[StBernard] Disaster Relief Update From State Senator Walter Boasso

[Westley Annis]

Disaster Relief Update From State Senator Walter Boasso 

December 15, 2005


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>From the State Department of Revenue, here's some helpful information

regarding this weekend's sales tax holiday.  If you have further questions,
please do not hesitate to contact my office at 504-270-9258 or write to
boassow at legis.state.la.us
 
With best regards,
 
Senator Walter J. Boasso
Louisiana State Senate District 1
 
* * * * *
 
State Sales Tax Holiday!

Take a State Sales Tax Holiday on December 16th, 17th, and 18th, 2005!

That's Right! On this weekend in December you can shop throughout the state
and have all state sales tax waived on each eligible purchase under $2,500.
For purchases in excess of $2,500, the exemption will be applied to the
first $2,500..

There's just a few guidelines you'll need to become familiar with:
 
For Consumers


There are some things that aren't exempt- Sorry!
The Louisiana State Tax Holiday does not apply to parish, local or other
municipal sales taxes that may be levied within their respective
jurisdictions. For details on local sales tax policies or rates, please
refer to your municipal revenue and taxation office. 
The exemption does not apply to the purchase of titled property (i.e.:
vehicles, homes, trailers, etc.) 
The exemption does not apply to purchases of taxable services such as hotel
occupancy, amusements, recreational and athletic admissions; repairs to
tangible personal property, laundry, cleaning, pressing and dying services;
vehicle parking; cold storage space; printing services; telecommunications
services; leases or rentals of tangible personal property. 
The exemption also does not apply to meals furnished for consumption on the
premises where they were purchased, including to-go orders. 


On these three holidays, there'll be plenty of savings to go around!
It's simple! As a consumer making purchases in the State of Louisiana on
December 16th, 17th, and 18th, you will not be charged state sales tax by
retailers if. 
You purchase or accept delivery of eligible property 
You place such property on layaway 
You acquire such property previously placed on layaway 
You place and pay for an order for immediate delivery of eligible purchases,
even if the delivery must be delayed (provided you do not specifically
request a delayed shipment). 


There are a few special provisions.
If you purchased an eligible item with a "Rain Check" issued before the
three-day holiday, then the purchase is eligible for an exemption. If you
purchase an item on a "Rain Check" following the three-day holiday, the
purchase is no longer eligible. 
The exemption does not apply to "Special Orders" where a customer simply
makes a deposit during the holiday, pays the remaining balance and takes
delivery of the merchandise after the holiday period. The consumer must make
full payment for the merchandise or enter into a financing agreement for
payment during the holiday period and the product must be available for
immediate delivery either from the retailer's inventory or his supplier's
inventory. Previously ordered items will qualify for the exemption provided
the items become available for immediate delivery and the outstanding
balance is paid during the holiday and the customer takes possession of the
items or agrees to accept delivery of the items on the next available
delivery date. 
Layaways where the vendor physically removes an item from his inventory and
sets it aside for the customer will qualify for the exemption even if the
customer makes his final payment and takes delivery after the holiday
period. Also, items that were previously placed on layaway will qualify for
the exemption if the customer makes final payment for and takes delivery of
the items during the Sales Tax Holiday or agrees to accept delivery on the
next available delivery date. 
Post holiday exchanges of purchased merchandise to effectuate size, color or
other correction of defects will not create a sales tax liability. However,
an exchange for dissimilar items will be considered a new purchase on a new
date and thus subject to state sales tax. 
Items sold as a unit, (for example a table and chair set) cannot be
separated and individually priced for the purpose of creating a separate
eligibility cap for each item. 
Remember to keep all of your receipts. Dealers, who following the tax
holiday, process refunds or credit for eligible items purchased will not
issue a refund or credit for the state sales tax unless the tax was
inadvertently charged and documented by the original receipt. 
 
 
For Businesses and Retailers


There are several advantages for businesses.


