Tax Facts Index

Refunds

Frequently, a dealer will discover that an overpayment to this office has occurred.  L.R.S. 47:1621 defines an "overpayment" as a payment of tax, penalty, or interest when none is due, or the excess of the tax, penalty or interest remitted over and above the amount due.

A dealer must request a refund in writing and also submit a sworn statement stating the amount of tax paid, the actual amount due, the amount claimed as a refund, and the circumstances surrounding the overpayment.  Visit www.brgov.com/dept/finance/taxforms.htm for further refund application instructions and to print a Claim for Credit or Refund of Taxes Paid form.  The Revenue Division will examine the request, confirm the amount of the overpayment, and issue a check equal to the amount of the overpayment, made payable to the dealer.

If upon examination of such claim for refund, the Revenue Division rejects a dealer's claim, written notice will be sent to the dealer advising of the reasons for rejection.  A dealer may appeal a rejection, provided that said appeal is made within 30 days of the date of the rejection notice.

A dealer must file for a refund within three years from December 31 of the year in which the tax became due or within a year from the date the tax was paid, whichever is later.

Claims for refund will be accepted when it can be determined that the overpayment resulted from:

1.  An error in mathematical computation.
2.  Recognition and writing off of annual bad debts in accordance
     with L.R.S. 47:315 (B) (1-4).
3.  Tax remitted in error.
4.  Payment of tax to the wrong jurisdiction.

Interest on Refunds

Interest on refunds granted by the Revenue Division is calculated as follows:

1. From the date of payment of taxes, but prior to the submission by the taxpayer of a claim for refund, and 60 days after the request for refund interest is computed at a rate of 2% per annum.

2. On the 61st day after a refund is requested, interest is calculated at the judicial interest rate minus one percent.  The judicial interest rates for the last four years are as follows:

January 1, 2004 to December 31, 2004   -   5.25%
January 1, 2003 to December 31, 2003   -   4.50%
January 1, 2002 to December 31, 2002   -   5.75%
January 1, 2001 to December 31, 2001   -   8.241%

Have You Renewed Your Occupational License Tax?

The last date to file for 2004 Occupational License Tax renewals without being assessed penalty and interest was February 29, 2004.  Businesses that have not yet filed their 2004 renewals will be receiving notices of delinquency.  Those businesses are reminded that, since their renewals were not filed timely, penalty and interest must be included when calculating their remittance.  Penalty at the rate of 5% per month, maximum of 25%, from March 1, and interest at the rate of 1.25% per month from March 1, will be assessed on all renewal forms postmarked after February 29.  Any business requiring assistance in completing their renewal form may call (225) 389-3084 for assistance.

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.

Proud Member of the Louisiana Association of Tax Administrators