2016 First Extraordinary Legislative
Session: Update on Important Tax
Changes Impacting Louisiana
Nonprofits and Schools
David Hansen
Attorney
Policy Services Division
Louisiana Department of Revenue
1
INFORMAL ADVICE
This communication constitutes “informal
advice” from the Policy Services Division of the
Louisiana Department of Revenue as
contemplated by LAC 61:III.101 and is not
binding on the Department of Revenue or the
person seeking the advice.
2
Louisiana State Capitol
3
Overview of State Tax Collections
Collections
Sales
Individual Income
Severance
Corporation Franchise
Corporation Income
Petroleum Products
FY 2014-2015
$2,766,000,000
$2,890,000,000
$735,000,000
$124,000,000
$373,000,000
$608,000,000
Liquor/Alcohol
Tobacco
Other
FY 2013-2014
$57,000,000
$140,000,000
$138,000,000
Source: LDR Annual Tax Collection Report and Tax Exemption Budget
4
Louisiana State Sales Tax
State Sales Tax Rates
• 2% imposed by La. R.S. 47:302 (state general sales tax)
• 1% imposed by La. R.S. 47:321 (state general sales tax)
• 1% imposed by La. R.S. 47:321.1 (state general sales
tax)
• 0.97% imposed by La. R.S. 47:331 (state general sales
tax)
• 0.03% imposed by La. R.S. 51:1286 (tourism promotion
district)
Total 5%
5
Legislative Sessions
• As prescribed by Article III, Section 2 of the Louisiana
Constitution
• Regular Session (March/April through early June)
– Fiscal Session in odd-numbered years
– Non-Fiscal Session in even-numbered years
• Extraordinary Session (also known as “Special Session”)
– Limited to 30 days
– May be called by the Governor or the Legislature (requires a majority
of each house)
– Limited to items in the “call” (technically the Proclamation)
6
2016 First Extraordinary Session
• Held February 14th through March 9th
• Faced an $870 million dollar budget deficit for the 20152016 fiscal year (current year we are in now) and a $2 billion
dollar budget deficit for the 2016-2017 fiscal year which runs
from July 1st 2016 through June 30th 2017
• Governor Edwards released the “call” for the Extraordinary
Session on February 5th
• By law, the Extraordinary Session was limited to those items
included in Proclamation No. 10 JBE 2016 (referred to as the
“call”)
7
Governor’s Call for the 2016 First Special Session
• The “call” included 36 total items
• 30 of the 36 items are tax related
ITEM NO. 9: To legislate with regard to the imposition of an
additional state tax on the sale, use, lease, or rental of tangible
personal property and the sale of the following enumerated
services:
a) furnishing of sleeping rooms, cottages or cabins by
hotels;
b) the sale of admissions to places of amusement, to
athletic entertainment other than that of schools,
colleges, and universities, and recreational events,
8
Governor’s Call for the 2016 First Special Session
and the furnishing, for dues, fees, or other consideration
of the privilege of access to clubs or the privilege of
having access to or the use of amusement, entertainment,
athletic, or recreational facilities;
c) the furnishing of storage or parking privileges by auto
hotels and parking lots; the furnishing of printing or
overprinting, lithographic, multilith, blue printing,
photostating or other similar services of reproducing
written or graphic matter;
9
Governor’s Call for the 2016 First Special Session
d) the furnishing of laundry, cleaning, pressing and dyeing
services, including by way of extension and not of
limitation, the cleaning and renovation of clothing, furs,
furniture, carpets and rugs, and the furnishing of storage
space for clothing, furs, and rugs;
e) the furnishing of cold storage space, except that space
which is furnished pursuant to a bailment arrangement,
and the furnishing of the service of preparing tangible
personal property for cold storage where such service is
incidental to the operation of storage facilities;
10
Governor’s Call for the 2016 First Special Session
f) the furnishing of repairs to tangible personal
property, including but not restricted to the repair
and servicing of automobiles and other vehicles,
electrical and mechanical appliances and
equipment, watches, jewelry, refrigerators, radios,
shoes, and office appliances and equipment;
g) the furnishing of telecommunications services for
compensation.
11
Governor’s Call for the 2016 First Special Session
ITEM NO. 21: To legislate with regard to the
payment of vendor’s compensation for state sales
and use tax.
ITEM NO. 29: To legislate with regard to the
furnishing of sleeping rooms, cottages or cabins
to include sales over the internet and sales at a
residential location.
ITEM NO. 30: To legislate with regard to the
imposition, collection and remittance of sales and
use tax under R.S. 47:302 and to amend the
definition of dealer.
12
Governor’s Call for the 2016 First Special Session
• ITEM NO. 36: To legislate with regard to exemptions and
exclusions from state sales and use tax.
13
Act 15 of the 2016 First Extraordinary Session
Act 15 (HB 43) [R.S. 47:306(A)(3)(a)] limits the total vendors
compensation for a dealer who operates one or more business
locations within Louisiana to one thousand five hundred dollars
per calendar month. Mandates that calculation of the deduction
is to be based only on the taxes levied by R.S. 47:302, 321, 331,
and R.S. 51:1286. Prohibits vendors compensation for
taxes accounted for and remitted pursuant to R.S. 47:321.1 or any
other sales tax levied by the state. Effective April 1, 2016.
14
Act 15 of the 2016 First Extraordinary Session
• See Revenue Information Bulletin No. 16-015
• Effective April 1, 2016, Act 15 authorizes the secretary to
allow each dealer .935 percent of the amount of tax due and
accounted for and timely remitted in the form of a deduction in
submitting his report and paying the amount due by the dealer
subject to the following conditions and terms:
1. The payment of the dealer is timely paid and the return
is timely filed with the secretary.
2. The amount of any credit claimed for taxes already paid
to a wholesaler has not been deducted in computing the
amount of the compensation allowed the dealer.
15
Act 15 of the 2016 First Extraordinary Session
3. The total state compensation for a dealer who operates
one or more business locations within this state does not
exceed one thousand five hundred dollars ($1,500.00) per
calendar month.
4. The calculation of the deduction is based only on the
taxes levied pursuant to R.S. 47:302, 321, 331, and R.S.
51:1286.
5. No compensation is allowed for taxes accounted for
and remitted pursuant to R.S. 47:321.1 or any other
sales tax levied by this state.
