thereof inconnection with such exhibition or broadcast and

R.S. 47:305(F)

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72 August 2001

the sales and use tax shall not apply to licensorsor distributors thereof.

G. The sales, use, and lease taxes imposed byChapter 2 and Chapter 2A of this Title shall notapply to the purchase or rental by private indi-viduals of machines, parts therefor, and materi-als and supplies which a physician has prescribedfor home renal dialysis.

H. “Demonstrators” as used in Subsection D ofthis Section shall mean new and used trucks, newand used automobiles, and new aircraft titled inthe dealer’s name for use as demonstrators whichare kept primarily on the dealer’s premises duringnormal business hours and which are availablefor demonstration purposes; provided, however,that the occasional use of such demonstrator byauthorized personnel of the dealer shall not dis-qualify such demonstrator from the exemptionherein designated.

LAC 61:I.4401. Various Exemptionsfrom the TaxA. While the sales tax law imposed by R.S. 47:302,supra, is classified as a general sales tax lawindicating that it applies broadly across all sales,use, consumption, or lease of tangible personalproperty as well as to some selected services, thelaw does provide many exemptions from the taxesimposed by this Chapter.

B. R.S. 47:305(A) and (B) deal primarily withagricultural commodities, and the tax liabilitiesassociated therewith, as they apply to all phasesfrom production to final consumption or disposi-tion. The broadest exemptions apply to the pro-ducer of agricultural commodities. Any sale oflivestock, poultry, or other farm products madedirectly from the farm and directly by the producerregardless of the purpose to which it will be putwhen sold is exempt from the tax. The producer isalso exempt from use tax on any farm productsconsumed by him or his family. This exemptionextends to livestock and livestock products, topoultry and poultry products, to farm, range oragricultural products so long as they are producedby the farmer and used by him and members of hisfamily.

1. In addition to the exemption from sales tax forsales made directly from the farm, R.S. 47:305(A)further provides a sales tax exemption for threetypes of off-the-farm-premises sales:

a. livestock sold at a public sale which is spon-sored by a breeder’s association or a registryassociation;

b. livestock sold at a commercial livestock auctionmarket which holds regularly scheduled auctionsales, not limited to any certain producer or pro-ducers;

c. race horses sold through entry in a claiming race,whereby the horse was claimed, at any racingmeet held in Louisiana.

2. Exemptions afforded other persons in connec-tion with agricultural commodities are limited de-pending upon the purpose for which they are sold.The only exemption in the law for any farm prod-ucts sold directly to the consumer as a finishedproduct, other than food sold under circumstancesdescribed in R.S. 47:305(D), is for sales made bythe farmer directly from the farm. There is, how-ever, a very broad exemption from the taxes im-posed by this Chapter for all agriculturalcommodities sold by any person other than aproducer as raw materials for use or for sale inpreparing, finishing or manufacturing the com-modities into merchandise intended for ultimateretail sale. This exemption applies to all horticul-tural, viticultural, poultry, farm and range prod-ucts, livestock and livestock products. Theexemption applies to the tax imposed on the sale,storage, use, transfer or any other utilization orhandling of those products except when they aresold as a finished product to the final consumer.The law further provides that in no case shall therebe more than one tax applied with respect toagricultural commodities.

3. R.S. 47:305(A)(4) provides an exemption for feedand feed additives for animals which are heldprimarily for commercial, business, or agriculturaluses. It also establishes certain criteria whichcharacterize these three categories of use for pur-poses of this Subsection.

a. Commercial use - purchasing, producing, ormaintaining of animals for resale. Examples ofsuch use are: cattle, poultry, and hog farms whichproduce animals for market, pet animal breeders,and thoroughbred farms. Breeding stock, althoughnot normally held for sale, is included in thecategory of commercial use.

b. Business use - keeping and maintaining ofanimals to perform specific functions and servicesin conjunction with a business. Examples of thiscategory are dogs used in providing security ser-

R.S. 47:305(G)

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vices and horses used in a rental business orcarnival rides.

c. Agricultural use - broadly defined to include themaintaining of work animals for producing: cropsor animals for market, food for human consump-tion, or animal hides or other animal products formarket. Examples of these agricultural uses wouldinclude draft horses used to pull cargo, quarterhorses used to work cattle, dogs used to herdsheep, and dairy cattle used for milk production.Breeding stock which is held for the propagation ofthese animals is also included in the definition.

d. Specifically excluded from the exemption in thisSubsection is feed for animals held primarily forother purposes, even though they might be used inone or more exempt categories of use at times. Forexample, a registered breed pet which is occasion-ally bred for the purpose of selling the offspring isnot considered held for commercial use.

C. R.S. 47:305(C)(1) provides that the market valueof an article traded in on a purchase may bededucted from total sales price in computing thesales tax liability. This provision applies to a trade-in but does not apply to the value of unlike propertybeing used as part payment on the purchase. Asan example, the value of an old refrigerator tradedin on the purchase of a new refrigerator could bededucted from the total sales price of the new unitin computing the sales tax liability. This wouldconstitute a trade-in and as such would be exemptfrom the tax. However, if 10 bushels of corn weregiven to the appliance dealer as part payment forthe new refrigerator, this would not constitute atrade-in as contemplated by the law and the totalselling price of the refrigerator would be subject totax.

1. R.S. 47:305(C)(2) provides for the use tax costbasis of motor vehicle dealers’ service vehicleswhich are withdrawn from resale inventory foruse, such as towing trucks, parts trucks, deliveryvehicles, etc. It provides that in determining thecost basis for use tax, a reduction is allowed if aused and previously taxed vehicle is simultaneouslyreturned to resale inventory. That reduction in thecost basis of the newly withdrawn vehicle will bethe wholesale value of the returned vehicle accord-ing to the current value published by the NationalAutomobile Dealers Association.

D. In addition to exemptions granted for broadcategories of property or transactions, R.S.47:305(D) grants exemption for a limited number ofspecific items of property. The sale at retail, use,

consumption, distribution or the storage to be usedor consumed, of gasoline, steam, electric power orenergy, newspapers, natural gas, or fertilizer andcontainers used for farm products if they are solddirectly to the farmer are specifically exempted bythis Subsection.

1. In addition to the exemption for electric power orenergy in R.S. 47:305(D)(1)(d), the sale and pur-chase of all materials and energy sources used tofuel the generation of electric power for resale byutility companies, and the sale and purchase ofmaterials and energy sources for use by an indus-trial manufacturing plant to produce electric powerfor self-consumption or cogeneration are exemptedfrom the tax imposed by this Chapter.

2. Other fuels and specific applications of energysources are exempted from the tax under thisParagraph. R.S. 47:305(D)(1)(h) exempts all en-ergy sources used for boiler fuel except refinerygas. A boiler, for purposes of this Paragraph,means a pressure-regulated vessel into whichwater is placed and converted to steam by theapplication of heat, after which the steam is sold,used for heating purposes, electrical generation, orany other industrial use. This Paragraph, togetherwith R.S. 47:305(D)(1)(g), also provides a limitedexemption for refinery gas. The language in thesetwo paragraphs exempt refinery gas from bothstate and local sales taxes, except when it is usedas boiler fuel. Refinery gas, for sales tax purposes,is defined as a “by-product” gas or “waste” gaswhich is produced in the process of distilling crudepetroleum into its refined marketable products.R.S. 47:305(D)(1)(h) also provides the formula bywhich the cost basis shall be computed annuallyfor use taxation purposes. For the period of July 1,1985 through December 31, 1985, the value shallbe $0.52 per 1,000 cubic feet, or MCF. For eachsucceeding calendar year thereafter, the cost ba-sis shall be adjusted by multiplying $0.52 by afraction the numerator of which shall be the postedprice for a barrel of West Texas Intermediate CrudeOil on December first of the preceding calendaryear, and the denominator of which shall be $29.Each annual cost basis, as computed by the De-partment of Revenue and Taxation, shall be themaximum value placed upon refinery gas by anylocal governmental taxing authority.

3. A newspaper is defined as an unbound publica-tion appearing at regular intervals, having a sec-ond class mailing privilege, having a bona fidepaid circulation to actual subscribers, publishing asubstantial part of its content as news matter, andcontaining reports of happenings of recent occur-

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74 August 2001

rence of a varied character, such as political,social, moral and religious subjects and designedfor the information of the general reader. Thisexemption for newspapers includes all printedmatter that goes into the making-up of a newspa-per if such printed matter is distributed with andas a part of the newspaper, including inserts. Thisdefinition does not include magazines and doesnot include any other printed matter, regardless bywhom printed, that is not a part of and is notdistributed with a newspaper. Thus, printed mat-ter that goes into a newspaper and is distributedwith it is exempt from sales tax while the sameprinted matter that does not go into a newspaper oris not distributed with it is not exempt.

4. Water (but not including mineral water or car-bonated water) is also exempt provided it is notplaced in a container such as a jug, bottle, orcarton.

E. R.S. 47:305(D) provides, in part, an exemptionfrom state sales and use taxes upon the sale atretail, the use, the consumption, the distribution,and the storage to be used or consumed in thisstate for orthotic and prosthetic devices and pa-tient aids prescribed by physicians or licensedchiropractors for personal consumption or use.Orthotic, by definition, means a branch of me-chanical and medical science that deals with thesupport and bracing of weak or ineffective joints ormuscles, and such things as orthopedic shoes,braces, crutches, wheelchairs, surgical supports,and traction equipment are exempt from taxation,while such items as prescription eyeglasses andhearing aids are not covered by the exemption.Prosthesis, by definition, means the replacementof a missing part of the body, as a limb, eye, ortooth by an artificial substitute, and such things asartificial eyes, legs, or arms and the replacementand restoration in whole or in part of the teeth areexempt from taxation. Such dental prosthesis in-clude but are not limited to, full dentures, fixed andremovable dental prosthesis and all parts thereof,and in addition all other items associated withreplacement and restoration of the teeth which bylaw also necessitate a prescription from the at-tending dentist for fabrication, while such items astoupees, braces for teeth or eyeglasses or correc-tive lenses are not covered by the exemption.Patient aids mean such equipment as sickroomsupplies and other tangible personal property usedfor the convenience and comfort of the patient. Inall instances, the orthotic and prosthetic devicesand patient aids must be prescribed by a physi-cian or a licensed chiropractor for personal use orconsumption in order for the sale to be exempt for

sales tax purposes. Further, the rental tax andsales tax for repairs to orthotic and prostheticdevices and patient aids are not exempted underR.S. 47:305(D).

F. R.S. 47:305(D) provides an exemption from statesales tax upon the sale at retail of food sold forpreparation and consumption in the home as wellas for some other expressed types of food sales.For this purpose, meat, fish, milk, butter, eggs,flour, sugar, bread, vegetables, fruit and theirjuices, canned goods, oleo, salt, spices, coffee andits substitutes, soft drinks, tea, cocoa and prod-ucts of these items, bakery products, candy, condi-ments, relishes, spreads, shortening and flavoringare all considered food items. These items of foodare not all inclusive, but by way of illustration andnot of limitation. Alcoholic beverages, malt bever-ages and beer; distilled water and water in bottlesand carbonated water are not considered to befood and are taxable. Ice and “dry ice” are taxable.Any of the above items which are considered to befood purchased at a grocery store for preparationand consumption in the home are exempt fromtaxation. Items of food sold by a grocery store inidentical form and in identical eating condition asitems sold from menus of restaurants, drive-ins, orother similar eating places are taxable.

1. Food sales by restaurants, snack bars anddrive-ins are not covered by the exemption eventhough such sales are not intended for immediateconsumption on the premises where sold. Sales offood items by department stores, variety stores,drug stores, etc., not prepared for immediate con-sumption on the premises where sold, but which isavailable in large quantities or pre-wrapped boxesor containers are not taxable, including by way ofillustration and not limitation such items as boxesof candy, gift boxes containing only food items,fruit cakes, and various kinds of cheese or otherdelicacies. Sales of food items not prepared forimmediate consumption on the premises wheresold, but which is available in small quantities aretaxable, including by way of illustration and notlimitation such items as a box of popcorn, loosecandy, mints, nuts and chewing gum.

2. Sales of meals furnished to the staff and stu-dents of educational institutions including kinder-gartens; the staff and patients of hospitals; thestaff, inmates and patients of mental institutions;boarders of rooming houses; and occasional mealsfurnished in connection with or by educational,religious or medical organizations are exempt fromthe taxes imposed by this Chapter, provided themeals are consumed on the premises where pur-

LAC 61:I.4401.E

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Louisiana Sales Tax Law and Regulations 75

chased. Sales of food by any of these institutionsor organizations in facilities open to outsiders or tothe general public are not exempt from the taxesimposed by this Chapter, and tax should be chargedon the entire gross receipts, rather than just thereceipts from the outsiders or the general public.

3. Food sales by restaurants, drive-ins, snackbars, candy and nut counters, private clubs, andsales made by any establishment not specificallyexempted elsewhere, who furnish facilities for theconsumption of the food on the premises, are notexempt from the taxes imposed by this Chapter.Facilities for the consumption of the food on thepremises include not only inside facilities but out-side facilities as well, including parking facilities.

4. Purchases of food items by stores, institutionsand organizations mentioned previously can bepurchased without payment of the advance salestax provided the ultimate retail sale or consump-tion of the food is exempt from taxes imposed bythis Chapter. Regardless of the type of purchaser,if a majority of the food purchased and disposed istaxable under the established rules, advance salestax must be paid by the purchaser.

G. Drugs prescribed by a physician, dentist orother persons authorized to issue medical pre-scriptions for personal consumption or use areexempt for sales tax purposes. For a definition of“drugs”, refer to R.S. 47:301(20). Retail establish-ments are authorized to allow this exemption forany retail sale thereof which is sold due to thepresentation of a medical prescription authorizingsuch sale. Persons selling drugs, medicine or in-gredients thereof to drug stores which cannot besold at retail without the authorization of a medicalprescription are deemed to be making exemptsales, and as such, the advance state sales taxshould not be charged. Since hospitals and sani-tariums are primarily engaged in the business ofselling services supervised and directed by medi-cal doctors, persons selling drugs, medicine oringredients thereof to such institutions are deemedto be making exempt sales, and as such, statesales taxes should not be charged. If a hospital orsanitarium operates any divisions that sell tan-gible personal property to the public, such as aprescription department, then the hospital or sani-tarium becomes liable for the tax upon the grossreceipts or gross proceeds derived from such sales,except for drugs sold on prescriptions which arespecifically exempt from taxation. For sales taxexemptions pertaining to insulin, see R.S. 47:305.2.

1. In addition to drugs, R.S. 47:305(D) provides anexemption for any and all medical devices, but onlywhen they are used personally and exclusively bythe patient, and only when the medical device ispurchased by the patient on the written authorityof a registered physician for use in the medicaltreatment of a disease. Purchases of identicalmedical devices by hospitals and other medicalinstitutions, for use in administering the medicaltreatment to a patient would not qualify for exemp-tion under R.S. 47:305(D)(1)(s).

2. All of the exemptions provided by R.S. 47:305(D),except for the exemptions on food and drugs,orthotic and prosthetic devices and patient aidsprescribed by physicians, dentists, or licensedchiropractors for personal consumption or use ap-ply to the taxes imposed by both the state and itspolitical subdivisions. The exemptions for food anddrugs, orthotic and prosthetic devices and patientaids prescribed by physicians, dentists, or licensedchiropractors apply only to the sales taxes im-posed by the State of Louisiana and do not applyto taxes imposed by any political subdivision.

H. Revised Statute 47:305(D)(1)(i) provides, in part,an exemption from sales and use taxes for newautomobiles and new aircraft withdrawn fromstock by factory authorized new automobile andnew aircraft dealers, with the approval of thesecretary and titled in the dealers’ name for use asdemonstrators. There are several restrictions in-volved in this particular exemption: first, the dealermust be a factory authorized new automobile oraircraft dealer; second, the car or plane withdrawnfrom stock must be a new automobile or aircraft;and third, the car or plane must be titled in thedealer’s name for use solely as a demonstrator. Inorder to qualify as a demonstrator, the units can bedriven or flown only by personnel attached to therespective dealership or by a prospective customeraccompanied or supervised by personnel from therespective dealership. The car or plane cannot beused by members of the family of dealership per-sonnel nor can the units be used to run errands orfor pleasure purposes. The term demonstratorswill be construed in its narrowest sense and islimited to use of the property for display of itsqualities to prospective customers. Only a verylimited use by authorized dealer personnel is per-missible in accordance with the provisions of R.S.47:305(H). Approval of the secretary is required intitling the car as a demonstrator. Writing of theword demonstrator across the face of the licenseapplication will be accepted as sufficient requestfor approval and issuance of the license by thesecretary on an application bearing such notation

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76 August 2001

will constitute full approval by the secretary. Sincenew aircraft are titled in the name of the dealershipupon purchase, a request for and approval of theunit as a demonstrator will be granted providedthe dealership dates and signs the bill of sale andretains it in his possession for verification byDepartment of Revenue and Taxation personnel. Ifany misuse of the demonstrator is detected subse-quent to approval of the unit as a demonstrator, thetransaction immediately becomes taxable, and thedealer will be held responsible for the tax duethereon.

I. Revised Statute 47:305(E) makes it clear that thetaxes imposed under this Chapter do not apply totangible personal property manufactured or pro-duced in this state or imported in this state forexport outside the state. The exemption appliessolely to the property for export and does not applyto tangible personal property used, consumed, orexpended in the manufacturing process, unlessthe conditions for exemption set forth in R.S.47:301(10) are met. Neither does this Chapter levya tax on bona fide interstate commerce. Interstatecommerce is construed to mean trading or com-merce between a point in one state to a point inanother state and does not include commercebetween a point in Louisiana and a point offshorein the Gulf of Mexico which is not within anotherstate even though the point is not within the Stateof Louisiana. In addition, it has been provided thatwhen property comes to rest in this state and hasbecome a part of the mass of the property in thisstate, it is no longer involved in interstate com-merce and its sale, use, consumption, distributionor storage for use here will be taxable. Specificpieces of property which have been clearly labeledfor trans-shipment outside the State of Louisianaat the time of its manufacture or importation intothe state would meet the exemption requirementseven though it may be stored for an indefiniteperiod of time. Any disposition of the property for apurpose contrary to that originally intended wouldimmediately subject the property to the tax.

J. Revised Statute 47:305(F) exempts materialsand the use of film, video or audio tapes, records,and any other means of exhibition or broadcast,supplied by licensors to radio and television broad-casters from the taxes imposed by this Chapter.The exemption applies to amounts paid for theright to exhibit or broadcast copyrighted materialand to the use of other materials supplied bylicensors but does not apply to film, tapes, orrecords purchased outright by the broadcasterand retained in his private library. The exemptionfrom the sales and use tax is further extended to

apply to licensors or distributors of such material.This exemption, however, does not apply to thelease tax which might be due by licensors ordistributors in cases where they lease the materialfrom the owner or producer thereof.

Senate Concurrent Resolution 104(1985 Regular Session)A Concurrent Resolution

To express legislative intent with regard to

sales and use taxation of refinery waste gas by

the state, local governments, and school boards.

WHEREAS, the Legislature does hereby take

cognizance of the dispute over the years as to

whether refinery gas (often also called “oil

refinery waste gas” or “oil refinery tail gas”) is

subject to sales or use taxes; and

WHEREAS, the Legislature does hereby recog-

nize the administrative resolution of that dis-

pute arrived at by the Department of Revenue

in 1972 and followed by the local taxing juris-

dictions thereafter, which fixed the value of

such refinery waste gas at four cents per

thousand cubic feet; and

WHEREAS, the Legislature does hereby recog-

nize that this agreement was modified effec-

tive January 1, 1985 to take into consideration

the current value of such refinery gas and fixed

the value of refinery waste gas at fifty-two

cents per thousand cubic feet for sales and use

tax purposes, subject to annual adjustment.

THEREFORE, BE IT RESOLVED that the Leg-

islature of Louisiana declares the value of

refinery waste gas to have been four cents per

thousand cubic feet for the period from 1972

until January 1, 1985 and fifty-two cents per

thousand cubic feet from that date forward,

subject to heretofore agreed upon annual ad-

justments.

R.S. 47:305.1. Exclusions andexemptions; ships and ships’ suppliesA. The tax imposed by R.S. 47:302(A)(1), 321(A)(1),and 331(A)(1) shall not apply to sales of materials,equipment, and machinery which enter into andbecome component parts of ships, vessels, orbarges, including commercial fishing vessels, drill-ing ships, or drilling barges, of fifty tons loaddisplacement and over, built in Louisiana nor to

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the gross proceeds from the sale of such ships,vessels, or barges when sold by the builder thereof.

B. The taxes imposed by R.S. 47:302 and R.S.47:321 shall not apply to materials and suppliespurchased by the owners or operators of ships orvessels operating exclusively in foreign or inter-state coastwise commerce, where such materialsand supplies are loaded upon the ship or vesselfor use or consumption in the maintenance andoperation thereof; nor to repair services per-formed upon ships or vessels operating exclu-sively in foreign or interstate coastwise commerce;nor to the materials and supplies used in suchrepairs where such materials and supplies enterinto and become a component part of such shipsor vessels; nor to laundry services performed forthe owners or operators of such ships or vesselsoperating exclusively in foreign or interstate coast-wise commerce, where the laundered articles areto be used in the course of the operation of suchships or vessels.

C. The exemption from the state sales tax pro-vided in this Section shall be applicable to anysales tax levied by a local governmental subdivi-sion or school board.

D. Repealed by Acts 1982, No. 56, eff. July 10,1982.

LAC 61:I.4403. Ships and Ships’ SuppliesA. R.S. 47:305.1 specifically provides for an ex-emption from the sales tax imposed by R.S.47:302(A), R.S. 47:321(A), and R.S. 47:331(A) tothe following transactions:

1. The sales, by a builder thereof, of a ship, vesselor barge, including commercial fishing vessels,drilling ships, and drilling barges, of 50 tons loaddisplacement and over if built in Louisiana;

2. The sale of materials, equipment and machinerywhich enter into and become component parts ofthe ship, vessels or barges described above pro-vided the seller thereof obtains an exemption cer-tificate, Form LGST 51-A, as hereinafter providedfor. This provision applies to materials, equipmentand machinery which are incorporated into theinitial construction of the ship, vessel or barge; orare incorporated into the reconstruction of a ship,vessel or barge to:

a. modify the craft’s function, such as conversionof a deck barge to a crane barge; or

b. restore the craft to seaworthiness following itsdestruction caused by either sinking, collision, orfire. Materials, machinery and equipment sold tothe owner of a ship, vessel or barge to repair orreplace worn components are not exempt underthis Sub-section A.

B. The various taxes imposed by this Chapter shallnot apply to the following transactions provided anexemption certificate, Form LGST 51-B, is obtainedas hereinafter provided for:

1. the sale of materials and supplies to the owneror operator of a ship or vessel operating exclusivelyin foreign or interstate coastwise commerce wheresuch materials or supplies are loaded upon theship or vessel for use or consumption in the main-tenance or operation thereof. In order for the ex-emption to be recognized, actual delivery of themerchandise to dockside will be sufficient indica-tion to the vendor that the merchandise will beloaded upon the ship or vessel;

2. repair services performed upon ships or vesselsoperating exclusively in foreign or interstate coast-wise commerce, and the sale of materials andsupplies used in such repairs if the materials andsupplies enter into and become component parts ofsuch ships and vessels. The exemption will stillapply in instances where it is necessary to performthe repair services away from the ship or vessel;

3. laundry services performed for the owner oroperator of ships or vessels operating exclusivelyin foreign or interstate coastwise commerce wherethe laundered articles are to be used in the courseor operation of such ships or vessels;

4. persons claiming exemption under this regula-tion shall secure certificates of exemption fromtheir purchasers and shall retain them on filetogether with a copy of the sales invoice whichshall be exhibited to the secretary upon request;

5. since not all shipping companies maintain anoffice in the state of Louisiana nor do all the ownersof vessels reside in the state of Louisiana, thesecretary will recognize an exemption certificatesigned by an authorized agent purchasing tan-gible personal property for use or consumption inthe operation of the vessel;

6. ships and vessels operating exclusively in for-eign or interstate coastwise commerce, arriving inLouisiana without an authorized agent in thisstate may make purchases of tangible personalproperty for use and maintenance in the operation

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78 August 2001

of the vessel without having to pay the Louisianasales tax upon the presentation of an exemptioncertificate by the master of the vessel. The certifi-cate must show the name of the vessel, the homeport, and be signed by the master.

C. For the purposes of this regulation the followingwords, terms and phrases shall have the meaningascribed to them in this Section.

Commerce - the transporting of goods or personsby ship or vessel.

Exclusive Use in Foreign or Interstate CoastwiseCommerce - the sole and unbroken operation of aship, vessel or barge including commercial fishingvessels, in foreign or interstate coastwise com-merce for the period of a calendar month.

Fifty Tons Load Displacement - the weight of thevolume of water displaced by a ship or vesselwhen fully loaded.

Foreign Commerce - commerce as defined hereinfrom a point in a state to a point in a foreign state.

Interstate Coastwise Commerce - commerce asdefined herein from a point in one state to a pointin another state. Commerce from a point in thestate of Louisiana to an offshore area is not consid-ered to be interstate commerce within the meaningof these regulations.

Owner or Operator - any person who has title to orpossession of or control over the operation of anyship or vessel as defined herein.

Ship, barge, or vessel - any craft used primarily intransporting persons or property by water, or anycraft designed or altered to perform specializedmarine-related services, such as dredging, fleet-ing, geological surveying, cargo transferring, andwhich possesses all of the following characteristics:

a. The craft performs its services in navigablewaters; and

b. The craft is capable of being moved by floatationfrom one location to another in navigable waters; and

c. The craft is eligible for registration as a vesselwith the United States Coast Guard, or is in factregistered as such.

Ships’ supplies and materials - all tangible per-sonal property purchased for the maintenance andoperation of the ship or vessel and its crew.

D. Any dealer, manufacturer or fabricator whofraudulently or negligently fails to comply strictlywith the rules and regulations herein set forth,shall lose the exemption provided under this Sec-tion, and shall be liable for the taxes involved.

R.S. 47:305.2. Exclusions andexemptions; insulin, prescription andnonprescriptionThe tax imposed by R.S. 47:302(A) and R.S.47:321shall not apply to the sale at retail, the use, theconsumption, the distribution, and the storage ofinsulin, both prescription and nonprescription tobe used or consumed in this state, for personaluse or consumption; provided, however, that thisexemption shall apply only to sales taxes imposedby the State of Louisiana and shall not apply tosuch taxes authorized and imposed by any schoolboard, municipality, or other local taxing author-ity notwithstanding any other provision of law tothe contrary, specifically but not exclusively R.S.33:2716.1.1.

R.S. 47:305.3. Exclusions andexemptions; seeds used in planting ofcropsThe tax imposed by R.S. 47:302 (A)(1) shall notapply to the sale at retail of seeds for use in theplanting of any kind of crops. The collector shallpromulgate rules and regulations designed tocarry out the provisions of this Section, and anytransaction not strictly in compliance with suchrules and regulations shall lose the exemptionherein provided.

LAC 61:I.4404. Seeds Used in Planting ofCropsA. The sale at retail of seeds for use in the plantingof any kind of crops is specifically exempt from thetaxes imposed by this Chapter. Crops are con-strued to mean the planting of a sufficient quantityof seed to result in a harvest of recognizablecommercial value depending upon the productbeing planted. It is not intended to cover the plant-ing of a garden to produce food for the personalconsumption of the planter and his family. Neitheris it intended to cover seed used in the planting ofgrowth for landscape purposes unless the planteris engaged in the business of harvesting thoseplants and selling them in the commercial market.As an example, seeds used in planting grasses

LAC 61:I.4403.C

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which will be harvested and sold would constituteseeds used in the planting of crops. Seeds such asalligator grass or millet planted in ponds used forthe production of crawfish would also come withinthis exemption because the planted crop will beconsumed or harvested by the crawfish which willbe sold commercially by the farm operator. To thecontrary, various grass seeds used to plant pondsto provide food and promote the growth of fishcontained in the pond primarily for recreationalpurposes would not come within this exemption. Ifthe pond is converted to the commercial productionof fish, any seeds used for the promotion or healthof the commercial fish crop would come within theexemption.

B. It is not necessary that the farm operation resultin a net profit or that a given acreage of anyparticular crop be planted. The only requirement isthat the planting be of sufficient quantity to beconstrued as a crop.

C. Any dealer selling seeds at retail for use in theplanting of crops must be able to identify thecustomer to whom the seeds were sold and mustknow of his own personal knowledge that thepurchaser was engaged in an activity which wouldmake the seeds exempt under these provisions orin the alternative, he must have a signed statementfrom the purchaser to that effect. If the dealer isunable to identify the purchaser and cannot sup-port the fact that the seeds were sold for theplanting of crops as intended herein, he will beheld liable for the tax on the sales.

R.S. 47:305.4. Exclusions andexemptions; casing, drill pipe and tubingused in offshore drillingRepealed by Acts 1985, No. 631, eff. July 16, 1985

R.S. 47:305.5. Exclusions andexemptions; materials and supplies usedin the construction of the Toledo BendDam ProjectThe sales and use taxes imposed by the state ofLouisiana or any such taxes imposed by anyparish or municipality within the state shall notapply to or be collected on any materials, suppliesor products for use in connection with any phaseof the construction of the Toledo Bend DamProject on the Sabine River. The collector ofrevenue shall promulgate rules and regulationsdesigned to carry out the provisions of this Sec-

tion, and any transactions not strictly in compli-ance with such rules and regulations shall losethe exemption herein provided.

LAC 61:I.4405. Materials and SuppliesUsed in the Construction of the ToledoBend Dam ProjectThis Section [R.S. 47:305.5] specifically exemptsfrom the sales and use taxes imposed by the stateof Louisiana under this Chapter, and any suchtaxes imposed by any parish or municipality, anymaterials, supplies, or products to be used inconnection with any phase of construction of theToledo Bend Dam project. Prior to commencementof construction on the Toledo Bend Dam project, itwas necessary to secure approval of the FederalPower Commission for the entire project. Pursuantto that requirement, the Louisiana Department ofPublic Works submitted to the Federal Power Com-mission a complete plan including all phases of theproject. This plan included not only the reservoirand the dam itself but also recreational areas andaccess roads thereto. This Section grants exemp-tion from the sales and use tax for any materials,supplies, or products used in the Toledo Bend Damproject, but is limited to those phases of construc-tion which are clearly a part of the plan submittedto and approved by the Federal Power Commis-sion. Any vendor or user claiming the exemptionunder this Section must be able to support hiscontention that the materials were used in con-struction under the approved plan.

R.S. 47:305.6. Exclusions andexemptions; Little Theater ticketsThe sales tax imposed by R.S. 47:302 shall notapply to the sale of admission tickets by LittleTheater organizations.

LAC 61:I.4406. Little Theatre TicketsA. The exemption provided by R.S. 47:305.6 ex-cludes from imposition of the taxes imposed by thisChapter the sale of admission tickets by littletheatre organizations. This exemption has beenconstrued to cover the sale of tickets by any non-profit organization whose sole purpose is the pre-sentation of stage productions by nonprofessionalactors and the advancement of amateur acting.The exemption extends to all such organizationswhether they are officially known by the name

LAC 61:I.4406

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little theatre or by some other appropriate desig-nation.

B. In order to meet this exemption, the sale oftickets must be made by the organization conduct-ing the presentation. The exemption does not ex-tend to the sale of tickets by promoters who areexpected to profit from the endeavor, even thoughthe performance may be staged by personnel asso-ciated with a Little Theatre organization.

R.S. 47:305.7. Exclusions andexemptions; tickets to musicalperformances of nonprofit musicalorganizationsThe sales tax imposed by R.S. 47:302 shall notapply to the sale of admission tickets by domesticnonprofit corporations or by any other domesticnonprofit organization known as a symphonyorganization or as a society or organization en-gaged in the presentation of musical performances;provided that this Section shall not apply toperformances given by out-of-state or nonresi-dent symphony companies, nor shall this Sectionapply to any performance intended to yield aprofit to the promoters thereof.

LAC 61:I.4407. Tickets to MusicalPerformances of Nonprofit MusicalOrganizationsA. R.S. 47:305.7 specifically exempts the sale ofadmission tickets by Louisiana nonprofit corpora-tions or organizations engaged in the presentationof musical performances, or who are known assymphony organizations, from the taxes imposedby this Chapter. The exemption covers only sales oftickets made by corporations or organizations es-tablished within Louisiana and does not apply tothe sales of tickets within this state which might bemade by similar organizations or companies fromoutside of the state. The exemption does not applyto the sales of tickets by a domestic corporation ororganization if the performance will be presentedby a symphony group from outside of the state.

B. The exemption provided by this Section does notapply to performances intended to yield a profit tothe promoters of the event regardless of the domi-cile of the performers. Neither does this exemptionapply to the sales of tickets by domestic nonprofitcorporations or by any other domestic nonprofitorganization known as a symphony organizationor as a society or organization engaged in the

presentation of musical performances if the eventbeing staged is not directly related to the primarypurpose of those organizations. As an example,tickets sold by symphony organizations to anathletic event would not qualify for the exemptionprovided by this Section.

R.S. 47:305.8. Exclusions andexemptions; pesticides used foragricultural purposesThe tax imposed by R.S. 47:302(A) shall not applyto sale at retail of pesticides used for agriculturalpurposes, including particularly but not by way oflimitation, insecticides, herbicides and fungicides.

LAC 61:I.4408. Pesticides Used forAgricultural PurposesA. General. R.S. 47:305.8 provides an exemptionfrom the taxes imposed by this Chapter for the saleat retail of pesticides used for agricultural pur-poses, including particularly, but not limited to,insecticides, herbicides, and fungicides used foragricultural purposes.

B. DefinitionsAgricultural Purposes - any purpose directlyconnected with the operation of any farm, includ-ing poultry, fish, and crawfish farms, ranch, or-chard or any other operation by which productsare grown on the land in sufficient quantity toconstitute a commercial operation. The exemptionis not intended to cover the sale of pesticides foruse in private family vegetable gardens or in pro-tecting ornamental plants used for landscape pur-poses.

Pesticides - include any preparation useful in thecontrol of insects, plant life, fungus, or any otherpests detrimental to agricultural crops, includingthe control of animal pests that meets the definitionof a pesticide in accordance with the Department ofAgriculture and Forestry of the state of Louisianaunder R.S. 3:3202. Qualifying pesticides must beregistered with the U.S. Environmental ProtectionAgency (EPA) and the Louisiana Department ofAgriculture and Forestry or any other appropriategovernmental agency and must carry a valid EPAFIFRA (Federal Insecticide, Fungicide, and Roden-ticide Act) number issued by the U.S. Environmen-tal Protection Agency or a special label numberassigned by the Louisiana Department of Agricul-ture and Forestry. The exemption also includesany solution mixed with a qualifying pesticide to

R.S. 47:305.7

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allow for the proper distribution and application ofthe pesticide, including but not limited to crop oils,surfactants, adjuvants, emulsions, soaps, and driftagents.

C. Dealer Requirements. The dealer who fails tocollect sales tax on the sale of pesticides coveredby this Section must be able to show that they wereused for legitimate commercial agricultural pur-poses as defined herein. The dealer must also beable to fully identify any purchaser from whom thetax was not collected. In the absence of this infor-mation, the dealer will be liable for the tax.

R.S. 47:305.9. Exclusions andexemptions; motion picture film rentalThe sales and use taxes imposed by the State ofLouisiana or any such taxes imposed by anyparish or municipality within the state shall notapply to the amount paid by the operator of amotion picture theatre to a distributing agency foruse of films of photoplay.

LAC 61:I.4409. Motion Picture Film RentalA. R.S. 47:305.9 provides a very limited exemptionto the operators of motion picture theaters whereinthe amount paid by operators to distributing agen-cies for the use of film are specifically exemptedfrom the sales and use taxes imposed by thisChapter. Note that film is the only item covered bythe exemption. Distributing agencies and suppli-ers for motion picture theaters are required tocollect taxes on any other supplies or materialsfurnished to operators. Theaters are required tocollect the tax on admissions.

B. Any distributing agent who fails to collect the taximposed by this Chapter because of the exemptionprovided in this Section must be able to identify themotion picture theater operators to whom filmswere furnished. Failure of the distribution agencyto maintain a complete record of transactions forwhich no taxes were collected can result in thedealer being held responsible for the tax.

C. In some cases, agreements between film dis-tributors and theater operators may not be leasesor rentals. Section 4301 defines lease or rental andprovides exceptions to the definition of lease orrental.

R.S. 47:305.10. Exclusions andexemptions; property purchased for firstuse outside the stateA. There shall be no sales or use tax due upon thesale at retail or use of tangible personal property,including diesel fuel, purchased within or im-ported into Louisiana for first use exclusivelybeyond the territorial limits of Louisiana as spe-cifically provided hereinafter in this Section.

B. If the first use of tangible personal propertypurchased within or imported into Louisiana forfirst use beyond the territorial limits of the stateoccurs in a state which imposes a sales or use tax,the exemption provided herein shall apply only if:

(1) The purchaser is properly registered for salesand use tax purposes in the state of use andregularly reports and pays sales and use tax insuch other state; and

(2) The state in which the first use occurs grantson a reciprocal basis a similar exemption onpurchases within that state for use in Louisiana;and

(3) The purchaser obtains from the secretary ofthe Department of Revenue a certificate authoriz-ing him to make the nontaxable purchases autho-rized under this Subsection; or

(4) The property is subject to registration as amotor boat subject to registration by the state ofLouisiana and such property is not registered foruse in this state.

C. If the first use of tangible personal propertypurchased within or imported into Louisianaoccurs offshore beyond the territorial limits of anystate, the exemption provided herein shall applyonly if:

(1) The purchaser or importer has determined thelocation of the first use of the tangible personalproperty at the time of its purchase and hasnotified the vendor of that location; or

(2) The purchaser or importer has not determinedthe intended offshore location of first use at thetime of purchase or importation, but has obtainedfrom the secretary of the Department of Revenuean “offshore registration number” authorizinghim to claim the exemption under the conditionsprovided in this Paragraph:

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(a) Said offshore registration number shall beissued only if the purchaser or importer hasshown, to the satisfaction of the secretary, thatrecords, reports, and business practices are suf-ficient to permit verification that tangible per-sonal property purchased or imported tax-freeunder this Subsection is, in fact, being purchasedor imported for use offshore beyond the territoriallimits of any state. In cases of purchases offungible goods, including vessel fuel and lubri-cants, the required records shall include pur-chase invoices, vessel logs, fuel usage records,fuel transfer records and other reports and recordsthat will enable the secretary to determine theamount of fungible goods consumed within Loui-siana so as to be subject to the sales and use tax,and the amount of fungible goods delivered to orconsumed at offshore locations beyond the terri-torial limits of the state, so as not to be subject tothe sales and use tax. For the purpose of theSection, the term “fungible goods” means goods ofwhich any unit is unidentifiable and is, from itsnature or by mercantile custom, treated as theequivalent of any other unit and shall includecrude petroleum and its refined products.

