Tax Topics

BATON ROUGE – Following severe weather in North and Southwest Louisiana, Governor Bobby Jindal has issued a statewide emergency declaration today to assist in the deployment and staging of state assets to support affected parishes in responding to the emergency.

The Governor’s Executive Proclamation declares a state of emergency for all of Louisiana in anticipation of severe weather moving throughout the state through October 31, 2009. Additionally, the Governor’s Office of Homeland Security and Emergency Preparedness (GOHSEP), Louisiana State Police, the Louisiana National Guard and the Department of Wildlife and Fisheries have dispatched resources and personnel to assist parish emergency preparedness directors and residents in response and recovery efforts.

Governor Jindal said, “Just as we did during Hurricanes Gustav and Ike last year, we know we must move quickly in every emergency situation to protect our people and their property. State emergency responders were already coordinating with local officials on the ground before the storms began and they will continue to work together to ensure that communities have the resources they need to respond to the impact of this severe weather event. This emergency declaration will help communities in need speed up their response and recovery efforts without being hindered by bureaucratic red tape.”

GOHSEP, State Police and Louisiana National Guard officials were on the ground in North Louisiana prior to the severe weather and began working with local officials to immediately distribute resources to area residents. The Guard has sent two high water vehicles to assist with any rescues and GOHSEP has provided more than 200,000 sandbags to help retain high water. GOHSEP’s Crisis Action Team (CAT) is also monitoring the situation. State emergency officials will remain in the area to provide necessary resources to residents and local emergency response officials.

The Red Cross has opened a shelter at Platt Elementary School located at 4680 Highway 80 East in Haughton and is currently providing shelter for approximately 15 families. At this time, there are approximately 33,000 homes without electricity reported in the Caddo/Bossier area.

Commissioner of Administration Angele Davis also announced today that due to high water and significant road closures, state government offices will be closed today in Caddo, Bossier, and Webster parishes. All agency heads are responsible for determining the essential personnel who should remain on duty or those who should report to alternative work sites.

The 2009 Louisiana Tax Amnesty Program ends on Saturday, Oct. 31.

This is the final week of the 2009 Louisiana Tax Amnesty Program.  The program provides a window of opportunity to resolve overdue state tax accounts by paying all taxes due, any assessed fees, and 50 percent of the interest.  For eligible taxpayers, the Louisiana Department of Revenue (LDR) will waive all penalties and the remaining 50 percent of the interest.

This window of opportunity closes on Saturday, October 31.  Visit LDRAmnesty.com for application and payment information.

“Tens of thousands of taxpayers have taken advantage of this opportunity to bring their accounts up to date,” said Secretary of Revenue Cynthia Bridges.  “If you have fallen behind on your obligations, this is your chance to make it right.”

The 2009 Louisiana Tax Amnesty Program applies to:

• All taxes administered and collected by LDR, except for motor fuel taxes;

• Taxes that became due on or after July 1, 2001, and before January 1, 2009 (Since the previous amnesty program);

• Taxes due prior to January 1, 2009,  for which LDR has issued an individual or  business a billing notice or a demand for payment on or after July 1, 2001, and before May 31, 2009;

• Taxes for which the taxpayer and LDR entered into an agreement to suspend the running of prescription until December 31, 2009;

• Taxes due on or before July 1, 2009, but were ineligible for an earlier amnesty program due to having a matter in civil litigation.

Taxpayers who are eligible for amnesty include:

• Those who failed to file a tax return or report;

• Taxpayers who failed to report all income or all tax. Interest, and penalties that were due;

• Taxpayers who claimed incorrect credits or deductions;

• Taxpayers who misrepresented or omitted any tax due; or

• Certain taxpayers under audit or in administrative or judicial litigation.

Taxpayers under criminal investigation by LDR are not eligible to participate in the 2009 Louisiana Tax Amnesty Program.

For details or to apply for amnesty or make a payment, visit LDRAmnesty.com or call 866-292-8080.

