Tax Facts Index
TAX FACTS NEWSLETTER
BATON ROUGE PARISH
Vol. 11, No. 1
Preliminary Injunction on Sales Tax Exemption
The October 1999 issue of "Tax Facts" included an article
explaining Act 1266 of the 1999 Legislative Session. Act 1266 provides an exclusion from
local sales and use tax for all tangible personal property purchased for subsequent lease
or rental. On October 6, 1999, District Court Judge Kay Bates issued an injunction against
the sales and use tax exclusion, which means the exclusion is no longer in effect. The
injunction will remain in effect until the Court rules on the constitutionality of Act
1266. As a result of this injunction, effective July 1, 1999, the City-Parish Government
will collect sales and use tax on property purchased for subsequent lease or rental.
Storage of Tangible Personal
Property - Subject to Sales and Use Tax
The Sales and Use Tax
Ordinance levies a tax on tangible personal property purchased for use, consumption,
distribution, or storage for use or consumption in this Parish. The Ordinance defines
"storage" as any keeping or
retention in the parish of tangible personal property. Storage of property in this Parish
is subject to our sales and use tax. However, according to R.S. 33:2716.2, property
purchased from out-of-parish, delivered into East Baton Rouge Parish by common carrier,
and the invoice or purchase order is documented for use outside this Parish is not subject
to our use tax. Therefore, property stored in this parish for use outside of this
parish should be earmarked as such, otherwise it will be subject to our use tax. No use
tax is due although such property may be stored in this parish for an indefinite
period of time. If the property is later removed from storage and subsequently used in
this parish, then it becomes subject to our use tax.
Internet and Catalog Sales -
Internet and catalog shopping impacts local businesses and local government
tax revenues. The volume and dollar amount of out-of-state sales are growing at an
alarming rate. Local merchants and vendors are at a competitive disadvantage when selling
products similar to out-of-state vendors. The in-state merchants must collect state and
local taxes from their customers, but the out-of-state and Internet vendors do not. Local
governments are losing millions of dollars in potential sales tax revenues which are
essential for the continued funding of vitally needed police, fire, public works, and
other basic public services. State and national governmental organizations are urging
Congress to "level the playing field" for local
businesses and force Internet and catalog retailers to collect and remit sales taxes. The
City-Parish will continue our efforts to address this problem through our congressional
delegation and the state and national governmental organizations to which we belong. The
Metropolitan Council will adopt a resolution urging members of the Louisiana Congressional
Delegation to support local taxation of Internet and catalog sales.
George Pacific Receives Direct
The City-Parish has authorized Georgia
Pacific to remit sales and use tax directly to this government. Georgia Pacific's
"direct pay" status became effective August 17, 1999, and only affects their
Port Hudson operations.
This "direct pay" status
authorizes Georgia Pacific to remit sales and use tax to the City-Parish instead of to its
vendors. This authorization applies to invoices for the purchase or lease of tangible
personal property delivered, or the purchase of taxable services performed within East
Baton Rouge Parish. The Direct Pay authorization does not apply to purchases picked up in
another parish or services performed in another parish. These latter transactions are
taxable in the parish where the sale or service occurs.
Georgia Pacific vendors were notified of
the new "direct pay" status. Pursuant to that notice, vendors selling and
delivering to George Pacific or any vendor providing taxable services to Georgia Pacific,
should have stopped charging local tax effective August 17, 1999.
Any vendor selling to Georgia Pacific
other than the Port Hudson Operations should continue to collect the appropriate local tax
based on point of delivery.
Since Georgia Pacific is responsible for
accruing the proper sales and use tax, vendors should use Line 8 of our Sales and Use Tax
Report for reporting sales to Georgia Pacific. Line 8 is to be identified as "GEORGIA
PACIFIC DIRECT PAY." These sales will be deducted from gross sales when computing
the sales tax due.
Sales Tax Due Dates
Following are the sales tax due dates for the first quarter
Returns bearing a U.S.
postmark on or after the above delinquent dates will be assessed penalty, interest and
loss of vendor's compensation. Remember to mail your return early.
The Tax Facts Newsletter is issued quarterly by the Department of Finance/Revenue Division
to provide information concerning developments and policies regarding the collection of
local sales tax within East Baton Rouge Parish.
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 email@example.com
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