Tax Facts Index
TAX FACTS NEWSLETTER
East Baton Rouge Parish
Department of Finance
Vol. 14, No. 4
New Laws Affect Sales and Use Tax
The Louisiana Legislature enacted several measures affecting
local sales and use taxes during its 2003 Regular Session. The measures include:
Act 73 (SB 551) enacts the Uniform Local Sales Tax Code. The Uniform Local Sales
Tax Code will supplement all local sales and use tax ordinances throughout the
state, and will allow businesses and tax practitioners to easily understand
Louisiana’s state and local sales tax laws. Act 73 also includes a Uniform
Return and Remittance System that must be implemented by January 1, 2005. This
system will be an online service available from the Louisiana Department of
Revenue which will allow a company, at no cost, to file both their state and
local sales and use tax returns in a single filing via the internet. Also
included in the Act is a uniform procedure for administration of local sales
taxes, which is the same as the state’s procedures.
Act 46 (HB 1750) provides for the taxable nature of cellular and PCS telephones,
or other wireless PC devices, or electronic accessories physically connected
with such telephones used in connection with the sale or use of mobile
Act 61 (SB 791) provides that tangible personal property shall not include other
constructions permanently attached to the ground for local tax purposes.
Act 141 (HB 1621) provides for direct payment numbers for private, non-profit,
tax-exempt organizations. It also extends until June 30, 2005, the sales tax
exclusion on educational materials purchased.
Electronic Filing is Here!!
The City-Parish Revenue Division is accepting applications from
taxpayers who wish to file their monthly sales tax returns electronically.
Monthly filers will now have the option of filing and paying online. Returns for
“No Sales” may also be filed either online or by phone at (225) 344-4636,
extension 5000. For more information please visit our web site at www.brgov.com
and click on “Sales Tax Payments.”
Are You Using the Proper Tax Form?
In the July 2003 issue of Tax Facts you were advised that
changes had been made to our “Sales and Use Tax Report” form. This follow-up is
to remind all taxpayers to use the new six-column form effective with the July
2003 reporting period. Any four-column tax forms currently in your possession
should be disposed of to ensure that the proper form is prepared and submitted.
You are also reminded that the use of any unofficial forms, such as the old
four-column form or forms that have not been approved by this office, could
result in delays in processing your return. Questions regarding the proper use
of tax forms should be directed to the Revenue Division.
Resale Exemption Certificates
Rule 12 (A) of the East Baton Rouge Parish Sales and Use Tax
Regulations states, “The Finance Director will consider all sales to be taxable
retail sales unless the seller takes from the buyer a resale exemption
certificate, signed by and bearing the name, address, and registration number of
the buyer to the effect that the property is purchased for resale.” If the buyer
is located in East Baton Rouge Parish, dealers may recognize that the articles
are purchased for resale only when the buyer is properly registered under the
provisions of the local ordinances. If the buyer is located out of Parish,
dealers may recognize that the articles are purchased for resale only when they
are allowed under the provisions of state law.
The most important item on the resale exemption certificate is
the purchaser’s sales/use tax registration number. Only local retail dealers
that are properly registered with the Revenue Division have received an East
Baton Rouge Parish sales tax registration number. Out-of-parish retail dealers
must provide their state and local sales tax numbers. The seller must collect
sales tax when the buyer cannot provide a properly executed certificate.
Dealers must use some judgment when accepting resale exemption
certificates. The fact that a retail dealer is properly registered in accordance
with the law does not mean that all of his purchases are for the purpose of
resale. For example, a retail dealer of auto parts and accessories would not be
buying a diamond ring for resale. Another example involves construction
contractors who purchase building materials for a real property construction
contract. Contractors are not retail dealers and are considered the final
consumer of the materials purchased. Clearly, these transactions are not for
resale and therefore, are not exempt. The burden of proving that a sale is, in
fact, for resale shall be on the seller. The seller must carefully review each
purchase and should consider the nature of the purchaser’s business before
accepting a resale exemption certificate.
Dealers shall keep all resale certificates furnished to them by
retail dealers. Any changes in business status, such as trade name, location or
registration number should result in an updated resale exemption certificate
executed by the purchaser. These certificates are required if the dealer is
audited by the Finance Department.
In summary, resale exemption certificates are a very important
part of a retail dealer’s business. Purchases for resale must be made in strict
compliance with the rules and regulations. Any dealer who fails to obtain a
certificate will be liable for the tax. Resale exemption forms may be obtained
from the Revenue Division or from the Finance Department’s web site by clicking
on the “Tax Forms” link.
Following are the sales tax due dates for the fourth 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 tax 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 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