The Louisiana Department of Revenue has issued five new Revenue Information Bulletins (RIBs) concerning sales and use tax-related legislation enacted during the 2009 regular session of the Louisiana Legislature.

Revenue Information Bulletin No. 09-040 discusses Act 455 which provides a sales tax exemption on purchases of bait and feed for use in the production and harvesting of crawfish.

Revenue Information Bulletin No. 09-043 discusses Act 443 which provides a new sales tax exclusion under Louisiana Revised Statute 47:301(10)(ff) for sales that occur on facilities owned or operated by the Louisiana Military Department, and also amends the existing sales tax exemption provided by R.S. 47:305.51 for purchases of utilities by steelworks, blast furnaces, coke ovens, or rolling mills.  

Revenue Information Bulletin No. 09-047 discusses Act 500 which amended the definition of the term “tangible personal property” provided by R.S. 47:301(16), to replace the former partial exclusion for “manufactured homes” with a partial exclusion for the more encompassing term “factory-built” homes.

Revenue Information Bulletin No. 09-048 discusses a new sales tax exemption provided by Act 461 for sales of polyroll tubing to be used for commercial farm irrigation purposes.

Revenue Information Bulletin No. 09-049 discusses Act 450 which provides a severance tax rate reduction and sales tax exclusions related to qualified tertiary recovery projects.

A Revenue Information Bulletin (RIB) is issued under the authority of LAC 61:III.101(D). A RIB is an informal statement of information issued for the public and employees that is general in nature. A RIB does not have the force and effect of law and is not binding on the public or on the Louisiana Department of Revenue.

Beginning July 1, 2009, a partial sales & use tax exclusion is available for modular homes and other “factory-built” homes purchased or used in Louisiana.  Previously, the exclusion applied only to purchases of dwellings categorized as “manufactured homes”, known widely as mobile homes.

The exclusion applies only to factory-built homes that will be used for residential purposes. When these structures are used for any other purposes, the sales or use tax will be payable on the full sales prices or cost prices of the property.

Act 500 of the Regular Session of the 2009 Louisiana Legislature creates the category of “factory-built home,” defined as:

… a residential structure built in a factory in one or more sections which has a chassis or integrated wheel delivery system, which are built in accordance with federal or La. construction codes, or are a manufactured home, modular home, mobile home, or residential mobile home with or without a permanent foundation, which includes plumbing, heating, and electrical systems.

 Under Act 500, all structures defined as factory-built homes are eligible for a 54-percent state and local sales tax exemption.  The purchaser of a factory-built home must report and remit to the Louisiana Department of Public Safety, Office of Motor Vehicles, state and local sales & use taxes on 46 percent of the purchase price of the structure.  The dealer has no obligation to collect and remit sales & use taxes on a factory-built home. 

The expansion of eligibility for the reduced taxable base to all “factory built” homes applies retroactively to all outstanding and unpaid taxes.  However, taxes correctly paid under the laws in effect prior to the July 1, 2009, effective date of Act 500 are not eligible for refunds.

 For more information, please contact the Special Programs Division of the Louisiana Department of Revenue at 225-219-7356.

The Louisiana Department of Revenue has adopted an Emergency Rule related to the service charge on sales of prepaid wireless telecommunications authorized by Act 531 of the Regular Session of the 2009 Louisiana Legislature.  The Emergency Rule is LAC 61:I.5401.

This Emergency Rule is necessary to allow the secretary to provide needed information to Louisiana taxpayers regarding the collection and remittance of the prepaid wireless 911 service charge as provided by R.S. 33:9101.1. The effective date of this new law is January 1, 2010. The Department of Revenue is charged with the responsibility of administering the prepaid wireless 911 service charge.

Under Act 531, retailers must collect the two percent service charge on sales of prepaid wireless service beginning January 1, 2010.  This Emergency Rule shall be effective January 1, 2010, and shall remain in effect until the expiration of the maximum period allowed under the Administrative Procedure Act or the adoption of the final Rule, whichever comes first.

