State tax changes take effect Friday, April 1

BATON ROUGE – Numerous changes to Louisiana’s tax laws, passed this year during a special session of the Louisiana Legislature, take effect on Friday, April 1.

Taxes affected by the changes include the state sales tax. Acts 25 and 26 of the 2016 First Extraordinary Session of the Louisiana Legislature remove or restrict certain exemptions from the 4 percent state sales tax, make certain new transactions taxable, and add a penny of sales tax to certain taxable transactions.

Beginning April 1:

  • A new one-cent sales and use tax takes effect, increasing the state sales tax from four cents to five cents; the extra penny remains in effect until June 30, 2018, in most cases, but expires on July 1, 2016, for manufacturing equipment and machinery
  • Most current exemptions and exclusions on the 4 percent state sales tax are eliminated; all exclusions will be restored by July 1, 2018
  • An automobile rental tax, which had expired, is reinstated on gross proceeds at the rate of 2.5 percent (state) and 0.5 percent (local)
  • A hotel tax, with revenue flowing to local governments, is expanded to include residential locations such as houses, apartments and condominiums
  • Sales made in Louisiana by dealers outside the state (such as over the Internet) are subject to the collection and remittance of sales and use tax
  • The excise tax on cigarettes increases to $1.08
  • The excise tax on alcoholic beverages increases to:
    • Liquor – $0.80 per liter
    • Sparkling wine – $0.55 per liter
    • Still wines with 14-24 percent alcoholic volume – $0.35 per liter
    • Still wines with more than 24 percent alcoholic volume – $0.55 per liter
    • Malt beverages – $12.50 per barrel
    • Low alcoholic content beverages – $12.50 per barrel
  • A discount for accurately reporting and remitting excise taxes on certain tobacco products is reduced from 6 to 5 percent
  • A discount for accurately reporting and remitting excises taxes on alcoholic beverages and beer is reduced from 2 percent to 1.5 percent for low-content beverages; and from 3.3 percent to 2.5 percent for high-content beverages
  • Membership fees or dues paid to a nonprofit, civic organization which provides access to clubs or the privilege of having access to amusement, entertainment, athletic, or recreational facilities are subject to state sales tax

For more information, read:

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LDR reminds vendors about sales tax collections at special events, including 4th of July

BATON ROUGE – As the state enters its festive summer period, agents of the Louisiana Department of Revenue are reminding vendors that they conduct on-site enforcement of the state’s sales tax laws with vendors at special events such as fairs, festivals, craft shows and trade shows, the department announced Tuesday.

“Louisiana law requires all businesses and individuals making retails sales in the state to collect and remit sales taxes,” Secretary of Revenue Tim Barfield said. “This enforcement action helps to ensure that vendors at special events don’t enjoy an unfair competitive advantage over other local businesses.”

Louisiana hosts more than 400 festivals each year.  A “vendor” is defined as any person or entity selling merchandise or providing a taxable service. This includes sellers, promoters, exhibitors and booth owners.

Taxable products and services include, but are not limited to:

  • Prepared food
  • Clothing
  • Arts & crafts
  • Event admissions

All special event retailers must have a Louisiana sales tax account. They must collect sales taxes from their customers, and must remit those taxes to state and local taxing authorities. Violators are subject to fines, penalties, interest, and possible civil litigation or criminal prosecution.

Vendors needing to register for a sales tax account should visit www.revenue.louisiana.gov/specialevents.

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Business owner arrested for collecting, keeping sales taxes

 

Miriam Robertson

Miriam Robertson

BATON ROUGE – A Jackson Parish business owner faces felony charges for allegedly failing to remit sales taxes to the state, the Louisiana Department of Revenue (LDR) announced Thursday.

Miriam Robertson, of 134 Country Road in Jonesboro, is accused of keeping more than $100,000 in state sales taxes she collected on purchases at Deals & Discounts, a furniture store she operated in Jonesboro

Investigators say between 2009 and 2014, Robertson submitted sales tax returns to LDR that underreported the amount of sales tax she collected and pocketed the difference. Records show she failed to remit $105,155.20 owed to the state.

