Archive for Revenue Information Bulletin

Revenue Information Bulletin 14-018: 2014 Louisiana Annual Second Amendment Sales Tax Holiday

Louisiana Revised Statute 47:305.62, the “Annual Louisiana Second Amendment Weekend Holiday Act” provides a state and local sales and use tax exemption on any consumer purchase of firearms, ammunition, and hunting supplies. This exemption does not apply to business or commercial purchases.

The 2014 holiday will begin on Friday, September 5, at 12:01 a.m. and will end at midnight on Sunday, September 7, 2014.

Click here to read the full text of RIB 14-018.

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RIB 14-017: Louisiana Tax Delinquency Amnesty Act of 2014

Act 822 of the 2014 Regular Session of the Louisiana Legislature authorizes the Louisiana Department of Revenue to institute an amnesty program to collect outstanding tax liabilities except for motor fuel taxes, Prepaid 411 Sales Tax, Oil Field Restoration-Oil, Oil Field Restoration-Gas, Inspection and Supervision Fee and penalties for failure to submit information reports that are not based on an underpayment of tax.

The Department has established a Tax Amnesty Program beginning October 15, 2014 and ending November 14, 2014. Amnesty will be granted only for eligible taxes to eligible taxpayers who apply during the amnesty period and who pay the entire amount of the eligible tax due in lump sum or enter into an installment agreement. The taxpayer shall pay all of the tax due, half of the interest due and all fees and costs, if applicable, for periods designated on the amnesty application.

Taxpayers will not be allowed to use a tax credit from an eligible return as an amnesty credit nor a Financial Management Service (FMS) offset to make the down payment or an installment payment.

Taxpayers who choose an installment agreement instead of a lump sum payment must remit twenty percent of the total amount owed at the time the installment agreement is entered into.  Taxpayers who cannot enter into an agreement to make payment by way of automated electronic transactions shall not be eligible for an installment agreement with the Department. If the final installment payment is not submitted by May 1, 2015, amnesty will not be granted. Any payments made will be treated as if amnesty had not been applied for and the Taxpayer is obligated to pay the entirety of the delinquent tax, interest, penalties and fees. Any payments made will be applied to the oldest outstanding tax period as a regular payment.  The payment will be applied in the following order: tax, penalty and interest. Field Audit and Litigation are not eligible to enter into an installment agreement.

All business taxpayers are required to file returns with the application.

The Secretary reserves the right to require individual taxpayers to file tax returns with the application. If the application is approved, the Secretary shall waive the remaining half of the interest and penalties associated with the tax periods for which amnesty is applied.

Click here to read the full text of RIB 14-017.

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Revenue Information Bulletin 14-007-A: Louisiana Rehabilitation of Historic Structures Tax Credit For Projects Less Than $500,000 of Eligible Costs and Expenses

The Louisiana Rehabilitation of Historic Structures Tax Credit is a credit against income and corporate franchise tax for the amount of eligible costs and expenses incurred during the rehabilitation of a historic structure located in a downtown development or a cultural district.  Eligible structures must be nonresidential real property or residential rental property. (R.S. 47:6019(A)(2)(b))  The credit shall not exceed twenty-five percent of the eligible costs and expenses of the rehabilitation and no taxpayer, or any entity affiliated with such taxpayer, shall claim more than $5,000,000 of credit annually for any number of structures rehabilitated within a particular downtown development or cultural district. (R.S. 47:6019(A)(1)(a)) The credit is earned only in the year in which the property attributable to the expenditures is placed in service. (R.S. 47:6019(A)(1)(b))

After the State Historic Preservation Office (SHPO) has certified the rehabilitation, LDR Secretary may deem an application for credit approved.  This Revenue Information Bulletin will set forth the guidelines for the approval of the Rehabilitation of Historic Structures Tax Credit by the SHPO and LDR for those projects that are less than $500,000 of eligible costs and expenses.

Visit revenue.louisiana.gov to read the full text of RIB 14-007-A.