16
Act 17 of the 2016 First Extraordinary Session
Act 17 (HB 59) amended La. R.S. 47:301(6)(a) relative to the
definition of "Hotel" to include any establishment or person
engaged in the business of furnishing sleeping rooms, cottages, or
cabins to transient guests, where such establishment consists of 1
or more (previously 6 or more) sleeping rooms, cottages, or
cabins at any of the following: (i) A single business location or
(ii) A residential location, including but not limited to a house,
apartment, condominium, camp, cabin, or other building structure
used as a residence. Hotel does not include any establishment or
person leasing apartments or single family dwelling on a monthto-month basis.
17
Act 17 of the 2016 First Extraordinary Session
Act 17
The definition of dealer pursuant to La. R.S. 47:301(4) was also
amended to include any person engaged in collecting the amount
required to be paid by a transient guest as a condition of
occupancy at a residential location as provided in La. R.S.
47:301(6)(a)(ii). The definition of dealer excludes persons leasing
apartments or single family dwellings on a month to month basis.
The provisions of this Act shall become effective July 1, 2016.
18
Act 25 of the 2016 First Extraordinary Session
• Act 25 (HB 61) enacted La. R.S. 47:302(V), 321(L), and 331(S) which
provide that certain state exclusions and exemptions are operative and
in effect for the purposes of the imposition of state sales taxes pursuant
to La. R.S. 47:302, 321, and 331.
• The effective date of Act 25 is April 1, 2016.
• Act 25 attempted to “clean” the (4) four existing state sales tax
pennies
• By “cleaning” the pennies, the Legislature suspended all exclusions
and exemptions except a specific list of 32 exclusions/exemptions
• Act 25 suspends most sales tax exclusions/exemptions for all 4% of
the existing state sales tax for the period of April 1, 2016 through
June 30, 2016.
• Act 25 suspends most sales tax exclusions/exemptions for 2% of the
existing state sales tax for the period of July 1, 2016 through June
30, 2018.
19
Act 25 of the 2016 First Extraordinary Session
• Act 25 protects only 32 of the approximately 250 sales tax
exclusions and exemptions from the 4% sales tax
• Act 25 subjects over 200 previous exemptions and exclusions
to 4% state sales tax
20
Act 25 of the 2016 First Extraordinary Session
• For the period beginning April 1, 2016 through June 30,
2018, certain state sales tax exemptions and exclusions will
continue to be in effect with regard to the state sales tax levied
pursuant to La. R.S. 47:302. (2%)
• For the period April 1, 2016 through June 30, 2016, only
those sales tax exemptions and exclusions provided for in La.
R.S. 47:321(L) will be operative and in effect purposes of the
one percent (1%) tax levied pursuant to La. R.S. 47:321.
(1%)
21
Act 25 of the 2016 First Extraordinary Session
• For the period April 1, 2016 through June 30, 2016, only
those sales tax exemptions and exclusions provided for in La.
R.S. 47:331(S) will be operative and in effect purposes of the
ninety-seven on hundredths of one percent (.97%) tax levied
pursuant to La. R.S. 47:331 and the Louisiana Tourism
Promotion District tax in the amount of three one hundredths
of one percent (.03%) levied pursuant to La. R.S. 51:1286.
State sales, purchases, use, leases or rental tax exemptions and
exclusions not listed in Act 25 for the sale, use, consumption,
lease or rental of tangible personal property and the sales of
services will be subject to tax.
22
Act 25 of the 2016 First Extraordinary Session
• See Revenue Information Bulletin No. 16-012
• Surviving sales tax exemptions for 4% imposed by La. R.S.
47:302, 321, 331, and 51:1286:
(1) Food for home consumption, as defined in La. R.S.
47:305(D)(1)(n) through (r) on January 1, 2003, as
provided in Article VII, Section 2.2 of the Constitution of
Louisiana.
(2) Natural gas, as provided in Article VII, Section 2.2 of
the Constitution of Louisiana.
(3) Electricity, as provided in Article VII, Section 2.2 of
the Constitution of Louisiana.
(4) Water, as provided in Article VII, Section 2.2 of the
Constitution of Louisiana.
23
Act 25 of the 2016 First Extraordinary Session
(5) Prescription drugs, as provided in Article VII, Section 2.2 of
the Constitution of Louisiana.
(6) Gasoline and other motor fuels subject to the state excise tax
on fuel.
(7) Sales to the United States government and its agencies, as
provided in La. R.S. 301(10)(g).
(8) Sales of raw agricultural products, as provided in La. R.S.
47:301(10)(e) and 305(A)(3).
(9) Lease or rentals of railroad rolling stock as provided in La.
R.S. 47:301(4)(k), piggyback trailers as provided in La. R.S.
47:305.45, and certain trucks and trailers in interstate commerce
as provided in La. R.S. 47:305.50(A) and (B).
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Act 25 of the 2016 First Extraordinary Session
(10) Tangible personal property for resale as provided in La. R.S.
47:301(10)(a)(i).
(11) Feed and feed additives for animals held for business
purposes as provided in La. R.S. 47:305(A)(4).
(12) Farm products produced and used by farmers as provided in
La. R.S. 47:305(B).
(13) Sales of fertilizers and containers to farmers as provided in
La. R.S. 47:305(D)(1)(f).
(14) Sales of seeds for planting crops as provided in La. R.S.
47:305.3.
25
Act 25 of the 2016 First Extraordinary Session
(15) Sales of pesticides for agricultural purposes as provided in
La. R.S. 47:305.8.
(16) Purchases, use and lease of Manufacturing machinery and
equipment as provided in La. R.S. 47:301(3)(i), (13)(k), and
(28)(a).
(17) Sales of materials for further processing as provided in La.
R.S. 47:301(10)(c)(i)(aa).
(18) Sale of 50-ton vessels and new component parts and sales of
certain materials and services to vessels operating in interstate
commerce as provided in La. R.S. 47:305.1(A) and (B).
(19) Louisiana Tax Free Shopping Program for international
visitors as provided in La. R.S. 51:3101.
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Act 25 of the 2016 First Extraordinary Session
(20) Sales of farm equipment used in poultry production as
provided in La. R.S. 47:301(13)(c).
(21) Sales of pharmaceuticals administered to livestock for
agricultural purposes as provided in La. R.S. 47:301(16)(f).
(22) Sales of livestock, poultry, and other farm products direct
from the farm and livestock at public sales as provided in La.
R.S. 47:305(A)(1) and (2).
(23) Materials used in the production of crawfish and catfish as
provided in La. R.S. 47:305(A)(5) and (6).
(24) First fifty thousand dollars of farm equipment as provided in
La. R.S. 47:305.25.
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Act 25 of the 2016 First Extraordinary Session
(25) Fuel used on the farm as provided in La. R.S. 47:305.37.