(b) The offshore registration number issued by thesecretary under this Subsection may be revokedby the secretary at any time if the purchaser orimporter fails to meet the conditions set herein, orif the secretary finds that the purchaser or im-porter is consistently using the certificate to pur-chase or import tax-free tangible personal propertyfor first use in state.

(c) If the offshore registration number is revoked,all tangible personal property purchased or im-ported tax-free under this Paragraph and in thepossession of the purchaser or importer withinthis state shall be deemed taxable unless other-wise exempt under the provisions of Paragraph (1)of this Subsection. If the provisions of Paragraph(1) of this Subsection are not complied with, anysubsequent purchase or import of tangible per-sonal property will be taxable, whether for instateor offshore use, until the certificate and offshorenumber are reissued.

(d) Whenever there is a conflict between a pur-chaser or importer and the secretary as to whetheran offshore registration number shall be issued,reissued, or revoked, it shall be the responsibilityof the purchaser or importer to show that hemeets the conditions and requirements set hereinfor having and retaining said certificate and off-shore registration number.

(3) Except for purchases or importation of tan-gible personal property in accordance with Para-graphs (1) and (2) of this Subsection, any purchaseor importation of property is taxable at the time ofpurchase or import unless otherwise exempt.

D. If tangible personal property purchased orimported tax-free under the provisions of thisSection is subsequently used for any taxablepurpose within the state, use tax shall be paid bythe purchaser or importer as of the time of its usein this state. Storage of property purchased orimported tax-free under this Section which isultimately used in another state will be consid-ered a “subsequent use for a taxable purpose”.

E. If tangible personal property purchased withinor imported into the state tax-free under theprovisions of this Section is later returned toLouisiana for use for a taxable purpose, theproperty shall be subject to the Louisiana use taxas of the time it is brought into the state, subjectto the credit provided in R.S. 47:303(A).

F. “Use for a taxable purpose” shall not include,for purposes of this Section, transportation be-yond the territorial limits of the state; transporta-tion back into the state; and repairing, modifying,further fabrication, and storing for first use off-shore beyond the territorial limits of any state.Storage and withdrawal from storage for first useoffshore beyond the territorial limits of any stateis not a taxable use for purposes of this Section.Charges for repairs in Louisiana to tangible per-sonal property for use in offshore areas are tax-able.

G. If fungible goods are purchased or importedtax-free for use or consumption at locations bothwithin Louisiana and offshore beyond the territo-rial limits of any state, under the exemptioncertificate and offshore registration number pro-vided for in this Section, only that portion of thefungible goods delivered to a location offshorebeyond the territorial limits of any state and usedor consumed at that location shall be exempt. Forthe purpose of this Section, the term “fungiblegoods” means goods of which any unit is uniden-tifiable and is, from its nature or by mercantilecustom, treated as the equivalent of any otherunit and shall include crude petroleum and itsrefined products.

H. The secretary of the Department of Revenueshall promulgate rules and regulations necessaryfor the implementation of this Section.

R.S. 47:305.10(D)

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I. The exemptions from the state sales and use taxprovided in this Section shall be applicable to anysales and use tax levied by a local political subdi-vision or school board.

LAC 61:I.4410. Property Purchased forFirst Use Outside the StateA. R.S. 47:305.10 provides an exemption from thetaxes levied under this Chapter by the state or anypolitical subdivision of the state, or any schoolboard, for the purchase or importation of tangiblepersonal property in Louisiana for first use beyondthe territorial taxing jurisdiction of this state. ThisSection provides an exemption for purchases andimportations in two categories of first use: first usein another state; and first use in the offshore areabeyond the borders of Louisiana or any other state.

B. Purchases or importations of tangible personalproperty for first use in another state for which anexemption is claimed under the provisions of thisSection may be accomplished by the use of anexemption certificate LGST 9-D, entitled “ForeignPurchasers.” The transaction must meet the fol-lowing requirements before the exemption will beallowed:

1. the purchaser is properly registered for salesand use tax in the state of use and regularlyreports and remits the taxes due in such state; and

2. the state in which first use occurs grants on areciprocal basis a similar exemption on purchaseswithin that state for first use in Louisiana; and

3. either §4410.B.3.a or b must be met in additionto requirements §4410.B.1 and 2:

a. the purchaser obtains a written authorizationfrom the secretary of the Department of Revenueand Taxation to make the tax-exempt purchase; or

b. the property being purchased is a craft whichwould ordinarily be subject to registration by thestate of Louisiana as a motor boat, but is not in factregistered for use in Louisiana.

C. Foreign nations and the territorial waters offoreign nations are not considered to be anotherstate for purposes of this Section.

D. Tangible personal property imported for useoutside the state of Louisiana may still be importedtax-free under R.S. 47:305(E) if the requirementsspecified in §4401 are met. Under that provision,

specific pieces of property which have been clearlylabeled for trans-shipment outside the state ofLouisiana at the time of their importation into thestate are exempt without the necessity for meetingthe above guidelines.

E. Purchases or importations of tangible personalproperty for use in the offshore area of Louisiana orthat of any other state, for which an exemption isclaimed under the provisions of this Section, maybe accomplished by use of either one of two exemp-tion certificates, LGST 9-D or LGST 9-O/S, depend-ing on the following conditions:

1. If the exact location (area name, block number,lease number) of first use of the property is knownat the time of purchase, the purchaser must claimexemption to the vendor by properly completing anexemption certificate LGST 9-D;

2. If the exact location of first use of the property isnot known at the time of purchase, and the pur-chaser has been assigned an “offshore registra-tion number” by the secretary of Revenue andTaxation, then the purchaser may claim the ex-emption by completing an exemption certificateLGST 9-O/S and presenting it to the vendor. Allaccounting records of importations and purchasesmade through the use of this certificate will bemaintained in such a manner so as to accuratelyaccount for tax-free and tax-paid inventories untilthey are withdrawn for use. Physical segregationof tax-free inventory is not required. In the case offungible goods, such as diesel fuel, where usageoccurs continuously in travel in and out of theoffshore area, exemption certificate LGST 9-O/Smay be used to make tax-free purchases of suchgoods in their entirety. At the end of each reportingperiod, the purchaser will determine that portion ofthe fungible goods which was actually consumedwithin any taxing jurisdiction and make the neces-sary accrual entries to record the proper tax due;

3. The LGST 9-0/S certificate may only be used bypurchasers who have been granted the “offshoreregistration number”, and unauthorized use of thecertificate is forbidden. An “offshore registrationnumber” will be evidenced by the word “OFF-SHORE” appearing above the account number onthe purchaser’s registration certificate, and thepurchaser will be required to enter this completeregistration number on the LGST 9-O/S whenmaking tax-free purchases for first use offshore.Vendors should exercise tenable judgement inaccepting the LGST 9-O/S exemption certificate inlieu of the sales tax. Vendors should also ensure

LAC 61:I.4410.E

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that all required information appears on the face ofthe certificate;

4. An offshore registration number will be issuedonly to dealers who have demonstrated to thesecretary of Revenue and Taxation that the natureof their business is such that consumption of tan-gible personal property occurs in the offshore areabeyond the territorial limits of Louisiana, or that ofother states or foreign nations. It must also beshown to the satisfaction of the secretary that therecords maintained by the purchaser are adequateto facilitate an examination and that they docu-ment the location of first use of all tangible per-sonal property purchased tax-free under theprovisions of this section. In the case of fungiblegoods, such as diesel fuel, which are purchasedtax-free, the purchaser must retain, and makeavailable for examination, all purchase invoices,vessel logs, fuel usage records, fuel transfer records,and all other pertinent information which will de-termine the portion which has been consumed inand/or delivered to, offshore locations, and theportion which has been consumed in, and/or deliv-ered to, locations within the taxing jurisdiction ofany state or foreign nation. Timely returns must befiled, along with the proper remittance, to report thetaxes due on all withdrawals from nontax-paidinventory for taxable uses. The following shall betaxable uses:

a. withdrawal from nontax-paid inventory for firstuse within the territorial limits of Louisiana or thatof any other state. The use tax cost basis shall beoriginal acquisition cost;

b. withdrawal from nontax-paid inventory for firstuse in a foreign nation or its territorial waters. Theuse tax cost basis shall be the original acquisitioncost;

c. withdrawal from nontax-paid inventory for sale,exchange, trade, or barter under any circumstances.The sale will be regarded as a casual sale underthe provisions of R.S. 47:301(10), and a use taxwill be due at the time of such withdrawal on oneof the following bases:

i. In the case of property never previously used, theuse tax basis will be original acquisition cost;

ii. In the case of property which has previouslybeen used in the offshore area and subsequentlyreturned to storage in the offshore inventory, theuse tax basis will be the lesser of original acquisi-tion cost or reasonable market value at the time ofthe withdrawal;

d. The subsequent return of property, following itsfirst use in the offshore area, to a location withinthe territorial limits of Louisiana for a taxable useat that location. Such a use would subject theproperty to a use tax based on the lesser of acqui-sition cost or reasonable market value at the timeof its return to the location of use within Louisiana.The return of property into the state for the purposeof repairing, modifying, further fabrication, or forreturn to the offshore inventory will not be re-garded as taxable uses. Property returning fromoffshore locations for repairs retains its exemptstatus for use tax purposes, but the repair chargesare taxable in accordance with R. S. 47:301(14)(g);

e. The use of that portion of fungible goods that isdetermined to have been consumed within theterritorial limits of Louisiana or that of any otherstate or any foreign nation.

F. R.S. 47:305.10 makes it clear that the aforemen-tioned records shall be maintained by the pur-chaser or importer, and shall be made available forexamination by agents of the secretary. It alsoprovides that the offshore registration numberissued under the provisions of this Section may berevoked by the secretary at any time, if the pur-chaser misuses the exemption to make tax-exemptpurchases of property for first use in the state, orif he fails to maintain adequate records, or fails toreport and remit any tax which becomes due underthis Section. In case of such a revocation, alltangible personal property which is stored in anoffshore inventory site will immediately becometaxable, unless the purchaser is able to identify theexact location (area name, block number, leasenumber) of first use of the property. Thereafter, anduntil the offshore registration status is reinstated,tax-free purchases may be made only in instanceswhen the exact location of first use is known at thetime of purchase, and a certificate form LGST 9-Dis presented to the vendor. The offshore registra-tion number may be reinstated at the discretion ofthe secretary of Revenue and Taxation, upon beingprovided with sufficient proof that the conditionsand requirements of this Section will be adhered toby the purchaser. The burden for supplying proofof eligibility shall rest with the purchaser/importerat all times, whether the request is for initialregistration or for reinstatement of a revoked reg-istration.

G. This Section provides an exemption from thesales and use tax on tangible personal propertypurchased in or imported into Louisiana under thecircumstances described. All other purchases andimportations of property shall be subject to the

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taxes levied by the state and its political subdivi-sions in accordance with R.S. 47:302(A), 47:321(A),and 47:331(A), at the time of such purchase orimportation, unless otherwise exempted.

R.S. 47:305.11. Exclusions andexemptions; contracts prior to and withinninety days of tax levyA. No new or additional sales or use tax shall beapplicable to sales of materials or services in-volved in lump sum or unit price constructioncontracts entered into and reduced to writingprior to the effective date of the statute or ordi-nance levying same or to sales or services involvedin such contracts entered into and reduced towriting within ninety days thereafter, if suchcontracts involve contractual obligations under-taken prior to such effective date and were com-puted and bid on the basis of sales taxes at therates effective and existing prior to such effectivedate.

B. This section shall apply to sales and use taxesnow or hereafter levied by the State of Louisianaor by any parish, municipality or other politicalsubdivision thereof, whether such levy is underauthority of general or special laws of the state orunder powers granted in local charters or underany other authority or grant of the power to levyand collect sales or use taxes.

LAC 61:I.4411. Contracts Prior to andWithin 90 Days of Tax LevyA. R.S. 47:305.11 relieves a party to a constructioncontract from the burden of added sales or use taximposed by either the state of Louisiana, anyparish, municipality, or other political subdivisionthereof on the sales of materials or services in-volved in either lump-sum or unit price contractsafter the contractor has made himself liable forperformance and completion of a contract whichdid not provide for new or additional taxes. Theexemption from new taxes applies only to lump-sum or unit price contracts and does not apply tocontracts entered into on a cost plus or fixed feebasis. It is also required that the contracts musthave been entered into prior to the effective date ofthe statute or ordinance levying the new tax. Theexemption does apply to sales and services in-volved in a contract reduced to writing within 90days after the effective date of a statute levying anew tax, but only if the contractor had a contrac-tual obligation entered into prior to the effective

date. The 90-day period is intended to cover asituation where a contractor has computed and bida contract on the basis of existing taxes prior to theeffective date of the new tax but where awardingof the contact and formal signing thereof did nottake place prior to the effective date, but within 90days after the effective date of the new tax.

R.S. 47:305.12. Exclusions andexemptions; fire fighting equipmentpurchased by bona fide organized publicvolunteer fire departmentsRepealed by Acts 1998, No. 4, eff. June 4, 1998.

LAC 61:I.4412. Fire Fighting EquipmentPurchased by Bona Fide OrganizedPublic Volunteer Fire DepartmentsA. R.S. 47:305.12 grants an exemption from thetaxes imposed by this Chapter and from anysimilar taxes imposed by any political subdivisionof the state of Louisiana for any equipment used bybona fide organized public volunteer fire depart-ments in fire fighting. This exemption has beeninterpreted to apply not only to the implementsactually used in fighting fire but also to all neces-sary firehouse equipment and special apparel usedin fighting fires. By way of illustration, communica-tions equipment, rubber suits, boots, and helmetsworn by volunteers, axes, ladders, and buckets,and the furnishings of a firehouse necessary for itsoperation, including bedding and cooking facili-ties, meet the exemption provided by this Section.Items intended solely for the entertainment orrecreation of volunteer firemen are not exemptedby this Section. Neither are foods or services fur-nished to a firehouse exempted.

B. Any dealer failing to collect sales tax because ofexemptions granted by this Section must be able toidentify the specific equipment and the organiza-tion to whom sold.

C. Note that sales of fire fighting equipment toestablished municipal fire departments are notcovered by this exemption.

LAC 61:I.4412

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R.S. 47:305.13. Exclusions andexemptions; admissions toentertainments furnished by certaindomestic nonprofit corporationsThe sales tax imposed by R.S. 47:302 shall notapply to the sale of admissions to entertainmentevents furnished by recognized domestic non-profit charitable, educational and religious orga-nizations when the entire proceeds from suchsales, except for necessary expenses connectedwith the entertainment events, are used for thepurposes for which the organizations furnishingthe events were organized.

LAC 61:I.4413. Admissions toEntertainment Furnished by CertainDomestic Nonprofit CorporationsA. This Section [R.S. 47:305.13] grants a limitedexemption to organizations created under the lawsof the state of Louisiana as nonprofit, charitable,educational, or religious organizations from thetaxes imposed by this Chapter on the sale ofadmissions to entertainment events. Such sales ofadmissions are exempt only when the entire pro-ceeds, with the exception of necessary expensesconnected with the event, are used for the purposefor which the organization was formed. The re-quirement that the entire proceeds from the salesof tickets, except for necessary expenses, must beused for the purpose for which the organizationwas formed eliminates from exempt status anyevent where payment has been made to a promoteror promotional firm for engaging the services ofpersons not directly connected with the sponsoringorganization.

B. Only sales of admissions made by recognizeddomestic nonprofit, charitable, educational, or re-ligious organizations are exempt under this Sec-tion. In order to meet the nonprofit requirement, anorganization or corporation must have no provisionfor making of dividends or payments of any profitsto any organizers or stockholders and none of theincome may inure to the benefit of any privateshareholder or individual. In order to qualify as acharitable organization, it must freely and volun-tarily minister to the physical needs of those un-able to help themselves, or promote the welfare ofmankind at large, or of a community, or of someclass from a part of a community, or be one whichwould not deny assistance to persons unable topay even though it may charge for assistance tothose who are able to pay. An educational institu-

tion is construed to mean a school, seminary,college, or other institution having an instructionalstaff and a curriculum designed to cultivate themental, moral, religious, or physical facilities ofthose whom it seeks to educate.

R.S. 47:305.14. Exclusions andexemptions; nonprofit organizations;nature of exemption; limitations;qualifications; newspapersA.(1) The sales and use taxes imposed by R.S.47:302 and 331 shall not apply to sales of tangiblepersonal property at, or admission charges for,outside gate admissions to, or parking fees asso-ciated with, events sponsored by domestic, civic,educational, historical, charitable, fraternal, orreligious organizations, which are nonprofit, whenthe entire proceeds, except for the necessaryexpense connected therewith, are used for educa-tional, charitable, religious, or historical restora-tion purposes, including the furtherance of thecivic, educational, historical, charitable, frater-nal, or religious purpose of the organization. Inaddition, newspapers published in this state byreligious organizations shall also be exempt fromsuch taxes, provided that the price paid for thenewspaper or a subscription to the newspaperdoes not exceed the cost to publish such newspa-per.Amended by Acts 1994, No. 39, eff. Aug. 15, 1994.

(2) The exemption provided herein shall not applyto any event intended to yield a profit to thepromoter or to any individual contracted to pro-vide services or equipment, or both, for the event.

(3) This Section shall not be construed to exemptany organization or activity from the payment ofsales or use taxes otherwise required by law to bemade on purchases made by these organizations.

(4) This Section shall not be construed to exemptregular commercial ventures of any type such asbookstores, restaurants, gift shops, commercialflea markets, and similar activities that are spon-sored by organizations qualifying hereunder whichare in competition with retail merchants. How-ever, the exemption provided in this Section shallapply to thrift shops located on military installa-tions, the operation of which is deemed to be an“event” for purposes of this exemption.Amended by Acts 1994, No. 22, eff. June 7, 1994.

B. This sponsorship of any event by any organiza-tion applying for an exemption hereunder must

R.S. 47:305.13

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Louisiana Sales Tax Law and Regulations 87

be genuine. Sponsorship will not be genuine inany case in which exemption from taxation is amajor consideration leading to such sponsorship.

C. An exemption certificate must be obtainedfrom the collector of revenue, under such regula-tions as he shall prescribe, in order for nonprofitorganizations to qualify for the exemption pro-vided in this section.

In the event the collector of revenue denies taxexempt status under this section, the organiza-tion may appeal such ruling to the LouisianaBoard of Tax Appeals, which may overrule thecollector of revenue and grant tax exempt statusif the Louisiana Board of Tax Appeals determinesthat the denial of tax exempt status by the collec-tor of revenue was arbitrary, capricious or unrea-sonable.

Provided however, that any organization whichendorses any candidate for political office orotherwise is involved in political activities shallnot be eligible for the exemption herein provided.

D. Notwithstanding any other provision of law tothe contrary, the proper venue in any proceedingto determine the tax exempt status under theprovisions of this Section shall be the parish inwhich the activity for which the tax exempt statusis claimed took place, or any parish in which thetaxpayer has a corporate presence, to be deter-mined at the discretion of the taxpayer.Amended by Acts 1997, No. 627, eff. July 3, 1997.

LAC 61:I.4418. Nonprofit Organizations;Nature of Exemption; Limitations;QualificationsA. General. Events sponsored by domestic, civic,educational, historical, charitable, fraternal, or re-ligious organizations, which are nonprofit are ex-empt from the sales or use tax for these events, onthe condition that the proceeds from these events,less applicable expenses, are used for the further-ance of the purpose for which the organization wasformed.

1. This exemption applies to sales of tangiblepersonal property, admission charges, outside gateadmission charges, and parking fees.

2. The organization must apply for the exemptionfor each event and the application must be genu-ine. The application is form R-1048.

3. If the exemption is approved, the secretary willprovide a certificate of exemption for the specificevent.

4. If the secretary denies the exemption, the orga-nization may appeal to the Louisiana Board of TaxAppeals.

5. An event, as referred to in the statute, means anoccurrence of relatively short duration with a sched-uled beginning and ending date and/or time.

6. The purchase of items to be sold at these eventsis not exempt from the advance sales tax. In orderto receive a credit for the tax paid on items to besold at one of these exempt events, the organiza-tion would register with the department as anirregular filer and then file a sales tax return takinga credit for the sales tax paid on the purchases forresale.

B. Exceptions. The statute is very specific as to thetype of organizations and events that qualify forthe exemptions. There are some exceptions thatare referred to in the law.

1. If the event is intended to yield a profit to thepromoter or to any individual contracted to provideservices, or equipment, or both, for the event, theexemption shall not apply.

2. Nonprofit organizations are not exempt fromsales or use taxes under this exemption, only fromthe collection of sales tax at certain events held bythese organizations.

3. The statue does not offer an exemption from thesales and use taxes for regular commercial ven-tures such as, bookstores, restaurants, gift shops,commercial flea markets, and similar venturesthat are operated by nonprofit organizations. Theexemption applies to events that are not open on anongoing basis.

4. Any organization which endorses any candi-date for political office or is involved in politicalactivities will not be eligible for the exemption.

5. The secretary may, at his discretion, recognizeongoing activities, e.g. concession sales at schools,and allow the organization to file an annual ex-emption application for such activities.

LAC 61:I.4418

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R.S. 47:305.15. Exclusions andexemptions; sales or purchases by blindpersonsA. The sales and use taxes levied and the collec-tion, reporting, and remittance thereof requiredby this Chapter shall not apply to sales or pur-chases made by blind persons in the conduct of abusiness which is exempt from license taxes byR.S. 46:371 through 373.

B. In addition, the sales and use taxes imposed bythe state or by any political subdivision thereofshall not apply to any nonprofit organizationwhich utilizes public funds for not less thanseventy-five percent of its operational fundingand which primarily operates to provide fundingfor and training to blind persons.Amended by Acts 1994, No. 26, eff. Aug. 15, 1994.

R.S. 47:305.16. Exclusions andexemptions; cable television installationand repairThe sales and use taxes imposed by the state or byany political subdivision thereof shall not apply tonecessary fees incurred in connection with theinstallation and service of cable television. Suchexemption shall not apply to purchases made byany cable television system, but shall only applyto funds collected from the subscriber for regularservice, installation and repairs.

LAC 61:I.4414. Cable TelevisionInstallation and RepairA. R.S. 47:305.16 provides an exemption for salesand use taxes imposed by the state or by anypolitical subdivision thereof on necessary feesincurred in connection with the installation andservice of cable television. Such exemption shallnot apply to purchases made by any cable televi-sion system, but shall apply only to funds collectedfrom the subscriber for regular service, installationand repairs.

B. Contractors and sub-contractors engaged in thebusiness of installing and servicing the cable tele-vision system, whether on a lump-sum or a cost-plus basis, are deemed to be purchasers andconsumers of the materials used by them. Vendorsof such materials are required to collect the salestax thereon and to remit same to the appropriatetaxing authority.

C. Charges for repairs to television sets or othertangible personal property that is not considered apart of the cable television system are taxable assales of services.

R.S. 47:305.17. Exclusions andexemptions; income from coin-operatedwashing and drying machines in acommercial laundromatState sales taxes imposed by R.S. 47:302 and R.S.47:321, as well as any sales taxes imposed by anyparish, municipality, school board, or other po-litical subdivision, within the state, shall notapply to or be imposed upon the income onreceipts from any coin-operated washing or dry-ing machine in a commercial laundromat. A com-mercial laundromat, for purposes of this Section,is defined to be any establishment engaged solelyin the business of furnishing washing or dryinglaundry services by means of coin-operated ma-chines.

R.S. 47:305.18. Exclusions andexemptions; fairs, festivals, andexpositions sponsored by nonprofitorganizations; nature of exemption;limitations; qualificationsA. The sales and use tax imposed by the state ofLouisiana under R.S. 47:302(C) and R.S. 47:321shall not apply to all outside gate admissions togrounds and parking fees at fairs and festivalssponsored by recognized nonprofit organizationschartered under the state of Louisiana.

The exemption provided herein shall not apply toany event intended to yield a profit to the pro-moter or to any individual contracted to provideservices or equipment, or both, for the event.

This Section shall not be construed to exempt anyorganization or activity from the payment of salesor use taxes otherwise required by law to be madeon purchases made by these organizations.

This Section shall not be construed to exemptregular commercial ventures of any type such asbookstores, restaurants, gift shops, commercialflea markets and similar activities that are spon-sored by organizations qualifying hereunder whichare in competition with retail merchants.

R.S. 47:305.15

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B. This sponsorship of any event by any organiza-tion applying for an exemption hereunder must begenuine. Sponsorship will not be genuine in anycase in which exemption from taxation is a majorconsideration leading to such sponsorship.

C. An exemption certificate must be obtainedfrom the collector of revenue, under such regula-tions as he shall prescribe, in order for nonprofitorganizations to qualify for the exemption pro-vided in this section.

In the event the collector of revenue denies taxexempt status under this Section, the organiza-tion may appeal such ruling to the Board of TaxAppeals, which may overrule the collector ofrevenue and grant tax exempt status if the Boardof Tax Appeals determines that the denial of taxexempt status by the collector of revenue wasarbitrary, capricious or unreasonable. Providedhowever, that any organization which endorsesany candidate for political office or otherwise isinvolved in political activities shall not be eligiblefor the exemption herein provided.

D. This exemption applies only to sales and usetax imposed by the state of Louisiana and doesnot apply to such taxes authorized and levied byany school board, municipality, or other localtaxing authority notwithstanding any other pro-vision of law to the contrary, specifically but notexclusively R.S. 27:2716.1.

R.S. 47:305.19. Exclusions andexemptions; leased vessels used in theproduction of mineralsThe taxes imposed by R.S. 47:302(B) and R.S.47:321(B) shall not apply to those vessels whichare leased for use offshore beyond the territoriallimits of this state for the production of oil, gas,sulphur, and other minerals or for the providingof services to those engaged in such production.

R.S. 47:305.20. Exclusions andexemptions; Louisiana commercialfishermenA. A Louisiana resident, domiciled in Louisiana,who possesses such valid Louisiana commercialfishing license(s) as may be necessary for com-mercial fishing ventures, and who is an owner-operator of a vessel operated primarily for theconduct of commercial fishing as a trade or busi-ness and which the Louisiana Department of

Wildlife and Fisheries determines will be pre-dominantly and principally used for commercialfishing ventures and whose catch is for humanconsumption shall be exempt from state sales,use, lease, and services taxes as set forth inSubsection C of this Section. Possession of acommercial license issued by the Department ofWildlife and Fisheries shall not be used as the soledetermination that a vessel will be used predomi-nantly and principally for commercial fishingventures. This exemption shall also apply to fa-cilities which process the catch from owner-op-erators of commercial fishing vessels for whichthis exemption is granted when such vessels areowned by, or leased or contracted exclusively to,the seafood processing facility.

B.(1) The Department of Revenue, after consult-ing with the Department of Wildlife and Fisheries,shall immediately issue rules and regulations forthe enforcement of these provisions. Through itsagents, it shall issue a certificate of exemption tothose who have demonstrated their qualificationunder the provisions of this Section. Except asprovided in Paragraph (2) of this Subsection, nosuch certificate shall be issued to any person whodoes not present to the department a notarizedstatement that he derives or intends to derive hisprimary source of income, which means not lessthan fifty percent, from commercial fishing.

(2) In lieu of a notarized statement, a personacting on his own behalf, with sufficient personalidentification and documentation, may execute asigned statement before an authorized employeeof the Department of Revenue.

(3) A separate certificate of exemption shall beissued for each vessel which the applicant hasdemonstrated, to the satisfaction of the depart-ment, will be used principally and predominantlyfor commercial fishing ventures. The certificateshall identify the vessel to which the exemptionshall be applicable. This certificate shall be madeavailable without charge to qualified applicants.Such certificates are not transferable and shall bepresented in order to obtain the exemption.

C. An owner-operator who has obtained a certifi-cate of exemption shall, with respect to the vesselidentified in the certificate for the harvesting orproduction of fish and other aquatic life, includ-ing shrimp, oysters, and clams, and certain sea-food processing facilities described in SubsectionA, be exempt from the taxes described in Subsec-tion A, as follows:

R.S. 47:305.20(C)

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(1) Taxes applied to the materials and suppliesnecessary for repairs to the vessel or facility if theyare purchased by the owner-operator and laterbecome a component part of the vessel or facility.

(2) Taxes applied to materials and supplies pur-chased by the owner-operator of the vessel orfacility where such materials and supplies areloaded upon the vessel or delivered to the facilityfor use or consumption in the maintenance andoperation thereof for commercial fishing and pro-cessing ventures. For purposes of this Paragraph,it shall make no difference whether the vessel isengaged in interstate, foreign, or intrastate com-merce.

(3) Taxes applied to repair services performedupon the vessel or facility. For the purposes of thisParagraph, it shall make no difference whetherthe vessel is engaged in intrastate, interstate, orforeign commerce.

(4) Taxes applied to the purchase of gasoline,diesel fuel, and lubricants for the vessel and tosources of energy and fuels for the facility.Amended by Acts 1991, No. 896, eff. Sept. 6,1991.

D. Any person who would otherwise be entitled toa certificate of exemption, shall be exempt from alltaxes applied to the purchase of any vessel whichthe Department of Revenue determines, under itsrules and regulations, will be used principally andpredominantly for commercial fishing ventures.This determination may be made prior to the saleby the department at which time it shall issue tothe applicant a certificate of exemption. Whereapplication is made prior to the purchase, theburden shall be on the applicant to demonstratethat the vessel will be used principally and pre-dominantly for commercial fishing ventures. Ifapplication for a certificate of exemption is madeafter purchase, a certificate of exemption shallissue and the Department of Revenue shall give arebate, out of funds made available therefor, forall taxes paid; but this shall take place only wherethe applicant has demonstrated his and thevessel’s qualifications under this Section. ThisSubsection shall be made applicable only to pur-chases made subsequent to September 12, 1975.Amended by Acts 1990, No. 162, eff. Sept. 7,1990.

E. When a commercial fisherman objects to arefusal of the Department of Revenue to issue acertificate under this Section, he may appeal suchruling to the Board of Tax Appeals, which may

overrule the secretary and grant tax exempt sta-tus if there is a determination that the denial wasarbitrary, capricious, or unreasonable.Amended by Acts 1990, No. 162, eff. Sept. 7,1990.

F. Any person who knowingly uses his certificatefor a purpose other than that authorized in thisSection, and any person who knowingly partici-pates in the obtaining of or the misusing of thecertificate, whether present or absent and whetherthey directly commit the act constituting thisoffense, aid and abet in its commission, or directlyor indirectly counsel or procure another to com-mit the crime, shall be subject to a fine of not lessthan one hundred dollars per offense nor morethan one thousand dollars per offense, and im-prisonment without hard labor for not less thanone day nor more than three months.

G. This exemption applies only to sales and usetax imposed by the state of Louisiana and doesnot apply to such taxes authorized and levied byany school board, municipality, or other localtaxing authority notwithstanding any other pro-vision of law to the contrary, specifically but notexclusively R.S. 33:2716.1.

R.S. 47:305.21. Exclusions andexemption; equipment, parts, andairplanes purchased by commuterairlines; definitionRepealed by Acts 1998, No. 4, eff. June 4, 1998.

R.S. 47:305.22. Exclusions andexemptions; certain self-propelledvehicles removed from inventoryA Louisiana retail dealer who ordinarily pur-chases for resale equipment of a type not subjectto titling under Louisiana Revised Statutes Title32, such equipment having a dealer’s cost of notless than three thousand dollars per unit, andsuch equipment being: (1) mobile, motorized self-propelled farm equipment and attachmentsthereto; (2) mobile, motorized self-propelled earthmoving equipment and attachments thereto; and/or (3) mobile, motorized self-propelled construc-tion equipment and attachments thereto; andwho withdraws an item of such equipment frominventory, for rental, as a method for promotingsales, shall be exempt from the payment of a salesor use tax on the purchase price of the propertywhen withdrawn from inventory for such rental.

R.S. 47:305.20(D)

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Such retail dealer shall be liable for the tax leviedon the rental income, and a sales tax upon anyultimate sale of said item. This exemption shallapply: (1) to the taxes levied by the LouisianaRevised Statutes 47:302, (2) to the taxes levied bythe Louisiana Revised Statutes 47:321, and (3) tothe taxes levied pursuant to Subpart D of Part I ofChapter 6 of Title 33 of the Louisiana RevisedStatutes by any taxing authority other than thestate, including but not limited to parishes, mu-nicipalities, and school boards.

LAC 61:I.4415. Certain Self-propelledVehicles Removed from InventoryA. In determination of whether or not a sales or usetax is due upon items of equipment described inR.S. 47:305.22, the following criteria shall be used:

1. First Test. Any company which derives fromrentals more than 25 percent of its gross income inany calendar or fiscal year would be deemed (forthe calendar or fiscal year) to be in the true “leasingbusiness”, and not leasing for the purpose ofpromoting sales. The result would be that such acompany would have to pay a use tax on all of theleased equipment owned by that company, re-gardless of the length (or the shortness) of theleases. Income produced from rentals of equipmentwhere the lessee has the option to purchase shallbe included in the “sales” factor for the purpose ofthis computation. In the event the option is notexercised, the income so produced shall revert tothe “lease” factor.

a. Note that a company which meets this first testwould have to pay a use tax on all leased equip-ment, regardless of the term of the leases (howevershort), and regardless of the number of successiveleases of any particular item of equipment.

b. Of course, where such a company made anoutright sale, where there was no preceding leasethere would be no use tax on the equipment thussold.

2. Second Test. Even if a company does not meetthe first test, it still must pay the use tax on anyitem of equipment that is held in inventory andleased out (and not actually sold) for a period of 30months or more. And such an item would besubject to the use tax regardless of the intent of thelessor, and regardless of the number of lessees.

3. Third Test - An Exception. As an exception to allof the foregoing, in each case where a lease of an

item of equipment exists, and where the lessee hasfrom the beginning of this contract an option topurchase, and where the lessee in fact has exer-cised such option, the transaction would be re-garded as a sale from the beginning, so that therewould be only one 4 percent tax due on the entirepurchase price, under this Chapter. Any rental taxmoneys paid during the lease would be creditedagainst the single 4 percent tax on the transaction.

R.S. 47:305.23. Exclusions andexemptions; leased automobiles andtrucksRepealed by Acts 1982, No. 415, §3

R.S. 47:305.24. Exclusions andexemptions; monetized bullionRepealed by Acts 1998, No. 4, eff. June 4, 1998.

R.S. 47:305.25. Exclusions andexemptions; farm equipmentA. The tax imposed by R.S. 47:302(A), R.S.47:321(A), and R.S. 47:331 (A) with respect to thesale and use of farm equipment shall apply onlyto that portion of the sale price in excess of fiftythousand dollars for each item of farm equip-ment. For the purpose of this Section, “farmequipment” includes the following:

(1) Rubber tired farm tractors, cane harvesters,cane loaders, cotton pickers, combines, haybalers,and attachments and sprayers.

(2) Clippers, cultivators, discs, plows, and spread-ers.

(3) Irrigation wells, drives, motors, and equip-ment.

(4) Other farm implements and equipment usedfor agricultural purposes in the production offood and fiber.

(5) On the farm facilities used to dry or store grainor any materials used to construct such on thefarm facilities.

B. This exemption applies only to sales and usetaxes imposed by the state of Louisiana and doesnot apply to such taxes authorized and levied byany school board, municipality, or other local

R.S. 47:305.25(B)

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taxing authority, except that in the parish of WestCarroll, the parish school board may exempt theequipment as provided in this Section from addi-tional sales and use taxes after approval by amajority of the qualified electors of the parish andthe police jury may exempt the equipment asprovided in this Section from all sales and usetaxes which it is presently levying and collectingand shall exempt such equipment from any addi-tional sales and use tax or taxes which it mayhereafter levy and collect.Amended by Acts 1996, 1st Ex. Sess., No. 38; andActs 1996, No. 14, eff. June 26, 1996.

R.S. 47:305.26. Exclusions andexemptions; new vehicles furnished bydealers for driver education purposesThe sales or use tax shall not be due on vehiclesfurnished by a dealer in new vehicles when with-drawn from inventory and furnished to a second-ary school, college or public school board on a freeloan basis for exclusive use in a driver educationprogram accredited by the Louisiana Departmentof Education.

R.S. 47:305.27. Exclusions andexemptions; capital mass transitequipmentRepealed by Acts 1998, No. 4, eff. June 4, 1998.

R.S. 47:305.28. Exclusions andexemptions; gasoholA. The sales or use taxes imposed by the state ofLouisiana or any such taxes imposed by anyparish or municipality or other local entity withinthe state shall not apply to the sale at retail, theuse, the consumption, the distribution, and thestorage, to be used or consumed in this state, ofany motor fuel known as gasohol, containing ablend of at least ten percent alcohol, if the alcoholtherein has been produced, fermented, and dis-tilled in Louisiana from agricultural commodities.Alcohol to be used in gasohol must have beenrendered unsuitable for human consumption atthe time of its manufacture or immediately there-after.

B. Gasohol, in order to qualify for this exemptionmust have been dyed a color which shall bedifferent and distinct from other gasolines. Thesecretary of the Department of Revenue shall

designate the color used and supplied by thedealer in the manufacture of gasohol.

R.S. 47:305.29. Exclusions andexemptions; state; certain local politicalsubdivisionsRepealed by Acts 1998, No. 4, eff. June 4, 1998.

R.S. 47:305.30. Exclusions andexemptions; Plaquemines ParishA. Notwithstanding the provisions of any otherlaw to the contrary, the governing authority of anypolitical subdivision in the parish of Plaqueminesmay exclude and exempt from any sales and usetax levied by such governing authority any itemexcluded and exempted from the sales and usetaxes imposed by the state of Louisiana underChapter 2 and Chapter 2-A of Title 47 of theLouisiana Revised Statutes of 1950.

B. It is expressly provided that the provisions ofthis Section shall also be applicable to any salesand use taxes being imposed by such governingauthority as of the date this Section becomes law;provided, that no bonds or other obligations pay-able from the proceeds of such taxes have beenissued and are outstanding.

R.S. 47:305.31. Exclusions andexemptions; equipment facilitatingenergy conservation, conversion toalternate fuelsA. As used in this Section, the following words andphrases have the meaning ascribed to them:

(1) “Energy conservation property” means tan-gible property used, or held for use, as an integralpart of a modification to, or replacement of, all orpart of an existing electrical generation, manufac-turing, production, or extraction facility, process,or item of equipment, but only if such modifica-tion or replacement either results in:

(a) the utilization by such facility, process, or itemof equipment of less energy per unit of output, or

(b) the conversion of such facility, process, or itemof equipment to permit the use of an alternatesubstance as a fuel or as a feedstock.

R.S. 47:305.26

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Property shall be considered to be an integral partof a modification or replacement otherwise de-scribed in this Paragraph only if such propertyeither directly results in a utilization or conver-sion described in this Paragraph or is part of,physically attached to, or otherwise directly asso-ciated with such property. For purposes of thisParagraph, any property, the installation of whichis reasonably necessary for the proper installa-tion, operation, or maintenance of property whichdirectly results in a utilization or conversiondescribed in this Paragraph, shall be consideredas directly associated with such property.

