Archive for Revenue Ruling

Revenue Ruling 14-001: Qualified Subchapter S Subsidiary Exclusion

The purpose of this Revenue Ruling is to determine whether a domestic corporation, that was incorporated outside of Louisiana, that is a one hundred percent owned subsidiary of a parent corporation may amend Louisiana income tax returns in order to apply the QSub exclusion, provided that the parent corporation files original Louisiana income and franchise tax returns, including all of the income of the QSub in the parent corporations net income.

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Conclusion:

Neither La. R.S. 47:287.732.1 nor RIB 04-003 provide any prohibition against the filing of amended returns in order to claim the QSub exclusion.  In fact, according to RIB 04-003, the QSub exclusion can be “made by simply filing returns” that follow preferred methods.

Click here to read the full text of Revenue Ruling 14-001, including analysis of a hypothetical scenario supporting the conclusion.

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Revenue Ruling 13-005 – Treatment of Tax Credits on Prescribed Periods

The Louisiana Department of Revenue has released Revenue Ruling 13-005: Treatment of Tax Credits on Prescribed Periods:

The purpose of this Revenue Ruling is to determine (1) whether tax credits claimed on prescribed periods are also prescribed and (2) whether federal return adjustments open prescribed periods for issues not related to the federal return adjustment.

Click here to read the full text of Revenue Ruling 13-005.

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Rule: Payment of Sales and Use Taxes by Persons Constructing, Altering, or Repairing Immovable Property

The Louisiana Department of Revenue has adopted a rule regarding LAC 61:I.4372, Payment of Sales and Use Taxes by Persons Constructing, Altering, or Repairing Immovable Property.

To read the text of this rule, visit revenue.louisiana.gov.

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Rule: Certain Self-Propelled Vehicles Removed from Inventory

The Louisiana Department of Revenue has adopted a rule regarding LAC 61:I.4415, Certain Self-Propelled Vehicles Removed from Inventory:

Under the authority of R.S. 47:1511, and in accordance with the provisions of the Administrative Procedure Act, R.S. 49:950 et seq., the Department of Revenue, Policy Services Division, repeals LAC 61:I.4415, which provides criteria for determining whether sales or use tax is due upon items of equipment described in R.S. 47:305.22. That statute was repealed by Act 2005, No. 413, so the Rule no longer serves any purpose.

To read the full text of this rule, visit revenue.louisiana.gov.

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Revenue Ruling 12-003: Tax Collection by Veterinarians

The Louisiana Department of Revenue has issued Revenue Ruling 12-003, Tax Collection by Veterinarians:

The professional services of veterinarians in examining, diagnosing, and treating animals are not subject to the sales tax. Neither are the sales and use of pharmaceuticals administered to livestock used for agricultural purposes, except as otherwise provided in R.S. 47:301(16)(f). Sales of feed and feed additives for the purpose of sustaining animals which are held primarily for commercial, business, or agricultural use are exempted from taxation by R.S. 47:305 A(4). However, other pharmaceuticals, drugs, treatment devices, and tangible personal property used by veterinarians or furnished by veterinarians to animal owners, as a part of the professional services, are subject to sales and use tax. (The various exemptions found in R.S. 47:305 D, involving drugs, orthotic and prosthetic devices, and patient aids, cannot be extended to property prescribed, used, or sold by veterinarians in the care and treatment of animals.)

To read the full text of Revenue Ruling 12-003, visit www.revenue.louisiana.gov.

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Revenue Ruling 12-002: Coating, Wrapping, Galvanizing of Tangible Personal Property

The Louisiana Department of Revenue has issued Revenue Ruling 12-002, Coatin, Wrapping, Galvanizing of Tangible Personal Property:

The charges made for the coating, wrapping, and galvanizing of pipe and other types of property which have not previously been coated, wrapped, or galvanized are considered “fabrications” as contemplated by La. R.S. 47:301(12). This statute defines “sale” to include “any transfer of title or possession, or both, exchange, barter, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property, for a consideration, and includes the fabrication of tangible personal property for consumers who furnish, either directly or indirectly, the materials used in fabrication work …” [emphasis added]. Since these fabrication transactions are considered taxable sales, vendors are required to charge and collect sales tax on the gross proceeds from the coating, wrapping, and galvanizing transactions.

To read the full text of Revenue Ruling 12-002, visit www.revenue.louisiana.gov.

 

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Revenue Ruling 11-001: Taxability of Build America Bonds

The Louisiana Department of Revenue has issued Revenue Ruling 11-001, which discusses the treatment of interest income from Build America Bonds for Louisiana individual income tax purposes.

Build America Bonds (BABs) are a financing tool for state and local governments that were created in the American Recovery and Reinvestment Act of 2009. Unlike traditional state and local bonds, interest from these bonds is included in the investor‟s federal gross income.

Conclusion

Income from interest and credits from BABs issued by the state of Louisiana or its local governments is not subject to Louisiana individual income tax. Income from interest and credits from BABs issued by states and local governments other than the state of Louisiana or its local governments is subject to Louisiana individual income tax.

Click here to read the entire ruling.

A Revenue Ruling is issued under the authority of LAC 61:III.101(C). A Revenue Ruling is written to provide guidance to the public and to Department of Revenue employees. It is a written statement issued to apply principles of law to a specific set of facts. A Revenue Ruling does not have the force and effect of law and is not binding on the public. It is a statement of the department’s position and is binding on the department until superseded or modified by a subsequent change in statute, regulation, declaratory ruling, or court decision.

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Revenue Ruling No. 09-002

Revenue Ruling No. 09-002 concerns the state sales and use taxability of cooking oils and shortening purchased by restaurants.

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Revenue Ruling No. 09-001

Revenue Ruling No. 09-001 concerns the taxability of certain sales, lease, and rental transactions by non-profit Economic Development Corporations where the property is subsequently transferred to for-profit corporations as part of economic development projects.

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