(26) Taxation of electrical cooperatives as provided in La. R.S.
12:425.
(27) Overhaul of naval vessels as provided in La. R.S.
47:301(7)(c) and (14)(h).
(28) Purchases by state and local governments as provided in La.
R.S. 47:301(8)(c).
(29) Transactions in interstate commerce and tangible personal
property imported into this state, or produced or manufactured in
this state, for export as provided in La. R.S. 47:305(E).
28
Act 25 of the 2016 First Extraordinary Session
(30) Parish councils on aging as provided in La. R.S. 47:305.66.
(31) Articles traded in on purchases of tangible personal property
as provided in La. R.S. 47:301(13)(a).
(32) A factory built home as provided in La. R.S. 47:301(16)(g).
Act 25 also repeals the credit provided for by Act No. 386 of the
1990 Regular Session of the Legislature that allowed dealers to
claim up to $25 per register to recoup costs incurred to reprogram
cash registers due to changes in the sales tax rate or base.
29
Act 26 of the 2016 Extraordinary Session
Act 26 (HB 62) of the 2016 First Extraordinary Session of the
Louisiana Legislature enacted La. R.S. 47:321.1, which imposes
an additional state sales tax in the amount of one percent
(1%). This additional state sales tax is levied upon the sale at
retail, the use, the consumption, the distribution and lease or
rental of an item of tangible personal property and upon sale of
services. The new state sales tax is in addition to the sales taxes
already levied pursuant to La. R.S. 47:302, 321 and 331. This tax
is to be collected by the dealer and wholesaler as provided by
Chapter 2 of Title 47. The provisions of Act 26 shall become
effective on April 1, 2016 and shall be inapplicable,
inoperative and of no effect after June 30, 2018.
30
Act 26 of the 2016 Extraordinary Session
• For the period April 1, 2016 through June 30, 2018, sixty-five state
sales, purchase, use, lease or rental tax exemptions and exclusions
will continue to be operative and in effect with regard to the
additional state sales tax levied pursuant to La. R.S. 47:321.1. The
sales tax exclusion for the purchases, use and lease of manufacturing
machinery and equipment as provided in La. R.S. 47:301(3)(i),
(13)(k), and (28)(a) shall not be operative and in effect until July 1,
2016.
• See Revenue Information Bulletin No. 16-013
• See LDR Publication R-1002A (04/16)
– Acts 25 and 26 - Taxable Rate of Transactions for Exemptions
and Exclusions
– This table explains the changes enacted by Act 25 and 26 of the
2016 First Extraordinary Session of the Louisiana Legislature
31
Act 26 of the 2016 Extraordinary Session
Surviving sales tax exemptions for 1% imposed by La. R.S.
47:321.1
(1) Food for home consumption, as defined in La. R.S.
47:305(D)(1)(n) through (r) on January 1, 2003, as provided in
Article VII, Section 2.2 of the Constitution of Louisiana.
(2) Natural gas, as provided in Article VII, Section 2.2 of the
Constitution of Louisiana.
(3) Electricity, as provided in Article VII, Section 2.2 of the
Constitution of Louisiana.
(4) Water, as provided in Article VII, Section 2.2 of the Constitution
of Louisiana.
(5) Prescription drugs, as provided in Article VII, Section 2.2 of the
Constitution of Louisiana.
32
Act 26 of the 2016 Extraordinary Session
(6) Gasoline and other motor fuels subject to the state excise tax
on fuel.
(7) Sales to the United States government and its agencies, as
provided in La. R.S. 301(10)(g).
(8) Other constructions permanently attached to the ground, as
provided in La. R.S. 47:301(16)(l).
(9) Installation charges on tangible personal property, as provided
in La. R.S. 47:301(3)(a).
(10) Installation of oil field board roads, as provided in La. R.S.
47:301(13)(c).
33
Act 26 of the 2016 Extraordinary Session
(11) Transactions involving the construction or overhaul of
United States Navy vessels, as provided in La. R.S. 47:301(7)(c)
and (14)(h).
(12) Property purchased for exclusive use outside the state, as
provided in La. R.S. 47:305.10.
(13) Sale, lease or rental of tangible personal property paid by or
under the provisions of Medicare, as provided in La. R.S.
47:315.3.
(14) Sales of human tissue transplants, as provided in R.S.
47:301(10)(d).
(15) Sales of raw agricultural products, as provided in La. R.S.
47:301(10)(e) and 305(A)(3).
34
Act 26 of the 2016 Extraordinary Session
(16) Sales of food by youth serving organizations chartered by
Congress, as provided in La. R.S. 47:301(10)(h).
(17) Tangible personal property sold to food banks as provided in
La. R.S. 47:301(10)(j).
(18) Materials used in the collection of blood as provided in La.
R.S. 47:301(16)(j).
(19) Aphaeresis kits and leuko reduction filters as provided in La.
R.S. 47:301(16)(k).
(20) Donation to schools and food banks from resale inventory as
provided in La. R.S. 47:301(18)(a).
35
Act 26 of the 2016 Extraordinary Session
(21) Manufacturers rebates on new motor vehicles as provided in
La. R.S. 47:301(3)(e) and (13)(b).
(22) Lease or rentals of railroad rolling stock as provided in La.
R.S. 47:301(4)(k).
(23) Purchases and leases by free hospitals as provided in La.
R.S. 47:301(7)(e), (10)(p) and (18)(c).
(24) Purchases by nonprofit entities that sell donated goods as
provided in La. R.S. 47:301(8)(f).
(25) Tangible personal property for resale as provided in La. R.S.
47:301(10)(a)(i).
36
Act 26 of the 2016 Extraordinary Session
(26) Purchases of property for lease or rental as provided in La.
R.S. 47:301(10)(a)(iii) and (18)(a)(iii).
(27) Isolated or occasional sales of tangible personal property as
provided in La. R.S. 47:301(1) and (10)(c)(ii)(bb).
(28) Use of motor vehicles in Louisiana by active duty military as
provided in La. R.S. 47:303(A) and 305.48.
(29) Purchases made with food stamps and WIC as provided in
La. R.S. 47:305.46.
(30) Articles traded in on purchases of tangible personal property
as provided in La. R.S. 47:301(13)(a).
37
Act 26 of the 2016 Extraordinary Session
(31) Donations of toys as provided in La. R.S.
47:301(10)(z)(aa)(i) and (18)(m).
(32) Stocks, bonds, notes or other obligations or securities as
provided in La. R.S. 47:301(16)(b)(i).