(2) “Existing”, in applying Paragraph (1) of thisSubsection, means:

(a) when used in connection with a facility, afacility which is in operation before the effectivedate of this Section;

(b) when used in connection with a process, aprocess which was carried on as of the effectivedate of this Section; and

(c) when used in connection with equipment,such equipment was placed in service before theeffective date of this Section.

(3) “Alternate substance”, in applying SubsectionA(1)(b), means any substance other than:

(a) oil and natural gas, and

(b) any product of oil and natural gas.

Petroleum coke and waste gases from industrialoperations shall be treated as alternate sub-stances.

(4) “Computations per unit of output”: The deter-minations required by Subsection A(1)(a) shall bemade by comparing the BTU’s of oil and naturalgas, or energy, used by the facility, process, oritem of equipment per unit of output, prior to themodification or replacement, with the BTU’s of oiland natural gas, or energy, used by such facility,process, or item of equipment per unit of outputupon completion of the modification or replace-ment. In the case of determinations under Sub-section A(1)(a) with respect to electricity, a heatrate of ten thousand BTU’s per kilowatt hour shallbe used.

B. The taxes levied under the provisions of thisChapter and Chapter 2-A shall not apply to thesale at retail, the use, the consumption, the

distribution, the storage for use or consumptionin this state, and the lease or the rental of anyenergy conservation property if such energy con-servation property is used or consumed in thisstate by an existing manufacturing establish-ment or public utility.

C. The provisions of Subsection B shall not applyto any manufacturing establishment or publicutility, and property defined in Subsection A(1)(a)shall not be energy conservation property, unlessthe total energy saved per year will be greater thanthirty billion BTU’s.

The total energy saved per year shall be deter-mined by multiplying the units of output of suchmanufacturing establishment or public utility forthe year preceding the year in which such prop-erty is acquired or the replacement or modifica-tion begins by the BTU’s per unit of output whichwill be saved.

D. The Board of Commerce and Industry shallpromulgate rules and regulations which definethe term “manufacturing establishment” in con-formance with the board’s interpretation of thatterm for ad valorem tax exemption purposes,pursuant to Article VII, Section 21(F) of the Con-stitution of Louisiana. Upon application, in suchform and manner as the board shall require, theboard shall notify the Department of Revenuewhich shall issue a certificate of exemption withrespect to any item of property certified by theapplicant as property which may reasonably beexpected to qualify as energy conservation prop-erty upon completion of a modification or replace-ment described in Subsection A(1). Not later thantwelve months after completion of a modificationor replacement described in Subsection A(1), thetaxpayer shall submit to the board such evidenceas the board, in consultation with the Depart-ment of Natural Resources, shall require to estab-lish to the satisfaction of the board that propertywith respect to which a certificate has been issuedis energy conservation property. Upon failure tomeet the requirements specified by this Subsec-tion, the taxpayer shall remit any and all taxesthat would have been imposed but for the issu-ance of a certificate pursuant to Subsection D.

E. This Section shall not apply to any sales, use,and lease taxes incurred by a manufacturingestablishment or public utility after December31, 1989.

R.S. 47:305.31(E)

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R. S. 47:305.32. Exclusions andexemptions; reconstruction of destroyedmanufacturing establishmentsRepealed by Acts 1982, No. 44, §1

R.S. 47:305.33. Exclusions andexemptions; nonprofit retirement centersThe sales and use taxes imposed by the state ofLouisiana shall not apply to purchases of materi-als for the construction of and supplies for theoperation of any not-for-profit retirement centerowned or operated by any public trust authorityor duly incorporated not-for-profit corporation. Aretirement center for purposes of this Section isdefined as any multipurpose facility which housesas a permanent residence senior citizens who aresixty-two years of age or older, which provideshousing for the elderly, and which provides inter-mediate health care.

R.S. 47:305.34. Exclusions andexemptions; waterworks districtpurchasesRepealed by Acts 1998, No. 4, eff. June 4, 1998.

R.S. 47:305.35. Exclusions andexemptions; public housing authoritiesRepealed by Acts 1998, No. 4, eff. June 4, 1998.

R.S. 47:305.36. Exclusions andexemptions; motor vehiclesA. The tax imposed by R.S. 47:302(A), R.S.47:321(A), and R.S. 47:331(A) shall not apply tothe sale at retail, the purchase, lease, or theimportation of motor vehicles, trailers, or semi-trailers as defined by R.S. 47:451 that will bestored, used, or consumed in this state exclu-sively for lease or rental, provided that the grossproceeds derived from the lease or rental of theproperty not previously taxed shall be at reason-able market rates. If the secretary of the Depart-ment of Revenue finds that any person who haspurchased, used, or imported motor vehicles,trailers, or semitrailers tax free under this Sub-section has subsequently leased or rented motorvehicles, trailers, or semitrailers in transactionsnot at arms length at below market rates, the

secretary shall presume that the person was notentitled to claim the exemption provided herein,and the burden shall be on that person to proveotherwise.

B. A person who has acquired or used propertyunder this Section without payment of the taximposed by R.S. 47:302(A), R.S. 47:321(A), andR.S. 47:331(A) shall be construed to be in thebusiness of leasing, renting, or selling such prop-erty, whether or not the lessees have the right orobligation to purchase the tangible personal prop-erty or will otherwise acquire title to the propertyat termination of the lease. Therefore, a transac-tion entered into that is entitled lease, rental,lease-purchase, or similar name which for pur-poses other than state sales taxation might beconsidered a conditional sales contract or trans-action in lieu of sale, shall be deemed for statesales tax purposes to be a taxable lease. Themonthly or other periodic payments made underthe agreement shall be subject to the tax imposedby R.S. 47:302(B), R.S. 47:321(B), and R.S.47:331(B). These persons shall not be allowed tomake an isolated or occasional non-retail sale ofthe property under R.S. 47:301(1) or R.S.47:301(10).

C. (1) No person shall be entitled to purchase, use,or import motor vehicles, trailers, or semitrailers,under this Section without payment of the taximposed by R.S. 47:302(A), R.S. 47:321(A), andR.S. 47:331(A) before having received an exemp-tion number or certificate from the secretary ofthe Department of Revenue authorizing him toengage in the business of purchasing, using, orimporting motor vehicles.

(2) The exemption provided by this Section shallbe available only to dealers who have qualifiedwith the Louisiana Motor Vehicle Commissionand the Louisiana Used Motor Vehicle and PartsCommission.Amended by Act 1991, No. 495, eff. July 15, 1991.

D. The secretary of the Department of Revenueshall promulgate rules and regulations for carry-ing out the exemption provided by this Section.Any person not in compliance with those rulesand regulations shall not be entitled to the ex-emption.

E. (1) A lessor who, before the effective date of thisSection, entered into agreements for the lease orrental of new motor trucks and new motor trac-tors licensed and registered for twelve thousandpounds or more, or new trailers and semi-trailers

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licensed and registered for sixteen thousandpounds or more, and who, at the time the lease orrental agreements were entered into, notified thesecretary that the sales tax on the lease or rentalof the individual pieces of property would bereported as provided by R.S. 47:302(D) prior to itsrepeal in the 1982 Regular Session, may continueto retain the lease taxes collected on the leasesand rentals of said property until the taxes paid atthe time of registration of the individual items arerecovered.

(2) The tax imposed by R.S. 47:302(B), R.S.47:321(B), and R.S. 47:331(B) shall not be due asprovided by R.S. 47:305.23 prior to its repeal inthe 1982 Regular Session, on the lease or rentalof automobiles and trucks for a period of sixmonths or longer duration, but only if the Louisi-ana sales or use tax imposed on the sale price orcost price of the automobiles and trucks was paidat the time the vehicles were titled in and/ortransferred into the state and the vehicles wereplaced in lease or rental service prior to theeffective date of this Section.

R.S. 47:305.37. Exclusions andexemptions; diesel fuel, butane, propane,or other liquefied petroleum gases usedfor farm purposesA. The state taxes imposed by R.S. 47:302(A), R.S.47:321(A), and R.S. 47:331(A) shall not apply todiesel fuel, butane, propane, or other liquefiedpetroleum gases used or consumed for farm pur-poses. The secretary of the Department of Rev-enue shall adopt and promulgate rules andregulations necessary to effectuate the exemp-tions granted by this Section.

B. In any parish having a population of more thanone hundred twenty thousand persons but lessthan one hundred forty thousand persons basedon the latest federal decennial census:

(1) The parish school board may by resolutionadopted by the board provide an exemption fromits sales and use tax as is provided for state salestax in Subsection (A) of this Section.

(2) The governing authority of a municipality mayby resolution or ordinance provide an exemptionas is provided for state sales tax in Subsection (A)of this Section from its sales and use tax and allsales and use taxes of political subdivisions leviedsolely within the territory of the municipality,except school board taxes.

(3) The governing authority of a parish may byresolution or ordinance provide an exemption asis provided for state sales tax in Subsection (A) ofthis Section from its sales and use tax and allsales and use taxes of political subdivisions leviedwithin the territory of the parish and all salestaxes levied both within and without the munici-pality, except school board taxes.Amended by Acts 1998, No. 35, eff. July 1, 1998.

R.S. 47:305.38. Exclusions andexemptions; sheltered workshop formentally retardedThe sale at retail, the use, the consumption, thedistribution, and the storage for use or consump-tion in this state of each item or article of tangiblepersonal property by a sheltered workshop for thementally retarded licensed by the Department ofSocial Services as a day developmental trainingcenter for the mentally retarded shall not besubject to the sales and use taxes levied by thestate or by any political subdivision thereof.

R.S. 47:305.39. Exclusions andexemptions; butane, propane, or otherliquefied petroleum gases purchased forprivate residential consumptionThe taxes imposed by R.S. 47:302(A), R.S.47:321(A), and R.S. 47:331(A) shall not apply todirect consumer purchases of butane, propane,or other liquefied petroleum gases for the privateresidential purposes of cooking and heating.

R.S. 47:305.40. Exclusions andexemptions; purchases of Mardi Grasspecialty itemsA. The sales and use taxes imposed by R.S.47:302, R.S. 47:321, and R.S. 47:331 shall notapply to the purchases of specialty items for usein connection with Mardi Gras activities by thefollowing organizations:

(1) Carnival organizations.

(2) Nonprofit organizations domiciled within Loui-siana and participating in a parade sponsored bya carnival organization.

B. (1) “Specialty items” for the purpose of thisSection are defined as those items which are

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specially designed for the carnival or nonprofitorganization and bear the carnival or nonprofitorganization’s name or insignia, including butnot limited to doubloons, necklaces, cups, andcoasters.

(2) “Carnival organization” for the purposes of thisSection is defined as an organization domiciledwithin Louisiana that plans to sponsor either aMardi Gras ball or parade during the next MardiGras season.

LAC 61:I.4416. Purchases of Mardi GrasSpecialty ItemsA. R.S. 47:305.40 grants an exemption from thestate sales and use taxes levied under this Chap-ter on purchases of specialty items for use inconnection with Mardi Gras activities. The exemp-tion is available to (1) carnival organizations domi-ciled within Louisiana that plan to sponsor eithera Mardi Gras ball or parade during the next MardiGras season, and (2) nonprofit organizations domi-ciled within Louisiana that plan to participate in aparade sponsored by a carnival organization.

B. Each such eligible organization shall annuallyrequest and obtain from the Department of Rev-enue and Taxation a Certificate of Exemption thatmay be presented to vendors of specialty items inlieu of the tax at the time of purchase. The requestmay be either in the form of a letter or on formssupplied by the Department of Revenue and Taxa-tion, and shall contain the following information:

1. name and address of the organization;

2. type of organization, either:

a. carnival organization sponsoring a parade orball during next Mardi Gras season; or

b. non-profit organization participating in a carni-val organization parade during next Mardi Grasseason;

3. event or events to be sponsored or participatedin for which tax-free purchases are being made;

4. type of specialty items to be purchased tax-freeunder the authority of the exemption certificate;

5. name of the officer authorized to make pur-chases on behalf of the organization;

6. name and signature of the officer of the organi-zation making the request.

C. Section 4416.B defines specialty items for pur-poses of the exemption as those items which arespecially designed for the carnival or nonprofitorganization and bear the organization’s name orinsignia. Examples of such items are doubloons,necklaces, beads, throws, cups, and coasters.Other types of specialty items may also qualify forthe exemption if they are purchased for use in aMardi Gras activity, bear the name or insignia ofthe organization, and are either for free distribu-tion to the public or for use in conjunction with aMardi Gras ball, such as flags, posters, invitations,programs, decorations, napkins, and tablecloths.

D. The resale of specialty items by the purchasingorganization to its members shall be regarded asexempt sales under the provisions of this Section,but only when those items are used exclusively inconjunction with a Mardi Gras parade or ball. Thesale of novelty items such as shirts and hats, on acontinuing basis, which are not used exclusively inconjunction with a Mardi Gras parade or ball, shallbe regarded as taxable sales under the provisionsof this Chapter.

R.S. 47:305.41. Exclusions andexemptions; Ducks Unlimited; Bass LifeThe sales and use tax imposed by the state ofLouisiana or any of its local governmental subdi-visions or school boards shall not apply to eitherthe sales of Ducks Unlimited or Bass Life or anyof their chapters or any rental or purchase ofproperty or services by Ducks Unlimited or BassLife or any of their chapters.Amended by Acts 1998, No. 28, eff. July 1. 1998.

R.S. 47:305.42. Exclusions andexemptions; tickets to balletperformances of nonprofit balletorganizationsThe sales and use tax imposed by R.S. 47:302(A)and R.S. 47:321(A) shall not apply to the sale ofadmission tickets by any domestic nonprofit or-ganization engaged in the preparation and pre-sentation of any dance, drama, or any of theperforming arts.

LAC 61:I.4416

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R.S. 47:305.43. Exclusions andexemptions; nonprofit organizationsdedicated to the conservation of fish ormigratory waterfowl; nature ofexemption; limitations; qualificationsA. The sales and use taxes imposed by R.S.47:302, R.S. 47:321, and R.S. 47:331 shall notapply to any sales made by a nonprofit organiza-tion dedicated exclusively to the conservation offish or the migratory waterfowl of the North Ameri-can Continent and to the preservation and con-servation of wetland habitat of such waterfowl,when the entire proceeds, except for the neces-sary expenses connected therewith, are used infurtherance of the organization’s exempt pur-pose. The exemption provided herein shall notapply to any event intended to yield a profit to thepromoter or to any individual contracted to pro-vide services or equipment, or both, for the event.Amended by Acts 1998, No. 28, eff. July 1. 1998.

B. Purchases by any organization qualifying here-under shall be exempt from the payment of anysales or use taxes imposed by the state and itspolitical subdivisions.

C. This Section shall not be construed to exemptsales or purchases made in connection with regu-lar commercial ventures of any type such asbookstores, restaurants, gift shops, commercialflea markets, or similar activities that are spon-sored by organizations qualifying hereunder whichare in competition with retail merchants.

D. Sponsorship of any event by any organizationapplying for an exemption hereunder must begenuine. Sponsorship shall not be genuine in anycase in which exemption from taxation is a majorconsideration leading to such sponsorship.

E. An exemption certificate must be obtainedfrom the secretary of the Department of Revenue,under such regulations as he shall prescribe, inorder for a nonprofit organization to qualify for theexemption provided in this Section.

R.S. 47:305.44. Exclusions andexemptions; raw materials used inprinting processA. The sales and use taxes imposed by the stateunder R.S. 47:302, R.S. 47:321, and R.S. 47:331and by any political subdivision shall not apply to

purchases and sales of the following, including allchemical supplies necessary to produce suchitems whether manufactured by a printer or pur-chased from a subcontractor:

(1) Artwork. (2) Blankets and bars. (3) Chemicals. (4) Color separations. (5) Dies. (6) Film, including negatives. (7) Offset plates. (8) Press proofs and photomechanical proofs. (9) Layouts.(10) Typesetting.(11) Rubber plates.(12) Paper.(13) Ink.

B. The exemption provided in Subsection A shallapply on and after the effective date of this Act.

R.S. 47:305.45. Exclusions andexemptions; per diem or car hire onfreight cars, piggy-back cars, and rollingstockA. The sales, use, and lease tax imposed by thestate of Louisiana under the provisions of R.S.47:302(A) and (B), R.S. 47:321(A) and (B) and R.S.47:331 shall not apply to:

(1) Hourly, daily, or periodic mileage or othercharges referred to as “per diem or car hire” onfreight cars and other rolling stock when suchcharges are paid by reason of the presence offreight cars and other rolling stock owned byanother on the tracks of the taxpayer;

(2) Piggy-back trailers or containers when broughtinto or operated as piggy-back trailers or contain-ers in this state; and

(3) Rolling stock, such as engines, switch engines,freight cars, and machinery owned, operated, orleased by a railroad or any other person, firm, orcorporation.

B. The exemptions from the state sales, use, andlease tax provided in this Section shall be appli-cable to any sales, use, and lease tax levied by anylocal government subdivision or school board.

R.S. 47:305.45(B)

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R.S. 47:305.46. Exclusions andexemptions; purchases with UnitedStates Department of Agriculture FoodStamp Coupons and purchases madeunder the Women, Infants, andChildren’s ProgramA. The sales and use taxes imposed by the state ofLouisiana or any political subdivision shall notapply to the purchase of the following items:

(1) Eligible food items, as defined by the UnitedStates Department of Agriculture regulations forthe Food Stamp Program, when such food itemsare purchased with United States Food StampCoupons.

(2) Eligible food items authorized for purchaseunder the Women, Infants, and Children’s (WIC)Program as administered by the Louisiana De-partment of Health and Human Resources, whensuch items are purchased with WIC ProgramVouchers.

B. The exemptions granted pursuant to this Sec-tion shall remain in effect as to each program onlyuntil applicable federal law, rules, or regulationspermit the levy and collection of sales and usetaxes on those exempted items without jeopardiz-ing the contribution of funds by the federal gov-ernment to such program.

LAC 61:I.4417. Exclusions andExemptions; Purchases made withUnited States Department of AgricultureFood Stamp Coupons and purchasesmade under the Women, Infants, andChildren’s ProgramA. This Section specifically exempts from the salesand use tax imposed by this Chapter, and anysuch tax imposed by any parish, board, or munici-pality, purchases of the following items:

1. eligible food items, as defined by the UnitedStates Department of Agriculture (USDA) regula-tions for the Food Stamp Program, when such fooditems are purchased with United States Depart-ment of Agriculture Food Stamp Coupons.

2. eligible food items authorized for purchase un-der the Women, Infants, and Children’s (WIC)Program as administered by the Louisiana Depart-

ment of Health and Human Resources, when suchitems are purchased with WIC Program Vouchers.

B. Definitions

Eligible Food Items for Purchases Made with FoodStamps - as defined in the regulations of the FoodStamp Program of the United States Department ofAgriculture.

Eligible food items - for Purchases Made with WICVouchers, the specific items authorized to be pur-chased with the WIC voucher used as the mediumof exchange.

United States Department of Agriculture FoodStamp Coupons (Food Stamps) - coupons issuedby the USDA Food Stamp Program.

WIC Program Vouchers (WIC Vouchers) - pay-ment vouchers issued by the Women, Infants, andChildren’s (WIC) Program.

C. Limitations

1. The exemption for food items purchased withfood stamps is limited to those items defined aseligible foods in the regulations of the USDA FoodStamp Program. As the definition of eligible foodschanges, the food items eligible for this exemptionwill automatically qualify or become disqualified.

2. The exemption for eligible food items purchasedwith WIC vouchers is limited to those items specifi-cally stated on the voucher which is used as themedium of exchange.

3. The exemptions for purchases utilizing foodstamps and WIC vouchers are further limited to theamount of food stamps and WIC vouchers used inthe transaction. Eligible food items purchased withmediums of exchange other than food stamps orWIC vouchers, such as cash, will be subject toapplicable state and local sales and use taxes.

D. Purpose and Method

1. Federal regulations require that the exemptionfor food stamp purchases be administered so as tominimize the sales tax burden an any order ofeligible foods. A special problem arises when apatron presents a combination of food stamps andcash in payment of eligible food consisting of foodfor preparation and consumption in the home (ex-empt from state sales taxes) and eligible food itemssuch as ice, bottled water, loose candy, and seedsand plants for the production of food which except

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for this exemption would be taxable. Grocers arecurrently required to sort each order by separatingthe eligible food items from the entire order, eitherphysically or through the use of electronic equip-ment. Since ice, bottled water, etc. are otherwisetaxable items, the federal regulations would re-quire a second sort to ensure that the food stampsare applied to those items first.

2. In order to comply with federal regulations thatmandate food stamps be allocated first to taxableeligible food items, and to eliminate the need fordouble-sorting by dealers, purchases of eligiblefood items paid for with a combination of foodstamps and cash will be given the following treat-ment for state sales tax purposes. Once the foodstamps have been applied to the purchase, theremaining portion of eligible items which is to bepaid for with cash will be treated as food for homeconsumption, notwithstanding any restrictions byR. S. 47:305(D). Thus, of the remaining portion ofthe eligible food items to be paid for with cash,items such as ice, bottled water, and loose candywill be taxed at the same rate as milk or bread. Thismethod does not in any way affect ice, bottledwater, loose candy, and other such items whichare purchased by a patron who does not presentfood stamps in payment.

E. Purchases of items not considered eligible fooditems by the USDA regulations, such as detergent,will not be affected by this regulation and willremain subject to applicable state and local salesand use taxes.

R.S. 47:305.47. Exclusions andexemptions; pharmaceutical samplesdistributed without chargeThe sales and use tax imposed by the state ofLouisiana or any of its political subdivisions shallnot apply to pharmaceutical samples approved bythe United States Food and Drug Administrationwhich are manufactured in the state or importedinto the state for distribution without charge tophysicians, dentists, clinics, or hospitals.Added by Acts 1989, No. 383, eff. June 30, 1989.

R.S. 47:305.48. Exemption; automobilesowned by military personnelMotor vehicles subject to the vehicle registrationtax previously purchased in another state byactive duty military personnel stationed in Loui-siana, shall, at the time of transfer of registration,

be exempt from the use tax imposed by thisChapter if a sales tax was imposed and collectedupon the purchase of the motor vehicle by thestate in which the vehicle was purchased and thepurchaser was a resident or stationed in the statewhere the taxes were paid. The motor vehicle shallcontinue to be exempt from the use tax as long asthe registered owner remains on active duty inany branch of the armed forces of the UnitedStates and is stationed in Louisiana.Added by Acts 1989, No. 435, eff. Sept. 3, 1989.

R.S. 47:305.49. Catalog distribution;exemptionNotwithstanding any provision of law to the con-trary, no sales or use tax shall be imposed by thestate or any political subdivision on the value ofcatalogs distributed, or intended for distributionin the state, without charge to the recipient.Added by Acts 1989, No. 796, eff. Sept. 3, 1989.

R.S. 47:305.50. Exemption; vehicles usedin interstate commerce; rail rolling stockmanufactured in this state for use ininterstate commerceA.(1)(a)(i) Effective July 1, 1998 through June 30,2002, the sales and use tax imposed by the stateof Louisiana or any of its local political subdivi-sions shall not apply to trucks with a gross weightof twenty-six thousand pounds or more and totrailers if such truck and trailer is used at leasteighty percent of the time in interstate commerceand whose activities are subject to the jurisdic-tion of the United States Department of Transpor-tation.

(ii) Effective July 1, 1998 through June 30, 2002,the sales and use tax imposed by the state ofLouisiana or any of its local political subdivisionsshall not apply to contract carrier buses if suchbuses are used at least eighty percent of the timein interstate commerce.

(b)(i) For purposes of this Section, the terms“trucks” and “trailers” shall have the meaningsascribed to the terms truck, trailer, road tractor,semitrailer, tandem truck, tractor, and truck-tractor in R.S. 47:451.

(ii) For purposes of this Section, the term “bus”shall mean a commercial vehicle with a minimumpassenger capacity of thirty-five persons and a

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minimum gross vehicle weight of twenty-six thou-sand pounds.

(iii) For purposes of this Section, the term “con-tract carrier” shall mean any person transport-ing, other than as a common carrier, persons forhire, charge, or compensation, over any highwayof this state, or however utilizing said publicfacilities for private gain to be realized chiefly outof such transportation service.

(2) The deputy secretary of public safety servicesof the Department of Public Safety and Correc-tions is hereby authorized to promulgate suchforms and rules as may be necessary to imple-ment the provisions of this Section.

B. The sales and use tax imposed by the state ofLouisiana or any of its local political subdivisionsor statewide taxing authorities shall not apply torail rolling stock manufactured in this state foruse in interstate commerce.Added by Acts 1996, No. 8, eff. July 1, 1996through June 30, 1998, and Acts 1996, No. 36,eff. July 1, 1996 through June 30, 1998.Amended by Acts 1998, No.41, eff. June 30, 1998.Amended by Acts 2000, No. 27, eff. June 30,2000.

R.S. 47:305.51. Exemption; utilities usedby steelworks and blast furnacesThe sales and use tax imposed by the state ofLouisiana or any of its political subdivisions shallnot apply to sales or purchases of utilities used bysteelworks and blast furnaces with more than onehundred and twenty-five full-time employees, in-cluding coke ovens and rolling mills, which areclassified by the Louisiana Department of Laboras SIC 3312 of the Standard Industrial Classifica-tion Code. However, this exemption shall notapply to utilities used in and around the produc-tion of coke in oil refineries and the use of coke inoil refineries and other chemical processes.

NOTE: Section 3 of this Act provides in part

“Notwithstanding the provisions of HB 126 of

the 1998 Regular Session of the Legislature

which suspends certain exemptions to the

sales and use tax, the provisions of Section 2

of this Act (R.S. 47:305.51) shall become effec-

tive at such time as two or more entities

classified as SIC 3312 by the Standard Indus-

trial Classification Code locate in Louisiana.”

Added by Acts 1998, No. 28, eff. upon certainclassification. Amended by Acts 2001, 1st Ex.Sess.,No. 5., eff. March 27, 2001.

R.S. 47:306. Returns and payment of tax;penalty for absorptionA. General provisions. (1)(a) Except as hereafterprovided, the taxes levied hereunder shall be dueand shall be payable monthly. For the purpose ofascertaining the amount of tax payable, all deal-ers shall transmit, on or before the twentieth dayof the month following the month in which this taxbecomes effective, to the secretary of revenue,upon forms prescribed, prepared, and furnishedby him, returns showing the gross sales, pur-chases, gross proceeds from lease or rental, grosspayments for lease or rental, gross proceeds de-rived from sales of services, or gross payments forservices, as the case may be, arising from alltaxable transactions during the preceding calen-dar month. Thereafter, like returns shall be pre-pared and transmitted to the secretary by alldealers on or before the twentieth day of eachmonth for the preceding calendar month. Thesereturns shall show any further information thesecretary may require to enable him to correctlycompute and collect the tax levied. Every dealer,at the time of making the return required hereun-der, shall compute and remit to the secretary therequired tax due for the preceding calendar month,and failure to so remit such tax shall cause saidtax to become delinquent.

(b) However, whenever the taxes due hereunderfrom a dealer average less than one hundreddollars per month, the taxes hereunder shall bedue and payable quarterly by the dealer, and thereturn required from the dealer for the quartershall be filed on or before the twentieth day of thefirst month of the next succeeding quarter. Thesecretary shall provide by regulation for the pe-riod and method of determining, under this pro-viso, the average taxes due from a dealer. Anydealer who is required to file his sales tax returnon a quarterly basis, as provided above, may filehis returns and pay the tax on a monthly basisafter first having received written approval fromthe secretary to do so. Application to file monthlymust be furnished to the secretary in writing andwill set forth complete justification for the shorterreporting period.

(c) In addition to the provisions of this Sectionrequiring monthly or quarterly filing of returns,dealers liable for the sales and use taxes of

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political subdivisions may file letter returns andremit such political subdivision taxes pursuant toR.S. 33:2720.1.

(2)(a) Gross proceeds from rentals or leases shallbe reported and the tax shall be paid with respectthereto, in accordance with rules and regulationsfor reporting as established by the collector fol-lowing the month in which the payment for thelease or rental is actually collected by lessor.

(b) Notwithstanding any other provisions of law tothe contrary, lessors of property to be used off-shore as provided for in R.S. 47:301(4)(d)(ii) shallnot be required to collect or otherwise pay rentaltaxes on the gross proceeds from such leases andrentals.Added by Acts 1994, No. 8, eff. June 1, 1994.

(3)(a) For the purpose of compensating the dealerin accounting for and remitting the tax levied bythis Chapter, each dealer shall be allowed one andone-tenth percent of the amount of tax due andaccounted for and remitted to the secretary in theform of a deduction in submitting his report andpaying the amount due by him, provided theamount due was not delinquent at the time ofpayment, and provided the amount of any creditclaimed for taxes already paid to a wholesalershall not be deducted in computing the commis-sion allowed the dealer hereunder.Amended by Acts 1998, 1st Ex. Sess., No. 50, eff.July 1, 1998. Amended by Acts 2001, No. 7 eff.July 1, 2001

(b) Municipalities are hereby authorized to paycompensation to their sales tax dealers in anyamounts designated by the governing body of themunicipality.

(4) The collector, for good cause, may extend, fornot to exceed thirty days, the time for making anyreturns required under the provisions of thisChapter.

(5) For the purpose of collecting and remitting tothe state the tax imposed by this Chapter, thedealer is hereby declared to be the agent of thestate.

B. Collection by wholesalers. (1)(a) Notwithstand-ing the provisions of Subsection A or any otherprovision of this Chapter, every manufacturer,wholesaler, jobber, or supplier who sells to any-one for sale at retail any article of tangible per-sonal property, the retail sale of which is taxableunder this Chapter, shall collect as advance sales

tax a per centum of the sales price of such articleequal to the rate of the sales tax levied on sucharticle by this Chapter.

(b) “Wholesale dealer” is one where fifty percent ormore of his sales do not constitute retail sales asdefined in this Chapter. Sales made in interstatecommerce or sales where delivery is made outsidethe territorial jurisdiction of the state of Louisianaare not to be considered retail sales for the pur-pose of determining whether a person qualifies asa wholesale dealer.

(c) The collection of the tax on motor vehicles shallbe in accordance with the provisions of R.S.47:303(B).

(d)(i) Notwithstanding any other provision of lawto the contrary, the businesses categorized aslumber dealers, as farm implement dealers, andas mobile, motorized self-propelled earth movingand construction equipment dealers, which wereissued in the calendar year 1965 an exemptionidentification number by the Department of Rev-enue or its predecessor exempting such businessfrom the payment of advance sales taxes shallcontinue to be exempt from the payment of suchadvance sales taxes.

(ii) Notwithstanding any other law to the contrary,it shall be presumed that sales of menhaden baitin one-hundred pound lots to wholesalers or toretailers are sales for resale to commercial fisher-men exempt pursuant to R.S. 47:305.20. There-fore, wholesalers or other dealers making suchsales for resale shall be exempt from the collectionor payment of advance sales tax on such sales.

(iii) Notwithstanding any other provision of law tothe contrary, dealers of all-terrain vehicles, asdefined in R.S. 32:771(1), or of marine productswho are licensed by the Louisiana Used MotorVehicle and Parts Commission shall be exemptfrom the collection or payment of advance salestax.Added by Acts 2001, No. 215, eff. July 1, 2001§306. Returns and payment of tax; penalty forabsorption

(e) The secretary of the Department of Revenueshall promulgate such regulations as are neces-sary to carry into force and effect the purpose andintent of this Subsection.Amended by Acts 1991, No. 173, eff. July 2, 1991.

(2) The amount paid by dealers to manufacturers,wholesalers, jobbers or suppliers shall be ad-

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vance payment of the Louisiana sales tax whichthe dealer is required to collect upon the sale atretail, and the advance payment is required onlyas a means of facilitating collection of the salestax.

Manufacturers, wholesalers, jobbers and suppli-ers who collect advance sales tax from theirpurchasers pursuant to the preceding provisionshall remit the tax to the collector of revenue inthe manner provided hereinabove for dealers andin accordance with the rules and regulationsprescribed by the collector.

(3) In making their returns to the collector, deal-ers who have paid advance sales tax shall deductfrom the total tax collected by them upon theretail sale of the commodity the amount of taxpaid by them to manufacturers, wholesalers,jobbers and suppliers during the period reported,provided tax paid invoices evidencing the pay-ment are retained by the dealer claiming therefund or credit. If the amount so paid during anyreporting period amounts to more than the taxcollected by him for the period reported, theexcess so paid shall be allowed as refund or creditagainst the tax collected by the dealer during thesucceeding period or periods.

(4) Manufacturers, wholesalers, jobbers, and sup-pliers collecting advance sales taxes as herein-above provided shall be allowed a one andone-tenth percent deduction from the amount socollected and remitted to the collector as compen-sation for such collection. The compensation shallnot be allowed if the report and payment of themanufacturer, wholesaler, jobber, or supplier isnot timely filed.Amended by Acts 1998, 1st Ex. Sess., No. 50, eff.July 1, 1998. Amended by Acts 2001, No. 7 eff.July 1, 2001

(5) Parishes, municipalities, school boards andother local governing bodies, except as hereinaf-ter set forth, which levy a sales tax are herebyprohibited from requiring manufacturers, whole-salers, jobbers or suppliers to collect such salestaxes in advance from dealers to whom they sell.

(6) Absorption of said tax as defined in this sectionby any retailer, wholesaler, manufacturer or othersupplier shall constitute a misdemeanor andupon conviction shall be punished by a fine of notmore than two thousand dollars or by imprison-ment in the parish jail for not more than twoyears.

(7) The governing authority of each parish havinga population in excess of two hundred thousandand municipalities, school boards and other localgoverning authorities within such parishes arehereby authorized to require manufacturers,wholesalers, jobbers and suppliers to collect taxeslevied by them in advance from dealers to whomthey sell, if said dealers and the wholesalers,manufacturers, jobbers and suppliers are domi-ciled in said parish. Such advance collectionsshall be subject to the same laws, rules andregulations as are applicable to advance collec-tions of state sales taxes; provided, however, thatthe taxes so collected shall be remitted to theparish, municipal, school board or other localgoverning authority imposing the tax.

(8) Any dealer, fifty percent or more of whose salesare made to industrial users and/or to contrac-tors, shall be exempt from the payment of ad-vance sales taxes and shall be issued an exemptionidentification number by the Department of Rev-enue. For purposes of this Paragraph an “indus-trial user” shall be a business engaged in themanufacture of tangible personal property forsale, whose sales are primarily to other dealers forresale, and a “contractor” shall be a business thatby itself, or through others, constructs, alters,repairs, improves, or demolishes fixed structures.Such dealer shall collect the taxes due on thesales made by him and shall remit the taxes to thestate as otherwise required by this Chapter.

(9) The provisions of this Subsection shall have noapplication to the sale of telecommunication ser-vices, as defined in R.S. 47:301(14)(i).Added by Acts 1990, No. 188, eff. Aug. 1, 1990.

(10) Notwithstanding any other provision of law tothe contrary, the sale of tangible personal prop-erty by a manufacturer to an out-of-state whole-sale dealer in building materials who does nothave an exemption identification number anddelivered by drop shipment to Louisiana shall beexempt from advance sales tax if such out-of-state wholesale dealer subsequently transfers theproperty to a wholesale dealer in building materi-als with an exemption identification number. Themanufacturer shall note the transitory nature ofthe sale and such wholesaler’s exemption identi-fication number on the invoice.Added by Acts 1998, No.24, eff. June 24, 1998.

(11)(a) The secretary of the Department of Rev-enue is authorized to issue an exemption from thepayment of advance sales taxes and an exemptionidentification number to any dealer in the sale of

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tangible personal property who has been regis-tered with and filing sales tax returns with theDepartment of Revenue for a minimum of oneyear, whose sales of tangible personal property fora consecutive twelve-month period, exclusive ofthe tax due on purchases by the dealer, was threemillion dollars or more, and who timely filed hisreturns for the period and timely remitted the taxshown due on the returns. The secretary shalldetermine the base period for a dealer’s eligibility.Any exemption identification number shall beeffective for a period not to exceed five years asdetermined by the secretary, provided that thesecretary can reissue exemption identificationnumbers to dealers who continue to meet thequalifications under this Paragraph and can re-voke the exemption identification numbers ofdealers who no longer meet the qualifications.The secretary is authorized to refuse the issuanceof an exemption number to or to revoke theexemption number of any dealer when, in theopinion of the secretary, the dealer’s audit, filing,or payment histories indicate that a greater levelof tax compliance could be achieved by the dealer’spayment of the advance sales tax on purchases oftangible personal property for resale.Amended by Acts 2001, No. 68, eff. January 1,2001

(b) Eligibility for the exemption identification num-bers provided for in Subparagraph (a) shall bebased on the sales of tangible personal propertyattributable to each sales location of the dealerapplying to the secretary for an exemption iden-tification number. However, the secretary, byrule, is authorized to provide standards, notinconsistent with these provisions, for the issu-ance of exemption numbers to multi-locationconsolidated sales tax filers, and to new businesslocations of dealers who have received exemptionidentification numbers under Subparagraph (a).Added by Acts 1998, No. 62, eff. January 1, 1999.

C. Advance collections. Notwithstanding any otherprovision of law to the contrary, and in accor-dance with the authority and procedures pro-vided for under the provisions of Subsection Bhereof, the parish, municipal, school board orother local governing bodies of the parish in whichthe state capitol is located and of Caddo Parishare hereby authorized to require manufacturers,wholesalers, jobbers and suppliers to collect salestaxes levied by them in advance from dealers towhom they sell; provided, however, that suchadvance collections shall be subject to the samelaws, rules and regulations as are applicable to

advance collections of state sales taxes, and pro-vided further that dealers and the wholesalers,manufacturers, jobbers and suppliers are domi-ciled in the parish in which said state capitol islocated and in the case of Caddo Parish that saiddealers and the wholesalers, manufacturers, job-bers and suppliers are domiciled in the parish ofCaddo.

D. Registration by nonresident prime contractor.(1) Prior to commencing work on any constructioncontract which in the aggregate exceeds threethousand dollars, any nonresident prime con-tractor, as defined in R.S. 47:9(A)(2), shall:

(a) Register the contract with the Department ofRevenue in accordance with the provisions of R.S.47:9(A)(1) and obtain a certificate in a form to bedetermined by the secretary, which certificateshall identify the construction project registeredand recite the total amount of the contract.

(b) File with the department a surety bond or ablanket surety bond for all contracts, sufficient tocover all taxes due on the contract or contracts, inaccordance with the provisions of R.S. 47:9(B)(1).

(c) Register the contract with the central collec-tion agency for local and use taxes of the parish inwhich the contract is to be performed. The centralcollection agency shall issue a certificate in a formdetermined by the secretary, following the re-quirements in Subparagraph (a) of this Para-graph, certifying that all requirements for suretybonds established by local ordinances applicableto the location of the project have been met.

