Archive for Legislation

Donations for Haitian relief deductible on 2009 tax returns

People who make donations for relief of the Haitian earthquake crisis may claim deductions on their 2009 federal income tax returns. Under normal circumstances, these deductions would apply to 2010 tax returns filed in 2011. However, the U.S. Congress has passed House Resolution 4462, which makes charitable contributions for Haitian relief before March 1, 2010, eligible as deductions on returns filed this year.

To claim Haitian relief contributions as deductions on 2009 income tax returns, use Form 1040, Schedule A, Itemized Deductions.

For 2009 Louisiana income tax returns, the state allows 100 percent of excess itemized deductions as a reduction to Federal Adjusted Gross Income. This means that any Haitian relief contributions that were reported as itemized deductions will also reduce taxable income on Louisiana Resident Individual Income Tax Return Form IT-540 and Nonresident or Part-Year Resident return form IT-540 B.

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Prepaid wireless service fee takes effect January 1, 2010


 

Louisiana Administrative Code 61:I.5401 – Act 531 of the 2009 Regular Session of the Legislature imposed a service charge upon the sales of prepaid wireless telecommunications. In accordance with the emergency provisions of R.S. 49:953(B) of the Administrative Procedure Act, which allows the Department of Revenue to use emergency procedures to establish rules, and R.S. 47:1511, which allows the department to make reasonable rules and regulations, the Secretary hereby finds that imminent peril to the public welfare exists and accordingly adopts the following Emergency Rule. 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.

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.

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Revenue Information Bulletins explain new tax laws

The Louisiana Department of Revenue has issued five new Revenue Information Bulletins (RIBs) concerning sales and use tax-related legislation enacted during the 2009 regular session of the Louisiana Legislature.

Revenue Information Bulletin No. 09-040 discusses Act 455 which provides a sales tax exemption on purchases of bait and feed for use in the production and harvesting of crawfish.

Revenue Information Bulletin No. 09-043 discusses Act 443 which provides a new sales tax exclusion under Louisiana Revised Statute 47:301(10)(ff) for sales that occur on facilities owned or operated by the Louisiana Military Department, and also amends the existing sales tax exemption provided by R.S. 47:305.51 for purchases of utilities by steelworks, blast furnaces, coke ovens, or rolling mills.  

Revenue Information Bulletin No. 09-047 discusses Act 500 which amended the definition of the term “tangible personal property” provided by R.S. 47:301(16), to replace the former partial exclusion for “manufactured homes” with a partial exclusion for the more encompassing term “factory-built” homes.

Revenue Information Bulletin No. 09-048 discusses a new sales tax exemption provided by Act 461 for sales of polyroll tubing to be used for commercial farm irrigation purposes.

Revenue Information Bulletin No. 09-049 discusses Act 450 which provides a severance tax rate reduction and sales tax exclusions related to qualified tertiary recovery projects.


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 on the Louisiana Department of Revenue.

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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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New RIBs explain 2009 legislative tax changes

The Louisiana Department of Revenue has issued eight new Revenue Information Bulletins (RIBs) concerning sales and use tax-related legislation enacted during the 2009 regular session of the Louisiana Legislature.

Revenue Information Bulletin No. 09-030 concerns a new exemption provided by Act 462 for purchases of radiographic imaging equipment by certain nonprofit radiation therapy centers.

Revenue Information Bulletin No. 09-031 concerns the removal by Act 206 of the sunset date for sales tax  exclusions that have been in the sales tax law for several years covering purchases and leases by parochial and private elementary and secondary schools of certain educational materials to be used for classroom instruction.  Without the removal of the sunset date, the exclusions were to have expired on July 1, 2009. 

Revenue Information Bulletin No. 09-032 concerns the amendments by Act 446 to statutes providing with respect to sales tax exemptions for commercial fishermen, commercial fishing licenses, and commercial fishing vessel licenses.

Revenue Information Bulletin No. 09-033 concerns a new sales tax exemption provided by Act 422 for purchases by railroads of untreated railroad ties to be installed outside the state.

Revenue Information Bulletin No. 09-034 concerns the amendment by Act 464 to the sales tax exemption statute for commercial farm equipment, to provide relative to exemption certificates to be furnished by commercial farmers in connection with their claims of this exemption.

Revenue Information Bulletin No. 09-035 concerns a new use tax exemption provided by Act 422 for certain boats that dealers withdraw from their inventories for use as demonstrators.

Revenue Information Bulletin No. 09-036 concerns a new exclusion provided by Act 442 from the term “tangible personal property” for sales and use tax purposes.

Revenue Information Bulletin No. 09-037 concerns a new sales tax collection exclusion provided by Act 456 for certain nonprofit homeless shelters.

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 of Revenue.

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2nd Amendment Weekend Sales Tax Holiday starts Friday

The inaugural Louisiana Second Amendment Weekend Sales Tax Holiday takes place Friday, September 4, through Sunday, September 6.

During this sales tax holiday weekend, the sales and use tax levied by the state and its political subdivisions shall not apply to any consumer purchases of firearms, ammunition and hunting supplies. The Annual Louisiana Second Amendment Weekend Holiday Act became effective July 9, 2009.