(33) Credit for sales and use taxes paid to other states on tangible
personal property imported in Louisiana as provided in La. R.S.
47:303(A)(3)(a).
(34) Work product of certain professionals as provided in La.
R.S. 47:301(16)(e).
(35) Purchases by regionally accredited independent educational
institutions as provided in La. R.S. 47:301(8)(b).
38
Act 26 of the 2016 Extraordinary Session
(36) Sales through coin-operated vending machines as provided
in La. R.S. 47:301(10)(b)(i).
(37) Purchases by a private postsecondary academic degreegranting institution as provided in R.S. 47:301(10)(cc) and as
provided in La. R.S. 47:301(18)(n).
(38) Purchases of food items for school lunch or breakfast
programs by nonpublic elementary or secondary schools as
provided in La. R.S. 47:301(10)(dd).
(39) Repair services performed in Louisiana when the repaired
property is exported as provided in La. R.S. 47:301(14)(g)(i)(bb).
39
Act 26 of the 2016 Extraordinary Session
(40) Funeral directing services as provided in La. R.S.
47:301(14)(j).
(41) Feed and feed additives for animals held for business
purposes as provided in La. R.S. 47:305(A)(4).
(42) Farm products produced and used by farmers as provided in
La. R.S. 47:305(B).
(43) Sales of fertilizers and containers to farmers as provided in
La. R.S. 47:305(D)(1)(f).
(44) Sales of seeds for planting crops as provided in La. R.S.
47:305.3.
(45) Sales of pesticides for agricultural purposes as provided in
La. R.S. 47:305.8.
40
Act 26 of the 2016 Extraordinary Session
(46) The cost price for the printing of a news publication as
provided in La. R.S. 47:301(3)(h).
(47) Vehicle rentals to warranty customers as provided in
La. R.S. 47:301(7)(h).
(48) Lease or rental of a crane and related equipment with
an operator as provided in La. R.S. 47:301(7)(k).
(49) Sales by and to the state and its political subdivisions as
provided in La. R.S. 47:301(8)(c).
(50) Sales of materials for further processing as provided in
La. R.S. 47:301(10)(c)(i)(aa).
41
Act 26 of the 2016 Extraordinary Session
(51) The sales price for new farm equipment used in poultry
production as provided in La. R.S. 47:301(13)(c).
(52) A factory built home as provided in La. R.S. 47:301(16)(g).
(53) Any advertising service rendered by an advertising business
as provided in La. R.S. 47:302(D).
(54) The sale of livestock, poultry, and other farm products direct
from a farm as provided in La. R.S. 47:305(A)(1).
(55) The sale of livestock at public sales sponsored by breeders'
or registry associations or livestock auction markets as provided
in La. R.S. 47:305(A)(2).
42
Act 26 of the 2016 Extraordinary Session
(56) The sale of agricultural products by a person other than the
producer for use in further processing as provided in R.S.
47:305(A)(3).
(57) Transactions in interstate commerce and tangible personal
property imported into this state, or produced or manufactured in
this state, for export as provided La. in R.S. 47:305(E).
(58) Ships, vessels, barges, and related supplies as provided in
La. R.S. 47:305.1.
(59) The sales price for new farm equipment as provided in La.
R.S. 47:305.25.
43
Act 26 of the 2016 Extraordinary Session
(60) Trucks and trailers if used at least eighty percent of the time
in interstate commerce as provided in La. R.S. 47:305.50(A).
(61) Freight cars, piggy-back cars and rolling stock, and railroad
ties as provided in La. R.S. 47:305.45 and 305.50(F).
(62) Councils on Aging as provided in La. R.S. 47:305.66.
(63) Sales of pharmaceuticals administered to livestock for
agricultural purposes as provided in R.S. 47:301(16)(f).
(64) Materials used in the production of crawfish and catfish as
provided in La. R.S. 47:305(A)(5) and (6).
(65) Beginning July 1, 2016, manufacturing machinery and
equipment as provided in La. R.S. 47:301(3)(i), (13)(k), and
(28)(a).
44
Taxability of Dues
Revenue Information Bulletin No. 16-014
• Taxability of Dues Paid to Nonprofit, Civic Organizations
Which Entitle the Member to Receive Access to Clubs or the
Privilege of Having Access to or the Use of Amusement,
Entertainment, Athletic, or Recreational Facilities
• Membership fees or dues paid to nonprofit, civic organizations
such as the Young Men's Christian Association, which grant
members the privilege of having access to workout facilities,
clubs, and swimming pools will be subject to state sales tax.
Membership fees or dues that entitle the member to use the
organization's clubs, or amusement, entertainment, athletic, or
recreational facilities will be subject to state sales tax.
45
Taxability of Dues
Revenue Information Bulletin No. 16-014
• Membership fees or dues paid to a club such as the Rotary
Club, which does not grant members access to a club or the
privilege of accessing amusement, entertainment, athletic, or
recreational facilities will not be subject to state sales tax.
• Beginning April 1, 2016, 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 will be subject to state sales
tax as follows:
• Effective 4/1/2016 - 6/30/2016 State Sales Tax Rate 5%
• Effective 7/1/2016 - 6/30/2018 State Sales Tax Rate 3%
• Effective 7/1/2018 - 3/31/2019 State Sales Tax Rate 0%
46
Taxability of Admissions to Places of Amusement,
Athletic Entertainment, and Recreational Events
Revenue Information Bulletin No. 16-020
• Pursuant to La. R.S. 47:301(14)(b)(i), one of the specifically
enumerated services subject to sales tax in Louisiana is the
sale of admissions to places of amusement, athletic
entertainment, and recreational events.
• Prior to the effective date of Act 25 and Act 26, numerous
exclusions and exemptions pertaining to the sale of admissions
were in effect.
• However, these numerous exclusions and exemptions were not
included in Act 25 or Act 26.
47
Taxability of Admissions to Places of Amusement,
Athletic Entertainment, and Recreational Events
Revenue Information Bulletin No. 16-020
Therefore, as listed in the Department's Publication R-1002A (04/16), the
following previously exempt admissions are now subject to Louisiana sales
tax:
Exemption
Admission Charges to Athletic Events of Schools, Colleges, and
Universities
Statute
La. R.S. 47:301(14)(b)(i)
Sales Tax Rates
4/1/2016-6/30/2016 5%
7/1/2016-6/30/2018 3%
7/1/2018-3/31/2019 0%
48
Taxability of Admissions to Places of Amusement,
Athletic Entertainment, and Recreational Events
Revenue Information Bulletin No. 16-020
Exemption
Admissions to Art, History, and Scientific Museums,
Aquariums, Zoological Parks, Botanical Gardens,
Arboretums, Nature Centers, Planetariums, etc.