(2)(a) No state entity, including but not limited tothe office of the state fire marshal, or local govern-ing authority charged with the responsibility ofissuing any permit, license, or certificate neces-sary for the lawful commencement of any con-struction contract subject to the provisions of thisSubsection, shall issue such permit, license, orcertificate until sufficient proof of possession ofthe certificates obtained as provided in this Sub-section for that project is shown by the applicant.

(b) Any person failing to execute any bond hereinprovided before beginning the performance of anycontract shall be denied the right to perform suchcontract until he complies with such require-ments. The secretary of the Department of Rev-enue shall have the right to enjoin the performanceof the contract until a satisfactory bond is ex-ecuted and filed, and the secretary may alsoimpose a penalty for commencing of two hundred

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dollars or two percent of the construction con-tract, whichever is greater.

(3) Within thirty days of the completion andacceptance of the contract project, the primecontractor shall submit to the department, on aform provided or approved by the department, acomplete and accurate accounting of all statesales and use taxes which became due as a resultof the contract. In the event that there are addi-tional taxes due, they shall be submitted with theaccounting.

(4) The secretary of the Department of Revenueshall promulgate such rules and regulations andmay have printed such forms as are necessary toeffectuate the provisions of this Subsection.

(5) Nothing herein shall be construed so as toaffect the licensing requirements of R.S. 47:341 etseq.Amended by Acts 1993, No. 893, eff. July 1, 1993.

E. Payment of tax by a vehicle dealer. Notwith-standing any other provision of law to the con-trary, including the provisions of Subsection A ofthis Section, every vehicle dealer who sells avehicle at retail shall remit all taxes collectedpursuant to R.S. 47:303(B) no later than fortydays from the date of sale.Added by Acts 1997, No. 787, eff. Aug. 15, 1997.

LAC 61:I.4351. Returns and Payment ofTax, Penalty for Absorption of TaxA. General. All persons and dealers who are sub-ject to the tax under this Chapter are expected andrequired to file a tax return monthly, unless other-wise provided, and to remit the amount of tax dueto the secretary. Forms will be provided by thesecretary, and although the forms are usuallymailed to each dealer, failure to receive same willnot relieve the dealer of the necessity of filing andremitting the tax due currently. For the purpose ofcollecting and remitting to the state the tax im-posed by this Chapter, the dealer is hereby de-clared to be the agent of the state.

1. After a dealer is properly registered for salesand use tax purposes, an identifying sales taxnumber is assigned to that dealer. The assignmentof a regular sales tax number requires a dealer tofile a monthly return and failure to do so will causethe secretary to send an estimated proposed as-sessment. For months when the dealer has notaxable sales or amounts to report, the return

should be marked “no sales or taxable amounts,”signed by the dealer and filed with the secretary.Monthly returns are required to be filed with thesecretary on or before the 20th day of the monthfollowing the month in which the tax becomeseffective.

2. The secretary, for good cause, may extend, for aperiod not to exceed 30 days, the time for makingany returns required under the provisions of thisChapter. Failure of the dealer to abide by theagreement and file returns and remittances asrequired will result in an immediate cancellation ofthe extension agreement by the secretary.

3. The tax computed to be due by the dealer ispayable at the time the return is due, and failure todo so will cause the secretary to issue a 10-daydemand assessment. Failure to file the returns onor before the due date, will subject the dealer todelinquency charges, loss of vendor’s compensa-tion and other charges as provided by law. SeeR.S. 47:1519 for information on electronic fundstransfers (EFT).

4. Gross proceeds from rentals or leases shall bereported on the appropriate line of the return, andthe tax shall be paid with respect thereto, unlessan exemption is specifically authorized and ex-plained on the return. Rental and lease proceedsshall be reported on the 20th day of the monthfollowing the monthly or quarterly reporting periodin which the proceeds were actually collected bythe dealer, regardless of the period in which thelease or rental occurred.

5. The dealer is compensated for accounting forand remitting the tax levied by this Chapter at therate established by R.S. 47:306. The amount ofcompensation is computed by multiplying the rateby the amount of tax due and deducting thatamount from the total tax accounted for and pay-able to the secretary, before taking credit for taxesalready paid to a wholesaler.

6. As stated under the regulation pertaining to R.S.47:304, the dealer or seller is permitted and re-quired to state and collect the tax separately fromthe price paid by the purchaser, and the absorptionof said tax as defined in this section by anyretailer, wholesaler, manufacturer, or other sup-plier shall be punished by a fine of not more than$2,000 or by imprisonment in the parish jail for notmore than two years.

B. Exceptions. Not all dealers are required to filereturns on a monthly basis.

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1. Upon registration, all dealers are required to filemonthly returns. After the dealer has operated fora few months, and it is determined that the amountof tax liability averages less than $100 per month,the dealer will be notified and permitted to filequarterly returns. Application to file quarterly isnot necessary as notification is automatic once adetermination is made by the secretary that sucha filing procedure is in order. Quarterly returnsshould be filed on or before the 20th day of the firstmonth of the next succeeding quarter. Irregularsales tax returns and use tax returns should befiled on or before the 20th day of the month follow-ing the month in which the tax becomes effective.The returns should be prepared in a manner thatwill enable the secretary to ascertain the correct-ness of the tax computed to be due. Accordingly,each line of the tax return should be completed,and all amounts not taxable should be identified.

2. A dealer may file returns using alternate filingperiods. The method for filing shall be approved bythe secretary before the method is used to file areturn. If an alternate period filing method is ap-proved for use, the number of short periods duringa year must be greater than or equal to the numberof long periods during that same year. At thebeginning of each year the dealer must, afterobtaining approval for the alternate period filingmethod, file with the secretary a calendar for theyear showing the alternative filing periods for thatyear. Amendments to approved calendars must besubmitted for approval prior to the affected peri-ods. The taxpayer’s account shall be reviewed todetermine if the taxpayer has correctly filed re-turns, according to the calendar submitted at thebeginning of the year. If the taxpayer does notfollow the approved alternate filing method, thereturns for the year under review shall be con-verted to a calendar month basis and the taxpayer’srequest to use an alternate period filing method forthe subsequent year will be denied. Alternateperiod returns shall be filed on or before the 20thday following the close of the alternate filing pe-riod. Failure to file on or before the due date, willsubject the dealer to delinquency charges, loss ofvendor’s compensation, and other charges as pre-scribed by law.

C. Advance Sales Tax. The Louisiana sales tax lawwas amended in 1965, to require all manufactur-ers, wholesalers, jobbers, suppliers, and brokersof tangible personal property to collect an advancepayment of sales taxes on sales of all tangiblepersonal property, and such payment is requiredonly as a means of facilitating collection of thesales tax. Previous to this amendment, such sales

of tangible personal property were considered ex-empt for taxation since under the statute, whole-sale sales were not taxable. Accordingly, thesenew dealers were required to register with thesecretary in order to collect and remit an advancesales tax from the sale of all tangible personalproperty made to retail dealers who resell theproperty to final users and consumers. The ad-vance payment of the Louisiana sales tax is re-quired upon all sales of tangible personal propertyto other dealers unless, specifically exempted bystatute, or Form LGST-9 is obtained and kept onfile by the dealer making the sale. Exemptioncertificate LGST-9 will only be recognized if thedealer making the purchase of tangible personalproperty states that the purchases are for resale orfurther processing by wholesale dealers and manu-facturers. Those businesses purchasing propertyfor resale that qualify as “wholesale dealers” canbe exempted from the payment of the advance tax.

1. A Wholesale Dealer is defined as one where 50percent or more of his sales do not constitute retailsales as defined in the sales tax law. Sales madein interstate commerce (sales where property isdelivered by the seller outside the state) do notconstitute retail sales. R.S. 47:306 also providesexemptions for dealers in motor vehicles subject tolicense and title; lumber dealers; farm implementdealers; and mobile, motorized, self-propelled, earthmoving and construction equipment dealers. Salesmade to industrial users and/or to contractors arealso added towards the 50 percent criteria forqualification as a wholesale dealer.

2. Manufacturers, wholesalers, jobbers, suppliers,and brokers of tangible personal property arerequired under this Section to report all sales madewithin the period of a calendar month or approvedalternative filing period, and to remit the advanceretail dealers’ sales tax on their returns filed withthe department. The department is not concernedwith credit terms extended by manufacturers,wholesalers, jobbers, suppliers and brokers totheir customers. The question of when the whole-saler should collect the advance sales tax is depen-dent upon the policy of the seller.

3. All dealers who have paid advance sales tax toa manufacturer, wholesaler, jobber, or suppliershall deduct from the total tax collected by themupon the retail sale of the commodity, the amountof advance sales tax paid, provided tax paid in-voices evidencing the payments are retained bythe dealer claiming the refund or credit. If theadvance tax so paid during any reporting periodamounts to more than the tax collected by him for

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that period, the excess so paid shall be reported onthe return as a credit. Each such credit return shallbe accounted for independently by the Departmentof Revenue and Taxation, and a refund shall beissued to the dealer for each such credit return. Inno case may the credit be applied against the taxesdue for any other period, unless the credit isapplied under the direction of the secretary.

4. Manufacturers, wholesalers, jobbers, and sup-pliers collecting advance sales taxes are entitled tovendor’s compensation at the rate established byR.S. 47:306. The amount of compensation is com-puted as a percentage of the taxes so collected andremitted to the secretary, provided the return andpayment are timely filed.

5. Parishes, municipalities, school boards, andother local governing bodies, except hereinafter setforth, which levy a sales tax are hereby prohibitedfrom requiring manufacturers, wholesalers, job-bers, or suppliers to collect such taxes in advancefrom dealers to whom they sell.

6. The parish, municipal, school board or otherlocal governing bodies of the parish in which thestate capitol is located, Caddo Parish or any otherparish having a population in excess of 200,000are authorized to require manufacturers, whole-salers, jobbers, and suppliers to collect the taxeslevied by them in advance from dealers to whomthey sell provided the dealers and wholesalers,manufacturers, jobbers, and suppliers are domi-ciled in said parish. Such advance collections shallbe subject to the same laws, rules, and regulationsas are applicable to advance collections of statesales taxes; provided, however, that the taxes socollected shall be remitted to the parish, municipal,school board, or other local governing authorityimposing the tax.

LAC 61:I.4373. Nonresident ContractorsA. General. This Section provides the proceduresthat must be followed by nonresident contractorswho do business in this state as required by R.S.47:9 and R.S. 47:306(D). This Section also pro-vides the procedures that must be followed bystate and local agencies charged with the respon-sibility for granting permits and/or licenses for thelawful commencement of construction contracts inthis state as required by R.S. 33:2847. This Sectionalso provides the necessary definitions.

B. Definitions. For the purposes of this Section, thefollowing terms are defined:

Contractor - any dealer, as defined in this Chap-ter, who enters into contracts for the construction,renovation, or repair of immovable properties, suchas buildings, houses, roads, levees, pipelines, andindustrial facilities. It also includes subcontractorswho enter into similar agreements with a generalor prime contractor. The term contractor shall notinclude businesses that fabricate or construct prop-erty that is sold to another person as tangiblepersonal property, even though the property maybe subsequently incorporated into the constructionof an immovable. The term contractor shall includeany project owner who obtains any permit, license,or certificate necessary for the lawful commence-ment of any construction contract.

Nonresident Contractor - any contractor who doesnot meet any of the following criteria for residentstatus.

a. For an individual proprietorship, resident statusrequires having maintained permanent domicile inLouisiana for at least one year prior to bidding onwork.

b. For a corporation, resident status requires hav-ing operated a permanent business facility in Loui-siana for at least one year prior to bidding on work;or having at least 50 percent of its outstanding andissued common stock owned by individuals whohave maintained their domicile in Louisiana for atleast one year prior to bidding on work.

c. For partnerships and other legal entities, resi-dent status requires at least 50 percent ownershipby individuals or corporations who themselvesqualify as residents.

Resident Contractor - all contractors that are notnonresident contractors.

C. Contracts to be Registered with Secretary andCentral Collector

1. Prior to obtaining a building permit necessary forthe lawful commencement of any contract in Loui-siana, a nonresident contractor shall register eachcontract that exceeds $3,000 in total price or com-pensation with the secretary of the Department ofRevenue and Taxation and with the central salesand use tax collector for the parish in which theproject is located. The secretary shall provide thenecessary forms for the contractors to registereach contract. The forms will require the nonresi-dent contractor to give a complete description ofeach project, pertinent tax registration data, and alist of anticipated subcontractors. A fee of $10 per

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contract shall be paid to the secretary at the timeof registration. As required by the secretary, thecontractor shall furnish a surety bond for eachcontract or a blanket surety bond for all contracts.The bond shall be for an amount equal to 5 percentof the total contract price, or $1,000, whichever isgreater, for each contract. Upon satisfactory comple-tion of the registration and surety bond require-ments, the secretary shall issue the contractor acertificate of compliance with which to obtain anybuilding permits necessary for lawful commence-ment.

2. Following the satisfactory registration of con-tracts with the secretary, the contractor shall sub-mit copies of all registration, tax, and surety bondinformation to the appropriate parish central salesand use tax collector, except in Cameron Parish. InCameron Parish, the nonresident contractor is tosubmit the necessary information to the parishpolice jury. The collector or police jury may requirethe contractor to supply additional informationnecessary to ensure that the contractor and hissubcontractors are registered for and remit anyapplicable sales/use and occupational licensetaxes. Upon satisfactory completion of this require-ment, the collector or police jury will issue thecontractor a certification of compliance with whichto obtain any building permits necessary for lawfulcommencement.

3. Nonresident subcontractors will be held to thesame requirements of registration, payment of a$10 fee, and furnishing a surety bond, even thoughthey may not need to secure any permits.

D. Payments to be withheld from subcontractors.R.S. 47:9(B)(3) makes each contractor subject tothis provision responsible for all of its subcontrac-tors’ compliance with all state and local tax laws.A contractor shall inform each of its subcontractorsof their tax registration, contract registration, andsurety bond requirements, and shall withhold asufficient amount from payments made under theircontracts to ensure compliance. Upon discoveringany unpaid tax liability by a subcontractor, thesecretary will first attempt to collect the unpaidtaxes from the subcontractor or his surety. How-ever, if the secretary’s efforts are unsuccessful, thecontractor and his surety have ultimate responsi-bility for the payment of any subcontractor’s un-paid tax liabilities.

E. Contract Completion; Cancellation of SuretyBond. Within 30 days after completion of eachcontract, the contractor shall submit to the secre-tary a completion report summarizing the costs

incurred; the taxes paid to other states, to the stateof Louisiana, and to local taxing authorities; andother such information that may be required by thesecretary. After reviewing the report and verifyingthe tax payment amounts reported, the secretaryshall refer the summary to the central sales anduse tax collector for the parish in which the projectis located to determine whether there are anyunpaid local tax liabilities. If no unpaid state orlocal tax liabilities are discovered, the contractor’ssurety bond may be canceled for that contract. Thesurety bond will be held by the Department ofRevenue and Taxation and used, if necessary, inthe future if sales taxes are later found to be due onthat contract.

F. Compliance by Permitting Agencies; WithheldFunds Authorized

1. R.S. 47:9(B)(4) and R.S. 47:306(D)(2)(a) placespecific responsibilities with state or local agen-cies that issue permits, licenses, or certificatesnecessary for the lawful commencement of anyconstruction contract. State agencies, includingbut not limited to the office of the state fire marshal,and agencies of local governing authorities, includ-ing but not limited to parish and municipal buildinginspectors, shall not issue any building permit,license, or certificate until the applicant has sub-mitted documentation verifying that the contracthas been properly registered and the requiredsurety bond has been posted. Proper documenta-tion to be obtained from the secretary of the Depart-ment of Revenue and Taxation is as follows:

a. Resident contractors must obtain a certificate ofresident status.

b. Nonresident contractors must obtain a certifi-cate of compliance.

c. Individuals seeking a permit for work to beperformed on their residence must submit an affi-davit as documentation of residency.

2. The secretary is authorized by R.S. 33:2847(B)to evaluate and monitor parish and municipalpermitting agencies to ensure compliance withthese provisions.

a. When the secretary discovers that a parish ormunicipal permitting office has issued a permit toa nonresident contractor without verifying compli-ance with the provisions of this regulation, he shallnotify that permitting office, the parish collector,and the governing authority of the parish of theviolation by registered mail.

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b. The affected parties will be allowed 60 days torespond to the department’s notification. If theaffected parties contact the department after re-ceiving notification, the department will work withthem to reconcile the situation. If the situation isresolved, no further action will be taken.

c. If an agreement can not be reached or if thedepartment does not receive a response after 60days, the secretary will notify the state treasurerof the violation by registered mail. A copy of thisnotification will be sent to the permitting office, theparish collector, and the governing authority of theparish.

d. The state treasurer, within 90 days of notifica-tion, shall request a hearing on the suspectedviolation with the House Committee on Ways andMeans. The date, time, and location of this meetingwill be furnished by the state treasurer to thepermitting office, the parish collector, the govern-ing authority of the parish, and the secretary of theDepartment of Revenue and Taxation by regis-tered mail. Following the hearing, the state trea-surer shall take action as directed by the committee,including the withholding of state funds as autho-rized by R.S. 33:2847(C).

R.S. 47:306.1. Collection from interstateand foreign transportation dealersPersons, as defined in this Chapter, engaged inthe business of transporting passengers or prop-erty for hire in interstate or foreign commerce,whether by railroad, railway, automobile, motortruck, boat, ship, aircraft or other means, may, attheir option under rules and regulations pre-scribed by the collector, register as dealers andpay the taxes imposed by R.S. 47:302 A on thebasis of the formula hereinafter provided.

Such persons, when properly registered as deal-ers, may make purchases in this state or importproperty into this state without payment of thesales or use taxes imposed by R.S. 47:302 A at thetime of purchase or importation, provided suchpurchases or importations are made in strictcompliance with the rules and regulations of thecollector. Thereafter, on or before the 20th day ofthe month following the purchase or importation,the dealer shall transmit to the collector, on formssecured by him, returns showing gross purchasesand importations of tangible personal property,the cost price of which has not previously beenincluded in a return to the state. The amount ofsuch purchases and importations shall be multi-

plied by a fraction, the numerator of which isLouisiana mileage operated by the taxpayer andthe denominator of which is the total mileage, toobtain the taxable amount of tax basis. Thisamount shall be multiplied by the tax rate todisclose the tax due.

Each such dealer, at the time of making thereturn required hereunder, shall remit to thecollector the tax due for the preceding calendarmonth as shown on the return.

LAC 61:I.4353. Collection from Interstateand Foreign Transportation DealersA. R.S. 47:306.1 specifically provides for an optionby persons engaged in interstate or foreign com-merce transporting passengers or property for hireto register as dealers and pay the taxes imposedby R.S. 47:302(A) on the basis of the formulahereinafter provided; however, since the intent isapparent, the option equally applies to the taximposed by R.S. 47:321(A) and R.S. 47:331(A). Allpersons engaged in the business of transportingpassengers or property for hire in interstate orforeign commerce can avail themselves of thisoption; however, only such purchases and impor-tations, as hereinafter defined, used in the further-ance of the interstate or foreign commerce activitywill come under this option. Specifically, a personengaged in activities and operations of anothernature cannot apply the option to such purchasesand importations, as hereinafter defined, and mustpay the tax in the manner prescribed in R.S.47:302(A), R.S. 47:321(A), and R.S. 47:331(A).

B. Carriers which do not elect to report and payLouisiana sales and use taxes under the optionalformula provided by R.S. 47:306.1 shall report andpay the Louisiana sales tax on all purchases madewithin the state of Louisiana, and shall report andpay the use tax on all tangible personal propertyimported into the state of Louisiana and becominga part of the mass of the taxpayer’s propertylocated within the state.

C. Carriers which elect to report and pay Louisianasales and use taxes under the optional formulaprovided by R.S. 47:306.1 shall be governed by theprovisions set forth below.

D. For purposes of this regulation, gross purchasesand importations means all tangible personalproperty purchased by the taxpayer, within orwithout the state of Louisiana, and all propertyimported into Louisiana subsequent to the effective

R.S. 47:306.1

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date of this regulation, on which no Louisianasales or use tax has been paid.

E. Carriers desiring to avail themselves of theprovisions of this optional formula, which have notpreviously registered with the secretary for suchpurposes, shall apply to the secretary for an inter-state or foreign carrier dealer’s number, and sub-mit satisfactory proof to the secretary that they areengaged in the transporting of passengers or prop-erty for hire in interstate or foreign commerce. Proofthat they are subject to appropriate federal regula-tory agencies, such as the ICC, CAA, etc., shallnormally be sufficient. The secretary shall thenissue a registration number which may be used forthe purpose of making purchases or importationsinto this state without payment of sales or usetaxes at the time of purchase or importation.

F. Carriers currently registered with the secretaryas an interstate or foreign carrier may continue tooperate under the interstate or foreign carrierdealer’s number which has been issued to them;however, carriers electing to report under thisoptional formula must expressly signify their elec-tion, in writing, at the time of filing their first salestax return following the effective date of this regu-lation. All carriers who do not expressly so elect toreport under the optional formula shall be pre-sumed conclusively to have elected not to reportunder the formula.

G. An election either to report under the optionalformula or not to report under the optional formulamay not be withdrawn without written consent ofthe secretary for good cause shown.

H. Sellers of tangible personal property may recog-nize the claim of a buyer that the property con-cerned is to be used in the transporting ofpassengers or property for hire in interstate orforeign commerce only if the buyer is properlyregistered hereunder, and only if the buyer sub-mits a blanket certificate, Form LGST 12, signed byand bearing the name, address and registrationnumber of the buyer, to the effect that he is usingthe property purchased in the business of trans-porting persons or property or services purchasedin the business of transporting persons or propertyfor hire in foreign or interstate commerce and thathe will pay the taxes owed directly to the secretaryunder the provisions of R.S. 47:306.1. Blank cer-tificates may be obtained from the secretary. Sell-ers will be responsible for the collection of tax on allsales made to persons who have not secured theproper registration number. A dealer who fails tosecure or keep for the secretary examination cer-

tificates signed by the buyer will be liable for andmust pay the tax himself.

I. On or before the twentieth day of each month, thecarrier shall transmit to the secretary on formsfurnished by the secretary, returns showing thegross purchases and importations. The taxablebase shall be determined by applying the mileageratio (miles traveled in Louisiana divided by totalmiles traveled) to the gross amount referred toabove. The prevailing tax rate shall be applied tothe taxable base to determine the amount of taxdue.

J. R.S. 47:306.1 applies only to the tax imposed onsales and use of tangible personal property, as setforth in R.S. 47:302(A), R.S. 47:321(A), and R.S.47:331(A). The tax imposed on the lease or rentalof tangible personal property [R.S. 47:302(B), R.S.47:321(B), and R.S. 47:331(B)] and the tax onsales of services [R.S. 47:302(C),R.S.47:321(C),and R.S. 47:331(C)] may not be paid and reportedunder the optional method provided by R.S.47:306.1.

R.S. 47:307. Collector’s authority todetermine the tax in certain casesA. In the event any dealer fails to make a reportand pay the tax as provided in this Chapter or incase the dealer makes a grossly incorrect report ora report that is false or fraudulent, the collectorshall make an estimate of the retail sales of suchdealer for the taxable period, of the gross proceedsfrom rentals or leases of tangible personal prop-erty by the dealer, or the cost price of all articlesof tangible personal property imported by thedealer for use or consumption or distribution orstorage to be used or consumed in this state,andof the gross amounts paid or charged for servicestaxable; and it shall be the duty of the collector toassess and collect the tax together with anyinterest and penalty that may have accruedthereon, which assessment shall be consideredprima facie correct and the burden to show thecontrary shall rest upon the dealer.

B. In the event the dealer has imported tangiblepersonal property and he fails to produce aninvoice showing the cost price of the articleswhich are subject to tax, or the invoice does notreflect the true or actual cost, then the collectorshall ascertain in any manner feasible the truecost price and shall assess and collect the tax,together with any interest and penalties that mayhave accrued, on the basis of the true cost as

R.S. 47:307(B)

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assessed by him. The assessment so made shallbe considered prima facie correct, and the burdenshall be on the dealer to show the contrary.

C. In the case of the lease or rental of tangiblepersonal property, if the consideration given orreported by the dealer does not, in the judgmentof the collector, represent the true or actualconsideration, then the collector is authorized toascertain in any manner feasible the true oractual consideration and assess and collect thetax thereon together with any interest and penal-ties that may have accrued. The assessment somade shall be considered prima facie correct andthe burden shall be on the dealer to show thecontrary.

D. In the event such estimate and assessmentrequires an examination of books, records, ordocuments, or an audit thereof, then the collectorshall add to the assessment the cost of suchexamination, together with any penalties accru-ing thereon. Such costs and penalties when col-lected shall be remitted to the State Treasurer inthe same manner as the taxes are remitted to himby the collector.

LAC 61:I.4355. Secretary’s Authority toDetermine the Tax in Certain CasesA. Revised Statute 47:307 imposes a direct burdenand responsibility upon the secretary to determinethat the taxable amount reported by any taxpayeris correct and further empowers the secretary toassess and collect any tax, penalties or interestwhich might be due based on correct figures. In thecase of a dealer who makes a report that is grosslyincorrect, false or fraudulent, the secretary is di-rected by the statute to make an estimate of theretail sales of the dealer, his gross proceeds fromrentals or leases of tangible personal property, thecost of any articles of tangible personal propertyimported by the dealer for use or consumption ordistribution or storage to be used or consumed inthe state, and the gross amount paid for taxableservices. Upon having made the estimate, thesecretary is further directed to assess all taxes,penalties and interest and the amount assessed isconsidered to be prima facie correct with the bur-den on the dealer to prove to the contrary.

B. Whenever the secretary has determined that theamount reported by a dealer is incorrect and isrequired to make an estimate or an assessment inaccordance with the provisions of this Section, if anexamination of any books, records, or documents

or an audit thereof is necessary in order to makesuch assessment, then the secretary shall add tothe assessment of the tax, the cost of the examina-tion together with penalties accruing on the cost.The cost and penalties assessed will be collectedin the same manner in which the tax is collected.

R.S. 47:308. Termination or transfer ofbusinessA. If any dealer liable for any tax, interest, orpenalty levied hereunder sells his business orstock of goods or quits the business, he shallmake a final return and payment within fifteendays after the date of selling or quitting thebusiness. His successor, successors, or assigns,if any, shall withhold sufficient of the purchasemoney to cover the amount of such taxes, inter-est, and penalties due and unpaid until such timeas the former owner shall produce a receipt fromthe secretary showing that they have been paid,or a certificate stating that no taxes, interest, orpenalties are due. If the purchaser of a businessor stock of goods fails to withhold purchasemoney as above provided, he shall be personallyliable for the payment of the taxes, interest, andpenalties accrued and unpaid on account of theoperation of the business by any former owner,owners, or assigns.

B. In the case of a dealer who has quit a business,and who subsequently opens another similarbusiness under the same ownership, whetherthat ownership is individual, partnership, corpo-ration, or other, that dealer shall be liable for anytax, interest, or penalty owed by the originalbusiness.Enacted by Acts 1991, No. 691, eff. July 18, 1991.

LAC 61:I.4357. Termination or Transfer ofa BusinessA. A special rule is provided for the filing of returnsand payment of any taxes due in the case of anydealer who sells his business or his stock of goodsor who quits a business. Under continuing operat-ing conditions, a dealer is required to file his returnand pay the amount due by the twentieth dayfollowing the close of the taxable period covered bythe return. However, if a dealer discontinues busi-ness, he is required to file a final return and tomake payment within 15 days after the date ofselling or quitting business instead of the 20 daysallowed a continuing business.

R.S. 47:307(C)

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B. In order to insure that all taxes are paid by adiscontinuing business, R.S. 47:308 requires thatthe successor, successors, or assigns, if there areany, must withhold a sufficient portion of thepurchase price to cover any taxes, penalties andinterest due and unpaid at the time of the pur-chase. These funds must be withheld by the pur-chaser until the former owner can produce a receiptfrom the secretary showing that the taxes havebeen paid or a certificate from the secretary statingthat there are no taxes, interest, or penalties due.If the purchaser of the business or of the stocks ofgoods fails to withhold sufficient funds with whichto pay any taxes, penalties, or interest found to bedue, he shall be held personally liable for thepayment of the amount due.

R.S. 47:309. Dealers required to keeprecordsA. (1) Every dealer required to make a report andpay any tax under this Chapter shall keep andpreserve suitable records of the sales, purchases,or leases taxable under this Chapter, and suchother books of accounts as may be necessary todetermine the amount of tax due hereunder, andother information as may be required by thesecretary; and each dealer shall secure, maintainand keep until the taxes to which they relate haveprescribed, a complete record of tangible personalproperty received, used, sold at retail, distrib-uted, or stored, leased or rented, within this stateby the said dealer, together with invoices, bills oflading, and other pertinent records and papers asmay be required by the secretary for the reason-able administration of this Chapter, and a com-plete record of all sales or purchases of servicestaxable under this Chapter until the taxes towhich they relate have prescribed.

(2) These records shall be open for inspection tothe secretary at all reasonable hours.

(3) The secretary is authorized to require alldealers who take deductions on their sales taxreturns for total sales under the minimum tax-able bracket prescribed by him pursuant to R.S.47:304 to support their deductions by keepingwritten or printed detailed records of said sales inaddition to their usual books and accounts.

B. Any dealer subject to the provisions of thisChapter who violates the provisions of this Sec-tion shall be fined not more than five hundreddollars or imprisoned for not more than sixtydays, or both, for any such offense.

LAC 61:I.4359. Dealers Required to KeepRecordsA. Every person required to collect or remit the taximposed under this Chapter shall keep a perma-nent record of all transactions in sufficient detail tobe of value in determining the correct tax liabilityunder this Chapter. The records to be kept shallinclude all sales invoices, purchase orders, mer-chandise records, inventory records, credit memo-randa, debit memoranda, bills of lading, shippingrecords, and all other records pertaining to anyand all purchases, sales, or use of tangible per-sonal property whether or not the person believesthem to be taxable under this Chapter. Full detailmust be kept of all property leased or rented fromor to others and all services performed for or byothers. They must also keep all summaries, reca-pitulations, totals, journal entries, ledger accounts,accounts receivable records, accounts payablerecords, statements, tax returns, and other docu-ments listing, summarizing, or pertaining to suchsales, purchases, inventories, shipments, or othertransactions dealing with tangible personal prop-erty.

B. Where such records are voluminous, they mustbe kept in chronological order or in some othersystematic order compatible with the taxpayer’sregular bookkeeping system which will enable thesecretary to verify the accuracy of informationcontained in tax returns.

C.1. Records kept on punched cards, magnetictape, magnetic (floppy) diskettes or other mechani-cal or electronic record keeping equipment arepermissible provided the taxpayer makes avail-able all necessary codes, program specifications,and equipment to enable the secretary to auditsuch records, or provides the secretary with writ-ten transcripts of these parts of the records whichthe secretary wishes to examine.

2. If it is mutually agreed, the dealer may furnishthe secretary with data in a machine readableform, such as on floppy disks or magnetic tape, inaddition to the source documents necessary toverify the data in order to facilitate the examina-tion.

D. The books and records must contain completeinformation pertaining to both taxable and nontax-able items which are the subject of taxes imposedherein, and must be retained until the taxes towhich they relate have prescribed according toR.S. 47:1579. If a notice of assessment has been

LAC 61:I.4359.D

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issued by the secretary, the records for the periodcovered by the notice must be retained until suchtime as the issues involved in the assessment havebeen completely disposed of. Records required bythis Section must be available at all times duringthe regular business hours of the day for inspec-tion by the secretary or his duly authorized agents.

E. Any person who fails to keep records requiredherein or who refuses to make the records avail-able for inspection by the secretary or who keepsrecords which are insufficient for use by the secre-tary in determining the correct tax liability makeshimself liable for a fine of up to $500 for eachreporting period or imprisonment for up to 60 days,or both.

R.S. 47:309.1 Dealers required to furnishlist of purchasersA. Any dealer selling property or services, theaggregate value per sale of which exceeds twohundred fifty dollars, to residents of this state,where the property is delivered into this state orthe beneficial use of such service occurs in thisstate, shall, upon request of the secretary, pro-vide a list of such sales to the secretary of theDepartment of Revenue. The list shall include thenames and addresses of the purchasers and theamount of the sale. The secretary shall pay to anydealer furnishing a list under this Section, anamount equal to the reasonable cost of reproduc-ing the list.

B. Any dealer selling property or services to resi-dents of this state, where the property is deliveredinto this state or the beneficial use of the serviceoccurs in this state, is considered to have con-sented to the jurisdiction of the courts of this statefor the exclusive purpose of enforcing this Sec-tion. Notwithstanding any other provision of lawto the contrary, service of process upon dealerssubject to this Section may be made by serviceoutside this state in the same manner providedfor service within this state with the same forceand effect as though service had been madewithin this state.

R.S. 47:310. Wholesalers and jobbersrequired to keep recordsA. All wholesale dealers and jobbers in this stateshall keep a record of all sales of tangible personalproperty made in this state whether such sales befor cash or on terms of credit. These records shall

contain and include the name and address of thepurchaser, the date of the purchase, the articlepurchased and the price at which the article issold to the purchaser. These records shall be keptuntil the taxes to which they relate have pre-scribed and shall be open to the inspection of thesecretary at all reasonable hours.

B. Whoever violates the provisions of this Sectionshall be fined not less than fifty dollars nor morethan two hundred dollars, or imprisoned for notless than ten days nor more than thirty days, orboth, for the first offense. For the second or eachsubsequent offense, the penalty shall be double.

LAC 61:I.4361. Wholesalers and JobbersRequired to Keep RecordsA. Wholesalers and jobbers are clearly within thedefinition of dealers set forth in R.S. 47:301(4) andas dealers, are required to maintain complete andaccurate records pertaining to all sales of tangiblepersonal property made within this state whethersuch sales are for cash or on terms of credit orwhether they are taxable or exempt.

B. For a complete description of records whichmust be kept by all dealers, see R.S. 47:309 andthe regulations issued under §4359.

C. In the case of wholesalers and jobbers, thisSection provides that whoever violates this re-quirement shall be fined not less that (sic) $50 normore that (sic) $200 or imprisoned for not less than10 days nor more than 30 days, or both, for the firstoffense. For the second or each subsequent of-fense, the penalties double.

R.S. 47:311. Collector’s authority toexamine records of transportationcompaniesThe collector is specifically authorized to examineat all reasonable hours, the books, records andother documents of all transportation companies,agencies, or firms operating in this state, whetherthey conduct their business by truck, rail, water,airplane, or otherwise, in order to determine whatdealers are importing or are otherwise shippingarticles of tangible personal property subject tothe tax levied by this Chapter. When any suchtransportation company refuses to permit theexamination of its records, as provided in thisSection, the collector may proceed by rule againstit, in term time or in vacation, in any court of

LAC 61:I.4359.E

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competent jurisdiction in the parish where suchrefusals occurred, to show cause why the collec-tor should not be permitted to examine its books,records or other documents. This rule may betried in open court or in chambers, and in case therule is made absolute, the same shall be consid-ered a judgment of the court, and every violationthereof shall be considered as a contempt of courtand punished according to law.

LAC 61:I.4363. Secretary’s Authority toExamine Records of TransportationCompaniesA. The Secretary as defined in R.S. 47:301(2), isfurther expanded to include additional duly autho-rized representatives for purposes of this Section.Such representatives will have identification cardsstating that they are authorized representatives ofthe secretary with the power and authority asprovided in Chapter 18, Title 47, Louisiana Re-vised Statutes.

B. Under this Section, specific authorization isgranted to the secretary to examine all pertinentbooks, records, and other documents of all trans-portation companies, agencies, or firms operatingin this state in order to gather information neces-sary to determine what dealers are importing orare otherwise shipping articles of tangible per-sonal property subject to the tax levied by thisChapter. The secretary or his assigned agents areexpected to notify the transportation companies ata reasonable time in advance and to conduct theinvestigation during reasonable hours and with aminimum of difficulty to the transportation compa-nies. The transportation companies, in turn, areexpected to cooperate with the agents, furnishingall records required as well as reasonable workingsurroundings and conditions.

C. Failure to permit such an investigation will forcethe secretary to proceed by rule against the com-pany, in term time or in vacation, in any court ofcompetent jurisdiction in the parish where suchrefusals occurred to show cause why the secretaryshould not be permitted to examine books, recordsor other documents.

R.S. 47:312. Failure to pay tax onimported tangible personal property;grounds for attachmentThe failure of any dealer to pay the tax and anyinterest, penalties, or costs due under the provi-

sions of this Chapter on any tangible personalproperty imported from outside the state for use,consumption, distribution or storage to be usedin this state, or imported for the purpose ofleasing or renting the same, shall make the tax,interest, penalties, or costs ipso facto delinquent.This failure shall moreover be a sufficient groundfor the attachment of the personal property im-ported wherever it may be found, whether thedelinquent taxpayer is a resident or nonresident,and whether the property is in the possession ofthe delinquent taxpayer or in the possession ofother persons.

It is the intention of this law to prevent thedisposition of the said tangible personal propertyin order to insure payment of the tax imposed bythis Chapter, together with interest, penaltiesand costs, and authority to attach is herebyspecifically granted to the collector. The proce-dure prescribed by law in attachment proceed-ings shall be followed except that no bond shall berequired of the State.

LAC 61:I.4365. Failure to Pay Tax onImported Tangible Personal Property;Grounds for AttachmentA. The failure to pay any tax, interest, penalties orcost when due as provided in the Louisiana salestax law and the regulations pertaining theretoautomatically causes the tax, interest, penalties orcosts to become immediately delinquent. Any tan-gible personal property, of which the sale at retailor the use, consumption, distribution and/or stor-age which gave rise to the incident of tax is subjectto attachment irrespective of whether the delin-quent taxpayer is in possession of the property ornot, and irrespective of whether he is a resident ofthe state of Louisiana. The failure to pay the taxwhen due constitutes grounds for the attachment.The procedure prescribed by law for attachmentproceedings is to be followed except no bond isrequired of the state.

R.S. 47:313. System of import permits;seizure and forfeiture of vehicles used inimporting without permitA. In order to prevent the illegal importation oftangible personal property which is subject to tax,and to strengthen and make more effective themanner and method of enforcing payment of thetax imposed by this Chapter, the collector ishereby authorized to put into operation a system

R.S. 47:313

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of permits whereby any person or dealer mayimport tangible personal property by truck, auto-mobile, or other means of transportation otherthan a common carrier, without having the truck,automobile or other means of transportation seizedand subjected to legal proceeding for its forfei-ture. Such system of permits shall require theperson or dealer who desires to import tangiblepersonal property subject to tax imposed by thisChapter, to apply to the collector for a permit,stating the kind of vehicle to be used, the name ofthe driver, the license number of the vehicle, thekind or character of tangible personal property tobe imported, the date, the name and address ofthe consignee, and such other information as thecollector may deem proper or necessary. Thesepermits shall be free of cost to the applicant andmay be obtained at any of the branch offices of thedepartment of revenue, including the branchoffices located at Shreveport and Lake Charles.

