Archive for October 20, 2009

LDR News Release – State sales tax exemption extends to modular-built homes

Beginning July 1, 2009, a partial sales & use tax exclusion is available for modular homes and other “factory-built” homes purchased or used in Louisiana.  Previously, the exclusion applied only to purchases of dwellings categorized as “manufactured homes”, known widely as mobile homes.

The exclusion applies only to factory-built homes that will be used for residential purposes. When these structures are used for any other purposes, the sales or use tax will be payable on the full sales prices or cost prices of the property.

Act 500 of the Regular Session of the 2009 Louisiana Legislature creates the category of “factory-built home,” defined as:

… a residential structure built in a factory in one or more sections which has a chassis or integrated wheel delivery system, which are built in accordance with federal or La. construction codes, or are a manufactured home, modular home, mobile home, or residential mobile home with or without a permanent foundation, which includes plumbing, heating, and electrical systems.

 Under Act 500, all structures defined as factory-built homes are eligible for a 54-percent state and local sales tax exemption.  The purchaser of a factory-built home must report and remit to the Louisiana Department of Public Safety, Office of Motor Vehicles, state and local sales & use taxes on 46 percent of the purchase price of the structure.  The dealer has no obligation to collect and remit sales & use taxes on a factory-built home. 

The expansion of eligibility for the reduced taxable base to all “factory built” homes applies retroactively to all outstanding and unpaid taxes.  However, taxes correctly paid under the laws in effect prior to the July 1, 2009, effective date of Act 500 are not eligible for refunds.

 For more information, please contact the Special Programs Division of the Louisiana Department of Revenue at 225-219-7356.

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LAC 61:I.5401 – Prepaid Wireless 911 Service Charge

The Louisiana Department of Revenue has adopted an Emergency Rule related to the service charge on sales of prepaid wireless telecommunications authorized by Act 531 of the Regular Session of the 2009 Louisiana Legislature.  The Emergency Rule is LAC 61:I.5401.

This Emergency Rule is necessary to allow the secretary to provide needed information to Louisiana taxpayers regarding the collection and remittance of the prepaid wireless 911 service charge as provided by R.S. 33:9101.1. The effective date of this new law is January 1, 2010. The Department of Revenue is charged with the responsibility of administering the prepaid wireless 911 service charge.

Under Act 531, retailers must collect the two percent service charge on sales of prepaid wireless service beginning January 1, 2010.  This Emergency Rule shall be effective January 1, 2010, and shall remain in effect until the expiration of the maximum period allowed under the Administrative Procedure Act or the adoption of the final Rule, whichever comes first.

Read the full text of LAC 61:I.5401 at revenue.louisiana.gov.

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