Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 43 - Sales and Use Tax › Section I-4353 - Collection from Interstate and Foreign Transportation Dealers

Current through Register Vol. 50, No. 6, June 20, 2024
A.R.S.
				47:306.1 specifically provides for an option
				by persons engaged in interstate or foreign commerce transporting passengers or
				property for hire to register as dealers and pay the taxes imposed by R. S.
				47:302(A) on the basis of the formula hereinafter provided; however, since the
				intent is apparent, the option equally applies to the tax imposed by
				R.S.
				47:321(A) and
				R.S.
				47:331(A). All persons
				engaged in the business of transporting passengers or property for hire in
				interstate or foreign commerce can avail themselves of this option; however,
				only such purchases and importations, as hereinafter defined, used in the
				furtherance of the interstate or foreign commerce activity will come under this
				option. Specifically, a person engaged in activities and operations of another
				nature cannot apply the option to such purchases and importations, as
				hereinafter defined, and must pay the tax in the manner prescribed in
				R.S.
				47:302(A),
				R.S.
				47:321(A), and
				R.S.
				47:331(A).
B. Carriers which do not elect to report and
				pay Louisiana sales and use taxes under the optional formula provided by
				R.S.
				47:306.1 shall report and pay the Louisiana
				sales tax on all purchases made within the state of Louisiana, and shall report
				and pay the use tax on all tangible personal property imported into the state
				of Louisiana and becoming a part of the mass of the taxpayer's property located
				within the state.
C. Carriers which
				elect to report and pay Louisiana sales and use taxes under the optional
				formula provided by
				R.S.
				47:306.1 shall be governed by the provisions
				set forth below.
D. For purposes of
				this regulation, gross purchases and importations means all tangible personal
				property purchased by the taxpayer, within or without the state of Louisiana,
				and all property imported into Louisiana subsequent to the effective date of
				this regulation, on which no Louisiana sales or use tax has been
				paid.
E. Carriers desiring to avail
				themselves of the provisions of this optional formula, which have not
				previously registered with the secretary for such purposes, shall apply to the
				secretary for an interstate or foreign carrier dealer's number, and submit
				satisfactory proof to the secretary that they are engaged in the transporting
				of passengers or property for hire in interstate or foreign commerce. Proof
				that they are subject to appropriate federal regulatory agencies, such as the
				ICC, CAA, etc., shall normally be sufficient. The secretary shall then issue a
				registration number which may be used for the purpose of making purchases or
				importations into this state without payment of sales or use taxes at the time
				of purchase or importation.
F.
				Carriers currently registered with the secretary as an interstate or foreign
				carrier may continue to operate under the interstate or foreign carrier
				dealer's number which has been issued to them; however, carriers electing to
				report under this optional formula must expressly signify their election, in
				writing, at the time of filing their first sales tax return following the
				effective date of this regulation. All carriers who do not expressly so elect
				to report under the optional formula shall be presumed conclusively to have
				elected not to report under the formula.
G. An election either to report under the
				optional formula or not to report under the optional formula may not be
				withdrawn without written consent of the secretary for good cause
				shown.
H. Sellers of tangible
				personal property may recognize the claim of a buyer that the property
				concerned is to be used in the transporting of passengers or property for hire
				in interstate or foreign commerce only if the buyer is properly registered
				hereunder, and only if the buyer submits a blanket certificate, Form LGST 12,
				signed by and bearing the name, address and registration number of the buyer,
				to the effect that he is using the property purchased in the business of
				transporting persons or property or services purchased in the business of
				transporting persons or property for hire in foreign or interstate commerce and
				that he will pay the taxes owed directly to the secretary under the provisions
				of
				R.S.
				47:306.1. Blank certificates may be obtained
				from the secretary. Sellers will be responsible for the collection of tax on
				all sales made to persons who have not secured the proper registration number.
				A dealer who fails to secure or keep for the secretary examination certificates
				signed by the buyer will be liable for and must pay the tax himself.
I. On or before the twentieth day of each
				month, the carrier shall transmit to the secretary on forms furnished by the
				secretary, returns showing the gross purchases and importations. The taxable
				base shall be determined by applying the mileage ratio (miles traveled in
				Louisiana divided by total miles traveled) to the gross amount referred to
				above. The prevailing tax rate shall be applied to the taxable base to
				determine the amount of tax due.
J.R.S.
				47:306.1 applies only to the tax imposed on
				sales and use of tangible personal property, as set forth in
				R.S.
				47:302(A),
				R.S.
				47:321(A), and
				R.S.
				47:331(A). The tax imposed
				on the lease or rental of tangible personal property [R.S.
				47:302(B),
				R.S.
				47:321(B), and
				R.S.
				47:331(B)] and the tax on
				sales of services [R.S.
				47:302(C),
				R.S.
				47:321(C), and
				R.S.
				47:331(C)] may not be paid
				and reported under the optional method provided by R. S. 47:306.1.
AUTHORITY NOTE:
				  Promulgated in accordance with
				  R.S.
				  47:306.1.