B. The importation into this state of tangiblepersonal property which is subject to tax, bytruck, automobile, or other means of transporta-tion other that a common carrier, without havingfirst obtained a permit described above, (if the taximposed by this Chapter has not been paid), isprohibited and shall be construed as an attemptto evade payment of the tax; and the truck,automobile, or means of transportation otherthan a common carrier, as well as the taxableproperty may be seized by the collector in order tosecure the same as evidence in a trial, and it shallbe subject to forfeiture and sale in the mannerprovided for in this Chapter.

C. The collector is authorized in a summaryproceeding, or by an action against the owner oroperator of any truck, automobile or means oftransportation other than a common carrier, usedin the illegal importation and transportation ofany article or articles of tangible personal prop-erty on which a tax is levied by this Chapter, andon which the tax has not been paid, to demand theforfeiture and sale of the truck, automobile orother means of transportation, together with thesaid taxable property, used in the illegal importa-tion and in violation of this Chapter.

D. In all cases where it is made to appear byaffidavit that the residence of the owner of theautomobile, truck or other means of transporta-tion is out of the state, or is unknown to thecollector, the court having jurisdiction of theproceeding shall appoint an attorney at law torepresent the absent owner against whom theproceeding shall be tried contradictorily within

ten days after the filing of the same. The affidavitmay be made by the collector or one of hisassistants, or by the attorney representing thecollector, if it is not convenient to obtain theaffidavit of the collector or one of his assistants.The attorney appointed to represent the absentowner may waive service and citation of thepetition or rule, but he shall not waive any legaldefense. If, upon the trial of the proceeding, it isestablished that the automobile, truck, or othermeans of transportation, has been used to trans-port any article of tangible personal propertyupon which a tax is levied by this Chapter, andupon which the tax has not been paid, withoutfirst having obtained a permit from the collectoras provided herein, then the court shall renderjudgment accordingly, declaring the forfeiture ofthe taxable property and of the automobile, truck,or other means of transportation and ordering thesale thereof after ten days’ notice by advertise-ment in the official parish paper where the seizureis made, by the civil sheriff of the parish ofOrleans, or by the sheriff of the parish in whichthe seizure is made; this sale shall be made atpublic auction at the court house, to the highestbidder, for cash, and without appraisement. It isthe intent and purpose of these proceedings toafford the owner of the automobile, truck or othermeans of transportation a fair opportunity forhearing in a court of competent jurisdiction. It isfurther the intent and purpose of these proceed-ings that the forfeiture and sale of the automobile,truck or other means of transportation, and of thetaxable property being transported therein, shallbe and operate as a penalty for the violation of thisChapter by the illegal transportation and impor-tation of tangible personal property subject to thetax; and the payment of the tax due on the articleupon which a tax is levied by this Chapter, at themoment of seizure or thereafter, shall not operateto prevent, abate, discontinue or defeat the forfei-ture and sale of the property. All funds collectedfrom the seized and forfeited property shall bepaid into the state treasury and credited in thesame manner as provided for the tax hereinlevied. The court shall fix the fee of the attorneyrepresenting the owner when appointed by thecourt, at a nominal sum not to exceed ten percentum (10%) to be taxed as costs and to be paidout of the proceeds of the sale of the property.

R.S. 47:314. Failure to pay tax; rule tocease businessFailure to pay any tax due as provided in thisChapter shall ipso facto, without demand or

R.S. 47:313(B)

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putting in default, cause the tax, interest, penal-ties, and costs to become immediately delinquent,and the collector has the authority, on motion ina court of competent jurisdiction, to take a rule onthe dealer, to show cause in not less than two ormore than ten days, exclusive of holidays, why thedealer should not be ordered to cease from furtherpursuit of business as a dealer. This rule may betried out of term and in chambers, and shallalways be tried by preference. If the rule is madeabsolute, the order rendered thereon shall beconsidered a judgment in favor of the state,prohibiting the dealer from the further pursuit ofsaid business until such time as he has paid thedelinquent tax, interest, penalties and costs, andevery violation of the injunction shall be consid-ered as a contempt of court, and punished ac-cording to law. For the purpose of the enforcementof this Chapter and the collection of the tax leviedhereunder, it is presumed that all tangible per-sonal property imported or held in this state byany dealer is to be sold at retail, used or con-sumed, or stored for use or consumption in thisstate, or leased or rented within this state, and issubject to the tax herein levied; this presumptionshall be prima facie only, and subject to prooffurnished to the collector.

LAC 61:I.4367. Failure to Pay Tax; Rule toCease BusinessA. The failure to pay any tax when due as providedin the Louisiana sales tax law and regulationspertaining thereto shall cause said tax, interest,penalty and cost to become immediately delin-quent. The secretary has the authority to usesummary process in any court of competent juris-diction to require the dealer owing the tax to showcause why he should not be ordered to cease fromfurther pursuit of his business. The rule to showcause shall be set for hearing at least two but notmore than 10 days, exclusive of holidays, after it isfiled. It may be tried out of turn, in chambers withpreference and priority over all other proceedings.There is a prima facie presumption that all tangiblepersonal property imported or held in this state byany dealer is subject to a sales or use tax. If the ruleis absolute, said dealer shall be prohibited fromfurther pursuit of his business until such time asthe delinquent tax, interest, penalties and costshave been paid. Any violation shall be consideredcontempt of court and punished according to law.

R.S. 47:315. Sales returned to dealer;credit or refund of taxA. Whenever tangible personal property sold isreturned to the dealer by the purchaser or con-sumer or in the event the amount paid or chargedfor services is refunded or credited to the pur-chaser or consumer after the tax imposed by thisChapter has been collected, or charged to theaccount of the purchaser, consumer, or user, thedealer shall be entitled to reimbursement of theamount of tax so collected or charged by him, inthe manner prescribed by the collector; and incase the tax has not been remitted by the dealerto the collector, the dealer may deduct the samein submitting his return. Upon receipt of a signedstatement of the dealer as to the gross amount ofsuch refunds during the period covered by thesigned statement, which period shall not be longerthan ninety days, the collector shall issue to thedealer an official credit memorandum equal to thenet amount remitted by the dealer for the taxcollected. This memorandum shall be accepted bythe collector at full face value from the dealer towhom it is issued, in the remittance for subse-quent taxes accrued under the provisions of thisChapter. In cases where a dealer has retired frombusiness and has filed a final return, a refund oftax may be made if it can be established to thesatisfaction of the collector that the tax paid wasnot due.

B. (1) Whenever the unpaid balance of an accountdue to the dealer for the purchase of tangiblepersonal property or the sale of services subject tosales taxation has been found to be bad in accor-dance with Section 166 of the United StatesInternal Revenue Code and has actually beencharged off for federal income tax purposes, thedealer shall be entitled to reimbursement of theamount of tax previously paid by the dealer onsuch amounts.

(2) The prescription on such refund or credit shallbegin to run from the date of signature on thefederal income tax return charging off such debt.

(3) Whenever the balance of an account that hadbeen determined to be worthless and sales taxrefunded is recovered at a later date, the paymentshall be reported as a new sale in the monthrecovered for sales tax purposes.

(4) This refund applies both to sales and use taxesimposed by the state of Louisiana and to suchtaxes authorized and levied by any school board,

R.S. 47:315(B)

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municipality, or other local taxing authority. Alllocal taxing authorities shall grant such credit orrefund as provided by Paragraph (B)(1) of thisSection. The taxing authority shall provide for thegranting of such refund either by ordinance or bylocal rule or regulation. Such credit or refundshall be granted whenever the Louisiana Depart-ment of Revenue has found the dealer to beentitled to reimbursement in accordance with theprovisions of Paragraph (B)(1) of this Section.

C. The provisions of Subsection B of this Sectionshall apply to debts that are incurred on or afterJanuary 1, 1976.

LAC 61:I.4369. Sales Returned to Dealer;Credit or Refund of TaxA. R.S. 47:315(A) provides special rules for thehandling of taxes which have been charged to theaccount of a purchaser, consumer, or user in caseswhere the property sold has been returned to thedealer or where a refund is made of the charges forservices upon which a tax was based. In eithercase, if the tax has been collected or charged to theaccount of the purchaser or consumer or user andhas not yet been remitted to the secretary, and arefund or credit is made to the purchaser or con-sumer, the dealer may delete the sale and the taxdue in submitting his return for the current taxperiod.

1. If the merchandise is returned to the dealer or ifa refund is made to the customer for any chargesfor services after the tax collected or charged to thecustomer’s account has been remitted to the secre-tary, the dealer may file an amended sales taxreturn for the period in which the tax so refundedwas originally remitted. The blank return formmust be obtained from the Department of Revenueand Taxation to ensure that it bears the correcttaxpayer identification and account informationand the proper marking of an “amended” return.The dealer must complete the amended return byreporting sales and deductions after making theproper adjustments to reflect the rescinded sale orsales. The credit balance which will result from thecomputation of total tax, penalty, and interest willbe refunded to the dealer in the same manner as acredit return which is timely filed in accordancewith §4351.

B. R.S. 47:315(B) provides a dealer with a methodfor claiming refunds for the recovery of taxes whichhave been remitted to the secretary, but are laterwritten off as uncollectible accounts from credit

customers. Dealers submitting refund claims shouldbe aware of the following restrictions specificallyprovided in or authorized by R.S. 47:315(B):

1. The sales tax is refundable on debts incurredafter January 1, 1976, that ultimately becomeworthless. The tax will not be refunded on worth-less debts incurred prior to January 1, 1976.

2. Before the department can issue a sales taxrefund on a bad debt, the debt must actually havebeen deducted on a federal income tax return inaccord with Section 166 of the United States Inter-nal Revenue Code. Since the issuance of refunds istied to charge-offs on the annual federal return, thedepartment will process one refund per year foreach dealer.

3. If after a debt is charged off as worthless and asales tax refund issued, all or some portion of thedebt is collected, the gross amount collected shallbe reported as a new sale for the period when therecovery is made.

4. The act applies to state sales taxes only and notto any local taxes.

5. The sales tax is refundable only on those baddebts that are the result of credit or deferredpayment sales of tangible personal property andsales of services financed by the dealer making thesale. No refund is authorized on bad debts arisingfrom leases or rentals, even though tax may havebeen charged on such transactions, or on salesfinanced by lending institutions or independentcredit card plans, unless the lender has full re-course against the seller for any unpaid amounts.The sales tax is refundable on bad debts whicharise because of the issuance of worthless checksonly to the extent the check was in payment oftaxable tangible personal property.

6. No refund will be issued in the case where adealer has repossessed saleable merchandise andcancelled the customer’s credit obligation.

7. Dealers may recover sales tax remitted on baddebts solely through the issuance of refunds by theDepartment of Revenue and Taxation. Dealersmust continue to file sales tax returns reportingtheir total sales of merchandise during each tax-able period, regardless of whether customer obli-gations have been collected. Deductions for baddebt losses may not be taken on sales tax returns.

C. Refund claims submitted to the departmentmust be accompanied by schedules detailing the

R.S. 47:315(C)

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names of debtors whose obligations were chargedoff, the uncollectible amounts, the amount of debtwritten off which was incurred prior to January 1,1976, nontaxable portion of debt written off, andtax claimed.

1. Refunds will not be issued based solely uponincreases in bad debt reserve amounts. Dealerswho maintain such reserve accounts must basetheir claims on the individual bad debts chargedagainst the reserve.

2. Taxpayers who charge off more than 200 tax-able accounts annually, and for whom the furnish-ing of detailed information required above wouldbe unreasonably burdensome, may apply for per-mission to submit the required data in some otherform.

3. All refund claims filed with the Department ofRevenue and Taxation are subject to office or fieldexamination and verification, so dealers must main-tain auditable records to support their claims. Therecords must be able to substantiate that the salestax was charged and remitted to the departmenton the original sales and that the dealers madereasonable efforts to collect the debt amounts.Dealers must have good evidence that debtscharged off are worthless and will remain so in thefuture. The debt must actually be charged off asworthless on a federal income tax return before arefund of sales taxes will be processed by theDepartment of Revenue and Taxation. In the ab-sence of the required records, a dealer will not beentitled to refund.

R.S. 47:315.1. Sales tax refundA. In the event tangible personal property, a partof and used in or about a person’s home, apart-ment or homestead, in this state on which Loui-siana sales tax has been paid by the owner of theproperty is destroyed by a natural disaster occur-ring in an area in Louisiana subsequently deter-mined by the president of the United States towarrant assistance by the federal government,the owner thereof who was the purchaser whopaid the Louisiana sales tax shall be entitled toreimbursement of the amount of the tax paid onsuch tangible personal property destroyed forwhich no reimbursement was received by insur-ance or otherwise. Upon receipt of a notarizedstatement of the owner as to the amount of thetaxes paid under the provisions of this chapter ontangible personal property destroyed as afore-

said, the collector shall make refund to saidowner in the amount to which he is entitled.

B. No refund shall be made under the provisionsof this section unless a claim for refund coveringthe amount to which an owner is entitled is filedon or before the end of the third calendar yearfollowing the calendar year in which the propertywas destroyed.

C. The collector is authorized to prescribe theforms and regulations for use in carrying out theprovisions of this Section.

LAC 61:I.4371. Sales Tax RefundA. Under certain circumstances, a sales tax refundis authorized for the destruction of tangible per-sonal property destroyed in any natural disaster.The conditions and requirements are as follows:

1. The property destroyed must be classified astangible personal property at the time of destruc-tion rather than being classified as real or immov-able property. For purposes of determination of theclassification of such property, reference and guid-ance shall be to the rules of the Louisiana CivilCode. In Louisiana, property is classified as eithermovable or immovable rather than as personal orreal.Under Louisiana law a corporeal movable is equiva-lent to tangible personal property at common law,and an immovable is equivalent to real property.Generally speaking a house or a building and allcentral heating or cooling systems, lighting fix-tures, lavatories, etc. that are actually connectedwith or attached to the house or building by theowner are immovable by their nature. Such itemsas clothing, drugs, food, automobiles, boats, recre-ation equipment, appliances not permanently at-tached to a house or building where the removalthereof would not damage the movable or immov-able, etc. would be classified as tangible personalproperty or movable property.

2. Such property destroyed must be a part of andused in or about a person’s home, apartment orhomestead, on which Louisiana sales tax has beenpaid by the owner of the property destroyed in anarea subsequently determined by the president ofthe United States to warrant assistance by thefederal government. Therefore, it is necessary thatindividuals suffer the loss, since R.S. 47:315.1does not apply to partnerships or corporations.Further, it does not apply to business losses, evenby individuals, since the law limits the losses to

LAC 61:I.4371

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118 August 2001

property that is part of and used in or about aperson’s home, apartment or homestead. Also, thearea where the natural disaster occurred must bedesignated as an area warranting assistance bythe federal government in order to qualify underthis Section.

3. The claimant suffering the loss of the tangiblepersonal property must be the owner of suchproperty that was destroyed in Louisiana, as wellas being the one who purchased and paid theLouisiana sales tax on such property. Any refundclaim filed shall be made in accordance with therules and regulations prescribed by the secretary.Accordingly, any refund claim shall be filed on orbefore the end of the third calendar year followingthe year in which the property was destroyed, andthe refund claim shall be limited to the tax paid onsuch tangible personal property destroyed for whichno reimbursement was received by insurance orotherwise.

4. A refund claim packet can be obtained from thesecretary, and when the claimant properly ex-ecutes the required forms and prepares a swornstatement attesting to the facts, a refund will beprocessed.

R.S. 47:315.2. Sales tax refund; newhousing constructionA. Any person who restores, renovates, or reha-bilitates an existing structure or builds or causesthe building of a new house and associated im-provements in an approved housing developmentarea pursuant to the provisions of R.S. 40:582.1through 582.7 shall be entitled to a refund of theamount of tax paid under the provisions of thisChapter and under the provisions of Chapter 2-Aand Chapter 2-B of Sub-Title II of Title 47 of theLouisiana Revised Statutes of 1950 as a conse-quence of the purchase of materials used in theconstruction of such new house upon showingthat he has complied with the provisions of R.S.40:582.7.

B. The secretary of the Department of Revenue isauthorized to prescribe the forms and regulationsfor use in carrying out the provisions of thisSection.

R.S. 47:315.3 Sales tax refund; sales andrentals covered by MedicareA. Any person who has paid sales and use taxes,levied by the state and any other taxing authori-ties in the state, upon the sale, lease, or rental oftangible personal property when such sale, lease,or rental is paid by or under the provisions ofMedicare, shall be entitled to reimbursement ofthe amount of tax paid on such property. Uponreceipt of a notarized statement of such person asto the amount of taxes paid under the provisionsof this Chapter on such tangible personal prop-erty and upon proof of payment by or under theprovisions of Medicare, the secretary and theappropriate taxing authorities shall make a re-fund to such person in the amount to which he isentitled.Amended by Acts 2000, 2nd Ex.Sess., No. 22, eff.July 5, 2000.

B. No refund shall be made under the provisionsof this Section unless a claim for refund coveringthe amount to which a person is entitled is filed onor before the end of the third calendar year fromthe date of the sale, lease, or rental of the prop-erty.

C. The secretary is authorized to prescribe formsand regulations for use in carrying out the provi-sions of this Section.Added by Acts 1994, No. 25, eff. Aug. 15, 1994.

R.S. 47:315.4. Sales and use tax credit;waiver of homestead exemption

A taxpayer shall be entitled to a credit for theamount of ad valorem taxes paid on property towhich the taxpayer is entitled to a homesteadexemption but elects to waive that exemption asprovided in R.S. 47:1711. This credit shall beapplicable to local sales and use taxes collected bythe single tax collector for the parish in which thetaxpayer filed the waiver required by R.S.47:1711(B). The amount of the credit shall beequal to the lesser of the total amount of localsales and use taxes paid by the taxpayer or thetotal amount of ad valorem taxes that are paid asa result of the waiver of the taxpayer’s homesteadexemption. The single tax collector shall allocatethe credit to each taxing authority in the parish ina proportion equal to the percentage of the totalsales tax collections for each taxing authority forthe previous calendar year compared to the total

R.S. 47:315.2

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Louisiana Sales Tax Law and Regulations 119

sales tax collections for the parish as a whole forthe previous calendar year. However, no creditshall be allocated to any taxing authority whichdoes not levy ad valorem taxes subject to thehomestead exemption.Added by Acts 1999, No. 1266, eff. July 12, 1999.

R.S. 47:316. Collector to provide formsThe collector shall design, prepare, print andfurnish to all dealers, or make available to them,all necessary forms for filing returns, and instruc-tions to insure a full collection from dealers andan accounting for the taxes due; but failure of anydealer to secure these forms shall not relieve thedealer from the payment of the tax at the time inthe manner herein provided.

R.S. 47:317. Cost of collectionRepealed by Acts 1998, No. 4, eff. June 4, 1998.

R.S. 47:318. Disposition of collectionsA. All monies collected under this Chapter shallbe immediately paid into the state treasury, uponreceipt, and first credited to the Bond Securityand Redemption Fund as provided in Article VII,Section 9(B) of the Constitution of Louisiana; thenan amount equal to thirty-seven percent of thededuction allowed in R.S. 47:306(A)(3)(a) and(B)(4) shall be used as provided in this Section.

B.(1) There is hereby established in the statetreasury a special fund which shall be designatedthe “Marketing Fund”. Of the amount determinedpursuant to Subsection A of this Section, twomillion dollars annually shall be deposited in andcredited to the Marketing Fund. Monies in thefund shall be invested by the treasurer in thesame manner as the monies in the state generalfund and all interest earned on the investment ofsuch monies shall be deposited in the state gen-eral fund. All unencumbered and unexpendedmonies in the fund at the end of each fiscal yearshall remain in the fund.Amended by Acts 2001, No. 7 eff. July 1, 2001

(2) Monies in the fund shall be subject to annualappropriation to the Department of EconomicDevelopment for the following purposes:

(a) One million dollars annually to be used formarketing education.

(b) One million dollars annually for advertising,marketing, and promotional activities.

(c) Repealed by Acts 2001, No. 7 eff. July 1, 2001

C. Repealed by Acts 2001, No. 7 eff. July 1, 2001

D. After satisfying the requirements of SubsectionB of this Section, the remaining portion of theamount determined pursuant to Subsection A ofthis Section shall be deposited in the LouisianaEconomic Development Fund created by R.S.51:2315.Amended by Acts 2001, No. 7 eff. July 1, 2001

Note: Section 2. Notwithstanding any provi-

sion of law to the contrary, and specifically

notwithstanding the provisions of R.S.

47:318(A), for Fiscal Year 1997-1998 monies

required to be deposited in and credited to the

Louisiana Economic Development Fund pur-

suant to the provisions of R.S. 47:318(A) shall

be deposited in and credited to the Workforce

Development and Training Fund.

Section 3.

Section 1 of this Act shall become effective on

July 1,1998; if vetoed by the governor and

subsequently approved by the legislature, Sec-

tion 1 of this Act shall become effective on

July 1, 1998, or on the day following such

approval by the legislature, whichever is later.

Section 2 of this Act is deemed to be curative

and interpretive of legislative intent. Sections

2 and 3 of this Act shall become effective upon

signature by the governor or, if not signed by

the governor, upon expiration of the time for

bills to become law without signature by the

governor, as provided in Article III, Section 18

of the Constitution of Louisiana. If vetoed by

the governor and subsequently approved by

the legislature, Sections 2 and 3 of this Act

shall become effective on the day following

such approval.

Amended by Acts 1998, 1st Ex. Sess., No. 58,

eff. July 1, 1998.

Amended by Acts 1996, 1st Ex. Sess., No. 32, eff.

May 7, 1996.

R.S. 47:318(D)

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120 August 2001

R.S. 47:321. Imposition of taxA. In addition to the tax levied by R.S. 47:302(A)and 331(A) and collected under the provisions ofChapter 2 of Subtitle II of this Title, there is herebylevied an additional tax upon the sale at retail, theuse, the consumption, the distribution, and thestorage for use or consumption in this state ofeach item or article of tangible personal property,as defined in Chapter 2 of Subtitle II of this Title.The levy of said tax shall be as follows:

(1) At the rate of one percent of the sales price ofeach item or article of tangible personal propertywhen sold at retail in this state except for prepaidtelephone calling cards and prepaid authoriza-tion numbers, the tax to be computed on grosssales for the purpose of remitting the amount oftax to the state, and to include each and everyretail sale.

(2) At the rate of one percent of the cost price ofeach item or article of tangible personal propertyexcept for prepaid telephone calling cards andprepaid authorization numbers when the same isnot sold but is used, consumed, distributed, orstored for use or consumption in this state, pro-vided that there shall be no duplication of the tax.

Added by Acts 1996, No. 5, eff. October 1, 1996.Amended by Acts 1998, No. 58, eff. July 1, 1998.

B. In addition to the tax levied by R.S. 47:302(B)and 331(B) and collected under the provisions ofChapter 2 of Subtitle II of Title 47 of the LouisianaRevised Statutes of 1950, there is hereby levied atax upon the lease or rental within this state ofeach item or article of tangible personal property,as defined by said Chapter 2 of Subtitle II of Title47 of the Louisiana Revised Statutes of 1950; thelevy of said tax to be as follows:

(1) At the rate of one percent of the gross proceedsderived from the lease or rental of tangible per-sonal property, as defined in Chapter 2 of SubtitleII of Title 47 of the Louisiana Revised Statutes of1950, where the lease or rental of such propertyis in an established business, or part of an estab-lished business, or the same is incidental orgermane to the business.

(2) At the rate of one percent of the monthly leaseor rental price paid by a lessee or rentee, orcontracted or agreed to be paid by a lessee orrentee to the owner of the tangible personalproperty.

Added by Acts 1996, No. 5, eff. October 1, 1996.

C. In addition to the tax levied on sales of servicesby R.S. 47:302(C) and 331(C) and collected underthe provisions of Chapter 2 of Subtitle II of thisTitle, there is hereby levied a tax upon all sales ofservices, as defined by said Chapter 2 of SubtitleII of this Title, in this state, at the rate of onepercent of the amounts paid or charged for suchservices; however, the tax levied by this Sectionshall not apply to the furnishing of telecommuni-cations services for compensation as provided inR.S. 47:301(14)(i).Added by Acts 1996, No. 5, eff. October 1, 1996.Amended by Acts 1998, No. 18, eff. June 22,1998.

D. The tax levied herein shall be collected from thedealer and/or wholesaler as provided for and asdefined by Chapter 2 of Subtitle II of Title 47 of theLouisiana Revised Statutes of 1950; shall be paidat the time and in the manner provided by saidChapter; shall be in addition to all other taxes,whether levied in the form of sales, excise, license,or privilege taxes; and shall be in addition to taxeslevied under the provisions of Chapter 3 of Sub-title II of Title 47 of the Louisiana Revised Statutesof 1950.Added by Acts 1996, No. 5, eff. October 1, 1996.

E. Notwithstanding any other provision of law tothe contrary, including but not limited to anycontrary provisions of this Chapter, for the periodJuly 1, 1996 through June 30, 1997, the exemp-tions to the tax levied pursuant to the provisionsof this Section, except for those exemptions pro-vided by R.S. 39:467 and 468, R.S. 47:305(A)(1),(B), (D)(1)(f), (j), (k), (l), (m), (s), and (t), and (G),305.1, 305.2, 305.3, 305.8, 305.10, 305.14,305.15, 305.20, 305.25(A)(1) and (2), 305.37,305.38, 305.46, and 305.50, and R.S. 51:1787,shall be inapplicable, inoperable, and of no effect.Added by Acts 1996, No. 5, eff. October 1, 1996.

F. Notwithstanding any other provision of law tothe contrary, including but not limited to anycontrary provisions of this Chapter, for the periodof July 1, 2000 through June 30, 2002, theexemptions to the tax levied pursuant to theprovisions of this Section, except for those exemp-tions provided by R.S. 39:467 and 468, R.S.47:305(A)(1), (B), (D)(1)(f), (j), (k), (l), (m), (s), and(t), and (G), 305.1, 305.2, 305.3, 305.8, 305.10,305.14, 305.15, 305.20, 305.25(A)(1) and (2),305.37, 305.38, 305.46, and 305.50, and R.S.51:1787, shall be inapplicable, inoperable, and ofno effect.

R.S. 47:321

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Louisiana Sales Tax Law and Regulations 121

Added by Acts 2000, No. 33, eff. July 1, 2000.

G. Notwithstanding any other provision of law tothe contrary, the exemption provided in R.S.47:305.51 shall be applicable, operable, and ef-fective for the period April 1, 2001 through June30, 2002.Added by Acts 2001, 1st Ex.Sess., No. 5, eff.March 27, 2001.

LAC 61:I.4305. Imposition of TaxR.S. 47:321 adds an additional one percent tax toeach of the taxes imposed by R.S. 47:302 with theexception that specific exemptions are provided fordrugs, orthotic and prosthetic devices and patientaids prescribed by physicians or dentists for per-sonal consumption or use and for food purchasedunder certain circumstances for personal consump-tion. This additional one percent tax is in additionto all other taxes levied on sales, excise, license, orprivilege and in addition to the taxes levied underChapter 3 of Subtitle 2 of Title 47 and shall becollected from the dealer and/or wholesaler asdefined in Chapter 2 of Subtitle 2 of Title 47 asprovided therein.

R.S. 47:322. Collection of the taxThe provisions of Chapter 2 of Subtitle II of thisTitle shall be applicable to the additional onepercent tax herein levied and shall be collected,under such rules and regulations as the secretaryof the Department of Revenue shall promulgateand adopt, in the manner now or hereafter pre-scribed for collection of the sales tax levied andcollected pursuant to the provisions of said Chap-ter 2 and shall be subject to the same definitions,exemptions, tax credits, penalties, and limita-tions now or hereafter prescribed in said Chapter2; however, the tax levied by R.S. 47:321 shall notapply to the furnishing of telecommunicationsservices for compensation as provided in R.S.47:301(14)(i).

Note: Section 4. It is the intent of the legisla-

ture that the tax enacted by this Act is to be

effective only upon the expiration of the Loui-

siana Recovery District thereby not increas-

ing the rate of taxation upon the citizens of

this state.

Section 5. It is the intention of the legislature

that the tax exemptions made inapplicable,

inoperable, and of no effect for the period July

1, 1996 through June 30, 1998, by virtue of

R.S. 47:302(M) and R.S. 47:331(K) shall re-

sume, commence, and become effective on

July 1, 1998.

Section 6. The collection of such taxes upon

previously exempt transactions by the dealer

in accordance with the provisions of R.S.

47:303 shall not be impaired by any rule,

regulation, or order of any public body, agency,

or authority.

Section 7. The provisions of Sections 1 and 3

of this Act shall become effective on July 1,

1996. The provisions of Section 2 of this Act

which authorize the levy and collection of an

additional one percent sales and use tax shall

become effective on the day after the day the

Louisiana Recovery District ceases to exist as

provided in Article VI, Section 30.1(A) of the

constitution and R.S. 39:2009.

Added by Acts 1996, No. 5, eff. July 1, 1996.

NOTE: Section 2. It is the intention of the

legislature that the one percent tax on sales of

services imposed by Section 2 of Act No. 5 of

the 1996 Regular Session of the Legislature,

which enacted Chapter 2-A of Subtitle II of

Title 47 of the Louisiana Revised Statutes of

1950, comprised of R.S. 47:321 and 322, was

not intended to apply to the furnishing of

telecommunications services for compensa-

tion as provided in R.S. 47:301(14)(i). There-

fore, the provisions of this Act shall be remedial

and shall have retroactive effect to October 1,

1996, which is the date on which the one

percent tax levied pursuant to R.S. 47:321 and

322 became effective.

Amended by Acts 1998, No.18, eff. June 22,

1998.

LAC 61:I.4309. Collection of TaxR.S. 47:322 provides that all definitions, exemp-tions, exclusions, tax credits, penalties, or limita-tions presently contained in or hereinafter addedto Chapter 2 as well as all rules and regulationsissued by the secretary or which may be adoptedin the future, shall apply to the additional 1 percenttax levied by R.S. 47:321 in the same manner andto the same extent as provided elsewhere in Chap-ter 2 of Sub-title 2 of Title 47.

LAC 61:I.4309

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122 August 2001

R.S. 47:322.1 ... 322.44

R.S. 47:322.1 to 322.44 relate to the dedica-

tion of portions of the sales taxes collected on

hotel room occupancy in certain parishes to

local purposes within those parishes. Since

these sections do not affect the amount of tax

to be collected and remitted, the sections are

not printed in this volume.

R.S. 47:323. Disposition of collectionsRepealed by Acts 1986, No. 389, eff. July 2, 1986.

R.S. 47:324. Disposition of certaincollections in Jefferson ParishRepealed by Acts 1988, No. 2, eff. July 1, 1988.

R.S. 47:325. Disposition of certaincollections in Orleans ParishRepealed by Acts 1988, No. 2, §2, eff. July 1, 1988

R.S. 47:331. Imposition of taxA. In addition to the tax levied by R.S. 47:302(A)and collected under the provisions of Chapter 2 ofSubtitle II of Title 47 of the Louisiana RevisedStatutes of 1950, there is hereby levied an addi-tional tax upon the sale at retail, the use, theconsumption, the distribution, and the storagefor use or consumption in this state of each itemor article of tangible personal property, as definedin Chapter 2 of Subtitle II of Title 47 of theLouisiana Revised Statutes of 1950; the levy ofsaid tax to be as follows:

(1) At the rate of ninety-seven one hundredths ofone percentum of the sales price of each item orarticle of tangible personal property when sold atretail in this state, the tax to be computed on grosssales for the purpose of remitting the amount oftax to the state, and to include each and everyretail sale.

(2) At the rate of ninety-seven one hundredths ofone percentum of the cost price of each item orarticle of tangible personal property when thesame is not sold but is used, consumed, distrib-uted, or stored for use or consumption in this

state, provided that there shall be no duplicationof the tax.Added by Acts 1984, 1st Ex.Sess., No. 13, eff. July1, 1984. Amended by Acts 1990, No. 1038, eff.September 28, 1990.

B. In addition to the tax levied by R.S. 47:302(B)and collected under the provisions of Chapter 2 ofSubtitle II of Title 47 of the Louisiana RevisedStatutes of 1950, there is hereby levied a tax uponthe lease or rental within this state of each item orarticle of tangible personal property, as defined bysaid Chapter 2 of Subtitle II of Title 47 of theLouisiana Revised Statutes of 1950; the levy ofsaid tax to be as follows:

(1) At the rate of ninety-seven one hundredths ofone percentum of the gross proceeds derived fromthe lease or rental of tangible personal property,as defined in Chapter 2 of Subtitle II of Title 47 ofthe Louisiana Revised Statutes of 1950, where thelease or rental of such property is in an estab-lished business, or part of an established busi-ness, or the same is incidental or germane to thebusiness.

(2) At the rate of ninety-seven one hundredths ofone percentum of the monthly lease or rentalprice paid by a lessee or rentee, or contracted oragreed to be paid by a lessee or rentee to the ownerof the tangible personal property.Added by Acts 1984, 1st Ex.Sess., No. 13, eff. July1, 1984. Amended by Acts 1990, No. 1038, eff.September 28, 1990.

Text of subsection C effective until August 2,

2002.

C. In addition to the tax levied on sales of servicesby R.S. 47:302(C) and collected under the provi-sions of Chapter 2 of Subtitle II of Title 47 of theLouisiana Revised Statutes of 1950, there is herebylevied a tax upon all sales of services, as definedby said Chapter 2 of Subtitle II of Title 47 of theLouisiana Revised Statutes of 1950, in this state,at the rate of ninety-seven on hundredths of onepercentum of the amounts paid or charged forsuch services.Added by Acts 1984, 1st Ex.Sess., No. 13, eff. July1, 1984. Amended by Acts 1990, No. 1038, eff.September 28, 1990.

Section 1 of Acts 1990, No. 1038 contained a

provision (now R.S. 51:1286) authorizing the

Louisiana Tourism Promotion District to im-

pose, by ordinance, a sales and use tax.

R.S. 47:322.1

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Section 3 of Acts 1990, No. 1038 (§1 of which

establishes the Louisiana Tourism Promotion

District and §2 of which amends this section)

provides in part: “.... Section 2 of this Act shall

become effective on the same date as the

ordinance imposing the sales and use tax

authorized by this Act becomes effective.”

The relevant ordinance was adopted by the

Louisiana Tourism Promotion District on Sep-

tember 28, 1990, which date, pursuant to § 9

of the ordinance, is its effective date.

Text of subsection C effective August 2, 2002

until April 1, 2004, unless repealed following

legislative or judicial determination as speci-

fied in Acts 2001, No. 1175, § 5.

C. (1) In addition to the tax levied on sales ofservices by R.S. 47:302(C) and collected underthe provisions of Chapter 2 of Subtitle II of thisTitle, there is hereby levied a tax upon all sales ofservices, as defined by said Chapter 2 of SubtitleII of this Title, in this state, at the rate of ninety-seven one hundredths of one percent of theamounts paid or charged for such services. In thecase of amounts paid or charged for mobile tele-communications services as defined in R.S.47:301(14)(i)(ii)(bb), such amounts shall be sub-ject to the tax imposed by that Subitem if thecustomer’s place of primary use is located in thestate, and any disputes a customer may haveconcerning the amount of tax or place of primaryuse shall be governed by the provisions of R.S.47:301(14)(i)(ii)(bb)(XI)(hhh) and (iii).

(2) Notwithstanding any provision of law to thecontrary, effective from April 1, 2004 until April 1,2016, as provided by Act 22 of the 2000 RegularSession, the tax levied by this Section shall notapply to the furnishing of interstate telecommu-nication services, as defined in R.S.47:301(14)(i)(iv)(ff), which are reflected on billssubmitted by telecommunication service provid-ers to their customers which are dated duringthat time, regardless of when such services wereprovided.Amended by Acts 2001, No. 1175, eff. August 2,2002.

Text of subsection C as amended by Acts 2001,

No. 1175, § 3, effective pursuant to Acts 2001,

No. 1175, § 5, following judicial determination

substantially limiting or impairing essential

elements of Sections 1 or 2 of Act 1175, until

April 1, 2004.

R.S. 47:331(C)

C. (1) In addition to the tax levied on sales ofservices by R.S. 47:302(C) and collected underthe provisions of Chapter 2 of Subtitle II of thisTitle, there is hereby levied a tax upon all sales ofservices, as defined by said Chapter 2 of SubtitleII of this Title, in this state, at the rate of ninety-seven one hundredths of one percent of theamounts paid or charged for such services.

(2) Notwithstanding any provision of law to thecontrary, effective from April 1, 2004 until April 1,2016, as provided by Act 22 of the 2000 RegularSession, the tax levied by this Section shall notapply to the furnishing of interstate telecommu-nication services, as defined in R.S.47:301(14)(i)(iv)(ff), which are reflected on billssubmitted by telecommunication service provid-ers to their customers which are dated duringthat time, regardless of when such services wereprovided.Amended by Acts 2001, No. 1175, eff. August 2,2002.

Text of subsection C effective from April 1,

2004 to April 1, 2016.

C. (1) In addition to the tax levied on sales ofservices by R.S. 47:302(C) and collected underthe provisions of Chapter 2 of Subtitle II of thisTitle, there is hereby levied a tax upon all sales ofservices, as defined by said Chapter 2 of SubtitleII of this Title, in this state, at the rate of ninety-seven one hundredths of one percent of theamounts paid or charged for such services.

(2) Notwithstanding any provision of law to thecontrary, the tax levied by this Section shall notapply to the furnishing of interstate telecommu-nication services, as defined in R.S.47:301(14)(i)(iv)(ff).Amended by Acts 2001, No. 1175, eff. August 2,2002.

Text of subsection C effective April 1, 2016.

C. In addition to the tax levied on sales of servicesby R.S. 47:302(C) and collected under the provi-sions of Chapter 2 of Subtitle II of this Title, thereis hereby levied a tax upon all sales of services,including the furnishing of interstate telecommu-nication services, as defined by said Chapter 2 ofSubtitle II of this Title, in this state, at the rate ofninety-seven one hundredths of one percent ofthe amounts paid or charged for such services.Amended by Acts 2001, No. 1175, eff. August 2,2002.

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124 August 2001

D. The tax levied herein shall be collected from thedealer, and/or wholesaler as provided for and asdefined by Chapter 2 of Subtitle II of Title 47 of theLouisiana Revised Statutes of 1950; shall be paidat the time and in the manner provided by saidChapter; shall be in addition to all other taxes,whether levied in the form of sales, excise, license,or privilege taxes; and shall be in addition to taxeslevied under the provisions of Chapter 3 of Sub-title II of Title 47 of the Louisiana Revised Statutesof 1950.Added by Acts 1984 1st Ex.Sess., No. 13, eff. July1, 1984.

