Question

My state is Louisiana

QUESTIONS AND EXERCISES 1. Identify the important elements of sales taxation in your state. What govern- ments levy general and selective sales taxes? Identify the following for the RST: What commodity sales are exempt? Are services taxed? What is the nominal rate? Does your state provide sales tax credits/rebates through its income tax? In regard to selective excises: What selective excises are used? Are they ad valorem or specific? What rates apply?

Answer 1

The state general sales tax is payable by users, consumers, lessees, and persons receiving services taxable under the law. If a seller or lessor qualifies as a dealer under the definition of the term at R.S. 47:301(4), they must apply for a sales tax certificate, collect the proper taxes from customers, and file returns with the Louisiana Department of Revenue. A seller or lessor will qualify as a dealer subject to tax collection requirements if they lease, rent, or sell tangible personal property in the state, furnish services in the state that are taxable under the statute, hold property in the state for resale, maintain a business location in the state, operate in the state through full-time or part-time resident or nonresident salesmen or agents, maintain an inventory in the state of tangible personal property for lease or rental, or deliver in a vehicle owned or operated by the seller.

Rate of Tax

As of July 1, 2018, the state sales tax rate is 4.45%; see R-1002, Table of Sales Tax Rates for Exemptions , for more information on the sales tax rate applicable to certain items. Prior to July 1, 2018, the state sales tax rate was 5% for the period of April 1, 2016 through June 30, 2018. The state sales tax rate was 4% for periods prior to April 1, 2016.

Date Payment and Return Due

Sales tax returns and tax payments are due on or before the 20th of the month following the close of the calendar month or calendar quarter of the reporting period.

Basis of Tax

The state general sales tax is due on the sales price [R.S. 47:301(13)] for transactions subject to the sales tax and on the cost price [R.S. 47:301(3)] for transactions subject to use tax. The taxable base includes the total amount for which tangible personal property is sold, including any services rendered by the seller in connection with the sale, the gross amount charged for the lease or rental of tangible personal property, and the gross amount charged for taxable services.

The state general sales and use tax is levied on the following transactions:

1. The sale of tangible personal property at retail in Louisiana;

2. The use, consumption, distribution, or storage for use or consumption in Louisiana of any tangible personal property;

3. The lease or rental within Louisiana of any item or article of tangible personal property; and,

4. The sale of services as defined in the statutes under R.S. 47:301(14), which include the following:

   1. the furnishing of rooms by hotels;

   2. the sales of admission or the furnishing of access to amusement, entertainment, recreational or athletic facilities or events;

   3. the furnishing of storage or parking privileges by auto hotels and parking lots;

   4. the furnishing of printing and overprinting;

   5. the furnishing of laundry, cleaning, pressing, and dyeing services;

   6. the furnishing of cold-storage space and the preparation of property for such storage;

   7. the furnishing of repairs to tangible personal property; and

   8. the furnishing of telecommunications services.