Tax Facts Index
TAX FACTS NEWSLETTER
BATON ROUGE PARISH
|Department of Finance
Vol. 12, No.
If your company operates five or more branches or
businesses within the borders of East Baton Rouge Parish, you may be eligible for
consolidated filing, whereby only one sales tax return will be filed for all locations. In
order to be considered for consolidated filing, the following conditions must be met:
- Sales must be separated between the City, Parish, Baker, and Zachary by using the
appropriate column(s) on the sales tax report.
- A Lotus 1-2-3 or Excel spreadsheet (or suitable substitute approved by the Department of
Finance) must be submitted with the consolidated return, which backs up the data presented
on the sales tax report.
- Participating companies must be willing and able to wire transfer all taxes, interest,
and penalties owed to the City of Baton Rouge and Parish of East Baton Rouge.
Those companies/persons interested in consolidated filing should send a written request
addressed to the attention of Ronnie Pierce of the City-Parish Finance Department/Revenue
Division. If approved for consolidation, you or your company will be contacted to obtain
necessary banking information and to notify you of a start date.
When a customer presents a manufacturers coupon to
a retail dealer, which is redeemable by the retail dealer for the amounts stated on the
coupon, the sales tax should be charged on the "sales price" before the
deduction of the coupon discount. In this case, the total "sales price" is not
reduced by the acceptance of the coupon. The dealer receives a portion of the "sales
price" by payment from the retail customer and the remaining portion of the
"sales price" from the manufacturer through the sellers redemption of the
The sales tax treatment of manufacturers coupons is different from the sales tax
treatment of coupons that are issued by retail dealers. When a retailer redeems a coupon
that the retailer has issued, the retailer has lowered the "sales price" of the
property or services. In such cases, the sales tax is calculated on the reduced amount
after the allowance of the coupon discount.
Lottery Sales Not Subject to Tax
Sales of Louisiana State Lottery Tickets
are not subject to the local sales tax. Receipts from the sales of lottery tickets
should not be included in the gross receipts reported or in the deductions from the sales
taken on sales tax returns. Proceeds from lottery sales should be segregated by the
retailer from other sales proceeds and remitted directly to the Louisiana Lottery
Medicare and Medicaid
Historically, sales of medical devices and equipment to
individuals qualifying for Medicare have been considered retail sales subject to 3% local
sales tax. These sales are not considered sales to the Federal Government. The Medicare
Program acts as an insurance company, making payments for medical devices or equipment to
the individuals as a reimbursement or directly to the vendor on the individuals
behalf. This applies to all medical expenses covered by Medicare, not just medical
services and equipment. These medical expenses are exempt from the Sewer Improvement tax,
the Street Improvement Tax, and the Educational Facilities Improvement District tax.
Currently, with the passage of Louisiana Revised Statute 47:315.3, effective July 5,
2000, any person who has paid local sales and use taxes on the sale, lease or rental of
tangible personal property, when such sale, lease or rental is paid by or under the
provision of Medicare, shall be entitled to a refund of the local sales tax paid on such
property. The request for refund must include the amount of taxes paid and proof of
payment by or under the provisions of Medicare.
Medical devices, equipment, and drugs purchased by individuals qualified by the
Medicaid Program are exempt from all local sales taxes. These transactions are considered
sales to the State of Louisiana and are exempt from local sales tax.
Pipe Coating, Bending, Galvanizing,
Threading, and Wrapping
Charges made for coating, wrapping, threading, and
galvanizing of pipe and other property which have not been previously treated by such
methods are considered to be fabrications. Fabrications are considered taxable sales and
the vendor is required to collect sales tax on the selling price of the coating, wrapping,
threading, and galvanizing transactions based on where the purchaser takes possession of
the property. In addition, drilling holes in pipe is also considered a fabrication of
tangible personal property.
The re-coating, re-wrapping, re-threading or re-galvanizing of property that has
previously been coated, wrapped, threaded or galvanized is considered to be a taxable
repair service. Sales tax is due on the full amount charged for this service, including
materials and labor. Taxes are due in the jurisdiction where the repair transaction is
Pipe bending is not considered a taxable
Sales Tax Due Dates
Following are the sales tax due dates for the first quarter of 2001:
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.
The Tax Facts Newsletter is issued quarterly by the Department of Finance/Revenue
Division. Our mission is to provide taxpayers with information concerning
developments and policies regarding the collection of local sales tax 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, Assistant Revenue Manager
or send e-mail to firstname.lastname@example.org
If you need assistance, help is just a phone call away.
Taxpayers may call the Revenue Division and speak with a member of our staff at the
following telephone numbers between the hours of 8 a.m. and 5 p.m., Monday - Friday.
|Sales/Use Tax Fax
|Occupational License Tax
|Occupational License Tax Fax
|Business License and Permit Office
Proud Member of the Louisiana Association of Tax Administrators