Opinion ID: 1767500
Heading Depth: 1
Heading Rank: 2

Heading: sales tax law

Text: The Sales Tax Law defines the taxable sale of laundry services simply as the furnishing by one person to another of laundry services. La.R.S. 47:302 levies a tax upon all sales of services, as herein defined. La.R.S. 47:302 (West 1990). Sales of services means and includes [t]he furnishing of laundry, cleaning, pressing and dying services. La.R.S. 47:301(14)(e). While the statute contains no definition of the unmodified term sale explicitly applicable to the sale of a service, the sale for purposes of imposition of the tax upon sales of goods is defined in sweeping terms as any transfer of title or possession, or both, exchange, barter, conditional or otherwise, in any manner or by any means whatsoever ... for a consideration. La.R.S. 47:301(12). The tax imposed under R.S. 47:302 is collectible from all persons engaged as dealers. La.R.S. 47:303. A dealer is any person who sells or furnishes any of the services subject to tax. La.R.S. 47:301(4)(f). A person includes any individual, firm, copartnership, joint adventure, association, corporation, estate, trust, business trust, ... instrumentality or other group or combination acting as a unit. La.R.S. 47:301(8). While the statute sets forth various exclusions, some based on the nature or purpose of the transaction and others based on the character of the organizations engaging in the transaction, La.R.S. 47:305-305.49, it does not provide for an exclusion applicable to the furnishing of otherwise taxable services by a non-profit corporation to its member non-profit hospitals or healthcare institutions. Under the plain wording of the statute, the transactions whereby Associated, a corporation, furnishes laundry services to others are taxable. No exception is found to cover the transactions at issue. Nor is there any evidence of the legislature's intent to exempt any transaction based on common or related ownership of the two entities involved. In light of the fact that transactions between commonly owned legal entities are an everyday commercial reality, we cannot assume that the legislature meant, but simply neglected, to provide for an exemption for such situations. We conclude that the transactions are taxable under the sales tax statute.