RIB No. 09-028: Sales Tax Exclusion Applies to Sales and Purchases by Nonprofit Carnival Organizations of Mardi Gras “Specialty Items”

The Department of Revenue has issued a Revenue Information Bulletin (RIB) regarding a sales tax exclusion for certain purchases of Mardi Gras specialty items.

Nonprofit Mardi Gras carnival organizations, and other nonprofit organizations domiciled within Louisiana who plan to participate in parades sponsored by such carnival organizations, can be authorized, under the provisions of Louisiana Revised Statutes 47:301(13)(l) and 47:305.40, for state and local sales tax exclusions on purchases and sales of Mardi Gras specialty items.

When a carnival organization’s application is approved by the Louisiana Department of Revenue (LDR), the organization will be excluded from the collection of the sales tax on sales of “specialty items” to its members, and will be further authorized to make tax-free purchases of “specialty items” for resale. Sales of non-“specialty items” are not covered by the exclusion; a carnival organization is required to collect sales tax on its sales of non-“specialty items”.

Read the full text of RIB 09-028 at www.revenue.louisiana.gov.

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