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Tax Facts Index
TAX FACTS NEWSLETTER
East Baton Rouge Parish |
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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 |
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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
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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
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