Electronic Imaging System
The Revenue Division has implemented its Electronic
Imaging System to scan and electronically enter sales and use tax
information. The system uses specialized software to read, recognize, and
electronically enter tax information, typed or handwritten, directly into
our computerized system. The system also uses a special drop-out color
(green) to recognize the typed or handwritten information. It is very
important for taxpayers to use the tax form printed and mailed by the
Revenue Division. Many taxpayers are still using photo copies, fax copies,
spread sheets, and computer-generated forms that are not recognized by the
Electronic Imaging System. As a result, we must manually enter the tax
information into our computer system, which is more costly and time
consuming. For this reason, we are again requesting that you only use sales
and use tax returns printed and mailed by the Revenue Division. We will
no longer accept photo copies, fax copies, spread sheets, and computer-generated forms.
E-Government Coming Soon!
The Metro Council has given their approval for the
City-Parish to move forward with its e-government initiative. One of the
main processes included in the proposal is electronic filing and remittance
of sales and use taxes. The Finance and Information Services Departments are
working together to develop and implement this system by the summer of 2003.
We are hopeful that some of our taxpayers will be willing to help test the
electronic filing and payment system before it is fully implemented. Once
the system has been tested, it will be available to all taxpayers who are
interested in filing and paying electronically.
New Law Affects Sales and Use Tax
The Louisiana Legislature enacted the following Act
affecting local sales and use tax during its 2002 regular session:
Act 72 (HB-225) Provides a state and local sales and use tax
exclusion for any and all dental devices used exclusively by the patient or
administered exclusively to the patient by a dentist or dental hygienist in
connection with dental or health care treatment. Effective date June 25,
According to Section 27 (B) of the Occupational License Tax Ordinance,
"The tax shall be computed on the basis of the schedules contained in this
Ordinance according to the physical location of each place of business
without regard to the location where the actual sale takes place or where a
product or service is delivered or performed."
If your business is located in East Baton Rouge Parish and you deliver
outside, as well as within this parish, you will calculate your Occupational
License Tax based on the total of all sales made, regardless of the point of
delivery. For example, a mail order business which delivers to customers
locally, as well as to customers elsewhere in the state, must include local
sales and sales delivered out-of-parish or state when calculating their
Occupational License Tax.
This same provision also applies to service businesses that are
physically located in East Baton Rouge Parish and perform services both
locally and out-of-parish. For example, a repair business located in Baton
Rouge, repairing tangible personal property at their own shop, as well as
repairing property located at the customerís site outside of this parish,
must compute the Occupational License Tax due based on total gross receipts
generated by performing repairs both locally and out-of-parish.
Subject to Sales Tax
According to Kennedy v. United Airlines, Incorporated,
01-426 (La.App.5Cir. 10/17/01), 797 So.2d 186, writ denied, 2001-3241 (La.
3/8/02), 811 So.2d 882, jet fuel purchased in Louisiana, to be consumed
during interstate commerce, is subject to state sales tax. The Court concluded this was a sales tax transaction since the jet fuel was sold in
the state and was delivered to the aircraft in the state. Because the Court
ruled that jet fuel was subject to sales tax, the interstate commerce
exemption was not applicable.
Even though this decision only involved state sales taxes, it will have
an impact on our local sales tax. After reviewing this decision, it is our
position that the sale and delivery of jet fuel under similar circumstances
to those addressed in this Court decision is taxable in this parish. As a
result, effective February 1, 2003, the sale of jet fuel within this parish
is subject to our local sales tax.
Occupational License Tax Renewals
Businesses are reminded that their 2003 license renewals
were mailed in early December. Licenses renewed after February 28, 2003,
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.
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 - FAX
Finance Department - Revenue Division
222 St. Louis Street, Room 404
Baton Rouge, LA 70801
The Tax Facts Newsletter is issued quarterly by the Department of Finance/Revenue
Division. Our mission is to provide taxpayers with information concerning
developments and policies regarding the collection of local sales tax 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
address these items to:
City of Baton Rouge - Department of Finance
P. O. Box 2590
Baton Rouge, LA 70821-2590
ATTENTION: Steve Thomas, Assistant Revenue Manager
or send e-mail to firstname.lastname@example.org
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.
How Important Is a Postmark Date?
Revenue Division computer system uses the U.S. Post Office postmark on the
envelope in determining whether a return is current or delinquent. The due date
for all registered filers is the 1st of the month in which the sales
and use tax is due. A return is considered delinquent after the 20th
of the same month (see Tax Facts, October 1995). If the 20th falls on
a weekend or holiday, the return must be postmarked by the next work day. Any
taxpayer whose return is postmarked after the delinquent date will receive a
notice of additional tax (forfeiture of vendorís compensation) , penalty, and
interest due. The return will be considered as a partial payment, and the
taxpayer will receive delinquent notices until final remittance is made.
The U.S. Post Office postmark is used to enforce the
assessment of penalty and interest and the loss of vendorís compensation. It
is the responsibility of each dealer to ensure that sales and use taxes are
transmitted in a timely manner. Additionally, dealers should be aware that
giving their return to their route postal worker on the 20th could
result in a delinquent return if the envelope is not postmarked until the next
day. To avoid this situation, all taxpayers are urged to mail early to ensure
that their returns are recognized as filed timely.