E. Repealed by Acts 1994, No. 17, § 2; Acts 1994,3rd Ex.Sess., No. 4, § 2, eff. Sept. 1, 1994.

F. Notwithstanding any other provision of law tothe contrary, for the period July 10, 1990 throughJune 30, 1991, the exemptions to the tax levied bythis Section, except for the exemptions providedin R.S. 39:467 and 468, R.S. 47:305(A)(1), (B),(D)(1)(f), (j), (k), (l), (m), (s), (G), 305.1, 305.2,305.3, 305.8, 305.10, 305.14, 305.15, 305.20,305.37, 305.38, 305.46, and R.S. 51:1787, shallbe inapplicable, inoperative, and of no effect.Added by Acts 1990, No. 386, eff. July 10, 1990.

G. Notwithstanding any other provision of law tothe contrary, for the period July 1, 1991 throughJune 30, 1992, the exemptions to the tax levied bythis Section, except for the exemptions providedin R.S. 39:467 and 468, R.S. 47:305(A)(1), (B),(D)(1)(f), (j), (k), (l), (m), (s), (G), 305.1, 305.2,305.3, 305.8, 305.10, 305.14, 305.15, 305.20,305.25(A)(1) and (2), 305.37, 305.38, 305.46, andR.S. 51:1787, shall be inapplicable, inoperable,and of no effect.Added by Acts 1991, No. 4, eff. July 1, 1991.

H. Notwithstanding any other provision of law tothe contrary, for the period July 1, 1992 throughJune 30, 1994, the exemptions to the tax levied bythis Section, except for the exemptions providedin R.S. 39:467 and 468, R.S. 47:305(A)(1), (B),(D)(1)(f), (j), (k), (l), (m), (s), (G), 305.1, 305.2,305.3, 305.8, 305.10, 305.14, 305.15, 305.20,305.25(A)(1) and (2), 305.37, 305.38, 305.46, andR.S. 51:1787, shall be inapplicable, inoperable,and of no effect.Added by Acts 1992, No. 563, eff. July 1, 1992.

I. Notwithstanding any other provisions of law tothe contrary, including the provisions of Subsec-tion H of this Section as proposed by House Bill568 of the 1992 Regular Session, the provisions ofR.S. 47:305(D)(1)(t) shall remain in effect for the

period beginning on July 1, 1992 and ending onJune 30, 1994.Added by Acts 1992, No. 926, eff. July 1, 1992.

J. Notwithstanding any other provision of law tothe contrary, for the period July 1, 1994 throughJune 30, 1996, the exemptions to the tax levied bythis Section, except for the exemptions providedin R.S. 39:467 and 468, R.S. 47:305(A)(1), (B),(D)(1)(f), (j), (k), (l), (m), (s), and (t), and (G), 305.1,305.2, 305.3, 305.8, 305.10, 305.14, 305.15,305.20, 305.25(A)(1) and (2), 305.37, 305.38, and305.46, and R.S. 51:1787, shall be inapplicable,inoperable, and of no effect.Added by Acts 1994, No. 20, eff. July 1, 1994.

K. Notwithstanding any other provision of law tothe contrary, for the period July 1, 1996 throughJune 30, 1998, the exemptions to the tax levied bythis Section, except for the exemptions providedin R.S. 39:467 and 468, R.S. 47:305(A)(1), (B),(D)(1)(f), (j), (k), (l), (m), (s), and (t), and (G), 305.1,305.2, 305.3, 305.8, 305.10, 305.14, 305.15,305.20, 305.25(A)(1) and (2), 305.37, 305.38,305.46, and 305.50, and R.S. 51:1787, shall beinapplicable, inoperable, and of no effect.Added by Acts 1996, No. 5, eff. July 1, 1996

L. Notwithstanding any other provision of law tothe contrary, for the period July 1, 1998 throughJune 30, 2000, the exemptions to the tax levied bythis Section, except for the exemptions providedin R.S. 39:467 and 468, R.S. 47:305(A)(1), (B),(D)(1)(f), (j), (k), (l), (m), (s), and (t), and (G), 305.1,305.2, 305.3, 305.8, 305.10, 305.14, 305.15,305.20, 305.25(A)(1) and (2), 305.37, 305.38,305.46, and 305.50, and R.S. 51:1787, shall beinapplicable, inoperable, and of no effect.Added by Acts 1998, No. 1, eff. July 1, 1998.

M. Notwithstanding any other provision of law tothe contrary, for the period July 1, 2000 throughJune 30, 2002, the exemptions to the tax levied bythis Section, except for the exemptions providedin R.S. 39:467 and 468, R.S. 47:305(A)(1), (B),(D)(1)(f), (j), (k), (l), (m), (s), and (t), and (G), 305.1,305.2, 305.3, 305.8, 305.10, 305.14, 305.15,305.20, 305.25(A)(1) and (2), 305.37, 305.38,305.46, and 305.50, and R.S. 51:1787, shall beinapplicable, inoperable, and of no effect.Added by Acts 2000, 1st Ex.Sess., No. 18, eff. July1, 2000.N. Notwithstanding any other provision of law tothe contrary, the exemption provided in R.S.47:305.51 shall be applicable, operable, and ef-fective for the period April 1, 2001 through June30, 2002.

R.S. 47:331(D)

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Louisiana Sales Tax Law and Regulations 125

Added by Acts 2001, 1st Ex.Sess., No. 5, eff.March 27, 2001.

R.S. 47:332. Collection of the taxA. The provisions of Chapter 2 of Subtitle II of Title47 of the Louisiana Revised Statutes of 1950 shallbe applicable to the additional one percentum taxherein levied and shall be collected, under suchrules and regulations as the secretary of theDepartment of Revenue shall promulgate andadopt, in the manner now or hereafter prescribedfor collection of the sales tax levied and collectedpursuant to the provisions of said Chapter 2 andshall be subject to the same definitions, exemp-tions, tax credits, penalties, and limitations nowor hereafter prescribed in said Chapter 2.

B. Notwithstanding any other provision of law tothe contrary, including but not limited to anycontrary provisions of this Section, for the periodJanuary 1, 1987 through June 30, 1988, the taxexemptions provided in Chapter 2 of Subtitle II ofTitle 47 of the Louisiana Revised Statutes of 1950shall be inapplicable, inoperable and of no effecton the tax imposed and levied pursuant to theprovisions of R.S. 47:331.

[R.S. 47:332 (C) and (D) were repealed by Acts1986, 1st Ex. Sess., No. 20, eff. Jan. 1, 1987.]

R.S. 47:332.1 ... 332.50

Sections 47:332.1 to 332.50 relate to the

dedication of portions of the sales taxes col-

lected on hotel room occupancy in certain

parishes to local purposes within those par-

ishes. Since these sections do not affect the

amount of tax to be collected and remitted,

the sections are not printed in this volume.

R.S. 47:333. Use tax on limestoneaggregateA. Effective July 1, 1984, a use tax is hereby leviedupon the first use, in a commercial enterprise inthis state, of limestone aggregate for which noLouisiana sales tax is paid. Any person or entitywho engages in such first use shall pay to theDepartment of Revenue such tax of twenty-fivecents per ton of limestone aggregate so used.Such use tax is levied in lieu of any other use taxlevied in connection with state sales taxes.

B. Such tax shall be paid in accordance with theadministrative and enforcement powers conferredupon the Department of Revenue by Chapter 2 ofSubtitle II of Title 47 of the Louisiana RevisedStatutes insofar as the application of such provi-sions is practicable, or in accordance with appli-cable enforcement provisions of general laws, andin accordance with procedures required by thedepartment.

R.S. 47:335.1. Short Title

This Chapter shall be known as and referred to asthe “Uniform Sales and Use Tax AdministrationAct.”Added by Acts 2001, No. 72, eff. May 24, 2001.

R.S. 47:335.2. Definitions

As used in this Chapter:

(1) “Agreement” means the Streamlined Sales andUse Tax Agreement.

(2) “Certified automated system” means softwarecertified jointly by the states that are signatoriesto the agreement to calculate the tax imposed byeach jurisdiction on a transaction, determine theamount of tax to remit to the appropriate state,and maintain a record of the transaction.

(3) “Certified service provider” means an agentcertified jointly by the states that are signatoriesto the agreement to perform all of the seller’s salestax functions.

(4) “Person” means an individual, trust, estate,fiduciary, partnership, limited liability company,limited liability partnership, corporation, or anyother legal entity.

(5) “Sales and use tax” means the taxes leviedunder R.S. 47:301 through 332 and the taxes thatare levied by local governmental subdivisions andschool boards under authority of Article VI, Sec-tion 29 of the Constitution of Louisiana.

(6) “Seller” means any person making sales, leases,or rentals of personal property or services.

(7) “State” means any state of the United Statesand the District of Columbia.Added by Acts 2001, No. 72, eff. May 24, 2001.

R.S. 47:335.2.7

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126 August 2001

R.S. 47:335.3. PolicyThe Legislature of Louisiana finds that this stateshould enter into an agreement with one or morestates to simplify and modernize sales and use taxadministration in order to substantially reducethe burden of tax compliance for all sellers and forall types of commerce.Added by Acts 2001, No. 72, eff. May 24, 2001.

R.S. 47:335.4. Multistate discussions;Streamlined Sales and Use TaxAgreementA. For the purpose of reviewing, amending, andfinalizing the agreement authorized by this Act,the state of Louisiana shall enter into multistatediscussions. For purposes of such discussions,the state shall be represented by four delegates,one member to be appointed by the president ofthe Senate, one member to be appointed by thespeaker of the House of Representatives, and twomembers to be appointed by the governor.

B. The Louisiana Department of Revenue is au-thorized and directed upon the consent of thelegislature to enter into the Streamlined Salesand Use Tax Agreement with one or more states tosimplify and modernize sales and use tax admin-istration in order to substantially reduce theburden of tax compliance for all sellers and for alltypes of commerce. In furtherance of the agree-ment, the Louisiana Department of Revenue isauthorized to act jointly with other states that aremembers of the agreement to establish standardsfor certification of a certified service provider andcertified automated system and establish perfor-mance standards for multistate sellers.

C. The Louisiana Department of Revenue is fur-ther authorized to take other actions reasonablyrequired to implement the provisions set forth inthis Act. Other actions authorized by this Sectioninclude but are not limited to the adoption of rulesand regulations and the joint procurement, withother member states, of goods and services infurtherance of the cooperative agreement.

D. The secretary of the Louisiana Department ofRevenue or the secretary’s designee is authorizedto represent this state before the other states thatare signatories to the agreement.Added by Acts 2001, No. 72, eff. May 24, 2001.

R.S. 47:335.5. Louisiana law unmodifiedNo provision of the agreement authorized by thisAct in whole or part invalidates or amends anyprovision of the law of Louisiana. Adoption of theagreement by Louisiana does not amend or modifyany law of Louisiana. Implementation of anycondition of the agreement in this state, whetheradopted before, at, or after membership of thisstate in the agreement, must be by the action ofthe Legislature of Louisiana.

Added by Acts 2001, No. 72, eff. May 24, 2001.

R.S. 47:335.6. Agreement pre-requisitesThe Louisiana Department of Revenue shall notenter into the Streamlined Sales and Use TaxAgreement unless the agreement requires eachstate to abide by the following requirements:

A. Uniform State Rate. The agreement must setrestrictions to achieve over time more uniformstate rates through the following:

(1) Limiting the number of state rates.

(2) Limiting the application of maximums on theamount of state tax that is due on a transaction.

(3) Limiting the application of thresholds on theapplication of state tax.

B. Uniform Standards. The agreement must es-tablish uniform standards for the following:

(1) The sourcing of transactions to taxing jurisdic-tions.

(2) The administration of exempt sales.

(3) The allowances a seller can take for bad debts.

(4) Sales and use tax returns and remittances.

C. Uniform Definitions. The agreement must re-quire states to develop and adopt uniform defini-tions of sales and use tax terms. The definitionsmust enable a state to preserve its ability to makepolicy choices not inconsistent with the uniformdefinitions.

D. Central Registration. The agreement mustprovide a central, electronic registration system

R.S. 47:335.3

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Louisiana Sales Tax Law and Regulations 127

that allows a seller to register to collect and remitsales and use taxes for all signatory states.

E. No Nexus Attribution. The agreement mustprovide that registration with the central registra-tion system and the collection of sales and usetaxes in the signatory states will not be used as afactor in determining whether the seller has nexuswith a state for any tax.

F. Local Sales and Use Taxes. The agreementmust provide for reduction of the burdens ofcomplying with local sales and use taxes throughthe following:

(1) Restricting variances between the state andlocal tax bases.

(2) Requiring states to administer any sales anduse taxes levied by local jurisdictions within thestate so that sellers collecting and remitting thesetaxes will not have to register or file returns with,remit funds to, or be subject to independentaudits from local taxing jurisdictions.

(3) Restricting the frequency of changes in thelocal sales and use tax rates and setting effectivedates for the application of local jurisdictionalboundary changes to local sales and use taxes.

(4) Providing notice of changes in local sales anduse tax rates and of changes in the boundaries oflocal taxing jurisdictions.

G. Monetary Allowances. The agreement mustoutline any monetary allowances that are to beprovided by the states to sellers or certified serviceproviders.

H. State Compliance. The agreement must re-quire each state to certify compliance with theterms of the agreement prior to joining and tomaintain compliance, under the laws of the mem-ber state, with all provisions of the agreementwhile a member.

I. Consumer Privacy. The agreement must requireeach state to adopt a uniform policy for certifiedservice providers that protects the privacy ofconsumers and maintains the confidentiality oftax information.

J. Advisory Councils. The agreement must pro-vide for the appointment of an advisory council ofprivate sector representatives and an advisorycouncil of nonmember state representatives to

consult with in the administration of the agree-ment.Added by Acts 2001, No. 72, eff. May 24, 2001.

R.S. 47:335.7. Cooperating sovereignsThe agreement authorized by this Act is an accordamong individual cooperating sovereigns in fur-therance of their governmental functions. Theagreement provides a mechanism among themember states to establish and maintain a coop-erative, simplified system for the application andadministration of sales and use taxes under theduly adopted law of each member state.Added by Acts 2001, No. 72, eff. May 24, 2001.

R.S. 47:335.8. Agreement beneficiaries;standingA. The agreement authorized by this Act bindsand inures only to the benefit of the state ofLouisiana and the other member states. No per-son, other than a member state, is an intendedbeneficiary of the agreement. Any benefit to aperson other than a state is established by the lawof Louisiana and the other member states and notby the terms of the agreement.

B. Consistent with Subsection A, no person shallhave any cause of action or defense under theagreement or by virtue of this state’s approval ofthe agreement. No person may challenge, in anyaction brought under any provision of law, anyaction or inaction by any department, agency, orother instrumentality of Louisiana, or any politi-cal subdivision of Louisiana on the ground thatthe action or inaction is inconsistent with theagreement.

C. No law of Louisiana, or the application thereof,may be declared invalid as to any person orcircumstance on the ground that the provision orapplication is inconsistent with the agreement.Added by Acts 2001, No. 72, eff. May 24, 2001.

R.S. 47:335.9. Certified ServiceProviderA.(1) A certified service provider is the agent of aseller, with whom the certified service providerhas contracted, for the collection and remittanceof sales and use taxes. As the seller’s agent, thecertified service provider is liable for sales and usetax due each member state on all sales transac-

R.S. 47:335.9

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128 August 2001

tions it processes for the seller except as set outin this Section.

(2) A seller that contracts with a certified serviceprovider is not liable to the state for sales or usetax due on transactions processed by the certifiedservice provider unless the seller misrepresentedthe type of items it sells or committed fraud. In theabsence of probable cause to believe that theseller has committed fraud or made a materialmisrepresentation, the seller is not subject toaudit on the transactions processed by the certi-fied service provider. A seller is subject to audit fortransactions not processed by the certified ser-vice provider. The member states acting jointlymay perform a system check of the seller andreview the seller’s procedures to determine if thecertified service provider’s system is functioningproperly and the extent to which the seller’stransactions are being processed by the certifiedservice provider.

B. A person that provides a certified automatedsystem is responsible for the proper functioningof that system and is liable to the state forunderpayments of tax attributable to errors in thefunctioning of the certified automated system. Aseller that uses a certified automated systemremains responsible and is liable to the state forreporting and remitting tax.

C. A seller that has a proprietary system fordetermining the amount of tax due on transac-tions and has signed an agreement establishing aperformance standard for that system is liable forthe failure of the system to meet the performancestandard.Added by Acts 2001, No. 72, eff. May 24, 2001.

R.S. 47:335.9(B)

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Louisiana Sales Tax Law and Regulations 129

Sales TaxOrdinances

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130 August 2001

Sales Tax Ordinances

Louisiana Tourism Promotion DistrictSales and Use Tax OrdinanceAn ordinance levying within the Louisiana Tour-ism Promotion District (the boundaries of whichare coterminous with the State of Louisiana) a taxof three one hundredths of one percent upon thesale at retail, the use, the lease or rental, thedistribution, the consumption, and the storagefor use or consumption of tangible personal prop-erty, and on sales of services in the District, asnow or hereafter defined and provided by Chapter2 of Subtitle II of Title 47 of the Louisiana RevisedStatutes of 1950, subject to the exclusions, ex-emptions, and suspension of exemptions to thesame extent that such exclusions, exemptions,and suspension of exemptions now or hereafterapply to the tax levied in La. R.S. 47:331; levyingand providing for the assessment, collection, pay-ment and dedication of such tax and the purposesfor which the proceeds of such tax may be ex-pended, such tax having been authorized by Act1038 of the Regular Session of the LouisianaLegislature for the year 1990.WHEREAS, the Louisiana Tourism PromotionDistrict (the “District”), created by Act No. 1038 ofthe Regular Session of the Louisiana Legislaturefor the year 1990 (the “Act”) as a special taxingdistrict whose boundaries are coterminous withthe State of Louisiana (the “State”), is a bodypolitic and corporate and a political subdivision ofthe State, and is authorized to engage in coopera-tive endeavors with the State and to raise fundswithout a state guarantee or pledge of the full faithand credit of the State to assist the State intourism promotion and development as a meansof economic development, and

WHEREAS, pursuant to the Act, the Board ofDirectors of the District, acting as the governingauthority of the District, is authorized to adopt anordinance levying a three one hundredths of onepercent sales and use tax effective on and afterJuly 1, 1990 (the “Tax”) and to provide withrespect to the collection and enforcement of theTax and the use and disposition of the proceeds ofthe Tax; and

WHEREAS, the Tax is levied upon the sale atretail, the use, the lease or rental, the distribu-tion, the consumption, and the storage for use orconsumption of tangible personal property, andon sales of services in the District, as now orhereafter defined and provided by Chapter 2 ofSubtitle II of Title 47 of the Louisiana RevisedStatutes of 1950, subject to the exclusions, ex-

emptions, and suspension of exemptions to thesame extent that such exclusions, exemptions,and suspension of exemptions now or hereafterapply to the tax levied in La. R.S. 47:331; and

WHEREAS, the District desires to avail itself ofthe provisions of the Act and to levy the Tax for thepurposes provided in the Act;

NOW, THEREFORE BE IT ORDAINED by theBoard of Directors of the Louisiana Tourism Pro-motion District, acting as the governing authorityof said District, that:

Section 1. Definitions. In this ordinance, thefollowing terms shall have the following meaningsunless the context otherwise requires:

“Act” shall mean Act No. 1038 of the RegularSession of the Louisiana Legislature for the year1990 and any amendments thereto.

“Collector” shall mean the Secretary of the De-partment of Revenue and/or any other depart-ment or agency of the State designated as agent ofthe District for the collection of the Tax leviedherein.

“District” shall mean the Louisiana Tourism Pro-motion District, a special taxing district createdpursuant to the Act, whose boundaries are cote-rminous with the State, and a body politic andcorporate and a political subdivision of the State,and any successor thereto.

“Governing Authority” shall mean the Board ofDirectors of the District.

“Legislature” shall mean the Legislature of theState of Louisiana.

“Sales Tax Law” shall mean Chapter 2 of SubtitleII of Title 47 of the Louisiana Revised Statutes of1950, as amended.

“State” shall mean the State of Louisiana.

“Tax” shall mean the three one hundredths of onepercent sales and use tax which the District isauthorized to levy and collect pursuant to the Actand being imposed by this ordinance.

Section 2. Levy of Tax.A. Pursuant to the Act, effective October 1, 1990,there is hereby levied within the District a taxupon the sale at retail, the use, the consumption,and the storage for use or consumption of each

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Louisiana Sales Tax Law and Regulations 131

Sales Tax Ordinances

item or article of tangible personal property, asnow or hereafter defined in the Sales Tax Law,subject to the exclusions, exemptions, and sus-pension of exemptions to the same extent thatsuch exclusions, exemptions, and suspension ofexemptions now or hereafter apply to the taxlevied in La. R.S. 47:331, as follows:

(1) At the rate of three one hundredths of onepercent of the sales price of each item or article oftangible personal property when sold at retail inthe District, the Tax to be computed on gross salesfor the purpose of remitting the amount of Tax tothe District, and to include each and every retailsale.

(2) At the rate of three one hundredths of onepercent of the cost price of each item or article oftangible personal property when the same is notsold but is used, consumed, distributed, or storedfor use or consumption in the District, providedthat there shall be no duplication of the Tax.

B. Pursuant to the Act, effective October 1, 1990,there is hereby levied within the District, a taxupon the lease or rental within the District of eachitem or article of tangible personal property, asnow or hereafter defined in the Sales Tax Law,subject to the exclusions, exemptions, and sus-pension of exemptions to the same extent thatsuch exclusions, exemptions, and suspension ofexemptions now or hereafter apply to the taxlevied in La. R.S. 47:331, as follows:

(1) At the rate of three one hundredths of onepercent of the gross proceeds derived from thelease or rental of tangible personal property,where the lease or rental of such property is in anestablished business, or part of an establishedbusiness, or the same is incidental or germane tothe business.

(2) At the rate of three one hundredths of onepercent of the monthly lease or rental price paidby a lessee or rentee, or contracted or agreed to bepaid by a lessee or rentee, to the owner of thetangible personal property.

C. Pursuant to the Act, effective October 1, 1990,there is hereby levied within the District a taxupon all sales of services, as defined in the SalesTax Law, subject to the exclusions, exemptions,and suspension of exemptions to the same extentthat such exclusions, exemptions, and suspen-sion of exemptions now or hereafter apply to thetax levied in La. R.S. 47:331, at the rate of three

one hundredths of one percent of the amountspaid or charged for such services.

D. The Tax shall be subject to the same exclu-sions, exemptions, suspension of exemptions,and credits to the same extent that such exclu-sions, exemptions, suspensions of exemptions,and credits now or hereafter apply to the Stategeneral sales tax which is levied in La. R.S.47:331.

Section 3. Collection of Tax.The Tax shall be collected on the basis of theapplicable integrated bracket schedule prescribedby the Collector pursuant to La. R.S. 47:304(H).The dealers shall remit to the Collector, acting onbehalf of the District, who shall collect the Tax forand on behalf of the District, as provided inSection 6 hereof, the proportionate part of thesales tax collected in accordance with the inte-grated bracket schedule.

Section 4. Tax Subject to Sales Tax Law.The Tax shall be assessed, imposed, collected,paid and enforced in the manner provided in theSales Tax Law and as provided in Chapters 17 and18 of Subtitle II of Title 47 of the Louisiana RevisedStatutes of 1950, as amended. The provisions ofthe Sales Tax Law applicable to the assessment,imposition, collection, payment and enforcementof sales and use taxes by the State and theexemptions and exclusions provided for thereinare incorporated herein by reference and shallapply to the assessment, collection, payment,and enforcement of the Tax as though all suchprovisions were set forth in full herein.

Section 5. Rights of Taxpayers and Dealers.The obligations and rights of taxpayers and deal-ers in connection with the Tax shall be thoseprovided to taxpayers and dealers by the provi-sions of the Sales Tax Law and as provided inChapters 17 and 18 of Subtitle II of Title 47 of theLouisiana Revised Statutes of 1950, as amended,applicable to sales and use taxes levied by theState.

Section 6. Rules and Regulations as to theCollection of the Tax.The Chairman or Vice Chairman and/or the Sec-retary and Treasurer of the Board of Directors ofthe District are hereby authorized, empoweredand directed to carry into effect the provisions ofthis ordinance by contracting with the State,through the Collector, as permitted by Section6(D) of the Act, for the collection of the Tax under

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such terms and conditions as may be deemedappropriate, and to appoint deputies, assistantsor agents to assist in the collection of the Tax, andin pursuance thereof to make and enforce suchrules as may be deemed necessary, subject to theapproval of the Board of Directors.

Section 7. Disposition of Tax Proceeds.A. All taxes, revenues, funds, assessments, mon-ies, penalties, fees or other income which may becollected or come in to the possession of theCollector as an agent of the District under anyprovision or provisions of this ordinance shall bepromptly deposited by the Collector, after deduc-tion of all reasonable and necessary costs andexpenses of collecting the Tax, for the account ofthe District in the State Treasury, provided, how-ever, any amount which is paid under protest orwhich is subject to litigation may be transferred toanother account established by the Collector pend-ing final determination of the protest or litigation.

B. The amount for the account of the District inthe State Treasury shall be pledged and dedicatedin such amounts as may be determined by theDistrict for the purposes set forth in the Act. Thefunds pledged and dedicated shall be appropri-ated and expended for the purposes set forth inthe Act.

Section 8. Severability.If any one or more of the provisions of thisordinance shall for any reason be held to be illegalor invalid, such illegality or invalidity shall notaffect the other provisions of this ordinance, butthis ordinance shall be construed and enforced asif such illegal or invalid provision had not beencontained herein. Any constitutional or statutoryprovision enacted after the date of this ordinancewhich validates or makes legal any provision ofthis ordinance which would not otherwise bevalid, or legal, shall be deemed to apply to thisordinance.

Section 9. Publication Effective Date.This ordinance shall be published in one issue ofthe official journal of the District, as soon aspossible and shall be in full force and effectimmediately upon its adoption.

Louisiana Recovery District Sales TaxOrdinance Passed Effective July 1,1988.An ordinance levying within the Louisiana Re-covery District (the boundaries of which arecoterminous with the State of Louisiana) a tax ofone percent (1%) upon the sale at retail, the use,the lease or rental, the distribution, the con-sumption, and the storage for use or consump-tion, of tangible personal property and on salesof services in the District; levying and providingfor the assessment, collection, payment anddedication of such tax and the purposes forwhich the proceeds of said tax may be expended,such tax having been authorized by Act No. 15 ofthe First Extraordinary Session of the LouisianaLegislature for the year 1988.

WHEREAS, the Louisiana Recovery District (the“District”), created by Act No. 15 of the FirstExtraordinary Session of the Louisiana Legisla-ture for the year 1988 (the “Act”) as a specialtaxing district whose boundaries are cotermi-nous with the State of Louisiana (the “State”), isa body politic and corporate and a politicalsubdivision of the State, and is authorized toengage in cooperative endeavors with the Stateand to raise funds without a state guarantee orpledge of the full faith and credit of the State to(i) assist in the reduction and elimination of theState’s deficit and in providing funds for thedelivery of essential services to citizens of theState and (ii) assist parishes, cities and otherunits of local government experiencing cash flowdifficulties; and

WHEREAS, pursuant to the Act, the Board ofDirectors of the District, acting as the governingauthority of the District, is authorized to adoptan ordinance levying a one percent (1%) salesand use tax effective on and after July 1, 1988(the “Tax”), subject to the condition that the rateof the Tax, when combined with the rate of allother sales and use taxes levied on a statewidebasis, does not exceed four percent (4%) and toprovide with respect to the collection and en-forcement of the Tax and the use and dispositionof the proceeds of the Tax; and

WHEREAS, the Tax is levied upon the sale atretail, the use, the lease or rental, the distribu-tion, the consumption and the storage for use orconsumption, of tangible personal property andon sales of services in the State, as defined in and

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as provided by Chapter 2, Subtitle II, Title 47 ofthe Louisiana Revised Statutes of 1950, asamended, subject to the exemptions provided insaid Chapter 2, Subtitle II, Title 47; and

WHEREAS, the Act authorizes the District to fundinto bonds the avails of the Tax for the purpose ofassisting in reducing or eliminating the State’sdeficit or remedying cash flow shortfalls or payingobligations of the State in connection therewith;and

WHEREAS, provided that the Legislature of Loui-siana repeals the levy of at least one percent (1%)of the current four percent (4%) State sales anduse tax by at least one cent, the District desires toavail itself of the provisions of the Act and to levythe Tax for the purposes provided in the Act;

NOW, THEREFORE, BE IT ORDAINED by theBoard of Directors of the Louisiana RecoveryDistrict, acting as the governing authority of saidDistrict, that:

Section 1. Definitions.In this ordinance, the following terms shall havethe following meanings unless the context other-wise requires:

“Act ” shall mean Act No. 15 of the First Extraor-dinary Session of the Louisiana Legislature forthe year 1988 and any amendments thereto.

“Collector” shall mean the Secretary of the De-partment of Revenue and Taxation and/or anyother department or agency of the State desig-nated as agent of the District for the collection ofthe Tax levied herein.

“District” shall mean the Louisiana Recovery Dis-trict, a special taxing district created pursuant tothe Act, whose boundaries are coterminous withthe State, and a body politic and corporate and apolitical subdivision of the State, and any succes-sor thereto.

“Governing authority” shall mean the Board ofDirectors of the District.

“Legislature” shall mean the Legislature of theState of Louisiana.

“Tax” shall mean the one percent (1%) sales anduse tax which the District is authorized to levyand collect pursuant to the Act and being imposedby this ordinance.

“Sales Tax Law” shall mean Chapter 2, Subtitle II,Title 47 of the Louisiana Revised Statutes of 1950,as amended.

“State” shall mean the State of Louisiana.

Section 2. Levy of Tax.(a) Pursuant to the Act, effective July 1, 1988,there is hereby levied within the District a taxupon the sale at retail, the use, the consumption,the distribution, and the storage for use or con-sumption of each item or article of tangible per-sonal property, as defined in the Sales Tax Law,subject to the exemptions provided for therein, asfollows:

(1) At the rate of one percent of the sales price ofeach item or article of tangible personal propertywhen sold at retail in the District, the tax to becomputed on gross sales for the purpose of remit-ting the amount of tax to the District, and toinclude each and every retail sale.

(2) At the rate of one percent of the cost price ofeach item or article of tangible personal propertywhen the same is not sold but is used, consumed,distributed, or stored for use or consumption inthe District, provided that there shall be no dupli-cation of the tax.

(b) Pursuant to the Act, effective July 1, 1988,there is hereby levied within the District, a taxupon the lease or rental within the District of eachitem or article of tangible personal property, asdefined in the Sales Tax Law, subject to theexemptions provided for therein, as follows:

(1) At the rate of one percent of the gross proceedsderived from the lease or rental of tangible per-sonal property, where the lease or rental of suchproperty is in an established business, or part ofan established business, or the same is incidentalor germane to the business.

(2) At the rate of one percent of the monthly leaseor rental price paid by a lessee or rentee, orcontracted or agreed to be paid by a lessee orrentee to the owner of the tangible personalproperty.

(c) Pursuant to the Act, effective July 1, 1988,there is hereby levied within the District, a taxupon all sales of services, as defined in the SalesTax Law, at the rate of one percent of the amountspaid or charged for such services.

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(d) The imposition of the Tax shall not be effectiveunless as of July 1, 1988 the Legislature hasrepealed a portion of the sales and use taxescollected by the State such that the rate of the Taxas of such date, when combined with the rate ofall other sales and use taxes levied on a statewidebasis, does not exceed four percent.

(e) The Tax shall be subject to the same exemp-tions and credits as are applicable to the Stategeneral sales tax which is levied and collectedunder Chapters 2 and 18, Subtitle II of Title 47 ofthe Louisiana Revised Statutes of 1950, asamended.

(f) The Tax shall expire at such time as all bondsissued by the District pursuant to the Act havebeen retired as to principal and interest.

Section 3. Collection of Tax.The Tax shall be collected on the basis of theapplicable integrated bracket schedule prescribedby the Collector pursuant to Section 304(H) ofTitle 47 of the Louisiana Revised Statutes of 1950,as amended (R.S. 47:304(H)). The dealers shallremit to the Collector, acting on behalf of theDistrict, who shall collect the Tax for and onbehalf of the District, as provided in Section 6hereof, the proportionate part of the sales taxescollected in accordance with said integratedbracket schedule.

Section 4. Tax Subject to Sales Tax Law.The Tax shall be assessed, imposed, collected,paid and enforced in the manner provided by theSales Tax Law and as provided in Chapter 18 ofSubtitle II of Title 47 of the Louisiana RevisedStatutes of 1950, as amended. The provisions ofthe Sales Tax Law applicable to the assessment,imposition, collection, payment and enforcementof sales and use taxes by the State and theexemptions provided for therein are incorporatedherein by reference and shall apply to the assess-ment, collection, payment and enforcement of theTax as though all such provisions were set forthin full herein.

Section 5. Rights of Taxpayers and Dealers.The obligations and rights of taxpayers and deal-ers in connection with the Tax shall be thoseprovided to taxpayers and dealers by the provi-sions of the Sales Tax Law and as provided inChapter 18 of Subtitle II of Title 47 of the Louisi-ana Revised Statutes of 1950, as amended, appli-cable to sales and use taxes levied by the State.

Section 6. Rules and Regulations as to Collectionof the Tax.The Chairman or Vice Chairman and/or the Sec-retary and Treasurer of the Board of Directors ofthe District are hereby authorized, empoweredand directed to carry into effect the provisions ofthis ordinance by contracting with the State,through the Collector, as permitted by Section6(E) of the Act, for the collection of the Tax undersuch terms and conditions as may be deemedappropriate, and to appoint deputies, assistantsor agents to assist in the collection of the Tax, andin pursuance thereof to make and enforce suchrules as may be deemed necessary, subject to theapproval of this Board of Directors.

Section 7. Disposition of Tax Proceeds andRevenues.(a) All taxes, revenues, funds, assessments, mon-eys, penalties, fees or other income which may becollected or come into the possession of the Col-lector as an agent of the District under anyprovision or provisions of this ordinance shall bepromptly deposited by the Collector, after deduc-tion of all reasonable and necessary costs andexpenses of collecting the Tax, for the account ofthe District in a special fund designated “Louisi-ana Recovery District Sales Tax Fund”, whichfund shall be established and maintained assacred funds held by the Trustee under the Gen-eral Bond Resolution of the District authorizingthe issuance of sales tax bonds of the Districtunder the Act (the “Bond Resolution”); provided,however, any amount which is paid under protestor which is subject to litigation may be transferredto another account established by the Collectorpending final determination of the protest orlitigation.

(b) Said amount in the Louisiana Recovery Dis-trict Sales Tax Fund shall be appropriated andexpended for the purposes set forth in the Act andthe Bond Resolution, including, but not limitedto, payment of any bonds issued under the Act.

Section 8. Severability.If any one or more of the provisions of thisordinance shall for any reason be held to be illegalor invalid, such illegality or invalidity shall notaffect any other provision of this ordinance, butthis ordinance shall be construed and enforced asif such illegal or invalid provisions had not beencontained herein. Any constitutional or statutoryprovision enacted after the date of this ordinancewhich validates or makes legal any provision ofthis ordinance which would not otherwise be

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valid, or legal, shall be deemed to apply to thisordinance.

Section 9. Publication; Effective Date.This ordinance shall be published in one (1) issueof the official journal of this District, as soon aspossible and shall be in full force and effectimmediately upon its adoption.

Louisiana Recovery District OrdinancePassed Effective July 1, 1993An ordinance suspending and making inappli-cable, inoperative and of no effect certain exemp-tions set forth in Chapter 2 of Subtitle II, Title 47of the Louisiana Revised Statutes of 1950, asamended, which exemptions were applicable tothe one percent (1%) sales and use tax levied bythe Louisiana Recovery District pursuant to Loui-siana Revised Statute 39:2001, et. seq., and thesales tax ordinance adopted by said District onApril 28, 1988; and providing for other mattersrelating thereto.

WHEREAS, the Louisiana Recovery District (the"District"), a body politic and corporate and apolitical subdivision of the State of Louisiana (the"State"), created as a special taxing district by ActNo. 15 of the First Extraordinary Session of theLouisiana Legislature of 1988 (now appearing asLa. R.S. 39:2001, et.seq.) (the "District Act"),whose boundaries are coterminous with the State,levied a one percent (1%) sales and use taxauthorized by the District Act pursuant to anordinance adopted by its Board of Directors onApril 28, 1988 (the "Sales Tax Ordinance"), whichtax was effective on the date set forth therein (the"Tax");and

WHEREAS, the Tax is levied upon the sale atretail, the use, the lease or rental, the distribu-tion, the consumption and the storage for use orconsumption of tangible personal property, andon sales of services in the State, as defined in andas provided by Chapter 2, Subtitle II, Title 47 ofthe Louisiana Revised Statutes of 1950, asamended, subject to the exemptions provided insaid Chapter 2, Subtitle II, Title 47; and

WHEREAS, the Louisiana Legislature, pursuantto Act No. 569 of the Regular Session of theLouisiana Legislature of 1993 (the "Act"), autho-rized the District to suspend or make inappli-cable, inoperative, and of no effect thoseexemptions provided in Chapter 2, Subtitle II,

Title 47 of the Louisiana Revised Statutes of 1950which are suspended or made inapplicable, inop-erative, and of no effect, in whole or in part, fromthe taxes imposed by the State pursuant to Chap-ters 2 and 2B of Subtitle II of Title 47 of theLouisiana Revised Statutes of 1950; and

WHEREAS, the District now desires to avail itselfof the provisions of the Act and to provide for thesuspension of certain exemptions describedherein:

NOW, THEREFORE, BE IT ORDAINED by theBoard of Directors of the Louisiana RecoveryDistrict, acting as the governing authority of saidDistrict, that:

Section 1. Suspension of Exemptions.Pursuant to the Act, effective on July 1, 1993, theexemptions provided for in Section 2 of the SalesTax Ordinance and under Chapter 2 of Subtitle IIof Title 47 of the Louisiana Revised Statutes of1950, as amended, are hereby suspended andmade inapplicable, inoperative, and of no forceand effect, except that, notwithstanding the fore-going, those exemptions provided by R.S. 47:305(A)(1), (B), (C), (D)(1)(f), (j), (k), (l), (m), (s), (t), (G),305.1, 305.2, 305.3, 305.8, 305.10, 305.12,305.14, 305.15, 305.20, 305.21, 305.24,305.25(A)(1) and (2), 305.27, 305.29, 305.34,305.35, 305.36, 305.37, 305.38, and 305.46 shallbe applicable, operative and continue in full forceand effect.

Section 2. Expiration of Suspension.The suspension of the exemptions shall expire atthe earlier of (i) July 1, 1994, (ii) in accordancewith the provisions of Section 1 of the Act or (iii)in accordance with the provisions of Section 3 ofthe Act.

Section 3. References to Tax.All references in the Sales Tax Ordinance to theTax shall be deemed to include amounts derivedfrom the suspension of the exemptions.

