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Tax Facts Vol. 17, No. 1

Tax Facts Index

TAX FACTS NEWSLETTER

East Baton Rouge Parish

Department of Finance

Vol. 17,  No. 1

January 2006

New Laws Affect Sales and Use Tax

The Louisiana Legislature enacted several measures affecting local sales and use taxes during its 2005 Regular Session. Included were:

Act 278 (Senate Bill 27) provides a state and local sales tax exemption for non-profit organizations that were established prior to 1975 conducting comprehensive programs on sickle cell disease. Qualifying organizations are required to obtain exemption certificates from the Department of Revenue. Please note that the Revenue Division will recognize this certificate for local sales tax purposes. Effective July 1, 2005.

Act 293 (Senate Bill 293) Grants an exclusion from state and local sales tax for non-profit organizations that donate toys to children. Qualifying organizations are required to obtain exemption certificates from the Department of Revenue. Please note that the Revenue Division will recognize this certificate for local sales tax purposes. Effective July 1, 2005.

Act 301 (Senate Bill 196) Amends the Civil Code, Article 466, with respect to component parts of "immovables," and no longer refers to component parts of buildings or other constructions. The Article provides that things such as plumbing, heating, cooling, electrical, or other installations are component parts of an immovable as a matter of law, and that other things are considered to be permanently attached to an immovable if they cannot be removed without substantial damage to themselves or to the immovable or, if according to prevailing notions in society, they are considered to be component parts of an immovable. Effective June 30, 2005.

Act 357 (House Bill 212) Extends the termination date regarding the exclusion from state and local sales tax of certain transactions involving certain private and parochial elementary and secondary schools from July 2, 2005 to July 1, 2009.

These exclusions from the term "lease or rental", "sale at retail", "use", apply to books, workbooks, computers, computer software, films, videos, and audiotapes. This Act further provides a sales and use tax exclusion on sales of tangible personal property by approved parochial and private elementary and secondary schools and students, administrators, teachers, or other employees of the schools, if the proceeds of the sales, less reasonable and necessary expenses, are used solely to support the school or its curricula. Effective June 30, 2005.

Act 362 (House Bill 301) Provides a state and local sales tax exclusion for cranes and related equipment leased or rented with an operator. Also provides that cranes leased or rented with an operator are taxed upon first use in Louisiana. Effective July 1, 2005.

Act 394 (House Bill 867) Provides that an applicant for registration in Louisiana of a vehicle that has been previously registered in another state shall be given credit against the state and local use tax for the rate of sales or use taxes paid on the vehicle in that other state. In order for the credit to be allowed, the other state must similarly allow credit against its use tax for sales or use taxes paid in Louisiana. The applicant for vehicle registration in Louisiana must be able to document the amount of the tax payment in the other state. Effective July 1, 2005.

Act 397 (House Bill 78) Provides a state and local sales and use tax exemption for rail rolling stock sold or leased in Louisiana. In addition, it provides a state and local sales tax exemption for parts or services used in the fabrication, modification or repair of rail rolling stock. Political subdivisions are authorized to provide by ordinance that the sales or use tax exemption will not apply within their jurisdictions and that their sales or use taxes will be due on parts or services used in the fabrication, modification, or repair of rail rolling stock. Effective July, 2005.

Act 410 (House Bill 90) Provides a state and local sales tax exclusion for specialty items sold to members for fund-raising purposes by non-profit carnival organizations domiciled in Louisiana and participating in parades sponsored by a carnival organization. Effective August 15, 2005.

Act 413 (House Bill 132) Repeals the state and local sales and use tax exemption for certain types of mobile, motorized equipment that is used for a sales promotion. Effective July 11, 2005.

Act 458 (House Bill 747) Amends the sales price of refinery gas sold to another person. The sales price of refinery gas is now the same as the cost price for use tax purposes. Also, provides that sales of other petroleum byproducts, except feedstock, are now treated the same as other sales of tangible personal property.

Occupational License Tax Legislation

Act 94 (House Bill 601) Provides that Occupational License Tax of a licensed pharmacy generating 80% of its total gross revenues from prescription drugs shall be based on one-tenth of one percent of the gross annual sales, with a minimum tax of $50 and a maximum tax of $2,000. Effective July 1, 2005.

Occupational License Tax Renewals

Occupational License Tax Renewals for 2006 were mailed to businesses in early December. Licenses renewed after March 1, 2006, will be deemed delinquent and subject to penalty and interest. Penalty at the rate of 5% per month or fractional part thereof, not to exceed 25%, and interest at the rate of 1.25% per month, or fractional part thereof, will be computed from the first day of March and will increase on the first day of each succeeding month.

Sales Tax Due Dates

Following are the sales tax due dates for the first quarter of 2006:

For the Month of Tax Due Date Delinquent
Date
January Feb. 1 Feb. 22
February March 1 March 21
March April 1 April 21

Need help?

Taxpayers may contact the Revenue Division by phone or fax to receive assistance between the hours of 8 a.m. and 5 p.m., Monday-Friday.

Taxpayer Assistance: (225) 389-3084
Fax Number: (225) 389-5369

 

Taxpayer Topics

The Tax Facts Newsletter is issued quarterly by the Finance Department/Revenue Division.  Our mission is to provide taxpayers with information concerning developments and policies regarding the collection of local sales and use taxes within East Baton Rouge Parish.  The Revenue Division invites any suggestions, questions or comments that you would like addressed in future issues of Tax Facts.  Please send these items to:

City of Baton Rouge -
 Department of Finance
P. O. Box 2590
Baton Rouge, LA  70821-2590
Attention:  Steve Thomas
or send us an e-mail
 

Remember to mail your return early!  Returns bearing a U.S. postmark on or after the above delinquent dates will be assessed penalty, interest, and loss of vendor's compensation.

Department of Finance - Revenue Division
222 St. Louis Street, Room 404
Baton Rouge, LA  70802

Proud Member of the Louisiana Association of Tax Administrators External web link not maintained by City of Baton Rouge