Statute
La. R.S. 47:301(14)(b)(ii)
Sales Tax Rates
4/1/2016-6/30/2016 5%
7/1/2016-6/30/2018 3%
7/1/2018-3/31/2019 0%
49
Taxability of Admissions to Places of Amusement,
Athletic Entertainment, and Recreational Events
Revenue Information Bulletin No. 16-020
Exemption
Receipts from Camp and Retreat Facilities Owned and
Operated by Nonprofit Organizations
Statute
La. R.S. 47:301(14)(b)(iv)
Sales Tax Rates
4/1/2016-6/30/2016 5%
7/1/2016-6/30/2018 3%
7/1/2018-3/31/2019 0%
50
Taxability of Admissions to Places of Amusement,
Athletic Entertainment, and Recreational Events
Revenue Information Bulletin No. 16-020
Exemption
Sales of Admission Tickets by Little Theater Organizations
Statute
La. R.S. 47:305.6
Sales Tax Rates
4/1/2016-6/30/2016 5%
7/1/2016-6/30/2018 4%
7/1/2018-3/31/2019 1%
51
Taxability of Admissions to Places of Amusement,
Athletic Entertainment, and Recreational Events
Revenue Information Bulletin No. 16-020
Exemption
Tickets to Musical Performances by Nonprofit Musical
Organizations
Statute
La. R.S. 47:305.7
Sales Tax Rates
4/1/2016-6/30/2016 5%
7/1/2016-6/30/2018 4%
7/1/2018-3/31/2019 1%
52
Taxability of Admissions to Places of Amusement,
Athletic Entertainment, and Recreational Events
Revenue Information Bulletin No. 16-020
Exemption
Sales of Admissions to Entertainment by Domestic
Nonprofit Charitable, Educational, and Religious
Organizations.
Statute
La. R.S. 47:305.13
Sales Tax Rates
4/1/2016-6/30/2016 5%
7/1/2016-6/30/2018 4%
7/1/2018-3/31/2019 1%
53
Taxability of Admissions to Places of Amusement,
Athletic Entertainment, and Recreational Events
Revenue Information Bulletin No. 16-020
Exemption
Sales of Tangible Personal Property at or Admissions to
Events Sponsored by Certain Nonprofit Groups
Statute
La. R.S. 47:305.14(A)(1)
Sales Tax Rates
4/1/2016-6/30/2016 5%
7/1/2016-6/30/2018 3%
7/1/2018-3/31/2019 0%
54
Taxability of Admissions to Places of Amusement,
Athletic Entertainment, and Recreational Events
Revenue Information Bulletin No. 16-020
Exemption
Outside Gate Admissions & Parking Fees at Fairs, Festivals
& Expositions Sponsored by Nonprofit Organizations
Statute
La. R.S. 47:305.18
Sales Tax Rates
4/1/2016-6/30/2016 5%
7/1/2016-6/30/2018 4%
7/1/2018-3/31/2019 1%
55
Taxability of Admissions to Places of Amusement,
Athletic Entertainment, and Recreational Events
Revenue Information Bulletin No. 16-020
Exemption
Tickets to Dance, Drama, or Performing Arts Presentations
by Certain Nonprofit Organizations
Statute
La. R.S. 47:305.42
Sales Tax Rates
4/1/2016-6/30/2016 5%
7/1/2016-6/30/2018 4%
7/1/2018-3/31/2019 1%
56
Taxability of Meals for Schools Participating in the
National School Lunch and School Breakfast Programs
Revenue Information Bulletin No. 16-024
• No sales tax will be due upon the purchase and sale of food items under
the National School Lunch and School Breakfast Programs. (public and
private schools)
• For private schools that do not participate in the National School Lunch
and School Breakfast Programs, food service provided to students by
nonprofit private schools and residential child care institutions as a part of
tuition is a part of the educational services provided by the school. An
educational service is not one of the defined sales of services pursuant to
La. R.S. 47:301(14); therefore, it is a non-taxable service.
• For those schools where food service is billed separately and the school
does not participate in the National School Lunch and School
Breakfast Programs, the meals would be taxable under Act 25 of the
2016 First Extraordinary Session and the school would be required to
collect the four percent state sales tax on meals from April 1, 2016 through
June 30, 2016 and the two percent state sales tax from July 1, 2016 through
June 30, 2018.
57
Taxability of Food Items Donated to a Food Bank
Revenue Information Bulletin No. 16-026
• Act 26 retains the use tax exclusion provided by La. R.S.
47:301(18)(a)(i) for food items donated to a food bank as
defined in La. R.S. 9:2799(B). Act 25 does not retain the
exclusion.
• Typically, a retail dealer, such as a grocery store, will donate
unmarketable food items to a food bank in order to help
provide for those in need. The food items would have been
purchased free from sales tax pursuant to the sale for
resale exclusion. Once the food items became unmarketable,
for various reasons, the retail dealer could be liable for use tax
on the food items.
58
Taxability of Food Items Donated to a Food Bank
Revenue Information Bulletin No. 16-026
• Pursuant to La. R.S. 47:302, 321, and 331, the use tax is
imposed on the "cost price" of the tangible personal
property. Pursuant to La. R.S. 47:301(3)(a), "cost price" is
defined as the lesser of the actual cost of the tangible
personal property or the reasonable market value of the
tangible personal property at the time it becomes
susceptible to the use tax.
• Since the food items become susceptible to the use tax at
the point in time when the food items become
unmarketable, there is no reasonable market value of
the food items. Thus, the cost price would be $0.00 and
there would be no use tax due. Therefore, no Louisiana
state use tax is due on food items donated to a food bank.
59
Admissions to Public School Athletic/Entertainment Events
and the Sales of Food and Tangible Personal Property at Events
Frequently Asked Questions
Revenue Information Bulletin No. 16-027
What is the change in the law regarding admissions to school
athletic/entertainment events and the sales of food and tangible personal
property at these events?
Previously, there was a sales tax exclusion from state sales tax for admissions
to amusement events, athletic entertainment events, and recreational events of
schools, colleges, and universities. The new law imposes state sales tax on
these events of schools, colleges, and universities at the following rates:
Period State Sales Tax Rates
4/1/2016-6/30/2016 5%
7/1/2016-6/30/2018 3%
7/1/2018-3/31/2019 0%
State sales tax should be charged upon the sales of concessions and other items
of tangible personal property as well.
