Archive for November 13, 2009

RIBs address sales tax-related legislation

The Louisiana Department of Revenue has issued three Revenue Information Bulletins (RIBs) concerning sales tax-related measures from the Regular Session of the 2009 Louisiana Legislature.

Revenue Information Bulletin No. 09-050 discusses a phased-in exclusion from state sales tax for manufacturers in certain NAICS codes on their purchases and uses of certain property to be consumed in the manufacturing process, as provided by Act 466 of 2009.

Revenue Information Bulletin No. 09-051 concerns a new state sales tax collection exemption on sales and admissions at domed arenas and associated facilities in certain parishes, as provided by Act 464 of 2009.

Revenue Information Bulletin No. 09-052 discusses new state sales tax exemptions for three named charitable organizations on their purchases of materials for housing construction, rehabilitation, or renovation, also as provided by Act 464 of 2009.

A Revenue Information Bulletin (RIB) is issued under the authority of LAC 61:III.101(D). A RIB is an informal statement of information issued for the public and employees that is general in nature. A RIB does not have the force and effect of law and is not binding on the public or the Department.


Cloutier pleads “No Contest” to tax-related crimes

BATON ROUGE – A Lafayette businessman pleaded “No Contest” to tax evasion and obstruction of justice in an agreement with the Louisiana Attorney General’s Office, the Louisiana Department of Revenue (LDR) announced Thursday.

Eric Cloutier entered the plea in 15th Judicial District Court in Lafayette.  

Cloutier, a former owner of Karma nightclub and Marley’s Downtown sports bar in Lafayette, surrendered the licenses for those businesses as part of the plea.

After an investigation involving LDR’s Criminal Investigation Division, the Louisiana Office of Alcohol and Tobacco Control (ATC) and the Louisiana Attorney General’s Office, ATC enforcement agents arrested Cloutier in February following allegations that he manipulated the cash registers in his bars to avoid remitting sales taxes to Lafayette Parish and to the State of Louisiana.  He initially faced more than 500 felony counts including theft, fraud, and obstruction of justice.  He pleaded “No Contest” on Thursday, November 12, 2009 to one count of tax evasion and one count of obstruction of justice connected to the destruction of more than 300 tax-related documents.

As a condition of his plea agreement, Cloutier paid a tax liability of more than $200,000 including interest and penalties to Lafayette Parish and the State of Louisiana.  In addition, the court ordered Cloutier to pay the cost of the investigation and prosecution of this case assessed at $10,000.  He was ordered also to pay more than $1,400 in fines and court costs. 

Cloutier will serve two years of active supervised probation.


Meeting of Act 442 Collaborative Working Group

This is a reminder of the next meeting of the Collaborative Working Group on Wednesday, November 18, 2009, at 9 a.m. in the Calcasieu Room on the second floor of the LaSalle Building, 617 N. Third Street, Baton Rouge, Louisiana.

The Louisiana Department of Revenue will provide teleconferencing capability for this meeting.  The dial-in number for the teleconference is 1-866-810-0043. When prompted, please key-in conference code 3076258.

Section 4 of Act 442 of the 2009 Regular Session of the Louisiana Legislature established a collaborative working group of state and local tax administrators and industry representatives for the purpose of assisting in developing policy regarding the determination of which items should be considered as moveable or immovable property for the purposes of state and local sales and use tax.

The group’s mission is to study and develop specific proposals on the definition of tangible personal property under Chapters 2, 2-A, 2-B and 2-D of Title 47 of the Louisiana Revised Statutes of 1950. The group shall report its policy recommendations to the chairmen of the House Committee on Ways and Means and Senate Committee on Revenue and Fiscal Affairs no later than January 31, 2011.

The group shall cease to exist on June 30, 2011.

 Further information concerning this meeting may be obtained from Ted James, Office of the Secretary, P.O. Box 66258, Baton Rouge, LA 70896, phone (225) 219-2707.