Section 4. Severability.If any one or more of the provisions of thisordinance shall for any reason be held to be illegalor invalid, such illegality or invalidity shall notaffect any other provisions of this ordinance, butthis ordinance shall be construed and enforced asif such illegal or invalid provisions had not beencontained herein. Any constitutional or statutoryprovision enacted after the date of this ordinancewhich validates or makes legal any provision ofthis ordinance which would not otherwise be

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valid, or legal, shall be deemed to apply to thisordinance.

Section 4. Publication Effective Date.This ordinance shall be published in one (1) issueof the official journal of the District as soon aspossible and shall be in full force and effectimmediately after its adoption.

Louisiana Recovery District OrdinancePassed Effective July 1, 1994An ordinance suspending and making inappli-cable, inoperative and of no effect certain exemp-tions set forth in Chapter 2 of Subtitle II, Title 47of the Louisiana Revised Statutes of 1950, asamended, which exemptions were applicable tothe one percent (1%) sales and use tax levied bythe Louisiana Recovery District pursuant to Loui-siana Revised Statute 39:2001, et. seq., and thesales tax ordinance adopted by said district onApril 28, 1988; and providing for other mattersrelating thereto.

WHEREAS, the Louisiana Recovery District (the“District”), a body politic and corporate and apolitical subdivision of the State of Louisiana (the“State”), created as a special taxing district by ActNo. 15 of the First Extraordinary Session of theLouisiana Legislature of 1988 (now appearing asLa. R.S. 39:2001, et.seq.) (the “District Act”),whose boundaries are coterminous with the State,levied a one percent (1%) sales and use taxauthorized by the District Act pursuant to anordinance adopted by its Board of Directors onApril 28, 1988 (the “Sales Tax Ordinance”), whichtax was effective on the date set forth therein (the“Tax”); and

WHEREAS, the Tax is levied upon the sale atretail, the use, the lease or rental, the distribu-tion, the consumption and the storage for use orconsumption of tangible personal property, andon sales of services in the State, as defined in andas provided by Chapter 2, Subtitle II, Title 47 ofthe Louisiana Revised Statutes of 1950, asamended, subject to the exemptions provided insaid Chapter 2, Subtitle II, Title 47; and

WHEREAS, the Louisiana Legislature, pursuantto La. R.S. 39:2006(B), authorized the District tosuspend or make inapplicable, inoperative, and ofno effect those exemptions provided in Chapter 2,Subtitle II, Title 47 of the Louisiana RevisedStatutes of 1950 which are suspended or madeinapplicable, inoperative, and of no effect, in

whole or in part, from the taxes imposed by theState pursuant to Chapters 2 and 2B of SubtitleII of Title 47 of the Louisiana Revised Statutes of1950; and

WHEREAS, by ordinance adopted June 14, 1993and pursuant to La. R.S. 39:2006(B), the Districtsuspended the exemptions which were applicableto the State and provided that the suspension ofsuch exemptions would expire at the earliest of (i)July 1, 1994, (ii) in accordance with the provi-sions of Section 1 of Act No. 569 of the RegularSession of the Louisiana Legislature of 1993 (the“1993 Act”) or (iii) in accordance with the provi-sions of Section 3 of the 1993 Act; and

WHEREAS, the District now desires to continuethe suspension of the exemptions through theearliest of (i) June 30, 1996 or (ii) the date theexemptions resume, commence and become ef-fective as to the taxes imposed by the State asprovided in La. R.S. 39:2006(B).

NOW, THEREFORE, BE IT ORDAINED by theBoard of Directors of the Louisiana RecoveryDistrict, acting as the governing authority of saidDistrict, that:

Section 1. Suspension of Exemptions.Pursuant to the Act, effective on July 1, 1994, theexemptions provided for in Section 2 of the SalesTax Ordinance and under Chapter 2 of Subtitle IIof Title 47 of the Louisiana Revised Statutes of1950, as amended, are hereby suspended andmade inapplicable, inoperative, and of no forceand effect, except that, notwithstanding the fore-going, those exemptions provided by R.S. 47:305(A)(1), (B), (C), (D)(1)(f), (j), (k), (l), (m), (s), (t), (G),305.1, 305.2, 305.3, 305.8, 305.10, 305.12,305.14, 305.15, 305.20, 305.21, 305.24,305.25(A)(1) and (2), 305.27, 305.29, 305.34,305.35, 305.36, 305.37, 305.38, and 305.46 shallbe applicable, operative and continue in full forceand effect.

Section 2. Expiration of Suspension.The suspension of the exemptions shall expire atthe earlier of (i) July 1, 1996, (ii) in accordancewith the provisions of La. R.S. 39:2006(B).

Section 3. References to Tax.All references in the Sales Tax Ordinance to theTax shall be deemed to include amounts derivedfrom the suspension of the exemptions.

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Section 4. Severability.If any one or more of the provisions of thisordinance shall for any reason be held to be illegalor invalid, such illegality or invalidity shall notaffect any other provisions of this ordinance, butthis ordinance shall be construed and enforced asif such illegal or invalid provisions had not beencontained herein. Any constitutional or statutoryprovision enacted after the date of this ordinancewhich validates or makes legal any provision ofthis ordinance which would not otherwise bevalid, or legal, shall be deemed to apply to thisordinance.

Section 4. Publication Effective Date.This ordinance shall be published in one (1) issueof the official journal of the District as soon aspossible and shall be in full force and effectimmediately after its adoption.

Louisiana Recovery District OrdinancePassed Effective July 1, 1996An ordinance suspending and making inappli-cable, inoperative and of no effect certain exemp-tions set forth in Chapter 2 of Subtitle II, Title 47of the Louisiana Revised Statutes of 1950, asamended, which exemptions were applicable tothe one percent (1%) sales and use tax levied bythe Louisiana Recovery District pursuant to Loui-siana Revised Statute 39:2001, et. seq., and thesales tax ordinance adopted by said district onApril 28, 1988; and providing for other mattersrelating thereto.

WHEREAS, the Louisiana Recovery District (the“District”), a body politic and corporate and apolitical subdivision of the State of Louisiana (the“State”), created as a special taxing district by ActNo. 15 of the First Extraordinary Session of theLouisiana Legislature of 1988 (now appearing asLa. R.S. 39:2001, et.seq.) (the “District Act”),whose boundaries are coterminous with the State,levied a one percent (1%) sales and use taxauthorized by the District Act pursuant to anordinance adopted by its Board of Directors onApril 28, 1988 (the “Sales Tax Ordinance”), whichtax was effective on the date set forth therein (the“Tax”); and

WHEREAS, the Tax is levied upon the sale atretail, the use, the lease or rental, the distribu-tion, the consumption and the storage for use orconsumption of tangible personal property, andon sales of services in the State, as defined in andas provided by Chapter 2, Subtitle II, Title 47 of

the Louisiana Revised Statutes of 1950, asamended, subject to the exemptions provided insaid Chapter 2, Subtitle II, Title 47; and

WHEREAS, the Louisiana Legislature, pursuantto La. R.S. 39:2006(B), authorized the District tosuspend or make inapplicable, inoperative, and ofno effect those exemptions provided in Chapter 2,Subtitle II, Title 47 of the Louisiana RevisedStatutes of 1950 which are suspended or madeinapplicable, inoperative, and of no effect, inwhole or in part, from the taxes imposed by theState pursuant to Chapters 2 and 2B of SubtitleII of Title 47 of the Louisiana Revised Statutes of1950; and

WHEREAS, by ordinance adopted June 8, 1994and pursuant to La. R.S. 39:2006(B), the Districtsuspended the exemptions which were applicableto the State and provided that the suspension ofsuch exemptions would expire at the earliest of (i)June 30, 1996 or (ii) the date the exemptionsresume, commence and become effective to thetaxes imposed by the State as provided in La. R.S.39:2006(B); and

WHEREAS, Act No. 5 of the Regular Session of theLouisiana Legislature of 1996 (“Act No. 5”) sus-pended the exemptions that were applicable tothe State for the period July 1, 1996 through July1, 1998; and

WHEREAS, the District now desires to continuethe suspension of the exemptions through theearliest of (i) June 30, 1998 or (ii) the date theexemptions resume, commence and become ef-fective as to the taxes imposed by the State asprovided in La. R.S. 39:2006(B).

NOW, THEREFORE, BE IT ORDAINED by theBoard of Directors of the Louisiana RecoveryDistrict, acting as the governing authority of saidDistrict, that:

Section 1. Suspension of Exemptions.Effective on July 1, 1996, the exemptions pro-vided for in Section 2 of the Sales Tax Ordinanceand under Chapter 2 of Subtitle II of Title 47 of theLouisiana Revised Statutes of 1950, as amended,are hereby suspended and made inapplicable,inoperative, and of no force and effect, exceptthat, notwithstanding the foregoing, those ex-emptions provided by R.S. 47:305(A) (1), (B), (C),(D)(1)(f), (j), (k), (l), (m), (s), (t), (G), 305.1, 305.2,305.3, 305.8, 305.10, 305.12, 305.14, 305.15,305.20, 305.21, 305.24, 305.25(A)(1) and (2),305.27, 305.29, 305.34, 305.35, 305.36, 305.37,

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305.38, 305.46 and 305.50 shall be applicable,operative and continue in full force and effect.

Section 2. Expiration of Suspension.The suspension of the exemptions shall expire atthe earlier of (i) July 1, 1998, (ii) in accordancewith the provisions of La. R.S. 39:2006(B).

Section 3. References to Tax.All references in the Sales Tax Ordinance to theTax shall be deemed to include amounts derivedfrom the suspension of the exemptions.

Section 4. Severability.If any one or more of the provisions of thisordinance shall for any reason be held to be illegalor invalid, such illegality or invalidity shall notaffect any other provisions of this ordinance, butthis ordinance shall be construed and enforced asif such illegal or invalid provisions had not beencontained herein. Any constitutional or statutoryprovision enacted after the date of this ordinancewhich validates or makes legal any provision ofthis ordinance which would not otherwise bevalid, or legal, shall be deemed to apply to thisordinance.

Section 5. Publication Effective Date.This ordinance shall be published in one (1) issueof the official journal of the District as soon aspossible and shall be in full force and effectimmediately after its adoption.

Louisiana Recovery District DefeasanceResolution (Effective September 30, 1996)A resolution authorizing the defeasance or retire-ment of all of the outstanding Louisiana RecoveryDistrict’s Sales Tax Bonds; approving the formand authorizing the execution and delivery of anEscrow Deposit Agreement and a CorporationEndeavor Agreement between the District and theState of Louisiana; and providing for other mat-ters relating thereto.

WHEREAS, the Louisiana Recovery District (the“District”), created by Act No. 15 of the FirstExtraordinary Session of the Louisiana Legisla-ture of 1988 (the “Act”) as a special taxing district,whose boundaries are coterminous with the Stateof Louisiana (the “State”), is a body politic andcorporate and a political subdivision of the State,and is authorized to engage in cooperative en-deavors with the State in order to (i) assist theState in the reduction and elimination of the

State’s deficit and the provision of money for thedelivery of essential services to its citizens and (ii)assist parishes, cities and other units of localgovernment experiencing deficits or cash flowdifficulties; and

WHEREAS, pursuant to the Act, the Board ofDirectors of the District, acting as the governingauthority of the District, adopted on April 28,1988 an ordinance levying a one percent (1%)sales and use tax, authorized by the Act, effectiveon and after July 1, 1988 (the “Tax”), subject tothe conditions provided in the Act, and alsoprovided with respect to the collection and en-forcement of the Tax and the use and dispositionof the proceeds of the Tax; and

WHEREAS, pursuant to the Act and a resolutionadopted by the District on April 28, 1988, assupplemented by a resolution adopted on July13, 1988 (the “Bond Resolution”), the Districtissued $979,125,000 of its Sales Tax Bonds,Series 1988 (the “Series 1988 Bonds”), of which$244,875,000 aggregate principal amount arecurrently outstanding; and

WHEREAS, pursuant to the Act, the Bond Reso-lution, the Second Supplemental Resolutionadopted by the District on June 11, 1992 and theThird Supplemental Resolution adopted by theDistrict on June 11, 1992 which amended theBond Resolution, the District issued $80,920,000of its Sales Tax Refunding Bonds, Series 1992 (the“Senior Lien Bonds”), of which $76,470,000 ag-gregate principal amount are currently outstand-ing; and

WHEREAS, pursuant to the Act, the Junior LienGeneral Bond Resolution adopted by the Districton May 20, 1992 and the Junior Lien First Supple-mental Resolution adopted by the District onJune 11, 1992, the District issued $86,130,000 ofits Sales Tax Junior Lien Refunding Bonds, Series1992 (the “Junior Lien Bonds”), of which$46,060,000 aggregate principal amount are cur-rently outstanding; and

WHEREAS, the Series 1988 Bonds, the SeniorLien Bonds and the Junior Lien Bonds are hereincollectively called the “Sales Tax Bonds”; and

WHEREAS, the Trustee for the Sales Tax Bonds(First National Bank of Commerce) currently hason deposit approximately $149,016,616.70 in theapplicable debt service accounts relating to theDistrict’s Sales Tax Bonds and there has beenappropriate to the District the following approxi-

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mate amounts: $145,000,000 representingamounts appropriated pursuant to House Bill No.1 of the 1996 Regular Session of the LouisianaLegislature (“House Bill No. 1”) and $74,400,000representing amounts appropriated pursuant toHouse Bill No. 204 of the Regular Session of theLouisiana Legislature (“House Bill No. 204”); and

WHEREAS, such moneys are sufficient, as evi-denced by the report of the Financial Advisor(hereinafter defined) presented herewith, to defeaseor retire all of the District’s Sales Tax Bonds; and

WHEREAS, it is necessary for the District and theState Board Commission to enter into a coopera-tive endeavor agreement (the “Cooperative En-deavor Agreement”) setting forth the terms andconditions of the fefeasance and the timing thereof;and

WHEREAS, it is further necessary for the Districtto enter into an escrow deposit agreement (the“Escrow Agreement”) with First National Bank ofCommerce, as escrow trustee, and for the Districtto employ the appropriate professionals neces-sary to accomplish the defeasance;

NOW, THEREFORE, BE IT RESOLVED by theBoard of Directors of the Louisiana RecoveryDistrict, acting as the governing authority of saidDistrict, that:

Section 1. The defeasance or retirement of all ofthe Sales Tax Bonds is hereby authorized.

Section 2. The form, terms and provisions of theCooperative Endeavor Agreement and the EscrowAgreement are hereby approved in substantiallythe same form as submitted to the District andfiled with the official minutes of the District, all ofthe provisions of which are hereby made a part ofthis resolution, with such additions, omissionsand changes as may be approved by Bond Coun-sel to the District. The Chairman or the ViceChairman and the Secretary of the District be andthey are hereby authorized, empowered and di-rected to execute their Cooperative EndeavorAgreement and the Escrow Deposit Agreementfor, on behalf of and in the name of the District, inaccordance with the provisions and requirementsof the Act.

Section 3. The Chairman or the Vice Chairmanand the Secretary of the District are hereby fur-ther authorized and directed, for and on behalf ofthe District, to accept, receive, execute, seal,

attest and deliver all such documents, certificatesand other instruments as are required, neces-sary, convenient and appropriate in connectionwith the defeasance or retirement of the District’sSales Tax Bonds, and to take such further actionas may be required by the State Board Commis-sion or Bond Counsel to the District or appropri-ate or required by law in connection therewith.Said officers are hereby further authorized anddirected to approve for, on behalf of, and in thename of the District any changes, additions ordeletion, if any, shall be approved by Bond Coun-sel to the District and shall be consistent with theauthority provided by the Act. The signatures ofthe said Chairman, Vice Chairman, or Secretaryupon such documents set forth above, or as maybe otherwise required for or necessary, conve-nient or appropriate to the financing described inthis resolution, are deemed to be conclusive evi-dence of their due exercise of the authority vestedin them hereunder.

Section 4. It is ratified and confirmed that Foley &Judell, L.L.P., Bond Counsel, New Orleans, Loui-siana, are hereby employed as Bond Counsel tothe District with respect to the defeasance andretirement of the District’s Sales Tax Bonds. BondCounsel shall perform all rebate calculationsrelating to the defeasance and retirement of theSales Tax Bonds and draft all proceedings, docu-ments, instruments and certificates necessary toaccomplish such defeasance and retirement, andshall deliver their opinion that the Sales TaxBonds are no longer outstanding under the reso-lutions referred to in the preamble hereto and thatthe District has ceased to exist. The fee to be paidBond Counsel shall not exceed $32,500 (based onthe Attorney General’s hourly fee schedule), plusactual out-of-pocket expenses, and shall be sub-ject to the Attorney General’s written approval ofsaid employment and fee.

Section 5. Government Finance Associates ishereby employed as financial advisor (the “Finan-cial Advisor”) to the District to prepare all neces-sary financial calculations and relatedrequirements of the fefeasance and retirement ofthe District’s Sales Tax Bonds. The fee to be paidthe Financial Advisor shall not exceed $164.375per hour, plus actual out-of-pocket expenses.

Section 6. First National Bank of Commerce, NewOrleans, Louisiana, is hereby employed a escrowtrustee (the “Escrow Trustee”) of the Escrow Fundcreated by the Escrow Agreement, and the fee andexpenses of the Escrow shall not exceed $3,000.

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140 August 2001

Sales Tax Ordinances

Section 7. The District is hereby authorized toselect a CPA/Verification Agent pursuant to asolicitation for offers by the District, in a formapproved by Bond Counsel and the FinancialAdvisor, and is further authorized to enter into anappropriate agreement with such firm.

Section 8. The District hereby further authorizesthe Escrow Trustee to give notice of defeasance ofthe District’s Sales Tax Bonds in substantially theform set forth as an exhibit to the Escrow Agree-ment.

Section 9. It is recognized that there are twoInterest Rate Ceiling Agreements (the “Agree-ments”) with Merrill Lynch Capital Services, Inc.(“Merrill Lynch”), and that in connection with theretirement of the Series 1988 Bonds, there will betermination payments required to be made toMerrill Lynch with respect to the Agreements. TheFinancial Advisor and Bond Counsel are herebyauthorized to make such termination paymentsup to an amount not exceeding $6,500,000 afterreceiving a written direction from the Chairman ofthe District to pay such amount.

Section 10. In connection with the defeasanceand retirement of all of the Sales Tax Bonds, BondCounsel and the Financial Advisor are herebydirected to explore all options concerning thedefeasance of the Sales Tax Bonds, including afixed rate conversion of the variable rate bonds ifsuch conversion would result in reducing thecosts of defeasance and to proceed with any suchoption.

Section 11. In addition, if it is determined thatadditional moneys are need to complete the defea-sance plan referred to herein, then the Chairmanor the Vice Chairman of the District are autho-rized to direct the Trustee to segregate the Taxrevenues of the District which are collected by theDistrict in June, 1996 and apply such moneys tothe completion of the defeasance.

Section 12. This resolution shall be effective im-mediately upon adoption, conditioned, however,upon House Bill No. 1 and House Bill No. 204becoming law.

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Louisiana Sales Tax Law and Regulations 141

Sales Tax Ordinances

Table of TaxRates for

SuspendedExemptions

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LouisianaRevised 07/01/92– 07/01/93– 07/01/94– 07/01/96– 10/01/96– 07/01/97– 07/01/98– 07/01/00–Statute Description 06/30/93 06/30/94 06/30/96 09/30/96 06/30/97 06/30/98 06/30/00 6/30/02

Taxable rate of transactions affected by partial suspensions of exemptions

Exemption Table

October 2000 142

4:168 Pari-mutuel race tracks. 0% 0% 0% 0% 0% 0% 0% 0%

4:227 Off-track betting facilities. 1% 1% 1% 1% 0% 0% 0% 0%

12:425 Nonprofit electrical co-ops. 3% 4% 4% 4% 4% 3% 3% 4%

38:2212.3 Bulk purchases of materials, supplies, vehicles, 1% 1% 1% 1% 0% 0% 0% 0%and equipment by a public trust that is formed togive public entities cost-effective buying power.

39:467 Sales in and admissions to state-owned domed 0% 0% 0% 0% 0% 0% 0% 0%39:468 stadiums and similar facilities.

47:301(3) (a) Separately stated installation charges. 0% 0% 0% 0% 0% 0% 0% 0%Also see R.S. 47:301(13)(a).

(b) Separately stated labor charges on property 0% 0% 0% 0% 0% 0% 0% 0%

repaired out-of-state.

(c) Separately stated charges to install board roads 0% 0% 0% 0% 0% 0% 0% 0%for oil field operators.

(e) Manufacturers rebates given on new vehicles. 1% 1% 1% 1% 0% 0% 0% 0%

(g) Amounts paid by manufacturer directly to Subject to the full 4% 1% 0% 0% 0% 0%

dealers of the manufacturer’s products for the state sales tax until 07/01/96purpose of reducing the sales price of theproduct where such sales price is actually reduced.

47:301(7) (b) Rentals or leases of certain oilfield property 0% 0% 0% 0% 0% 0% 0% 0%for re-lease or re-rental.

(c) Rentals or leases of property to be used in the 1% 1% 1% 1% 0% 0% 0% 0%

performance of a contract with the U.S. Departmentof the Navy for the overhaul of a U.S. Navy vessel.

(d) Leases of airplanes and airplane equipment by 0% 0% 0% 0% 0% 0% 0% 0%

commuter airlines domiciled in Louisiana.

(e) Leases of tangible personal property by Subject to the full 4% 1% 0% 0% 0% 0% 0%hospitals that provide free care to all patients. state sales tax until 07/01/94

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Taxable rate of transactions affected by partial suspensions of exemptionsExemption Table

LouisianaRevised 07/01/92– 07/01/93– 07/01/94– 07/01/96– 10/01/96– 07/01/97– 07/01/98– 07/01/00–Statute Description 06/30/93 06/30/94 06/30/96 09/30/96 06/30/97 06/30/98 06/30/00 6/30/02

October 2000 143

47:301(7) (f) Leases of educational materials and Subject to the full 4% state sales tax 0% 0% 4/0%continued equipment used for classroom until 07/01/97. Subject to the full 4% state

instruction by approved parochial and sales tax from 7/1/00 to 6/30/01.private elementary and secondary schools.

(g) Leases of tangible personal property by Subject to the full 4% 1% 0% 0% 0% 0%

Boys State of Louisiana, Inc., and state sales tax until 07/01/96Girls State of Louisiana, Inc.

(h) Leases of motor vehicles by a licensed Subject to the full 4% 4%/0% 0%

motor vehicle dealer or manufacturer state sales tax until 08/01/98that are furnished at no charge to acustomer under the terms of a warranty agreement.

47:301(8) (b) Sales made to any regionally accredited 1% 1% 1% 1% 0% 0% 0% 0%independent institution of higher education thatis a member of the Louisiana Association ofIndependent Colleges and Universities. This doesnot apply to sales made by the institutions that arenormally subject to the sales tax.

(c) Purchases, leases, storage, or consumption of tangible 0% 0% 0% 0% 0% 0% 0% 0%

personal property and services by the state or local agenciesboards, commissions, instrumentalities, or other politicalsubdivisions within Louisiana.

(d) Sales of bibles, songbooks, literature used Subject to the full 4% state 1% 0% 0% 0% 0%

for religious classes by churches and sales tax until 07/01/96synagogues recognized under IRC 501(c)(3).

(e) Purchases of tangible personal property and Subject to the full 4% state 4%/0% 0%

services and leases of tangible personal sales tax until 08/15/98property by the Society of Little Sisters of the Poor.

47:301(10) (a)(i) Sales or use of automobiles leased for 0% 0% 0% 0% 0% 0% 0% 0%180 days or longer.

(a)(iii) Sales or use of automobiles rented for 0% 0% 0% 0% 0% 0% 0% 0%

less than 180 days.

(a)(iii) Purchases of tangible personal property to be 1% 1% 1% 1% 0% 0% 0% 0%leased or rented.

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LouisianaRevised 07/01/92– 07/01/93– 07/01/94– 07/01/96– 10/01/96– 07/01/97– 07/01/98– 07/01/00–Statute Description 06/30/93 06/30/94 06/30/96 09/30/96 06/30/97 06/30/98 06/30/00 6/30/02

Taxable rate of transactions affected by partial suspensions of exemptions

Exemption Table

October 2000 144

47:301(10) (b) Sales of tangible personal property through vending 0% 0% 0% 0% 0% 0% 0% 0%continued machines.

(c)(i) Natural gas when used in the production of Subject to the suspended 4%/1% 1% 0% 0% 0% 0%iron in the process known as the “direct rate of tax as provided underreduced iron process.” R.S. 47:(305)(D)(1)(g)

until 07/01/95.

(c)(ii) Isolated or occasional sales of tangible personal property. 0% 0% 0% 0% 0% 0% 0% 0%

(c)(ii) Sales of electricity for chlor-alkali manufacturing 0% 0% 0% 0% 0% 0% 0% 0%processes.

(d) Sales of any human tissue transplants, including human 0% 0% 0% 0% 0% 0% 0% 0%

organs, bone, skin, cornea, blood, or blood products.

(e) Sale of raw agricultural commodities to be utilized in 0% 0% 0% 0% 0%producing crops or animals for market.

(g) Sale of corporeal movable property to the 0% 0% 0% 0% 0% 0% 0% 0%

U. S. government when title passes prior toincorporation into the final product.

(h) Sales of food products by Girl Scouts, Boy Scouts, 0% 0% 0% 0% 0% 0% 0% 0%

Big Brother, and Big Sister organizations.

(i) Purchases by independent operators of new or used 1% 1% 1% 1% 0% 0% 0% 0%school buses, which are less than five years old andwhich will be used exclusively in a public schoolsystem.

(j) Purchases of food by food banks as defined by 0% 0% 0% 0% 0% 0% 0% 0%

R.S. 9:2799.

(j) Purchases of tangible personal property by food 4%/1% *1% *1% *1% 0% 0% 0% 0%banks as defined by R.S. 9:2799. *The 1% Subject to the full 4% state sales tax until 08/21/92Louisiana Recovery District Tax does not applyto purchases of food. See exclusion above.

(k) Sales of airplanes and airplane equipment to 0% 0% 0% 0% 0% 0% 0% 0%

commuter airlines domiciled in Louisiana.

(l) Purchases of certain pollution control equipment 1% 1% 1% 1% 0% 0% 0% 0%

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Taxable rate of transactions affected by partial suspensions of exemptionsExemption Table

LouisianaRevised 07/01/92– 07/01/93– 07/01/94– 07/01/96– 10/01/96– 07/01/97– 07/01/98– 07/01/00–Statute Description 06/30/93 06/30/94 06/30/96 09/30/96 06/30/97 06/30/98 06/30/00 6/30/02

October 2000 145

used to control industrial pollution. 47:301(10) (m) Sale of aircraft manufactured in Louisiana with 4%/1% 1% 1% 0% 0% 0% 0% 0%continued seating capacity in excess of fifty persons. Subject to the full 4% state sales tax until 08/21/92

(n) Purchases of "pelletized paper waste" as Subject to the 1% 1% 1% 0% 0% 0% 0%defined for certain specified uses. full 4% state sales

tax until 07/01/93

(o) Purchases of fire-fighting equipment by 0% 0% 0% 0% 0% 0% 0% 0%volunteer fire departments or publicfire departments.

(p) Purchases of tangible personal property by Subject to the full 4% state 1% 1% 0% 0% 0% 0%

hospitals that provide free care to all patients. sales tax until 07/01/94Also see R.S. 47:301(18)(c).

(p) Sales of services to hospitals that provide Subject to the full 4% state 1% 1% 0% 0% 0% 0%

free care to all patients sales tax until 07/01/94

(q) Sales of educational materials and equipment Subject to the full 4% state sales tax 0% 0% 4/0%used for classroom instruction to approved parochial until 07/01/97. Subject to the full 4% stateand private elementary, and secondary schools. sales tax from 7/1/00 to 6/30/01.

(r) Tangible personal property purchased by Boys State Subject to the full 4% state sales tax 1% 0% 0% 0% 0%

of Louisiana, Inc., and Girls State of Louisiana, Inc. until 07/01/96

47:301(13) (a) Market value of a like item traded in on a sale of 0% 0% 0% 0% 0% 0% 0% 0%tangible personal property.

(a) Separately stated finance charges, service charges, 0% 0% 0% 0% 0% 0% 0% 0%

and cash discounts.

(a) Separately stated labor charges for installation 0% 0% 0% 0% 0% 0% 0% 0%of tangible personal property. Also see R.S. 47:301(3)(a).

(b) Manufacturers rebates given on new vehicles. 1% 1% 1% 1% 0% 0% 0% 0%

(c) First $50,000 of the sales price of new farm equipment 1% 1% 1% 1% 0% 0% 0% 0%

used in poultry production.

(e) Amounts paid by manufactures directly to dealers Subject to the full 4% state sales tax 0% 0% 0% 0% 0%of the manufacturer’s products for the purpose of until 07/01/96

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LouisianaRevised 07/01/92– 07/01/93– 07/01/94– 07/01/96– 10/01/96– 07/01/97– 07/01/98– 07/01/00–Statute Description 06/30/93 06/30/94 06/30/96 09/30/96 06/30/97 06/30/98 06/30/00 6/30/02

Taxable rate of transactions affected by partial suspensions of exemptions

Exemption Table

October 2000 146

reducing the sales price of the product where suchsales price is actually reduced.

47:301(14) (b)(i) Admission charges to athletic events of schools, 0% 0% 0% 0% 0% 0% 0% 0%colleges, and universities.

(b)(i) Membership fees or dues of nonprofit, civic 0% 0% 0% 0% 0% 0% 0% 0%

associations including the YMCA, CYO, and YWCA.

(b)(ii) Admissions to art, history, and scientific museums, 0% 0% 0% 0% 0% 0% 0% 0%aquariums, zoological parks, botanical gardens,arboretums, nature centers, planetariums, etc.

(b)(iv) Receipts from camp and retreat facilities owned Subject to the full 4% state sales tax until 08/15/98 4%/0% 0%

and operated by nonprofit religious organizationsorganized for religious purposes. Room rentalreceipt are only excluded if the guests participatein the religious activity of the camp or retreat.

(g) Repairs performed in Louisiana when the repaired 0% 0% 0% 0% 0% 0% 0% 0%

property is delivered out of state.

(h) Sales of any service or action performed pursuant to 1% 1% 1% 1% 0% 0% 0% 0%a contract with the U.S. Department of the Navyfor the construction or overhaul of a U.S. Navy vessel.

(i)(ii)(cc) Sales of interstate telecommunication services to any 3%*

person for use in the operation of one or more call centers.Effective with imposition of 3% state sales tax on 04/01/01.

47:301(16) (b)(i) Stocks, bonds, notes, or other obligations and securities. 0% 0% 0% 0% 0% 0% 0% 0%

(b)(ii) Sales of monetized bullion having a total value of 0% 0% 0% 0% 0% 0% 0% 0%$1000 or more.

(b)(ii) Sales of nonmonetized bullion having a total value of 1% 1% 1% 1% 0% 0% 0% 0%

$1000 or more.

(b)(iii) Proprietary geophysical survey information or 0% 0% 0% 0% 0% 0% 0% 0%geophysical data analysis furnished under arestricted use agreement.

(c) Repair of a vehicle by a licensed motor vehicle dealer *4%/0% 0% 0% 0% 0% 0% 0% 0%

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Taxable rate of transactions affected by partial suspensions of exemptionsExemption Table

LouisianaRevised 07/01/92– 07/01/93– 07/01/94– 07/01/96– 10/01/96– 07/01/97– 07/01/98– 07/01/00–Statute Description 06/30/93 06/30/94 06/30/96 09/30/96 06/30/97 06/30/98 06/30/00 6/30/02

October 2000 147

subsequent to the lapse of a warranty when the repair Subject to the full 4% state sales tax until 08/21/92.is performed at no cost to the owner of the vehicle.

47:301(16) (e) Certain work products created by professionals Subject to full 4% state sales 4%/0% 0% 0%continued licensed under Title 37 in the normal course of their tax until 06/24/98

professional business. Work products that areduplicated without modification for sale to multiplepurchasers and sales of software are not included.

(f) Pharmaceuticals administered to livestock used for 0%

agricultural purchases. Effective 07/01/00.

(g) Used manufactured homes and 54% of price of new Effective when a judgement in Shirley M. Avants, et all v. John Neely Kennedy becomes final andmanufactured homes. nonappealable or a written compromise settlement disposing of all claims is finalized and signed.

47:301(18) (a)(i) Sales or use of automobiles to be leased for 180 days 0% 0% 0% 0% 0% 0% 0% 0%or longer.

(a)(i) Donations of food to qualified food banks by retail *0% *0% *0% *0% *0% *0% 0% 0%

dealers. *Retroactively exempt prior to 7/1/98

(a)(i) Sale or donation to a Louisiana school that meets 0% 0% 0% 0% 0% 0% 0% 0%the definition in R.S. 17:236 or to a public or recognizedindependent institution of higher education of propertyoriginally purchased for resale.

(a)(iii) Sales or use of automobiles to be rented for less than 0% 0% 0% 0% 0% 0% 0% 0%

180 days.

(a)(iii) Tangible personal property other than vehicles 0% 0% 0% 0% 0% 0% 0% 0%acquired for lease or rental.

(c) Supplies and equipment, which are reasonably 0% 0% 0% 0% 0% 0%

necessary for the operation of a free hospital.Subject to the full 4% state sales tax until 07/01/94.

(d)(ii) Tangible personal property created or derived as a Subject to full 4% state sales 1% 0% 0% 0% 0%

residue or byproduct from the processing of raw tax until 07/01/96materials for resale when used by the manufacturerof such property. Does not include refinery gas.

(e)(i) Tangible personal property sold by approved Subject to the full 4% state sales tax 0% 0% 4/0%

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LouisianaRevised 07/01/92– 07/01/93– 07/01/94– 07/01/96– 10/01/96– 07/01/97– 07/01/98– 07/01/00–Statute Description 06/30/93 06/30/94 06/30/96 09/30/96 06/30/97 06/30/98 06/30/00 6/30/02

Taxable rate of transactions affected by partial suspensions of exemptions

Exemption Table

October 2000 148

parochial and private elementary and secondary until 07/01/97. Subject to the full 4% stateschools for support of the school. sales tax from 7/1/00 to 6/30/01

47:301(18) (e)(ii) Purchases of educational materials and equipment Subject to the full 4% state sales tax until 07/01/97 0% 0% 4%continued used for classroom instruction by approved parochial

and private elementary and secondary schools.

(f) Tangible personal property purchased by Boys State Subject to full 4% state sales 1% 0% 0% 0% 0%of Louisiana, Inc., and Girls State of Louisiana, Inc. tax until 07/01/96

47:305(A) (1) Sales of farm products direct from the farm 0% 0% 0% 0% 0% 0% 0% 0%by producers.

(2) Racehorses entered in races and claimed at any 3% 4% 4% 4% 4% 3% 3% 4%

meet in Louisiana.

(4)(a) Sales of feed and feed additives for animals used 0% 0% 0% 0% 0% 0% 0% 0%for commercial or agricultural purposes.

(4)(a)(ii) Sales of feed and feed additives for animals used 3% 4% 4% 4% 4% 3% 3% 4%

for business purposes.

(5) Sales of materials, supplies, equipment, fuel, bait, 3% 4% 4% 4% 4% 3% 3% 4%and related items other than vessels used in theproduction and harvesting of crawfish.

(6) Sales of materials, supplies, equipment, fuel, bait, 4% 4% 4% 4% 4% 3% 3% 4%

and related items other than vessels used in the pro-duction and harvesting of catfish.

47:305(B) Farm products produced by farmers and used by 0% 0% 0% 0% 0% 0% 0% 0%the farmers and their families.

47:305(C) Articles traded in on new articles. 0% 0% 0% 0% 0% 0% 0% 0%

47:305(D)(1) (a) Sales of gasoline. *Provided motor fuels tax has been *0% *0% *0% *0% *0% *0% *0% *0%paid. Otherwise, the suspended rate of tax applies.

(b) Sales of steam. 3% 4% 4% 4% 4% 3% 3% 4%

(c) Sales of nonbottled water. 3% 4% 4% 4% 4% 3% 3% 4%

(d) Sales of electricity (except for use at chlor- 3% 4% 4% 4% 4% 3% 3% 4%

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Taxable rate of transactions affected by partial suspensions of exemptionsExemption Table

LouisianaRevised 07/01/92– 07/01/93– 07/01/94– 07/01/96– 10/01/96– 07/01/97– 07/01/98– 07/01/00–Statute Description 06/30/93 06/30/94 06/30/96 09/30/96 06/30/97 06/30/98 06/30/00 6/30/02

October 2000 149

alkali facilities).

(e) Sales of newspapers. 3% 4% 4% 4% 4% 3% 3% 4% 47:305(D)(1) (f) Sales of fertilizers and containers to farmers. 0% 0% 0% 0% 0% 0% 0% 0%continued

(g) Sales of natural gas. 3% 4% 4% 4% 4% 3% 3% 4%

(h) Materials and energy sources used for boiler fuel 3% 4% 4% 4% 4% 3% 3% 4%or to fuel the generation of electricity for resale.Does not include refinery gas.

(i) New automobiles, trucks, and aircraft removed 3% 4% 4% 4% 4% 3% 3% 4%

from inventory for use as demonstrators.

(j) Drugs prescribed by physicians and dentists. 0% 0% 0% 0% 0% 0% 0% 0%

(k) Wheelchairs for personal use prescribed by 0% 0% 0% 0% 0% 0% 0% 0% physicians or licensed chiropractors.

(k) Wheelchair lifts prescribed by a physician. 1% 1% 1% 1% 0% 0% 0% 0%

(k) Orthotic and prosthetic devices prescribed by 0% 0% 0% 0% 0% 0% 0% 0%

physicians or licensed chiropractors.

(l) Ostomy, colostomy, ileostomy devices and equipment. 0% 0% 0% 0% 0% 0% 0% 0%

(m) Patient aids for home use prescribed by a physician. 0% 0% 0% 0% 0% 0% 0% 0%

(n) through (r) Food for further preparation and consumption 3% 4% 4% 4% 4% 3% 3% 4%in the home.

(s) Medical devices used by a patient in the treatment 0% 0% 0% 0% 0% 0% 0% 0%

of any disease under the supervision of a physicianor administered by a physician, nurse, or other healthcare professional.

(t) Restorative materials used by dentists. 0% 0% 0% 0% 0% 0% 0%

(u) Adaptive driving equipment and motor vehicle Subject to full 4% state sales tax until 06/24/98 4%/3% 3% 4%

modifications prescribed by a physician, orlicensed chiropractor, or driver rehabilitation

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LouisianaRevised 07/01/92– 07/01/93– 07/01/94– 07/01/96– 10/01/96– 07/01/97– 07/01/98– 07/01/00–Statute Description 06/30/93 06/30/94 06/30/96 09/30/96 06/30/97 06/30/98 06/30/00 6/30/02

Taxable rate of transactions affected by partial suspensions of exemptions

Exemption Table

October 2000 150

specialist licensed by the state.

47:305(D)(2) Sales of meals by certain institutions. 3% 4% 4% 4% 4% 3% 3% 4%

47:305(F) Amounts paid by radio and television broadcasters 3% 4% 4% 4% 4% 3% 3% 4%for the rights to broadcast film, video, and tape.

