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Tax Facts Vol. 15, No. 3

Tax Facts Index

TAX FACTS NEWSLETTER

East Baton Rouge Parish

Department of Finance

Vol. 15,  No. 3

July 2004

Manufacturing & Machinery Equipment Exclusion Affects
State of Louisiana Sales/Use Tax

Act 1 of the 2004 first extraordinary session of the Louisiana Legislature enacted a phase-in of the exclusion from the State Sales, Use, Lease and Rental Tax for machinery and equipment used by a manufacturer in a plant facility predominately and directly in the actual manufacturing for agricultural purposes or the actual manufacturing process on items of tangible personal property to be sold. The City-Parish has not adopted or enacted this phase-in exclusion. As a result, purchases of manufacturing machinery and equipment will continue to be taxed at the full local tax rate in East Baton Rouge Parish. For additional information relative to the state’s treatment of these items, contact the Louisiana Department of Revenue and Taxation at 225-219-7318.

When Do I Need to Collect and Remit City-Parish Sales Tax?

Answer:  When your business has nexus.

WHAT IS NEXUS?

The East Baton Rouge City-Parish Sales/Use Tax Ordinance, Section 1 d (9) defines "Dealer" as, any person engaging in business in the taxing jurisdiction. Engaging in business in the taxing jurisdiction means any of the following methods of transacting business: 1) maintaining directly, indirectly or through a subsidiary, an office, distribution house, sales house, warehouse or other place of business, 2) having an agent, salesman, or solicitor operating within the taxing jurisdiction under the authority of the seller or its subsidiary, in respective of whether such place of business, agent, salesman or solicitor is located in the taxing jurisdiction permanently or temporarily, or whether such salesman or subsidiary is qualified to do business in the taxing jurisdiction, 3) having any person who makes deliveries of tangible personal property into the taxing jurisdiction other than by a common or contract carrier.

A dealer must have a minimum connection with a taxing jurisdiction, which is labeled "nexus", before a taxing jurisdiction may impose sales and use tax collection duties on the seller. A seller has sufficient nexus with the jurisdiction if the seller has a place of business, sales representatives, or an office or warehouse located in the jurisdiction. Taxing jurisdictions have also found nexus to exist where the seller conducted any of the following activities: regularly made deliveries in his own vehicles in a taxing jurisdiction; installed or repaired goods in a taxing jurisdiction; utilized the state court to repossess goods; enjoyed the benefits of the taxing jurisdiction services, such as police protection and use of the highways; or performed services in a taxing jurisdiction for the benefit of customers residing within that taxing jurisdiction.

Sales Tax Due Dates

Following are the sales tax due dates for the third quarter of 2004:

For the Month of Tax Due Date Delinquent
Date
July August 1 August 21
August Sept. 1 Sept. 21
September Oct. 1 Oct. 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,
 Asst. Revenue Manager
or send us an e-mail
 

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.

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