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Revenue Information Bulletin 14-009: Natural Gas Severance Tax Rate Effective July 1, 2014 through June 30, 2015

The Louisiana Department of Revenue has issued Revenue Information Bulleting 14-009: Natural Gas Severance Tax Rate Effective July 1, 2014 through June 30, 2015:

The natural gas severance tax rate effective July 1, 2014 through June 30, 2015 has been set at 16.3 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, 2013, through March 31, 2014, to be 232.34 percent. Applying this gas base rate adjustment to the base tax rate of 7 cents per MCF produces a tax rate of 16.3 cents per MCF effective July 1, 2014, through June 30, 2015. The reduced natural gas severance tax rates provided for in R.S. 47:633(9)(b) and (c) remain the same.

Questions concerning the natural gas severance tax rate should be directed by email to Policy.Publications@La.gov.

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Revenue Information Bulletin 14-008: Partnership Composite Return Automatic Extension

The Louisiana Department of Revenue has issued Revenue Information Bulletin 14-008: Partnership Composite Return Automatic Extension:

Act 580 of the 2012 Regular Session of the Louisiana Legislature enacted La. R.S. 47:201.1(F)(4) to require that all composite returns be filed electronically.  This change is effective for taxable periods beginning on or after January 1, 2013.

The filing date for partnership composite returns for the 2013 tax period is May 15, 2014.  Currently, the only method of electronically filing these returns is via third party software vendors.  As of this date, there are currently no third party software vendors who have been approved by the Louisiana Department of Revenue.  Several products are currently being tested, but such testing is not complete as of this time. 

Due to the uncertainty as to when electronic filing of partnership composite returns will be available, the Louisiana Department of Revenue has decided to provide for an automatic extension of six (6) months for the filing of said returns.  The returns will now be due on November 15, 2014. This extension grants additional time only to file a return. It does not grant additional time to pay taxes due.

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Revenue Information Bulletin 14-007: Louisiana Rehabilitation of Historic Structures Tax Credit

The Louisiana Department of Revenue (LDR) has issued Revenue Information Bulletin 14-007: Louisiana Rehabilitation of Historic Structures Tax Credit.

Act 418 of the 2013 Regular Session enacted the Louisiana Tax Credit Registry Act to establish a central tax credit registry within the Department of Revenue for the registration and recordation of transferable tax credits granted, issued and authorized by the state. The Louisiana Rehabilitation of Historic Structures Tax Credit is one of several tax credit programs that the Department of Revenue (LDR) will be required to track in the Registry. This credit is allowed for the eligible costs and expenses incurred during the rehabilitation of a historic structure located in a downtown development or a cultural district. Eligible structures must be nonresidential real property or residential rental property. (R.S. 47:6019(A)(2)(b)) The credit shall not exceed twenty-five percent of the eligible costs and expenses of the rehabilitation and no taxpayer, or any entity affiliated with such taxpayer, shall claim more than $5,000,000 of credit annually for any number of structures rehabilitated within a particular downtown development or cultural district. (R.S. 47:6019(A)(1)(a)) The credit is earned only in the year in which the property attributable to the expenditures is placed in service. (R.S. 47:6019(A)(1)(b))

After the State Historic Preservation Office (SHPO) has certified the rehabilitation, LDR Secretary may deem an application for credit approved for purposes of the Registry. This Revenue Information Bulletin will set forth the guidelines for the recordation and approval of the Rehabilitation of Historic Structures Tax Credit by the SHPO and LDR.

Click here to read the full text of RIB 14-007.

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Revenue Information Bulletin 13-029: Electronic Filing Extensions for Composite Returns

The Louisiana Department of Revenue has issued Revenue Information Bulletin (RIB) 13-029: Electronic Filing Extensions for Composite Returns:

Beginning with returns due on or after May 15, 2014, partnerships that file composite tax returns are required to submit their request for a filing extension electronically. All extension requests must be made on or before the return’s due date.

Extension Requests

Extensions may be requested by requesting the extension electronically through the LDR website or tax preparation software.

A tax filing extension granted by the secretary only allows for an extension of time to file the tax return. The extension does not allow an extension of time to pay the tax due. To avoid interest and penalty assessments, taxes should be paid on or before the original due date.

Visit the LDR website to read the full text of RIB 13-029.

