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Tax Facts Vol. 18, No. 2

Tax Facts Index

TAX FACTS NEWSLETTER

East Baton Rouge Parish

Department of Finance

Vol. 18,  No. 2

April 2007

CONTRACTORS AND
THE OCCUPATIONAL LICENSE TAX

For occupational license tax purposes, the term “contractor” is synonymous with the term “builder.” A contractor is a person, firm, partnership, corporation, association, or other organization, or a combination of them, which undertakes to or offers to undertake to, or purports to have the capacity to undertake to, or submits a bid to, or does himself or by or through others, construct, alter, repair, add to, subtract from, improve, move, wreck, or demolish any building, highway, road, railroad, excavation, or other structure, project, development or improvement, or to do any part thereof, including the erection of scaffolding or other structure and includes subcontractors and specialty contractors. As such, the word “contractor” shall include oil field service contractors, which shall consist of those contractors performing general oil well service, maintenance, and construction when conducted as a single company unit. General oil well servicing shall include welding, pipe coating, pipe inspection, wireline service, automation, work over, logging, analysis, seismograph, installing and servicing equipment, packing, platform work, perforation, and completion.

For the purpose of computing the license fee, a contractor’s gross receipts are determined the same for all contractors, whether or not they have a lump sum contract or a cost plus contract. The gross receipts for a lump sum contract are based on the actual amount of the contract, whereas, the gross receipts for a cost plus contract are based on the actual cost of the contract to owner, including the amount added thereto as a fee.

OUT-OF-PARISH CONTRACTORS

If a contractor is domiciled and registered in another parish, an occupational license for East Baton Rouge is not required. According to Section 27(A) of our local Occupational License Tax Ordinance, “No municipality or parish shall levy a license tax upon any person engaged in the business of contractor, as defined in this ordinance, either upon a cost plus basis or upon other than a cost plus basis, except the governing authority of the municipality or parish in which is located the principal place of business of such contractor within the state as designated by the contractor.”

OUT-OF-STATE CONTRACTORS

The cost of the occupational license tax for an out-of-state contractor with no location within this State is based on the amount of the contract awarded in this Parish. If the contractor has paid a license in another jurisdiction in Louisiana during the same year, a credit shall be given in calculating the total amount of license tax due this parish. In no case will the total amount charged to any contractor exceed $750.

SPECIAL PROVISION FOR CONTRACTORS

The maximum license tax paid by contractors licensed as required by Subsection 27 of Ordinance # 9537 shall not exceed $750. Contractors will use the rate table as identified in Section 16 titled "WHOLESALE DEALERS IN MERCHANDISE, SERVICE AND RENTALS; RETAIL DEALERS TO INSTITUTIONAL CONSUMERS; SHIPBUILDERS; AND CONTRACTORS."

Remember to mail your return early!  Returns bearing a U.S. postmark on or after the above delinquent dates will be assessed penalty, interest, and loss of vendor's compensation.

Sales Tax Due Dates

Following are the sales tax due dates for the second quarter of 2007:

For the Month of Tax Due Date Delinquent
Date
April May 1 May 22
May June 1 June 21
June July 1 July 21

Need help?

Taxpayers may contact the Revenue Division by phone or fax to receive assistance between the hours of 8 a.m. and 5 p.m., Monday-Friday.

Taxpayer Assistance:(225) 389-3084
Fax Number: (225) 389-5369

 

Taxpayer Topics

The Tax Facts Newsletter is issued quarterly by the Finance Department/Revenue Division.  Our mission is to provide taxpayers with information concerning developments and policies regarding the collection of local sales and use taxes within East Baton Rouge Parish.  The Revenue Division invites any suggestions, questions or comments that you would like addressed in future issues of Tax Facts.  Please send these items to:

City of Baton Rouge -
 Department of Finance
P. O. Box 2590
Baton Rouge, LA  70821-2590
Attention:  Steve Thomas
or send us an e-mail
 

Department of Finance - Revenue Division
222 St. Louis Street, Room 404
Baton Rouge, LA  70802

Proud Member of the Louisiana Association of Tax Administrators External web link not maintained by City of Baton Rouge