Robertson was arrested on Thursday, January 22 and booked into the East Baton Rouge Parish Prison on one count of Criminal Penalty for Failing to Account for State Tax Monies.  She is the 39th person arrested under a joint anti-fraud initiative of the Department of Revenue and the state Attorney General’s office.

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Booking Photo – Miriam Robertson

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2014 Louisiana Annual Sales Tax Holiday: Most retail purchases exempt from state sales tax August 1 & 2

BATON ROUGE – Just in time for back-to-school shopping, most retail purchases in Louisiana are exempt from the 4 percent state sales tax on Friday, August 1, and Saturday, August 2. The 2014 Louisiana Annual Sales Tax Holiday applies to most individual consumer purchases of tangible personal property.

Conditions

The sales tax holiday exempts the first $2500 of the purchase price of each eligible item when the customer:

  • Buys and accepts delivery of eligible property;
  • Places property on layaway;
  • Acquires property that was previously placed on layaway; or
  • Places an order for immediate delivery, even if the delivery must be delayed, provided the customer has not requested delayed delivery

The sales tax holiday applies only to the 4 percent state sales tax. Local sales taxes still apply unless the local taxing authority creates its own exemption.

Exceptions

The sales tax holiday does not apply to:

  • Vehicles subject to title and license
  • Meals prepared for consumption on premises or to-go; and
  • Taxable services such as hotel occupancy, laundry services, printing services, telecommunication services, the furnishing of cold storage space, leases or rentals of tangible personal property, repairs to tangible personal property, and admission to athletic, amusement, or recreational facilities or even

Visit www.revenue.louisiana.gov/taxholiday for a full explanation of conditions of the 2014 Louisiana Annual Sales Tax Holiday.

Back-to-School Tax Deductions

The Louisiana Department of Revenue reminds shoppers to retain receipts for back-to-school items such as supplies, uniforms, and equipment required by schools. These purchases may qualify for tax deductions on 2014 Louisiana Individual Income Tax Returns due May 15, 2015. The deductions apply to educational expenses for public, private, parochial, and home schools. To claim the deductions, you must be able to claim the student as a dependent on your state individual income tax return, and you must be able to provide documentation for the expenses.

For more information about the Louisiana School Tuition and Expense Tax Deductions, visit www.revenue.louisiana.gov/schooldeduction.

 

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Free Sales Tax Class in Baton Rouge – Friday, October 25

The Louisiana Department of Revenue offers a free seminar to help business operators understand sales tax and other important business issues. For details or to register, call (225) 219-5511.

What: Free Sales Tax Class
When: Friday, October 25

10:00 AM

Where: Griffon Room

LaSalle Building (LDR   Headquarters)

617 North Third Street

Baton Rouge, LA 70802

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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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Save money on hunting gear with Second Amendment Weekend Sales Tax Holiday Sept. 6-8

BATON ROUGE – Guns, ammunition and other kinds of hunting gear are free from sales tax Friday, September 6, through Sunday, September 8.

The Louisiana Second Amendment Weekend Sales Tax Holiday exempts from the four percent state sales tax and all local sales taxes a wide range of supplies, including:

  • Shotguns, rifles, pistols, revolvers or other handguns
  • Ammunition intended to be fired from a gun or firearm
  • Accessories designed to be used for hunting
  • Apparel such as safety gear, camouflage, clothing, jackets, hats, gloves, mittens, face masks and thermal underwear for use while hunting
  • Off-road vehicles such as all-terrain vehicles designed for hunting. The exemption does not apply to golf carts, bikes, motorcycles, tractors, or motor vehicles that may be legally driven on highways.

The sales tax exemption is for individual purchases only, not for business purchases.

By state law, the Louisiana Second Amendment Weekend Sales Tax Holiday is an annual event that takes place the first consecutive Friday through Sunday each September.

Visit www.revenue.louisiana.gov/secondamendment for more information, including the full list of eligible items, excluded items and special provisions.

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Louisiana Sales Tax – Vendor’s Compensation Rate

Effective July 1, 2013, the vendor’s compensation rate has changed to .935%.  The change in vendor’s compensation is effective with the July sales tax return due August 20, 2013.