The state and local sales and use tax exemption applies to an individual’s purchase of firearms, ammunition and hunting supplies. The sales and use tax exemption is not available for business purchases. Consumer purchases do not include the purchase of animals for hunting.

Guidelines for the sales tax holiday are available online at revenue.louisiana.gov.

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Emergency Rule: Annual Louisiana Second Amendment Weekend Sales Tax Holiday

The Louisiana Department of Revenue has issued an emergency rule concerning the provisions of the Annual Louisiana Second Amendment Weekend Sales Tax Holiday.

The rule defines the terms and conditions of the sales tax holiday.

Act 453 of the 2009 Regular Session of the Legislature provides an exemption of state and local sales and use taxes on consumer purchases of firearms, ammunition and hunting supplies. This sales tax holiday will occur each calendar year on the first consecutive Friday through Sunday of September. The Annual Louisiana Second Amendment Weekend Sales Tax Holiday begins at 12:01 a.m. on that Friday and ends at 12 midnight on the following Sunday. During this weekend the sales and use tax levied by the state and its political subdivisions shall not apply to the sales price or cost price of any consumer purchases of firearms, ammunition and hunting supplies.

The full text of the rule (LAC 61:I.4425) is available for viewing or downloading at www.revenue.louisiana.gov.

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'Commission to find ways to cut state government'

A legislatively-created panel intended to develop a plan for shrinking state government will hold its first meeting on July 27.

The first meeting is expected to be organizational and will elect officers and set a course for work.

The new law calls for the panel to make its initial report to lawmakers and the governor no later than Dec. 15. The commission must prepare its recommendations on reorganizing state government by Jan. 4. Legislative committees must review the plans for possible reorganization by Feb. 1 for possible action at next year’s legislative session.

The Commission on Streamlining Government is charged with examining each state agency’s activities, functions, programs, services, powers and responsibilities to determine which ones can be eliminated, streamlined, consolidated or possibly turned over to the private sector.

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Louisiana Tax Amnesty program set for Sept. 1 through Oct. 31

BATON ROUGE – The 2009 Louisiana Tax Amnesty Program is set to run from September 1 through October 31, the Louisiana Department of Revenue announced Tuesday.

Governor Bobby Jindal signed into law the Louisiana Tax Delinquency Amnesty Act of 2009, which allows taxpayers to settle account balances, overdue audit assessments, and certain tax disputes with no penalties and only half of the interest on what they owe.

“This is a two-month window of opportunity to settle accounts in a manner that is advantageous for taxpayers and for the State of Louisiana,” said Secretary of Revenue Cynthia Bridges. “Taxpayers who have fallen behind on their obligations have a chance to bring their accounts up to date, and the state has a chance to collect much-needed revenue.”

The 2009 Louisiana Tax Amnesty Program applies to resident and non-resident individuals, and in-state and multi-state businesses.

The amnesty can be applied to:

  • All taxes administered and collected by LDR, except for motor fuel taxes;
  • Taxes that became due on or after July 1, 2001 and before January 1, 2009;
  • Taxes due prior to January 1, 2009 for which LDR has issued a billing notice or demand for payment on or after July 1, 2001 and before May 31, 2009;
  • Taxes for which the taxpayer and LDR have entered into an agreement to suspend the running of prescription until December 31, 2009;
  • Taxes due on or before July 1, 2001, but were ineligible for an earlier amnesty program due to having a matter in civil litigation.

A taxpayer qualifies for amnesty:

  • If they failed to file a tax return or report;
  • If they failed to report all income or all tax, interest and penalties that were due;
  • If they claimed incorrect credits or deductions;
  • If they misrepresented or omitted any tax due;
  • If they are under audit or in administrative or judicial litigation.

For more information and a list of frequently-asked questions, visit the Louisiana Tax Amnesty Program page at www.revenue.louisiana.gov.

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Report: 'Jindal OKs tax breaks on film, hunting'

From The Advocate:

Gov. Bobby Jindal announced Thursday he signed bills to grant tax relief on entertainment industry expenses and hunting supply purchases.

[...]

The tax breaks include an increased credit for the motion picture industry.

Jindal signed House Bill 898, which raises the film production tax credit to 30 percent, matching what Georgia offers.

The 30 percent tax credit is different from what the governor originally proposed.

[...]

The governor also signed:

House Bill 458 to clarify the rules regarding the sound recording investor tax credit.HB458 changes the tax break from a refundable tax credit to a direct payment with the state Department of Economic Development handling the paperwork for the investor.

Senate Bill 277 to make a tax credit on digital media production a flat 25 percent with an added 10 percent for payroll.

Senate Bill 52 to create a “Second Amendment Weekend” sales tax holiday on firearms purchases in early September.

The bill also applies to off-road vehicles, airboats and other supplies.

Jindal vetoed other legislation, House Bill 128, to create a similar sales tax holiday the weekend after Thanksgiving.

The governor said in his veto letter that the bills “attempt to accomplish the same purpose.”

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