Archive for May 5, 2010

LDR News Release – 2010 Louisiana Hurricane Preparedness Sales Tax Holiday, May 29 & 30

May 5, 2010

BATON ROUGE – The 2010 Louisiana Hurricane Preparedness Sales Tax Holiday takes place on Saturday, May 29 and Sunday, May 30.  During these two days, shoppers can get ready for the 2010 Atlantic Hurricane Season, which begins on June 1, by purchasing emergency supplies free from the four-percent state sales tax.

The tax holiday exempts from the state sales tax the first $1,500 of the sales price of each of the following items:

  • Self-powered light sources such as flashlights and candles
  • Portable self-powered radios, two-way radios and weather-band radios
  • Tarpaulins or other flexible waterproof sheeting
  • Ground anchor systems or tie-down kits
  • Gas or diesel fuel tanks
  • Batteries – AAA, AA, C, D, 6-volt or 9-volt (automobile batteries and boat batteries are not eligible)
  • Cellular phone batteries and chargers
  • Non-electric food storage coolers
  • Portable generators
  • Storm shutter devices – Materials and products manufactured, rated and marketed specifically for the purposes of preventing window damage from storms (La. R.S. 47:305.58)
  • Carbon monoxide detectors
  • Blue ice products

Local sales taxes still apply unless local taxing authorities have specifically exempted them.

Items purchased at airports, convenience stores, entertainment complexes, or at hotels or other public lodging establishments are not eligible for a tax exemption under the Louisiana Hurricane Preparedness Sales Tax Holiday.

For more information, visit the 2010 Louisiana Hurricane Preparedness Sales Tax Holiday page at www.revenue.louisiana.gov.

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Revenue Information Bulletin 10-010: Natural Gas Severance Tax Rate Effective July 1, 2010

The Louisiana Department of Revenue has issued Revenue Information Bulletin (RIB) No. 10-010 concerning the severance tax rate on natural gas to be paid during the period July 1, 2010 through June 30, 2011.  The tax rate is calculated in accordance with La. R.S. 47:633(9)(d)(i).


Revenue Information Bulletin No. 10-010

May 4, 2010

Severance Tax

The natural gas severance tax rate effective July 1, 2010, through June 30, 2011, has been set at 16.4 cents per thousand cubic feet (MCF) measured at a base pressure of 15.025 pounds per square inch absolute and at the temperature base of 60 degrees Fahrenheit.

This tax rate is set each year by multiplying the natural gas severance tax base rate of 7 cents per MCF by the “gas base rate adjustment” determined by the Secretary of the Department of Natural Resources in accordance with R.S. 47:633(9)(d)(i). The “gas base rate adjustment” is a fraction, of which the numerator is the average of the New York Mercantile Exchange (NYMEX) Henry Hub settled price on the last trading day for the month, as reported in the Wall Street Journal for the previous 12-month period ending on March 31, and the denominator is the average of the monthly average spot market prices of gas fuels delivered into the pipelines in Louisiana as reported by the Natural Gas Clearing House for the 12-month period ending March 31, 1990 (1.7446 $/MMBTU).

Based on this computation, the Secretary of the Department of Natural Resources has determined the natural gas severance “gas base rate adjustment” for April 1, 2009, through March 31, 2010, to be 234.39 percent. Applying this gas base rate adjustment to the base tax rate of 7 cents per MCF produces a tax rate of 16.4 cents per MCF effective July 1, 2010, through June 30, 2011. The reduced natural gas severance tax rates provided for in R.S. 47:633(9)(b) and (c) remain the same.

Revised reporting forms will be distributed as soon as they are available. Questions concerning the natural gas severance tax rate should be directed to the Department of Revenue at 225-219-7462.

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