The line numbers for vendor’s compensation are:

  • Line 10 of the Louisiana Sales Tax Return (Form R-1029)
  • Line 13A of the Louisiana Hotel/Motel Sales Tax Return (Statewide Hotel/Motel sales tax returns, except Orleans and Jefferson parishes)
  • Line 11A of Column A and D  of the Louisiana Stadium and Exhibition District and Ernest N. Morial Exhibition Hall Authority Hotel/Motel Sales Tax Return.

Act 425 of the 2013 Regular Session of the Louisiana Legislature amended R.S. 47:306(A)(3) to change the vendor’s compensation rate allowed to dealers who remit sales tax from 1.1 percent to .935 percent.    The compensation is allowed only on returns which are timely filed and paid.   Questions concerning the vendor’s compensation rate should be directed to the Louisiana Department of Revenue’s Special Programs Division at (225) 219-7462, option 3, or by email to Sales.Inquiries@LA.gov.

Additional changes to the general sales tax form (R-1029) include:

  • Allowable deductions for sales to loggers and paper and wood manufacturers must be reported on Line 22 (Sales/purchases/leases/rentals of manufacturing machinery or equipment), instead of Line 23.
  • Allowable deductions for sales of gasoline, diesel, and motor fuel must be reported on Line 23.  Note: Sales of these items for resale must be reported on Line 31.

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Important changes to the Louisiana Sales Tax Return, effective July 1, 2013

Effective July 1, 2013, there are three changes to the Louisiana Sales Tax Return (Form R-1029):

  • The vendor’s compensation rate on Line 10 changed to .935%. Act 425 of the 2013 Regular Session of the Louisiana Legislature amended R.S. 47:306(A)(3) to change the vendor’s compensation rate allowed to dealers who remit sales tax from 1.1 percent to .935 percent. The change in vendor’s compensation will become effective with the July sales tax return which is due August 20, 2013. The compensation is allowed only on returns which are timely filed and paid. Questions concerning the vendor’s compensation rate should be directed to the Louisiana Department of Revenue’s Special Programs Division at (225) 219-7462, option 3, or by email to Sales.Inquiries@LA.gov.
  • Allowable deductions for sales to loggers and paper and wood manufacturers must be reported on Line 22 (Sales/purchases/leases/rentals of manufacturing machinery or equipment), instead of Line 23.
  • Allowable deductions for sales of gasoline, diesel, and motor fuel must be reported on Line 23. Note: Sales of these items for resale must be reported on Line 31.

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Most retail purchases exempt from state sales tax August 2 & 3

BATON ROUGE – Most retail purchases are exempt from the four percent state sales tax during the 2013 Louisiana Annual Sales Tax Holiday Friday, August 2, and Saturday, August 3.

The exemption applies to most consumer purchases of tangible personal property under the following conditions:

  • The customer buys and accepts delivery of eligible property;
  • The customer places property on layaway;
  • The customer acquires property that was previously placed on layaway; or
  • The customer places an order for immediate delivery, even if delivery must be delayed, provided that the customer has not requested delayed shipment

The sales tax holiday applies to the four percent state sales tax only.  Local sales taxes apply unless the local taxing authority provides its own exemption.

The sales tax exemption does not apply to:

  • Vehicles subject to license and title;
  • Meals prepared for consumption on premises or to-go; and
  • Taxable services such as hotel occupancy, laundry services, printing services, telecommunication services, the furnishing of cold storage space, leases or rentals of tangible personal property, repairs to tangible personal property, and admission to athletic, amusement, or recreational facilities or events

 The Louisiana Department of Revenue reminds shoppers to retain receipts for back-to-school items such as supplies, uniforms and educational equipment required by schools.  These purchases may be eligible for tax deductions on 2013 Louisiana Individual Income Tax Returns due May 15, 2014. The deductions apply to public, private, parochial and home schools. To claim the deductions, you must be able to claim the student as a dependent on your state individual income tax return, and you must be able to provide documentation for the expenses.

Visit www.revenue.louisiana.gov/taxholiday for more information about the 2013 Louisiana Annual Sales Tax Holiday.

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