Tax Facts Index
TAX FACTS NEWSLETTER
East Baton Rouge Parish
Department of Finance
Vol. 15, No. 1
Occupational License Tax
Occupational License Tax Renewals
Occupational License Tax Renewals for 2004 were mailed to
businesses in early December. Licenses renewed after March 1, 2004, will be
deemed delinquent and subject to penalty and interest. Penalty at the rate of 5%
per month or fractional part thereof, not to exceed 25%, and interest at the
rate of 1.25% per month, or fractional part thereof, will be computed from the
first day of March and will increase on the first day of each succeeding month.
Calculating Your Occupational License Tax
According to Section 27 (B) of the Occupational License Tax
Ordinance, “The tax shall be computed on the basis of the schedules contained in
this Ordinance according to the physical location of each place of business
without regard to the location where the actual sale takes place or where a
product or service is delivered or performed.”
If your business is located in East Baton Rouge Parish and you deliver outside
of this parish, as well as within this parish, you must calculate your
Occupational License Tax based on the total of all sales made, regardless of the
point of delivery. For example, a mail order business which delivers to
customers locally, as well as to customers elsewhere in the state, must include
local sales and sales delivered out-of-parish or state when calculating their
Occupational License Tax.
This same provision also applies to service businesses that are physically
located in East Baton Rouge Parish and perform services both locally and
out-of-parish. For example, a repair business located in Baton Rouge that
repairs tangible personal property at their own shop, as well as repairing
property located at the customer’s location outside of this parish, must compute
the Occupational License Tax due based on total gross receipts generated by
performing repairs both locally and out-of-parish.
OLT Renewals On-Line
The City-Parish Revenue Division will accept Occupational
License Tax renewal forms and payments on-line for a limited number of
businesses for 2004 Occupational Licenses. If your business is eligible, a
Personal Identification Number (PIN) was printed on the renewal form you
received in December 2003. Additional information concerning OLT on-line
renewals and payments will be available on our
website on January 1, 2004, at
Check Out Electronic Filing!
The City-Parish Revenue Division is pleased to announce that the
electronic filing system has been working great! Thanks to all the taxpayers who
have used the system and for offering your comments and suggestions.
Monthly filers interested in filing their sales and use tax returns on-line can
get more information and a “New User Registration Application” at www.brgov.com/dept/finance.
Also, taxpayers filing “No Sales” returns may file on-line or by phone at (225)
344-4636, extension 5000.
Sales Tax on Repair Services
Some repair dealers may not be aware of the proper tax treatment
of repair services performed in this parish. Following is a discussion of the
taxable status of repairs to tangible personal property and real property.
Tangible Personal Property
All charges for repairs to tangible personal property, including
parts, labor, travel, etc., are taxable. This applies whether the repair work
occurs on or off the property owner’s premises.
Examples of tangible personal property include automobiles, clothing, computers,
watches, furniture, jewelry, shoes, tires, motors, televisions, radios, washers,
dryers, refrigerators, office equipment, and all other similar movable property.
Also included are movable machinery, appliances, and equipment which have been
declared immovable. Article 467 of the Louisiana Civil Code describes procedures
for declaring property immovable.
Various components of real property may be taxed as tangible
personal property. These are described in the section below on real property.
All repairs performed within this parish are taxable in this parish, even if the
repaired property is delivered to a customer in another parish or another state.
The repair dealer must collect sales tax from the customer and remit it to the
Repair services performed outside this parish are not taxable in this parish.
The repair dealer must collect the sales tax from the customer and remit it to
the jurisdiction where the repair is performed.
Repair dealers repairing tangible personal property may use an exemption
certificate when purchasing parts and materials that will become a part of the
article repaired. These parts and materials are exempt from sales tax, provided
a resale exemption certificate is given to the vendor. Supplies which are
consumed in the process of performing repair services, without becoming a part
of the articles repaired, are taxable. The repair dealer must pay the tax to
vendors when purchasing these supplies.
Repair services performed on real property at the owner’s
premises are not taxable. This includes repairs to buildings or its component
parts such as plumbing, heating, air conditioning, and electrical equipment.
Items that cannot be removed without substantial damages to the item or to the
property to which it is attached are considered real property. Article 466 of
the Louisiana Civil Code describes such property. For real property, the repair
dealer must pay the sales or use tax on the materials and parts purchased and
used for the repair.
When property defined in Article 466 has been removed from the owner’s premises,
it is considered to be tangible personal property. Items that can be removed
without substantial damages to the item or to the property to which it is
attached are considered tangible personal property. All repair charges for such
property are taxable only when the property being repaired is removed from the
property of the owner.
Following are the sales tax due dates for the first quarter
|For the Month of
||Tax Due Date
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)
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 to be 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,
Asst. Revenue Manager
or e-mail to
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