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-4302 - Pollution Control Devices and Systems Excluded from the Definition of " Sale at Retail"

Current through Register Vol. 50, No. 6, June 20, 2024
A.
				This Section describes the conditions under which certain sale or lease
				transactions involving tangible personal property used for pollution control
				purposes may be excluded from the definition of
sale at retail
for purposes of the 3 percent tax levied by this Chapter and the Louisiana
				Tourism Promotion District. It contains the qualifications which must be met by
				the property under consideration, the requirements which are imposed upon the
				applicant for the tax relief granted under this Act, and the procedures to be
				followed in applying for the relief.
B. Definitions. For purposes of this Section,
				the following terms shall have the meaning ascribed herein.
Act or This Act
- Act 1019 of the 1991
				  Regular Session of the Louisiana Legislature.
Industrial Application
- the use,
				  construction, or installation of a pollution control device or system by a
				  business which is primarily engaged in the exploration for or mining of
				  minerals, the manufacture or processing of raw materials into tangible personal
				  property for resale, or the processing, treatment, disposition, control or
				  containment, of polluting materials produced by another business.
Pollution
- the environment of the state by
				  any means that would tend to degrade the chemical, physical, biological, or
				  radiological integrity of such environment. Pollution includes solid waste,
				  hazardous waste, sludge, chemical waste, radiological wastes, noise, and any
				  other pollutants resulting from industrial emissions, discharges, or releases
				  into air, water, or land.
Pollution Control Device or System
- any one
				  or more pieces of tangible personal property which is intended and installed
				  for the purpose of eliminating, preventing, treating, or reducing the volume or
				  toxicity or potential hazards of industrial pollution of air, water,
				  groundwater, noise, solid waste, or hazardous waste in the state of Louisiana
				  and which has been approved by the Department of Environmental Quality and the
				  Department of Revenue and Taxation for the tax relief granted by this
				  Act.
C. Qualifications. To qualify for
				the tax relief provided under this Act, a pollution control device or system
				must comply with the following requirements.
1. It must demonstrate to the Department of
				Environmental Quality its efficacy to a particular process or application. The
				equipment must be approved by both the Department of Environmental Quality and
				the Department of Revenue and Taxation in order to be excluded from the
				definition of
sale at retail
for state sales and use tax
				purposes.
2. It (or the applicant)
				must demonstrate either:
a. a net decrease in
				the volume or toxicity or potential hazards of pollution as a result of the
				installation of the device or system; or
b. that installation is necessary to comply
				with federal or state environmental laws or regulations.
3. It must be intended for use in an
				industrial application. Use in residential, commercial, recreational, or other
				applications do not qualify.