60
Admissions to Public School Athletic/Entertainment Events
and the Sales of Food and Tangible Personal Property at Events
Frequently Asked Questions
Revenue Information Bulletin No. 16-027
What events qualify as amusement events, athletic entertainment
events, and recreational events?
Qualifying events include but are not limited to school plays, band
performances, choir performances, dances, and sporting events.
Who is required to pay this tax?
The individual who is paying for the admission to the athletic or
entertainment event will pay the state sales tax due on the
ticket/admission charge. The public school should collect the state sales
tax along with the money paid for a ticket or admission.
Individuals attending a sporting or entertainment event are the
"taxpayers", who are liable for paying the tax. The school board and its
public school hosting the events are "dealers" within the meaning of
La. R.S. 47:301(4) and are responsible
61
Admissions to Public School Athletic/Entertainment Events
and the Sales of Food and Tangible Personal Property at Events
Frequently Asked Questions
Revenue Information Bulletin No. 16-027
for collecting and remitting the state sales taxes to the Louisiana
Department of Revenue (hereafter “LDR”).
If a public school or school board requires a student to attend a
school play, band performance, choir performance, or sporting
event, then there is no sales tax due on the price of admission,
because the school and school board are exempt from state sales
tax pursuant to La. R.S. 47:301(8)(c).
62
Admissions to Public School Athletic/Entertainment Events
and the Sales of Food and Tangible Personal Property at Events
Frequently Asked Questions
Revenue Information Bulletin No. 16-027
How does the tax increase impact the price of a ticket
to a sporting event or admission to entertainment?
The price charged for a ticket or admission is at the public
school’s discretion. A public school may continue to
charge the same amount for admission to sporting or
entertainment event but the state sales tax would be
included in the price. For example, if the price for a ticket
remains $4.00, the school would remit $0.20 in state sales
tax (at 5%) and retain $3.80 as the price of the ticket.
However, a school may opt to charge full price and charge
state sales tax upon that amount. If a ticket costs an
individual $4.00, then the school would need to collect
$0.20 in state sales tax for a total of $4.20.
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Admissions to Public School Athletic/Entertainment Events
and the Sales of Food and Tangible Personal Property at Events
Frequently Asked Questions
Revenue Information Bulletin No. 16-027
What happens if the school/school board does not collect and remit the
sales tax to the Louisiana Department of Revenue?
Any school board that does not collect and remit the state sales tax will owe
the sales tax itself.
Who is required to register with the Department of Revenue?
Every school board must register with the Department of Revenue for the
purpose of remitting the sales tax collected by the schools within their district.
Each school board is required to submit an excel file containing the board’s
name and withholding account number to [email protected] with the
subject line RIB 16-027. The department will create the account for the
remittance of the sales tax due and set the filing frequency.
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Revenue Information Bulletin No. 16-029
Frequently Asked Questions on College and University Compliance with
Acts 25 and 26 of the 2016 First Extraordinary Session of the Louisiana
Legislature
1. How much sales tax will be imposed upon tickets to college and
university events?
Prior to April 1, 2016, there was a sales tax exclusion from state sales tax for
admissions to amusement events, athletic entertainment events, and
recreational events of colleges and universities pursuant to La. R.S.
47:301(14)(b)(i). Acts 25 and 26 of the First Extraordinary Session of the
Louisiana Legislature have imposed a state sales tax on the cost of admissions
to amusement events, athletic entertainment, and recreational events of
colleges and universities at the following rates:
Period
State Sales Tax Rates
4/1/2016-6/30/2016
5%
7/1/2016-6/30/2018
3%
7/1/2018-3/31/2019
0%
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Revenue Information Bulletin No. 16-029
College and University Sales Tax FAQ’s
Tickets sold or invoiced to the ticket holder before April 1, 2016
or postmarked before April 1, 2016 are not subject to state sales
taxes. Tickets sold on or after April 1, 2016 through June 30,
2016 are subject to 5% state sales tax. Tickets sold on or after
July 1, 2016 are subject to 3% state sales tax. Tickets sold on or
after July 1, 2018 will not be subject to state sales tax.
2. What events qualify as amusement events, athletic
entertainment events, and recreational events?
Qualifying events include but are not limited to plays, band
performances, ballet and dance performances, choir
performances, and sporting events.
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Revenue Information Bulletin No. 16-029
College and University Sales Tax FAQ’s
3. Are donations to private, nonprofit corporations dedicated
to supporting a college or university and its athletic program
subject to state sales tax?
A donation to a non-profit corporation is not a sale as defined in
La. R.S. 47:301(13) and is not subject to state sales tax.
4. Are membership dues or fees paid to a private non-profit
athletic booster club or non-profit foundation subject to state
sales tax?
If the non-profit athletic booster club or non-profit foundation
does not grant its members access to a club or the privilege of
accessing amusement, entertainment, athletic or recreational
facilities, then its membership fees or dues will not be subject to
state sales tax.
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Revenue Information Bulletin No. 16-029
College and University Sales Tax FAQ’s
5. Are meal plans sold to college and university students as
part of bed and board subject to state sales tax?
If the meal is part of room and board and is included with tuition
or fees, then it is considered to be part of the educational services
provided by the college or university. An educational service is
not one of the defined sales of services pursuant to La. R.S.
47:301(14); therefore, it is a non-taxable service. Sales of single
meals to students, which are not included as a part of tuition or
fees, will be subject to state sales tax.
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Revenue Information Bulletin No. 16-029
College and University Sales Tax FAQ’s
6. If a guest speaker is invited to lecture at a college or
university, will admission to this event be taxable?
Typically, a guest speaker is invited to speak on a particular topic.
A college or university will facilitate this activity as part of its
mission to educate its students and the community at large. The
college or university is providing an educational service, which is
a non-taxable service.
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Revenue Information Bulletin No. 16-029
College and University Sales Tax FAQ’s
7. If a college or university holds athletic camps or
enrichment classes for elementary or secondary school
students during the summer or at other times of the year, will
the tuition for the athletic camp or enrichment class be
subject to state sales tax? If a meal is included as part of the
tuition for the athletic camp or enrichment class, is the sale of
the meal subject to tax?
Admission to a class is educational service; an educational
service is not one of the enumerated taxable services pursuant to
La. R.S. 47:301(14). Therefore, tuition paid for the athletic camp
or enrichment class is not subject to state sales tax. If a meal is
included as part of the tuition for the athletic camp or enrichment
class, then it is part of the educational services provided by the
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college or university and is not subject to state sales tax.
