News & Tax Alerts: Tax Alerts – State

LDR Issues New Table of Sales Tax Rates for Exemptions and Exclusions

Wednesday, June 27, 2018   (0 Comments)
Posted by: Ann Lupo

Updated Sales Tax Table and Other Important Legislation effective July 1

The Department of Revenue has issued a new Table of Sales Tax Rates for Exemptions and Exclusions:

The New Orleans office of the Department of Revenue has resumed full customer service operations five days a week for individual and business taxpayers. Services included, hours and location information here.

Beginning in February 2018, and 4 legislative sessions later, you may be wondering just how many of bills passed impact state taxes. Here are some Acts you will want to review.

Act 1 2018 3rd ES – Sales Tax Rate Change
Reduces the rate of the temporary state sales and use tax from one penny (which has made the taxable rate five cents over the past two years) to .45 cents (which makes the new rate 4.45 cents until June 30, 2025). Act 1 also retains some exemptions and exclusions until the 2025 sunset date. Manufacturing machinery and equipment remains exempt from the state sales tax. Business utilities will continue to be taxed at 2 percent for state sales tax, rather than the entire 4.45 percent. Effective July 1, 2018

Act 525 2018 RS – Paid Tax Preparers
Requires paid tax preparers to sign and provide an identification number on tax returns, reports, and claims filed with the Department of Revenue. Effective July 1, 2018

This Legislation and Act 526 as finally passed included a number of amendments proposed by LCPA to the Department of Revenue to make certain that CPAs and CPA firms were not unintentionally impacted in a negative way.

Louisiana Department of Revenue informal information provided to LCPA on electronic signatures: LDR currently has regulations pertaining to signature alternatives for preparers, LAC 61:I.4906. LDR is in the process of updating this regulation to apply to all taxes and issuing a Revenue Information Bulletin on the Act. Nevertheless, on electronically filed returns, preparers will be required to sign the electronic return by including their printed name in the signature field and completing the paid preparer section.

Act 526 2018 RS – Preparers
Authorizes the Department of Revenue to seek to enjoin preparers who engage in certain conduct. Effective July 1, 2018

Act 527 2018 RS – Resale Certificate
Authorizes the secretary of the Department of Revenue to refuse to register or issue or may revoke a state sales tax resale certificate to new business if the business reorganization was intended to evade payment of sales and use or withholding tax. Effective July 1, 2018

Act 91 2018 RS – Tax Appeals Solar
Requires the Board of Tax Appeals to refund certain filing fees and deposits paid relating to claims for the solar energy systems tax credit.

Act 4 2018 2nd ES – Corporate Income Tax Deductions and Exclusions
Reduces the amount of certain corporate income tax deductions and provides for continued effectiveness of reductions to certain corporate income tax deductions and exclusions. To amend and reenact Section 6 of Act No. 123 of the 2015 Regular Session of the Legislature, relative to corporate income tax; to provide relative to certain exclusions, exemptions, and deductions; to provide for the effectiveness of reductions; to provide for applicability. Provisions of Act effective July 1, 2018 regarding original filed and amended returns.

Act 1 2018 1st ES - Individual Income Tax Federal Net Disaster Losses
Modifies the term "federal income tax liability" to include certain federal net disaster losses for specified taxable periods. Provisions of the Act state the retroactive tax years.

The Department of Revenue plans to issue a RIB soon that will answer several questions LCPA submitted on behalf of our members when this Act passed.

Act 6 2018 2nd ES – Individual Income Tax Credit for Taxes Paid Other States
Amends and reenacts the individual income tax credit for taxes paid to other states and extends the sunset date. Important changes are in this Act including an individual partner, member, or shareholder that pays another state's entity-level tax and calculation of the credit limitation. Also changes credit against tax for earned income tax credit. Read the Act for the various effective dates.

Act 86 2018 RS – Corporate Franchise
Changes the due date for filing corporate franchise tax returns. Applicable for franchise tax years beginning on and after January 1, 2019.

Act 5 2018 2nd ES – Sales Tax Remote Dealer Definition
Provides criteria for the definition of "dealer" for purposes of the sales tax imposed on transactions involving a remote seller.

Act 250 2018 RS – Sales Tax Certain Nonprofit Subsidiaries
Provides for direct payment of state and local sales tax due on purchases by certain nonprofit subsidiaries. Effective July 1, 2018

Act 11 2018 2nd ES – Incentive Rebates
Provides for administration of incentive rebates under the Quality Jobs and Enterprise Zone programs; to change the application period for certain incentive rebates; to provide for issuance of rebate payments for certain tax incentive programs; to provide for effective dates.

The June issue of Lagniappe member magazine has a review of more Legislation of interest to our members that passed during the 2018 Regular Session that you will want to read, and watch for the July issue for LCPA Lobbyist Jim Harris’ legislation recap.

Questions about the content of this Alert should be directed to LCPA State Government Relations Director