Tax Facts Index

BAKER INCREASES ITS SALES AND USE TAX

On May 5, 2001, the voters in the City of Baker approved a 1/2% sales and use tax rate increase. This tax is only applicable to taxable transactions within the City of Baker, including property delivered into the city. Proceeds from this tax will be used for pay increases for Baker Police and Fire personnel. Sales of food for home consumption, sales of prescription drugs, and medically related items are subject to the additional 1/2% sales and use tax. As a result, the total local sales and use tax in the City of Baker will increase from 5% to 5-1/2% effective October 1, 2001.

Hotel/Motel Occupancy Tax Exemption for Governmental Employees

Beginning July 2001, the rentals of hotel/motel rooms to government employees on government business in this Parish are exempt from the Hotel/Motel Occupancy taxes.

This office will require the guest claiming the exemption to follow existing procedures as defined by the Louisiana Department of Revenue and present an executed "Certificate of Government Exemption" at the time of check-in.

Currently, the tax rate for hotel/motel rooms in East Baton Rouge Parish is 13%, which consists of a 4% State of Louisiana sales tax, a 5% local sales tax, and a 4% hotel/motel occupancy tax.

Effective July 1, 2001, hotels/motels should not charge the 4% hotel/motel occupancy tax on rooms rented to authorized government employees who present the certificate mentioned above. In addition, the state and local sales tax totaling 9% should not be collected on these transactions.

Taxability of Medically Related Items

Local sales and use tax has been due on medically related items since local sales taxes were imposed by the City-Parish in 1951 and 1956. Medically related items include medical devices, orthotic and prosthetic devices, and prescription drugs prescribed by a physician. These items are only subject to 3% local sales tax in East Baton Rouge Parish, but specifically exempted from the .5% Sewer Improvement tax, .5% Street Improvement tax, and the 1% Educational Facilities Improvement District tax.

Medical items must be prescribed by a physician to be eligible for the partial exemption. To be considered a medical device, the item must come into direct physical contact with a patient’s body, be used for a single patient, be disposable in nature or provided to one patient, and used in the treatment of a disease. An orthotic device deals with the support and bracing of weak and ineffective joints or muscles. A prosthetic device is an artificial device used to replace a missing part of the body. Prescription drugs include drugs that must be filled by a pharmacist.

Sellers of medically related items who have established nexus in East Baton Rouge Parish are required to charge tax on their invoices and remit these taxes to the City-Parish. If a seller does not have nexus, it is the responsibility of the purchaser to register and accrue use tax due directly to the City-Parish on line 14 of the monthly City-Parish sales/use tax return. 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.

Dentists received a special exemption effective August 1, 1991 where the sales by dental labs to a dentist of fixed and movable dental prosthesis (dentures and bridges) and all parts associated with the replacement and restoration of the teeth are exempt from the local sales and use tax after August 1, 1991. Braces and retainers are not considered as dental prosthesis and are subject to use tax. Dentists are responsible for sales/use tax on equipment used in the business of rendering dental services.

Finance Department Hosts Seminar for Taxpayers

The Finance Department will host a tax seminar on Friday, November 16, 2001, to address sales and use tax issues, implementation of the new 1/2% Baker sales tax, and general issues concerning sales tax. A representative of the State of Louisiana Department of Revenue, Ascension Parish Tax Authority, Livingston Parish School Board, and West Baton Rouge Parish will also be in attendance. Anyone interested in attending can contact the Revenue Division or visit the Finance Department web site and register on-line. If you have a question or topic concerning sales/use tax that you would like to have discussed, please fax it to the attention of Steve Thomas or send e-mail to sthomas@brgov.com Seating is limited, so please register early. The deadline for registration is November 1, 2001.

New Tax Forms

Effective July 1, 2001, the City-Parish Revenue Division will send taxpayers a new tax form which is compatible with our digital imaging system. Beginning with returns for the month of July 2001, only original, City-Parish provided forms will be accepted. We will no longer be able to accept photocopies, fax copies, spreadsheets, and tax service prepared forms. While the layout of the new form is somewhat different, the information provided is identical to the old form. If you have any questions regarding this new form, please call Ronnie Pierce at (225) 389-3084, Ext. 724.

Sales Tax Due Dates
Following are the sales tax due dates for the third quarter of 2001:

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.

Taxpayer Topics

The Tax Facts Newsletter is issued quarterly by the Department of Finance/Revenue Division.  Our mission is to provide taxpayers with information concerning developments and policies regarding the collection of local sales 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, Assistant Revenue Manager
or send e-mail to sthomas@brgov.com

Need Assistance?

If you need assistance, help is just a phone call away.   Taxpayers may call the Revenue Division and speak with a member of our staff at the following telephone numbers between the hours of 8 a.m. and 5 p.m., Monday - Friday.

Proud Member of the Louisiana Association of Tax Administrators