A cash register reprogramming credit-
Act 9 of the 1990 Regular Legislative session provides that dealers who
incur costs to reprogram cash registers, including computer programming, as
a result of a change in the state sales and use tax rate or base shall be
allowed credits on their sales tax returns of up to $25 for each register
reprogrammed. Dealers are allowed to claim credit only for reprogramming
costs invoiced to them by external providers of services, but not for
internal reprogramming services rendered within their businesses by such
internal persons as owners, officers, partners or employees.

Dealers whose point-of-sale cash registers are controlled from host
computers can deduct the costs invoiced by external service providers to
reprogram tax rate or base information in those computers, not to exceed $25
times the number of cash registers controlled from the host computers. For
example, a dealer of merchant whose host computer controls 20 point-of-sale
cash registers can claim credit for up to $500 in charges for reprogramming
services associated with a change in the state sales tax rate or base.

Dealers who do not use point-of-sale cash registers, but who instead issue
printed or electronic invoices on which the invoiced tax amounts are
determined from tax rate or base information housed in their computers, can
deduct up to $25 in external reprogramming costs for each computer that must
be reprogrammed because of a change in the state sales tax rate or base.

The credit is deductible on line 12A of the state sales and use tax return.
Copies of invoices from external service providers must be attached to the
tax return to support the amount of credit claimed. More detailed
information about the reprogramming credit is available from Revenue
Information Bulletin No. 03-009 that can be accessed from the departments
website by visiting:
www.revenue.louisiana.gov/forms/lawspolicies/RIB03009.pdf.



Business purchases-
For business-use purchases, Act 9 authorizes the state sales tax exemption
during the holiday only on purchases by those businesses that are located in
Hurricanes Katrina or Rita Federal Emergency Management Agency (FEMA)
Individual Assistance Areas who will acquire property to replace property
that was damaged, destroyed or lost as a result of conditions created by the
two hurricanes. Eligible business purchasers must apply to the Department of
Revenue and receive "Sales Tax Holiday Exemption Certificates" in order to
be able to make tax-free purchases of replacement property.


Applications for business exemption-
Businesses that are located in Hurricane Katrina or Hurricane Rita Federal
Emergency Management Agency (FEMA) Individual Assistance Area who plan to
acquire property during the holiday to replace property that was damaged,
destroyed or lost as a result of conditions created by the two hurricanes
can secure applications for "Sales Tax Holiday Exemption Certificate" from
any of the departments offices or by downloading the application from the
LDR website at: www.revenue.louisiana.gov/forms/taxforms/1017(12_05)F.pdf.

Please remember- 
Complete the application form and bring it to the nearest LDR office for
validation. The form may also be faxed to the Department's headquarters at
(225) 219-2065 or one of its regional offices at the numbers listed below.
Taxpayers are urged to submit an application by 4:30 p.m. on Friday,
December 16, 2005. However, as a courtesy to the taxpayers of Louisiana, the
Department of Revenue will maintain a staff at the headquarters building
from 7:00 a.m. to 3:30 p.m. on Saturday, December 17th and Sunday, December
18th to process applications received by fax. No walk-ins or calls can be
accepted during the weekend.


Alexandria - 318-487-5156


Baton Rouge - 225-922-2176


Lafayette - 337-262-5139


Lake Charles - 337-491-2715


Monroe - 318-362-5201


New Orleans - 504-568-7985


Shreveport - 318-676-7028


Thibodaux - 985-447-0980



To include the location and specific address of where the property was
located during the storm, which must be within a FEMA Hurricane Katrina or
Rita Individual Assistance Area. The location address must include the name
of the parish (county for property located in Mississippi and Texas). 
To prepare a copy of the form for each vendor from which you will make
purchases during the tax holiday. 

LDR's Regional Offices are available to process certificate applications
during normal hours of 8:00 am to 4:30 pm Monday through Friday. Businesses
that would like to purchase eligible replacement property are reminded that
"Sales Tax Holiday Exemption Certificates" require reasonable time for
processing and will not be issued following the close of business on Friday
December 16th. Business applicants are asked to submit completed
applications early, allowing sufficient time for processing and response.

Business representatives can also contact our taxpayer services division by
phone at 225-219-7356.