Revenue Information Bulletin No. 16-029
College and University Sales Tax FAQ’s
8. If an amusement, entertainment, or athletic event sponsored by a
non-profit corporation or another type of entity is held on a college
or university campus, are admissions to this event subject to state
sales tax?
Yes. Admissions to this event will be subject to state sales tax. Please
see Revenue Information Bulletin 16-020 Taxability of Admissions to
Places of Amusement, Athletic Entertainment, and Recreational Events
for state sales tax rates applicable to each type of event.
Individuals attending an athletic or entertainment event are the
"taxpayers", who are liable for paying the sales tax. The non-profit
corporation or entity hosting or sponsoring the event on the college or
university campus is a "dealer" within the meaning of La. R.S.
47:301(4) and would be responsible for collecting and remitting the
state sales taxes to the Louisiana Department of Revenue (hereinafter
“LDR”).
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Revenue Information Bulletin No. 16-029
College and University Sales Tax FAQ’s
9. If a public college or university student is required to
attend or participate in a play, band performance, choir
performance, or sporting event as a class requirement and the
cost of admission is covered by the public college or
university, is this admission subject to state sales tax?
No. If a public college or university student is required to attend
or participate in a play, band performance, choir performance, or
sporting event as a class requirement and the cost of admission is
covered by the public college or university, then there is no state
sales tax due on the price of admission, because public colleges
and universities are exempt from state sales tax pursuant to La.
R.S. 47:301(8)(c).
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Revenue Information Bulletin No. 16-029
College and University Sales Tax FAQ’s
10. If a college or university provides testing services, is this service
subject to state sales tax?
No. Testing is not one of the defined sales of services pursuant to La. R.S.
47:301(14); therefore, it is a non-taxable service.
11. If a college or university provides veterinary services, is this service
subject to state sales tax?
No. A veterinary service is not one of the defined sales of services pursuant to
La. R.S. 47:301(14); therefore, it is a non-taxable service.
12. If a college or university is not registered to collect state sales tax, what
is the registration process?
A college or university can register for a sales tax account online with the
Louisiana Taxpayer Access Point (LaTAP) on the LDR Website,
www.revenue.louisiana.gov.
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Questions and Answers
• Will annual membership dues for individuals in a non-profit,
Mardi Gras Krewe now be subject to sales and use tax?
– If the Krewe does not grant its members access to a club or the
privilege of accessing amusement, entertainment, athletic or
recreational facilities, then its membership fees or dues will not be
subject to state sales tax.
• Will Mardi Gras beads and other throw items purchased from a
wholesaler by Krewe members and donated or thrown by the
Krewe members during their parades now be subject to sales
and use tax?
– Yes
74
Questions and Answers
• We have a retreat facility and almost all of our rentals are for
religious retreats. Are all receipts taxable? Only those charges
related to lodging? Only those not related to our mission (nonretreat type usage)?
– Only lodging charges that are broken out separately from other
charges
• If an individual or business contributes $500 to a nonprofit for
an event, and receives a ticket to the event (individual tickets
sell for $100 and includes a $50 donation). Is state sales tax
due on $100, or on $50?
– Sponsorships are not taxable.
– The value of the ticket ($100) is small compared to the total amount
paid ($500).
75
Questions and Answers
• If an event is held this August, and some tickets will be sold
prior to June 30, and some will be sold after July 1, how is
state sales tax handled? Does the included tax amount have to
be printed on the ticket, and if so, do both rates have to be
printed on the tickets?
– The sales tax imposed on the date of payment will apply
– Yes, the amount of tax should be printed on the tickets if the tickets
were printed after the sales tax went into effect
76
Questions and Answers
• Are public schools exempt from paying sales tax on
leased educational equipment such as on copiers or
computers?
– Yes, the government is still exempt from paying sales tax on
its purchases/leases
• Are public schools now required to pay state sales tax on
the purchase or lease of a driver education vehicle?
– No
– However, the vehicle dealer that lends or leases a driver
education vehicle to a public school will be responsible for
the payment of the use tax on the vehicle.
77
Questions and Answers
• Are schools still exempt for purchases for resale?
– Yes, the resale exclusion is still valid
• The chart provides that admission fees charged for attendance
at public school athletic events are no longer exempt from
state sales tax effective April 1. Can you verify if schools will
now be required to register as a state sales tax vendor with the
LDR and begin collecting and remitting sales taxes to the
state?
– Yes, the individual schools should collect at the events
and the school board should register for a sales tax
account and remit the sales tax to the LDR
78
Questions and Answers
• Is there any relief available to organizations that had special
events planned and pricing done, tickets printed, etc. before
the sales tax changes came into play? Or do they just have to
“eat” the sales tax that they didn’t know they would have to
include as part of their fundraiser ticket price?
– Tickets sold before 4/1/2016 are not taxable if exempt under prior
law
– For sales on or after 4/1/2016, the organization can increase the
total price to include sales tax or keep the total price the same and
“back out the tax”
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Questions and Answers
• Are membership dues paid to a Little Theater
organization taxable?
– The dues are taxable only if the organization owns the
theater and the membership allows free access to the theater.
– The membership dues could be taxed as admissions if the
membership is really the sale of tickets.
• A Little Theater organization renovating their theater – having
a “brick sale” to raise funds – you can pay $100 to get your
name inscribed on a brick that is part of the wall of the
building – is this taxable?
– No, this is not the sale of tangible personal property nor is it a
taxable service.
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Questions and Answers
• Are admissions to a 5K run or sponsorships subject to sales
tax?
– No.
• For an annual banquet whose ticket price includes
dinner/entertainment and a donation component, what portion
of the ticket is subject to sales tax as admissions?
– The entire ticket is subject to sales tax because it is an
entertainment.
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Questions and Answers
• Is the sale of raffle tickets taxable?
– No, this is not the sale of tangible personal property
• Admissions/Sponsorships. For a gala fund raising event the
price of a ticket is $100 and anyone can buy a ticket for that
price. They also reach out to major supporters and offer
various sponsorship levels, such as $5,000 will provide for
acknowledgment in the program and a table with 10
seats. Would the 10 admissions be considered as non-taxable
comp tickets in return for the donation, or would they be
taxable at the $1,000 value of ten seats, or would the entire
$5,000 be taxable as admission for ten people?
– Nontaxable sponsorship, the value of the tickets is small
compared to the total amount paid
82
Questions and Answers
• Is the registration fee for participation on a baseball, or
basketball team, etc. at a playground’s facilities taxable?
– This would be a “dues” issue. The dues or registration fee would
only be taxable if the organization to which the dues were paid
owned the facilities and the dues entitled the participant to use the
facilities free of charge. If the facilities are free and open to the
public, then the dues are not taxable.