47:305(G) Purchases or rentals of kidney dialysis machines, 0% 0% 0% 0% 0% 0% 0% 0%parts, materials, and supplies for home useunder a physician’s prescription.

47:305.1 Sales and use of 50-ton vessels and new component 0% 0% 0% 0% 0% 0% 0% 0%parts and sales of certain materials and services to vessels operating in foreign and interstate coastwise commerce.

47:305.2 Sales of insulin. 0% 0% 0% 0% 0% 0% 0% 0%

47:305.3 Sales of seeds. 0% 0% 0% 0% 0% 0% 0% 0%

47:305.5 Materials and supplies used in the construction of 3% 4% 4% 4% 4% 3% 3% 4%the Toledo Bend Dam Project. This project wascompleted in 1969. Therefore this exemption is obsolete.

47:305.6 Sales of admission tickets by Little Theater organizations. 3% 4% 4% 4% 4% 3% 3% 4%

47:305.7 Sales of tickets to musical performances of nonprofit 3% 4% 4% 4% 4% 3% 3% 4%musical organizations.

47:305.8 Sales of pesticides to be used for agricultural purposes. 0% 0% 0% 0% 0% 0% 0% 0%

47:305.9 Rentals of motion picture film to commercial theaters. 3% 4% 4% 4% 4% 3% 3% 4%

47:305.10 Property purchased for exclusive use outside 0% 0% 0% 0% 0% 0% 0% 0%the state (offshore).

47:305.11 Additional tax levy on property and services Generally affects only most recent tax levy in 1984 of 1%purchased for use in fulfilling lump sum constructioncontracts in existence at time additional tax is levied.

47:305.12 Purchases of fire fighting equipment by bona fide *0% *0% *0% *0% *0% *0% *Repealedorganized volunteer fire departments and public 6/4/98fire departments. *See R.S. 47:301(10)(o) forexclusion from tax effective 07/01/92.

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Taxable rate of transactions affected by partial suspensions of exemptionsExemption Table

LouisianaRevised 07/01/92– 07/01/93– 07/01/94– 07/01/96– 10/01/96– 07/01/97– 07/01/98– 07/01/00–Statute Description 06/30/93 06/30/94 06/30/96 09/30/96 06/30/97 06/30/98 06/30/00 6/30/02

October 2000 151

47:305.13 Sales of admissions to entertainment events sponsored 3% 4% 4% 4% 4% 3% 3% 4%by domestic nonprofit charitable, religious, andeducational organizations.

47:305.14 (A)(1) Admissions, parking fees, and sales of tangible 0% 0% 0% 0% 0% 0% 0% 0%personal property at certain fund-raising eventssponsored by qualifying organizations.

(A)(1) Sales of newspapers by certain religious organizations. 3% 4% 1% 1% 0% 0% 0% 0%

(A)(4) Sales by thrift shops located on Subject to the full 4% state 1% 1% 0% 0% 0% 0%

military installations. sales tax until 07/01/94

47:305.15 (A) Sales by blind persons who operate certain 0% 0% 0% 0% 0% 0% 0% 0%small businesses.

(B) Sales and purchases by certain organizations Subject to the full 4% state 4%/1% 1% 0% 0% 0% 0%

that provide training for blind persons. sales tax until 08/15/94

47:305.16 Cable television installation and repair services. 0% 0% 0% 0% 0% 0% 0% 0%

47:305.17 Receipts from coin-operated washing and 3% 4% 4% 4% *4%/0% *0% *0% *0%drying machines in commercial laundromat.*See court decision in Frank A. Ferrar dbaSplish Splash v DORT, State of Louisiana, 96-CA-00806(2nd Circuit Court of Appeals), effective 04/04/97.

47:305.18 All outside gate admissions and parking fees at 3% 4% 4% 4% 4% 3% 3% 4%fairs and festivals sponsored by nonprofit organizations.

47:305.19 Receipts from the lease or rental of vessels for use 3% 4% 4% 4% 4% 3% 3% 4%offshore in mineral production, or for providingservices to those engaged in mineral production.

47:305.20 (A) Purchases of fishing boats, supplies, fuel, lubricants, 0% 0% 0% 0% 0% 0% 0% 0%and repairs for the boats by licensed commercialfishermen.

(A) Purchases of repairs, parts, materials, and supplies 1% 1% 1% 1% 0% 0% 0% 0%

used for the operation and maintenance of qualifyingseafood processing plants.

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LouisianaRevised 07/01/92– 07/01/93– 07/01/94– 07/01/96– 10/01/96– 07/01/97– 07/01/98– 07/01/00–Statute Description 06/30/93 06/30/94 06/30/96 09/30/96 06/30/97 06/30/98 06/30/00 6/30/02

Taxable rate of transactions affected by partial suspensions of exemptions

Exemption Table

October 2000 152

47:305.21 Purchases of airplanes, airplane equipment and parts *0% *0% *0% *0% *0% *0% *Repealedby Louisiana-domiciled commuter airlines. 6/4/98*See R.S. 47:301(10)(k) for an exclusion from tax.

47:305.22 Use tax on certain self-propelled earth-moving *0% *1% *1% *1% *0% *0% *0% *0%equipment removed from sales inventory forrental for the purpose of promoting the sale.*See R.S. 47:301(10)(a)(iii) and 301(18)(a)(iii)for exclusion for property purchased for rental.

47:305.24 Sale of monetized bullion in excess of $1000. *See *0% *0% *0% *0% *0% *0% *RepealedR.S. 47:301(16)(a)(iii) for an exclusion from the tax. 6/4/98

47:305.25(A) (1-2) First $50,000 of the sales price of certain rubber-tired 0% 0% 0% 0% 0% 0% 0% 0%farm equipment and attachments.

(3-5) First $50,000 of the sales price of irrigation wells 3% 4% 4% 4% 4% 3% 3% 4%

and related equipment, other farm implements, andon-the-farm facilities used to dry or store grain.

47:305.26 New vehicles furnished by a vehicle dealer to a second- 3% 4% 4% 4% 4% 3% 3% 4%ary school, college, or public school board for use inaccredited driver education program.

47:305.27 Mass-transit equipment purchased by the state and its *0% *0% *0% *0% *0% *0% *Repealedpolitical subdivisions. *See R.S. 47:301(8)(c) for an ex- 6/4/98clusion from the tax.

47:305.28 Gasohol, if the alcohol used in the manufacture has been *0% *0% *0% *0% *0% *0% *0% *0%distilled in Louisiana from agricultural commodities.*If motor fuels tax has been paid.

47:305.29 Sales or leases to state agencies. *See R.S. 47:301(8)(c) *0% *0% *0% *0% *0% *0% *Repealedfor an exclusion from the tax. 6/4/98

Sales or leases to parish and municipal libraries. *0% *0% *0% *0% *0% *0% *Repealed*See R.S. 47:301(8)(c) for an exclusion from the tax. 6/4/98

Sales or leases to school boards, parish and municipal *0% *0% *0% *0% *0% *0% *Repealedgoverning authorities. *See R. S. 47:301(8)(c) for an 6/4/98exclusion from the tax.

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Taxable rate of transactions affected by partial suspensions of exemptionsExemption Table

LouisianaRevised 07/01/92– 07/01/93– 07/01/94– 07/01/96– 10/01/96– 07/01/97– 07/01/98– 07/01/00–Statute Description 06/30/93 06/30/94 06/30/96 09/30/96 06/30/97 06/30/98 06/30/00 6/30/02

October 2000 153

Sales or leases to parish hospital service districts. *0% *0% *0% *0% *0% *0% *Repealed*See R.S. 47:301(8)(c) for an exclusion from the tax. 6/4/98

Sales or leases to law enforcement districts. *See *0% *0% *0% *0% *0% *0% *RepealedR. S. 47:301(8)(c) for an exclusion from the tax. 6/4/98

47:305.31 Materials used for the construction of approved *4% *4% *4% *4% *4% *4% *4% *4%energy conservation or energy conversionproperty purchased by Louisiana manufacturingestablishments and public utilities. *Exemptionexpired 12/31/89.

47:305.33 Sales of materials for the construction of and 3% 4% 4% 4% 4% 3% 3% 4%supplies for the operation of certain nonprofitmultipurpose retirement centers.

47:305.34 Sales or leases to certain waterworks districts. *0% *0% *0% *0% *0% *0% *Repealed*See R.S. 47:301(8)(c) for an exclusion from the tax. 6/4/98

47:305.35 Purchases by public housing authorities. *See *0% *0% *0% *0% *0% *0% *RepealedR.S. 47:301(8)(c) for an exclusion from the tax. 6/4/98

47:305.36 (A) Sales of motor vehicles to be leased or rented by *0% *0% *0% *0% *0% *0% *0% *0%by qualified lessors. *See R.S. 47:301(10)(a)(i),(10)(a)(iii) and (18)(a)(iii) for an exclusion from the tax.

(A) Leases of motor vehicles by qualified lessors for 3% 3% 3% 3% 3% 3% 3% 4%

re-lease or re-rental.

47:305.37 Sales of diesel fuel, butane, propane, or other 0% 0% 0% 0% 0% 0% 0% 0%liquefied petroleum gases to farmers.

47:305.38 Sales or purchases by sheltered workshops for 0% 0% 0% 0% 0% 0% 0% 0%the mentally retarded licensed by the LouisianaDepartment of Health and Hospitals.

47:305.39 Purchases of butane, propane and liquefied 3% 4% 4% 4% 4% 3% 3% 4%petroleum gases for private residential consumption.

47:305.40 Specialty items purchased by carnival and non- 3% 4% 4% 4% 4% 3% 3% 4%profit organizations sponsoring a Mardi Grasparade or ball.

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LouisianaRevised 07/01/92– 07/01/93– 07/01/94– 07/01/96– 10/01/96– 07/01/97– 07/01/98– 07/01/00–Statute Description 06/30/93 06/30/94 06/30/96 09/30/96 06/30/97 06/30/98 06/30/00 6/30/02

Taxable rate of transactions affected by partial suspensions of exemptions

Exemption Table

October 2000 154

47:305.41 Purchases, sales, and rentals of tangible personal 3% 4% 4% 4% 4% 3% 3% 4%property by Ducks Unlimited.

Purchases, sales, and rentals of tangible personal Subject to the full 4% state sales tax until 07/01/98 3% 4%property by Bass Life Associates.

47:305.42 Tickets to dance or drama sponsored by domestic 3% 4% 4% 4% 4% 3% 3% 4%nonprofit organizations.

47:305.43 (A) Purchases and sales made by nonprofit organizations 3% 4% 4% 4% 4% 3% 3% 4%dedicated exclusively to the conservation of migratoryNorth American waterfowl and wetland habitat.

(A) Purchases made by nonprofit organizations Subject to the full 4% state sales tax until 07/01/98 3% 4%

dedicated to the conservation of fish.

47:305.44 Raw materials used in a printing process. 3% % 4% 4% 4% 3% 3% 4%

47:305.45 Cars, piggy back trailers, and rolling stock owned, 3% 4% 4% 4% 4% 3% 3% 4%operated, or leased by a railroad.

47:305.46 Purchases made with United States Department of 0% 0% 0% 0% 0% 0% 0% 0%Agriculture food stamp coupons and purchases madeunder the Women, Infants, and Children’s Program.

47:305.47 Pharmaceutical samples manufactured or imported 4% 4% 4% 4% 4% 3% 3% 4%into the state free of charge.

47:305.48 Motor vehicles purchased in another state by military *0% *0% *0% *0% *0% *0% *0% *0%personnel stationed in Louisiana who are residents This generally duplicates provisions of federal law which mandates exemption.of the state where the vehicle was purchased and havepaid that state’s tax. *Credit is allowed for taxes paidto another state under R.S. 47:303(A).

47:305.49 Catalogs distributed in the state free of charge. 4% % 4% 4% 4% 3% 3% 4%

47:305.50 (A) Purchases of trucks, tandem trucks, tractors, and Subject to the 4% state sales 1% 0% 0% 0% 0%truck-trailers with a gross weight of 26,000 pounds tax until 07/01/96. Taxed at 1%or more and trailers and semi-trailers as defined in (LRD) until 10/01/96.R.S. 47:451 that are used at least 80% of the timein interstate commerce.

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Taxable rate of transactions affected by partial suspensions of exemptionsExemption Table

LouisianaRevised 07/01/92– 07/01/93– 07/01/94– 07/01/96– 10/01/96– 07/01/97– 07/01/98– 07/01/00–Statute Description 06/30/93 06/30/94 06/30/96 09/30/96 06/30/97 06/30/98 06/30/00 6/30/02

October 2000 155

(A) Purchases of contract carrier buses used at least Subject to the full 4% state sales tax until 06/30/98 4%/0% 0% 0%80% in interstate commerce with a minimumpassenger capacity of 35 persons and a grossvehicle weight of 26,000 pounds.Effective 06/30/98.

47:305.50 (B) Railroad rolling stock manufactured in this state This exemption is sheltered 1% 0% 0% 0% 0%continued for use in interstate commerce. from the suspension of

exemptions beginning 07/01/96.Taxed at 1% (LRD) until 10/01/96.

47:305.51 Purchases of utilities by approved steelworks and Subject to full 4% state sales tax 0% 4%/0%blast furnaces under certain specified conditions. until 07/01/98*4% tax applicable from 07/01/00 until 4/01/01.

47:315.1 Refunds of sales/use taxes paid on property 0% 0% 0% 0% 0% 0% 0% 0%destroyed in a natural disaster in Louisianawhen declared so by the United States president.

47:315.2 Materials used in the restoration, renovation, 3% 4% 4% 4% 4% 3% 3% 4%40:582.1 through or rehabilitation of existing structures or in40:582.7 new housing construction in certain designated47:1515. areas.33:2718.3

47:315.3 Refunds of sales taxes paid on leases and 0% 0% 0% 0% 0% 0% 0% 0%purchases of corporeal movable propertyafter property paid by or under the provisionsof Medicare. *Effective 08/15/94. Transactionsoccurring before that date are eligible underthis refund provision.

47:1121-1128 Purchases made by qualifying motion picture 1% 1% 1% 1% 0% 0% 0% 0%production companies. Requires prior approvalfrom the Department of Economic Development.

47:6001 Antique airplanes held by private collectors, 3% 4% 4% 4% 4% 3% 3% 4%and not being used for commercial purposes.

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156 August 2001

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Index

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Advance tax .................................................................... 47:306(B) .......................................... 101Advertising ..................................................................... 47:302(D) ........................................... 49 " ..................................................................................... HCR 63 ............................................... 53Aircraft, sales of ............................................................. 47:301(10)(m) ..................................... 20Airlines, commuter ......................................................... 47:305.21 ............................................ 90 " ..................................................................................... 47:301(7)(d) ........................................ 15 " ..................................................................................... 47:301(10)(k) ...................................... 19Allowances ..................................................................... 47:315(A) ......................................... 115Amusement places, events ballet organizations ....................................................... 47:305.42 ............................................ 96 Little Theater tickets ..................................................... 47:305.6 .............................................. 79 museums ....................................................................... 47:301(14)(b)(ii) ................................. 22 Symphony organizations .............................................. 47:305.7 .............................................. 80 sponsored by nonprofit groups ..................................... 47:305.13 ............................................ 86 " ..................................................................................... 47:305.14 ............................................ 86 " ..................................................................................... 47:305.18 ............................................ 88 tax levied on ................................................................. 47:301(14)(b) ...................................... 22 various exclusions ........................................................ 47:301(14)(b)(i-ii) .............................. 22Assessments of tax ......................................................... 47:307 ............................................... 109Auctioneers ..................................................................... 47:303(C) ............................................ 57

Bad debts ........................................................................ 47:315(B) .......................................... 115Blind persons .................................................................. 47:305.15 ............................................ 88Blood .............................................................................. 47:301(10)(d) ...................................... 19Board roads ..................................................................... 47:301(3)(c) ....................................... 13Boats, vessels commercial fishing ....................................................... 47:305.20 ............................................ 89 in foreign, interstate commerce .................................... 47:305.1(B) ......................................... 77 leased for use offshore .................................................. 47:305.19 ............................................ 89 over fifty tons ............................................................... 47:305.1(A) ........................................ 76 tax payment before registration .................................... 47:303(D) ........................................... 57Boiler fuel ....................................................................... 47:305(D)(1)(h) .................................. 70Boys State of Louisiana, Inc. .......................................... 47:301(7)(g) ........................................ 16 " ..................................................................................... 47:301(10)(r) ...................................... 20 " ..................................................................................... 47:301(18)(f) ...................................... 34Breeders’ associations, sales by ...................................... 47:305(A)(2) ....................................... 68Broadcast tapes ............................................................... 47:305(F) ............................................ 71Byproducts of processed raw materials .......................... 47:301(18)(d)(ii) ................................. 33Building components, repairs to ..................................... 47:301(14)(g)(ii) ................................. 23Bullion, sale of monetized .............................................. 47:301(16)(b)(ii) ................................. 30Business .......................................................................... 47:301(1) ............................................ 13Butane ............................................................................. farm purposes ............................................................... 47:305.37 ............................................ 95 residential use ............................................................... 47:305.39 ............................................ 95

Cable television .............................................................. 47:305.16 ............................................ 88Cash discounts/rebates on new motor vehicles .............. 47:301(3)(e) ........................................ 14 " ..................................................................................... 47:301(13)(b) ...................................... 21Cash register reprogramming credit ............................... Acts 1990, No. 386, Section 4 ............ 51Catalogs .......................................................................... 47:302(K) ........................................... 50

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Catalogs .......................................................................... 47:305.49 ............................................ 99Caterers ........................................................................... 47:301(12) .......................................... 21Catfish, production or harvesting ................................... 47:305(A)(6) ....................................... 69Catholic Youth Organization (CYO) .............................. 47:301(14)(b)(i) .................................. 22Cease business (Judicial proceeding) ............................. 47:314 ............................................... 114Chlor-alkali process ........................................................ 47:301(10)(c)(ii) ................................. 19Churches and synagogues, purchases by ........................ 47:301(8)(d) ........................................ 16Cities, purchases by ........................................................ 47:301(8)(c) ........................................ 16Claiming races ................................................................ 47:305(A)(2) ....................................... 68Cleaning .......................................................................... 47:301(14)(e) ...................................... 23Coins, sale of .................................................................. 47:301(16)(b)(ii) ................................. 30Cold storage .................................................................... 47:301(14)(f) ...................................... 23Collection ....................................................................... 47:303 ................................................. 55 " ..................................................................................... 47:304 ................................................. 64Collector ......................................................................... 47:301(2) ............................................ 13Colleges and universities, purchases by ......................... 47:301(8)(b) ........................................ 16Colostomy devices .......................................................... 47:305(D)(1)(l) ................................... 70Commercial fisherman andcertain seafood processing facilities ............................... 47:305.20 ............................................ 89Computer software ......................................................... 47:301(16)(a) ...................................... 30Containers (for farm products) ....................................... 47:305(D)(1)(f) ................................... 70Contracts, effect of new taxes on.................................... 47:305.11 ............................................ 85Contracts, nonresident, payment of tax by ..................... 47:306(D) ......................................... 103Cornea ............................................................................. 47:301(10)(d) ...................................... 19Cost price ........................................................................ 47:301(3) ............................................ 13Crawfish, producing and harvesting ............................... 47:305(A)(5) ....................................... 69

Dealer, defined ................................................................ 47:301(4) ............................................ 14Debts, worthless ............................................................. 47:315(B) .......................................... 115Demonstrators (autos, trucks, aircraft) defined .......................................................................... 47:305(H) ........................................... 72 exemption for ................................................................ 47:305(D)(1)(i) ................................... 70Diesel fuel used for farm purposes ................................. 47:305.37 ............................................ 95Direct payment numbers ................................................. 47:303(G) ........................................... 58 " ..................................................................................... 47:303.1 .............................................. 63Disaster, property destroyed in (refund) ......................... 47:315.1 ............................................ 117Discounts ........................................................................ 47:301(13) .......................................... 21Drilling vessels, barges ................................................... 47:305.1(A) ........................................ 76Driver education vehicles ............................................... 47:305.26 ............................................ 92Drugs, prescription ......................................................... 47:305(D)(1)(j) ................................... 70 defined .......................................................................... 47:301(20) .......................................... 34Ducks Unlimited ............................................................. 47:305.41 ............................................ 96Due date of returns ......................................................... 47:306(A) ......................................... 100Dyeing ............................................................................ 47:301(14)(e) ...................................... 23

Educational materials purchased or leased by private or parochial schools ..................................... 47:301(7)(f) ........................................ 16 " ..................................................................................... 47:301(10)(q) ...................................... 20 " ..................................................................................... 47:301(18)(e) ...................................... 34Electricity........................................................................ 47:301(10)(c)(ii) ................................. 19

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" ..................................................................................... 47:305(D)(1)(d) .................................. 70Energy conservation property exemption ..................................................................... 47:305.31 ............................................ 92Engaging in business ...................................................... 47:301(4)(h) ........................................ 14Excess tax ....................................................................... 47:304(D) ........................................... 64Excise taxes .................................................................... 47:301(13) .......................................... 21Exemptions, suspension of July 1, 1986–June 30, 1987 .......................................... HCR 55 ............................................... 66 January 1, 1987–June 30, 1988 .................................... 47:332(B) .......................................... 125 July 1, 1988–June 30, 1989 .......................................... HCR 163, 47:302(F) ..................... 66, 49 July 1, 1989–July 9, 1990 ............................................. HCR 1 & HCR 160....................... 68, 67 July 1, 1990–June 30, 1991 .......................................... 47:302(G) ........................................... 49 July 10, 1990–June 30, 1991 ........................................ 47:331(F) .......................................... 124 July 1, 1991–June 30, 1992 .......................................... 47:302(H); 47:331(G) ................. 49, 124 July 1, 1992–June 30, 1994 .......................................... 47:302(I); 47:331(H) ................... 50,124 July 1, 1994–June 30, 1996 .......................................... 47:302(L); 47:331(J) .................. 50, 124 July 1, 1996–June 30, 1998 .......................................... 47:302(M); 47:321(E); 47:331(K)51, 120, 124Export ............................................................................. 47:305(E) ............................................ 71Extensions ....................................................................... 47:306(A)(4) ..................................... 101

Fabrication ...................................................................... 47:301(12) .......................................... 21Fairs, festivals (sponsored by nonprofit organizations ................................................. 47:305.18 ............................................ 88Farm property, exemption equipment ..................................................................... 47:305.25 ............................................ 91 fertilizer, containers ...................................................... 47:305(D)(1)(f) ................................... 70 " ..................................................................................... 47:301(10)(e) ...................................... 19 fuels .............................................................................. 47:305.37 ............................................ 95 pesticides ...................................................................... 47:305.8 .............................................. 80 poultry equipment ......................................................... 47:301(13)(c) ...................................... 21 products used by farmers .............................................. 47:305(B) ............................................ 69 sales by farmers ............................................................ 47:305(A)(1) ....................................... 68 seeds ............................................................................. 47:305.3 .............................................. 78 " ..................................................................................... 47:301(10)(e) ...................................... 19Feed and seed additives .................................................. 47:301(10)(e) ...................................... 19 " ..................................................................................... 47:305(A)(4) ....................................... 69Fertilizer (sold to farmers) .............................................. 47:305(D)(1)(f) ................................... 70Finance charges .............................................................. 47:301(13) .......................................... 21Fire department, volunteer .............................................. 47:301(10)(o) ...................................... 20Fire department, volunteer .............................................. 47:301(10)(o) ...................................... 20Fishermen, exemption for commercial ........................... 47:305.20 ............................................ 89Food banks, purchases by ............................................... 47:301(10)(j) ....................................... 19Food sales exemption for certain products ..................................... 47:305(D)(1)(n)-(r) ............................. 70 exemption on food stamp purchases ............................. 47:305.46 ............................................ 98For hire carrier ................................................................ 47:306.1 ............................................ 108Forms .............................................................................. 47:316 ............................................... 119Freight charges ............................................................... 47:301(3)(a) ........................................ 13 " ..................................................................................... 47:301(13) .......................................... 21

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Fuels boiler fuel ...................................................................... 47:305(D)(1)(h) .................................. 70 farm use fuels................................................................ 47:305.37 ............................................ 95 for electricity generation ............................................... 47:305(D)(1)(d) .................................. 70 gasohol .......................................................................... 47:305.28 ............................................ 92 gasoline ......................................................................... 47:305(D)(1)(a) .................................. 69 liquefied gases for residences ....................................... 47:305.39 ............................................ 95 natural gas ..................................................................... 47:305(D)(1)(g) .................................. 70 refinery gas ................................................................... 47:305(D)(1)(h) .................................. 70 pelletized paper waste ................................................... 47:301(10)(n) ...................................... 20 steam ............................................................................. 47:305(D)(1)(b) .................................. 70Fungible goods ............................................................... 47:305.10 ............................................ 81

Gas, natural ..................................................................... 47:305(D)(1)(g) .................................. 70Gasoline .......................................................................... 47:305(D)(1)(a) .................................. 69Gasohol ........................................................................... 47:305.28 ............................................ 92Geophysical survey information ..................................... 47:301(16)(b)(iii) ................................ 30Goodwill repairs, motor vehicles.................................... 47:301(16)(c) ...................................... 30

Health clubs, payment of tax by ..................................... 47:303(F) ............................................ 58Helicopters ...................................................................... 47:302.1 .............................................. 54Horses, sales at claiming races ....................................... 47:305(A)(2) ....................................... 68Hospital service districts, purchases by .......................... 47:301(8)(c) ........................................ 16Hotels .............................................................................. 47:301(6) ............................................ 15 " ..................................................................................... 47:301(14)(a) ...................................... 22Housing authorities, public ............................................. 47:301(8)(c) ........................................ 16

Ileostomy devices ........................................................... 47:305(D)(1)(l) ................................... 70Immovables by declaration, repairs to ............................ 47:301(14)(g)(ii) ................................. 23Imported property attachment of ................................................................ 47:312 ............................................... 113 permits to import .......................................................... 47:313 ............................................... 113Installation ...................................................................... 47:301(3)(a) ........................................ 13 " ..................................................................................... 47:301(13)(a) ...................................... 21Insulin ............................................................................. 47:305.2 .............................................. 78Interstate commerce ........................................................ 47:305(E) ............................................ 71

Kidney dialysis equipment ............................................. 47:305(G) ........................................... 72

Laundromat, coin operated ............................................. 47:305.17 ............................................ 88Laundry as taxable service .......................................................... 47:301(14)(e) ...................................... 23 for interstate, foreign vessels ........................................ 47:305.1(B) ......................................... 77Law enforcement districts, purchases by ........................ 47:305.29 ............................................ 92Lease, rental defined .......................................................................... 47:301(7) ............................................ 15 equipment rented to promote sale ................................. 47:305.22 ............................................ 90 helicopters ..................................................................... 47:302.1 .............................................. 54 motion picture film ....................................................... 47:305.9 .............................................. 81 tangible personal property purchased for lease or rental ........................................ 47:301(10)(a) ...................................... 17

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" .................................................................................... 47:301(18)(a) ...................................... 32 tax imposed on .............................................................. 47:302(B) ............................................ 48 " ................................................................................... 47:331(B) .......................................... 122 tax due on ..................................................................... 47:306(A)(2)(a) ................................ 101 vessels used offshore .................................................... 47:305.19 ............................................ 89 vehicles purchased for lease ......................................... 47:305.36 ............................................ 94 " ..................................................................................... 47:301(10)(a) ...................................... 17 " ..................................................................................... 47:301(18)(a) ...................................... 32Libraries, purchases by ................................................... 47:301(8)(c) ........................................ 16Little Theater tickets. ...................................................... 47:305.6 .............................................. 79Livestock auctions, sales by ........................................... 47:305(A)(2) ....................................... 68

Mardi Gras items, exemption for .................................... 47:305.40 ............................................ 95Medical, health care property devices generally .......................................................... 47:305(D)(1)(s) ................................... 70 drugs ............................................................................. 47:305(D)(1)(j) ................................... 70 insulin ........................................................................... 47:305.2 .............................................. 78 kidney dialysis .............................................................. 47:305(G) ........................................... 72 ostomy, ileostomy, colostomy devices ......................... 47:305(D)(1)(l) ................................... 70 patient aids .................................................................... 47:305(D)(1)(m) ................................. 70 wheelchair lifts ............................................................. 47:305(D)(1)(k) .................................. 70 wheelchairs ................................................................... 47:305(D)(1)(k) .................................. 70Motion picture film rental............................................... 47:305.9 .............................................. 81Motorboats ...................................................................... 47:303(D) ........................................... 57Motor vehicle, active military ........................................ 47:305.48 ............................................ 99Municipalities, purchases by .......................................... 47:301(8)(c) ........................................ 16Museums......................................................................... 47:301(14)(b)(ii) ................................. 22

Natural gas ...................................................................... 47:301(10)(c) ...................................... 19 " ..................................................................................... 47:305(D)(1)(g) .................................. 70New taxes, contracts in force before levy....................... 47:305.11 ............................................ 85Newspapers ..................................................................... 47:305(D)(1)(e) .................................. 70Nonprofit organizations ballet organizations ....................................................... 47:305.42 ............................................ 96 certain entertainment events ......................................... 47:305.13 ............................................ 86 Ducks Unlimited ........................................................... 47:305.41 ............................................ 96 Little Theater tickets ..................................................... 47:305.6 .............................................. 79 Mardi Gras organizations ............................................. 47:305.40 ............................................ 95 membership fees or dues .............................................. 47:301(14)(b)(i) .................................. 22 migratory waterfowl organizations ............................... 47:305.43 ............................................ 97 sales, admissions ........................................................... 47:305.14 ............................................ 86 symphony organizations ............................................... 47:305.7 .............................................. 80

Occasional sale ............................................................... 47:301(1) ............................................ 13 " ..................................................................................... 47:301(10)(c) ...................................... 19 " ..................................................................................... 47:303(B)(4) ....................................... 57Off-road vehicles defined .......................................................................... 47:301(17) .......................................... 31 tax on ............................................................................ 47:304(A) ........................................... 64Offshore area, property used in ...................................... 47:305.10 ............................................ 81

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Organ, human ................................................................. 47:301(10)(d) ...................................... 19Orthotic devices .............................................................. 47:305(D)(1)(k) .................................. 70Ostomy devices .............................................................. 47:305(D)(1)(l) ................................... 70Other state property used in ............................................................ 47:305.10 ............................................ 81 taxes paid to .................................................................. 47:303(A) ........................................... 55

Parishes, purchases by .................................................... 47:305.29 ............................................ 92Parking, vehicle as taxable services ........................................................ 47:301(14)(c) ...................................... 23 at fairs, festivals ............................................................ 47:305.18 ............................................ 88Patient aids ...................................................................... 47:305(D)(1)(m) ................................. 70Pelletized paper waste .................................................... 47:301(10)(n) ...................................... 20Pesticides ........................................................................ 47:305.8 .............................................. 80Pharmaceutical samples .................................................. 47:305.47 ............................................ 99Pollution control equipment ........................................... 47:301(10)(l) ....................................... 19Printin as taxable service .......................................................... 47:301(14)(d) ...................................... 23 commercial printers’ exemption ................................... 47:305.44 ............................................ 97Prosthetic devices ........................................................... 47:305(D)(1)(k) .................................. 70Public Housing Authority ............................................... 47:301(8)(c) ........................................ 16 " ..................................................................................... 47:305.35 ............................................ 94

Quarterly filing ............................................................... 47:306(A) ......................................... 100

Radio tapes ..................................................................... 47:305(F) ............................................ 71Railcars ........................................................................... 47:305.45 ............................................ 97 " ..................................................................................... 47:305.50 ............................................ 99Railroads ......................................................................... 47:305.45 ............................................ 97Rate of tax ....................................................................... 47:302 ................................................. 47 " ..................................................................................... 47:321 ............................................... 120 " ..................................................................................... 47:331 ............................................... 122Raw agricultural products ............................................... 47:301(10)(e) ...................................... 19Reciprocity ..................................................................... 47:303(A)(3) ....................................... 55Record keeping requirement ........................................... 47:309 ............................................... 111 " ..................................................................................... 47:310 ............................................... 112Refinery gas .................................................................... 47:301(3)(f) ........................................ 14Repairs as taxable service .......................................................... 47:301(14)(g) ...................................... 23 for commercial fishermen ............................................. 47:305.20 ............................................ 89 for offshore users .......................................................... 47:301(14)(g) ...................................... 23 goodwill, vehicles ......................................................... 47:301(16)(c) ...................................... 30Repair to cable television ......................................................... 47:305.16 ............................................ 88 to certain vessels ........................................................... 47:305.1(B) ......................................... 77 to immovables by declaration ....................................... 47:301(14)(g)(ii) ................................. 23 to property sent out-of-state .......................................... 47:301(3)(b) ........................................ 13 " ..................................................................................... 47:301(14)(g) ...................................... 23 to property sold ............................................................. 47:301(13) .......................................... 21Retail sale, defined ......................................................... 47:301(10) .......................................... 17

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Retirement centers, nonprofit ......................................... 47:305.33 ............................................ 94Returned sales ................................................................. 47:315(A) ......................................... 115Returns due date of .................................................................... 47:306(A) ......................................... 100 failure to file ................................................................. 47:307 ............................................... 109 " ..................................................................................... 47:308 ............................................... 110

Sale, defined ................................................................... 47:301(12) .......................................... 21Sale, tax imposed on ....................................................... 47:302(A)(1) ....................................... 47 "...................................................................................... 47:321 ............................................... 120 "...................................................................................... 47:331(A) ......................................... 122Sales price, defined ......................................................... 47:301(13) .......................................... 21Sales tax required to be separately stated ....................... 47:304(G) ........................................... 65Schedules, tax collection ................................................ 47:304(C) ............................................ 64Schools, donations to ...................................................... 47:301(18) .......................................... 32School boards, purchases by ........................................... 47:305.29 ............................................ 92School buses, purchases of ............................................. 47:301(10)(i) ....................................... 19Seeds ............................................................................... 47:305.3 .............................................. 78Service charges ............................................................... 47:301(13)(a) ...................................... 21Services, definition of taxable ........................................ 47:301(14) .......................................... 22Services, tax imposed on ................................................ 47:302(C) ............................................ 48 "...................................................................................... 47:321 ............................................... 120 "...................................................................................... 47:331 ............................................... 122Sheltered workshops, exemption for .............................. 47:305.38 ............................................ 95Ships ............................................................................... 47:305.1 .............................................. 76State government, purchases by ..................................... 47:301(8)(c) ........................................ 16 hospital service districts................................................ 47:301(8)(c) ........................................ 16 law enforcement district ............................................... 47:301(8)(c) ........................................ 16 libraries ......................................................................... 47:301(8)(c) ........................................ 16 parishes ......................................................................... 47:301(8)(c) ........................................ 16 public housing authority ............................................... 47:301(8)(c) ........................................ 16 school boards ................................................................ 47:301(8)(c) ........................................ 16 schools .......................................................................... 47:301(8)(c) ........................................ 16 waterworks district ....................................................... 47:301(8)(c) ........................................ 16Steam .............................................................................. 47:305(D)(1)(b) .................................. 70Stocks (not tangible property) ........................................ 47:301(16)(b)(i) .................................. 30Successor liability ........................................................... 47:308 ............................................... 110Symphony organization tickets ...................................... 47:305.7 .............................................. 80

Tangible personal property, defined ............................... 47:301(16) .......................................... 30Telecommunications services ......................................... 47:301(14)(i)(i) ................................... 23Television tape ................................................................ 47:305(F) ............................................ 71Termination of business .................................................. 47:308 ............................................... 110Toledo Bend Dam ........................................................... 47:305.5 .............................................. 79Trade-in........................................................................... 47:301(13)(a) ...................................... 21 " ..................................................................................... 47:303(B) ............................................ 56Transit equipment ........................................................... 47:305.27 ............................................ 92Transportation companies examination of records of ............................................. 47:311 ............................................... 112 payment of tax by ......................................................... 47:306.1 ............................................ 108

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Trucks, used in interstate commerce .............................. 47:305.50 ............................................ 99Uncollectible accounts .................................................... 47:315(B) .......................................... 115United States government agencies ................................ 47:301(7)(c) ........................................ 15 " ..................................................................................... 47:301(10)(g) ...................................... 19 " ..................................................................................... 47:301(14)(h) ...................................... 23Use tax collection of .................................................................. 47:303(A) ........................................... 55 " ..................................................................................... 47:305.10 ............................................ 81 defined .......................................................................... 47:301(19) .......................................... 34 tax levied ...................................................................... 47:302(A)(2) ....................................... 47 " ..................................................................................... 47:321(A)(2) ..................................... 120 " ..................................................................................... 47:331(A)(2) ..................................... 122

Vehicles active military ............................................................... 47:305.48 ............................................ 99 collection of tax on ....................................................... 47:303(B) ............................................ 56 demonstrators ............................................................... 47:305(D)(1)(i) ................................... 70 " ..................................................................................... 47:305(H) ........................................... 72 domicile of purchaser ................................................... 47:301(10)(f) ...................................... 19 " ..................................................................................... 47:301(18)(b) ...................................... 33 driver education ............................................................ 47:305.26 ............................................ 92 exemption on purchases for lease ................................. 47:305.36 ............................................ 94 goodwill repairs ............................................................ 47:301(16)(c) ...................................... 30 special rental credit ....................................................... 47:305.22 ............................................ 90 trucks used in interstate commerce ............................... 47:305.50 ............................................ 99 washing of .................................................................... 47:301(14)(e) ...................................... 23Vending machines ........................................................... 47:301(10)(b) ...................................... 18Vendor’s compensation ................................................... 47:306(A)(3)(a) ................................ 101 " ..................................................................................... 47:306(B)(4)(a) ................................. 102Vessels ............................................................................ 47:305.1 .............................................. 76Volunteer fire departments .............................................. 47:301(10)(o) ...................................... 20 " ..................................................................................... 47:305.12 ............................................ 85

“W” numbers .................................................................. 47:306(B) .......................................... 101W.I.C. vouchers .............................................................. 47:305.46 ............................................ 98Water ............................................................................... 47:305(D)(1)(c) .................................. 70Waterworks districts ....................................................... 47:301(8)(c) ........................................ 16 " ..................................................................................... 47:305.34 ............................................ 94Wheelchairs .................................................................... 47:305(D)(1)(k) .................................. 70Wheelchair lifts............................................................... 47:305(D)(1)(k) .................................. 70 " ..................................................................................... 47:305(D)(4) ....................................... 71Wholesalers, collection of tax by ................................... 47:306(B) .......................................... 101

Youth organizations ........................................................ 47:301(10)(h) ...................................... 19Young Men’s Christian Association (YMCA) ................ 47:301(14)(b)(i) .................................. 22Young Women’s Christian Association (YWCA)........... 47:301(14)(b)(i) .................................. 22

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A publication of the: Louisiana Department of RevenuePost Office Box 201, Baton Rouge, LA 70821-0201