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Revenue Information Bulletin 13-024 – Impact of the Internal Revenue Service Revenue Ruling 2013-17

The Louisiana Department of Revenue has issued Revenue Information Bulletin 13-024 – Impact of the Internal Revenue Service Ruling 2013-17:

The U.S. Department of the Treasury and the Internal Revenue Service (IRS) have ruled that same-sex couples, legally married in jurisdictions that recognize their marriages, will be treated as married for federal tax purposes.

La. Const. of 1974, art. XII, Sec. 15, states:

“Marriage in the state of Louisiana shall consist only of the union of one man and one woman. No official or court of the state of Louisiana shall construe this constitution or any state law to require that marriage or the legal incidents thereof be conferred upon any member of a union other than the union of one man and one woman. A legal status identical or substantially similar to that of marriage for unmarried individuals shall not be valid or recognized. No official or court of the state of Louisiana shall recognize any marriage contracted in any other jurisdiction which is not the union of one man and one woman.”

By its very definition, a same-sex marriage is in direct contravention of La. Const. of 1974, art. XII, Sec. 15, because it is not a union of one man and one woman. No official or court of the state of Louisiana shall recognize any marriage contracted in any other jurisdiction which is not the union of one man and one woman. Louisiana’s Secretary of Revenue is bound to support and uphold the Constitution and laws of the state of Louisiana, and any recognition of a same-sex filing status in Louisiana as promulgated in IRS Revenue Ruling 2013-17 would be a clear violation of Louisiana’s Constitution.

In compliance with the Louisiana Constitution, the Louisiana Department of Revenue shall not recognize same-sex marriages when determining filing status. If a taxpayer’s federal filing status of married filing jointly, married filing separately or qualifying widow is pursuant to IRS Revenue Ruling 2013-17, the taxpayer must file a separate Louisiana return as single, head of household or qualifying widow, as applicable. The taxpayer(s) who filed a federal return pursuant to IRS Revenue Ruling 2013-17 may not file a Louisiana state income tax return as married filing jointly, married filing separately or qualifying widow. The taxpayer must provide the same federal income tax information on the Louisiana State Return that would have been provided prior to the issuance of Internal Revenue Service Revenue Ruling 2013-17.

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Revenue Information Bulletin 13-020 – Using Correct Sales Tax Return for Each Sales Tax Period

The Louisiana Department of Revenue has issued Revenue Information Bulletin 13-020 – Using Correct Sales Tax Return for Each Sales Tax Period.

With the change in Vendor’s Compensation to .935 percent via Act 425 of the 2013 Regular Session of the Louisiana Legislature, a new sales tax return is to be used for all sales tax periods beginning on July 1, 2013.  For easy reference, the table below indicates the correct sales tax return to be used for each sales tax filing period.  The number in the right hand column of the table references the form number for each different sales tax filing period for the sales tax return (Form R-1029).

Filing Periods Return
July 2013 to Present Form 4316
July 2012 to June 2013 Form 4010
July 2011 to June 2012 Form 4010
July 2010 to June 2011 Form 4010
July 2009 to June 2010 Form 4911
July 2009 to June 2009 Form 4801
July 2007 to June 2008 Form 4701

Using the wrong return will cause processing delays, and you could be required to submit the sales tax return again on the correct form. When completing a sales tax return, your Name, Address, LDR Account Number, and the Filing Period must be included.

 

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Revenue Information Bulletin 13-019 – Annual Louisiana 2nd Amendment Weekend Sales Tax Holiday

The Louisiana Department of Revenue has issued Revenue Information Bulletin (RIB) 13-019, which discusses the 2013 Louisiana Second Amendment Weekend Sales Tax Holiday:

Louisiana Revised Statute 47:305.62, the “Annual Louisiana Second Amendment Weekend Holiday Act” provides a state and local sales and use tax exemption on any consumer purchase of firearms, ammunition, and hunting supplies. This exemption does not apply to business or commercial purchases. The 2013 holiday will be begin on Friday, September 6, at 12:01 a.m. and will end at midnight on Sunday, September 8, 2013.

Click here to read the full text of RIB 13-019, including the full list of eligible items, exceptions and special provisions of the 2013 Louisiana Second Amendment Weekend Sales Tax Holiday.

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