Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 44 - Sales and Use Tax Exemptions › Section I-4420 - Property Used in Interstate Commerce

Current through Register Vol. 50, No. 6, June 20, 2024
A.R.S.
				47:305.50(A)(1) provides an
				exemption from state and local sales and use taxes for trucks with a gross
				weight of 26,000 pounds or more and for trailers, if such trucks and trailers
				are used at least 80 percent of the time in interstate commerce and are subject
				to the jurisdiction of the United States Department of Transportation.
				R.S.
				47:305.50 allows certain taxpayers to
				register such trucks and trailers and contract carrier buses with the Office of
				Motor Vehicles of the Department of Public Safety and Corrections (OMV) without
				paying state or local sales or use tax.
				R.S.
				47:305.50 provides an exemption from state
				and local sales and use taxes for the purchase, use or lease of qualifying
				trucks and qualifying trailers, both of which have been purchased, used,
				imported or leased. To qualify for the exemption, the taxpayer's activities
				must be subject to the jurisdiction of the United States Department of
				Transportation, and the taxpayer must certify to the OMV that the property will
				be used at least 80 percent of its actual mileage in interstate commerce. The
				Department of Revenue and the OMV provide forms on which to make these
				certifications.
B. Any taxpayer who
				claims the exemption in provided in
				R.S.
				47:305.50(A)(1) must
				maintain records of the use of the property in order to document the actual
				mileage. This exemption is for trucks with a gross weight of 26,000 pounds or
				more and for trailers, if such trucks and trailers are used 80 percent of the
				time in interstate commerce and are subject to the jurisdiction of the U.S.
				Department of Transportation. The determination of whether a truck is used 80
				percent of the time in interstate commerce must be based upon the actual
				mileage of such truck. It is required that a truck cannot have more than 20
				percent Louisiana intrastate miles.
1. If the
				documentation indicates that the property was not used during the one-year
				period following the date of its purchase for the required 80 percent or more
				of its actual mileage in interstate commerce, the taxpayer will not qualify for
				the exemption and state and local sales or use tax will be due on the amount
				paid for the property at the rate that was applicable on the date the property
				was purchased, plus interest from the date the property was purchased to the
				date of the tax payment. The state sales or use tax must be reported on a sales
				tax return provided by the Department of Revenue and paid to the Department of
				Revenue by the twentieth day of the month following the end of the one-year
				period in which the taxpayer fails to qualify for the exemption. The local
				sales or use tax must be reported and paid to the proper local taxing authority
				in accordance with their ordinances and the Uniform Local Sales Tax Code.
a. Calculation of interstate mileage does not
				include commercial truck transportation that begins at a point of origin in a
				state other than Louisiana to a destination in the same state. Guidance for the
				sales and use tax exemption eligibility of trucks used in other states has been
				set forth in Department of Revenue, Revenue Ruling 05-004. Revenue Ruling 04-05
				offers guidance as well, because it sets forth the parameters in which
				intrastate movement of goods would be considered interstate commerce.
b. Interstate mileage is based on the actual
				mileage of the truck and must be proven through documentation such as with
				driver's logs, motor carrier bills of lading, expense bills, and other
				documentation reflecting the origin and destination points of items
				transported.