• Booth fees at events: A non-profit entity holds a festival and
offers booths to crafters or food dealers on the grounds. Is the
booth fee paid to the non-profit a taxable admission or a nontaxable service or something else?
– This is a nontaxable transaction unless its true object is the lease of
tangible personal property (booth, tables, chairs).
83
Questions and Answers
• Purchases for resale: Can the resale certificate be used for the
food/catering supplied by the location. For example: The
school gala is held at a hotel ballroom and the food and
beverage is purchased through the hotel. Since they are taxing
the admission to the gala, can they purchase the food and
beverage exempt for resale?
– No. The school is purchasing the food as the final consumer. The
school is not reselling the food to the guests. The school is selling
admission to the entertainment event.
84
Questions and Answers
• Museum Admissions: If a museum rents out the facility for a
wedding or reception, is this considered taxable admission?
They rent the facility to non-profit organization that will hold a
fundraiser in the museum, would this be taxable admission?
– No, the rental is not taxable.
• Civic or business organizations: An event such as an annual
meeting is held at a hotel and includes lunch. Activities such
as awards presentation and introduction of new officers are the
program for the meeting. Fees are charged that cover the
lunch and include some amount as a fundraiser for the
organization. It would not seem that this would be a taxable
admission under the statute. Is this a correct interpretation?
– No, this is not a taxable admission because the event is not
entertainment.
85
Questions and Answers
• For a taxable admission event that will occur after April
1st but the notices and advertisements went out prior to
April 1st, can we back out the taxes for this event when
the tickets are mailed AND state that the ticket price is
including taxes of "X". Or do we have to collect extra
money at the door. Maximum people will be 300.
– Yes, sales tax may be “backed out” of the total price
paid.
86
Questions and Answers
• Some conference groups stay overnight in the university’s
dormitories. These individual group events do not exceed a week
and the overnight access to the dormitories is allowed only in the
summer. Would this be taxable?
– Possible as hotel service; however, if the true object of this
activity is educational in nature, the transaction would not be
taxable. If the lodging is broken out, it may be taxable as
hotel.
• The university charges parking, on occasion, to the external
community to attend educational gatherings, meetings, etc. It also
charges its employees and students a parking fee to park on campus.
In what situations would parking revenue be excluded from sales
tax?
– Providing parking is a taxable service; however, if the parking charge
is built into the educational service (tuition), it would not be taxable.
87
Questions and Answers
• The university’s fund raising division hosts various socials for
alumni groups in various states including Louisiana. The
socials involve a fee that defrays the cost (food, drink,
entertainment, rentals) of the function. Is the fee subject to the
5% sales tax? Further, would Louisiana sales tax be applicable
to events held out of state?
– Yes, the admissions paid to attend entertainment events
in Louisiana would be taxable.
– No, the events held out of state would not be taxable by
Louisiana.
88
Questions and Answers
• Would contestant entry fees be subject to sales tax? For
instance, an entry fee to participate in a state skeet shoot
competition? What rate?
– Yes, this would be considered a taxable admission to an
entertainment or recreational event. Taxable at 5%.
• Have contestant entry fees been subject to sales tax all along?
Ex: Miss Louisiana Pageant entry fees?
– Most admissions to events sponsored by nonprofits were exempt
under prior law.
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Questions and Answers
• I understand sales tax is due on membership dues if there is an
element of entertainment. Is that the deciding factor? As
opposed to professional dues?
– The issue is whether the organization owns the facilities and the
dues allow access for the purpose of entertainment, amusement,
athletics, or recreation.
• If a nonprofit receives a monetary donation and in exchange
gives the donor a candle with the non-profit logo and motto on
it, would the exchange be considered a disguised sale subject
to sales tax?
– No, the true object of the transaction is a donation.
90
Questions and Answers
• For a private K-12 school:
• Do sales of event programs, yearbooks, personal ads for
yearbooks, fundraising of food or goods products, and
advertising signs hung on football, softball, baseball fields
qualify as taxable events? Also, do sales of cafeteria lunches
qualify as taxable events?
– Yes, the sales of tangible personal property such as event programs,
yearbooks, food, goods, etc. are taxable.
– Providing advertising is not a taxable service.
– For lunches, see RIB 16-024
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How to Register for a Sales Tax Account
• Nonprofit organizations that are not registered with the
Louisiana Department of Revenue for sales tax should
complete and submit an application for a Louisiana sales tax
account.
• Form R-16019 (Application for Louisiana Revenue Account
Number) should be submitted.
• The Department is encouraging nonprofit organizations with
isolated sales tax collection and remittance obligations to
register as "casual filers". This will eliminate the need to file
monthly or quarterly sales tax returns.
• To register as a "casual filer", applicants should write "casual
filer" at the top of Form R-16019. The completed Form R16019 may be submitted to the Department via e-mail at
[email protected].
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How to Register for a Sales Tax Account
• For nonprofit organizations which are part of a larger
organization, such as a Catholic Church that is part of a
Diocese, the sales tax account should be in the name of the
Diocese.
• The church, school, and other affiliated organizations such as
the Catholic Youth Organization which are part of the Diocese
will collect sales tax at their various functions and activities
and will forward the tax to the Diocese to remit to the
Department.
• The sales tax remittance will be submitted along with the sales
tax return to be applied to the sales tax account of the Diocese.
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Sales Tax Compliance
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.
Assistance with sales tax questions
Call the Contact Center at 225-219-7462 or submit an inquiry
through our sales tax inquiry mailbox at [email protected].
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Sales Tax Compliance
• Pursuant to La. R.S. 47:1601, interest is charged on late tax
payments
• See LDR Form R-1111 (Interest Rate Schedule Collected on
Unpaid Taxes)
• For January 1, 2016 through December 31, 2016, the interest
rate charged on unpaid taxes is 0.5833% per month or roughly
7% annually
95
Sales Tax Compliance
Penalties
Pursuant to La. R.S. 47:1602, penalties are charged on late tax returns
and/or late tax payments
For failure to file a return on time, a penalty of 5 percent of the tax
accrues if the delay in filing is not more than 30 days. An additional 5
percent penalty accrues for each additional 30 days or fraction thereof
during which the failure to file continues, not to exceed a total of 25
percent.
For failure to pay the tax in full by the date the return is required by law
to be filed, determined without regard to any extension of time for
filing the return, a penalty of 5 percent of the tax not paid accrues for
each 30 days during which the failure to pay continues, not to exceed a
total of 25 percent.
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Thank You.
97