Read the full text of LAC 61:I.5401 at revenue.louisiana.gov.

The Louisiana Department of Revenue has issued eight new Revenue Information Bulletins (RIBs) concerning sales and use tax-related legislation enacted during the 2009 regular session of the Louisiana Legislature.

Revenue Information Bulletin No. 09-030 concerns a new exemption provided by Act 462 for purchases of radiographic imaging equipment by certain nonprofit radiation therapy centers.

Revenue Information Bulletin No. 09-031 concerns the removal by Act 206 of the sunset date for sales tax  exclusions that have been in the sales tax law for several years covering purchases and leases by parochial and private elementary and secondary schools of certain educational materials to be used for classroom instruction.  Without the removal of the sunset date, the exclusions were to have expired on July 1, 2009. 

Revenue Information Bulletin No. 09-032 concerns the amendments by Act 446 to statutes providing with respect to sales tax exemptions for commercial fishermen, commercial fishing licenses, and commercial fishing vessel licenses.

Revenue Information Bulletin No. 09-033 concerns a new sales tax exemption provided by Act 422 for purchases by railroads of untreated railroad ties to be installed outside the state.

Revenue Information Bulletin No. 09-034 concerns the amendment by Act 464 to the sales tax exemption statute for commercial farm equipment, to provide relative to exemption certificates to be furnished by commercial farmers in connection with their claims of this exemption.

Revenue Information Bulletin No. 09-035 concerns a new use tax exemption provided by Act 422 for certain boats that dealers withdraw from their inventories for use as demonstrators.

Revenue Information Bulletin No. 09-036 concerns a new exclusion provided by Act 442 from the term “tangible personal property” for sales and use tax purposes.

Revenue Information Bulletin No. 09-037 concerns a new sales tax collection exclusion provided by Act 456 for certain nonprofit homeless shelters.

A Revenue Information Bulletin (RIB) is issued under the authority of LAC 61:III.101(D). A RIB is an informal statement of information issued for the public and employees that is general in nature. A RIB does not have the force and effect of law and is not binding on the public or the Department of Revenue.

The Department of Revenue has issued a Revenue Information Bulletin (RIB) regarding a sales tax exclusion for certain purchases of Mardi Gras specialty items.

Nonprofit Mardi Gras carnival organizations, and other nonprofit organizations domiciled within Louisiana who plan to participate in parades sponsored by such carnival organizations, can be authorized, under the provisions of Louisiana Revised Statutes 47:301(13)(l) and 47:305.40, for state and local sales tax exclusions on purchases and sales of Mardi Gras specialty items.

When a carnival organization’s application is approved by the Louisiana Department of Revenue (LDR), the organization will be excluded from the collection of the sales tax on sales of “specialty items” to its members, and will be further authorized to make tax-free purchases of “specialty items” for resale. Sales of non-“specialty items” are not covered by the exclusion; a carnival organization is required to collect sales tax on its sales of non-“specialty items”.

Read the full text of RIB 09-028 at www.revenue.louisiana.gov.

WASHINGTON ― Businesses planning to claim the recently-expanded work opportunity tax credit for eligible unemployed veterans and disconnected youth hired before mid-September now have until Oct. 17 to request the certification required for these workers, according to the Internal Revenue Service.

In Notice 2009-69, released in August, the IRS extended the certification deadline from Aug. 17, 2009, to Oct. 17, 2009, and clarified the definition of “disconnected youth.” Revised Form 8850 , available on IRS.gov, is used by employers to request certification from their state workforce agency.

The American Recovery and Reinvestment Act, enacted in February, added unemployed veterans returning to civilian life and certain younger workers, referred to as disconnected youth, to the list of groups covered by the credit.

Normally, a business must file Form 8850 with the state workforce agency within 28 days after the eligible worker begins work. But under a special rule, businesses have until Oct. 17, 2009, to file this form for unemployed veterans and disconnected youth who begin work on or after Jan. 1, 2009 and before Sept. 17, 2009. The instructions for Form 8850 provide details on requesting the certification.