News & Tax Alerts: Tax Alerts – State

Nonprofit Dues and LDR Exemptions and Exclusions Guide

Thursday, March 31, 2016   (0 Comments)
Posted by: Ann Lupo

March 31, 2016

Nonprofit Dues and LDR Exemptions and Exclusions Guide

Please note, the Louisiana Department of Revenue has issued RIB 16-014, which definitively addresses the types of nonprofit, civic organization dues that are subject to sales tax. Read the full RIB here:

RIB 16-014 Taxability of Dues Paid to Nonprofit, Civic Organizations Which Entitle the Member to Receive Access to Clubs or the Privilege of Having Access to or the Use of Amusement, Entertainment, Athletic, or Recreational Facilities

Thanks to everyone who helped in clarifying this issue.

The Louisiana Department of Revenue has also posted on its website a 25-page document that attempts to try to clarify the sales tax impact of passage of HB 61 (Act 25) and HB 62 (Act 26) during the recently concluded Louisiana special legislative session. We should point out this document may very well be revised as the Department of Revenue continues studying the legislation and attempts to interpret through policy some of these new sales taxes, most of which begin April 1st. Read the full text here:

R-1002A: Act 25 and 26 – Taxable Rate of Transactions for Exemptions and Exclusions

R-1002A is a table that explains the changes enacted by Act 25 and 26 of the 2016 Extraordinary Session of the Louisiana Legislature. More specifically, the table can be used as a guide because it lists the applicable state tax rate that should be collected on state sales and use transactions that are subject to Louisiana law. If you have comments or concerns about anything contained in LDR's spreadsheet, please send them to:

Linda H. Babin, CPA, CGMA
LCPA State Government Relations Director| 504.904.1126

Thanks to all members who renewed their membership prior to the LDR clarification. For those who haven't renewed their membership, your dues statement will be emailed in late April/early May.

Special thanks to Jim Harris of Harris, Deville & Associates, Inc. for contributing some content to this alert.

Questions about the content of this Alert should be directed to Linda Babin.