2014 Louisiana Annual Sales Tax Holiday - Friday, August 1, & Saturday, August 2

Taxpayers

Retailers

Taxpayers

What is the Annual Sales Tax Holiday?

The Louisiana Annual Sales Tax Holiday provides an exemption from state sales tax on the first $2,500 of the purchase price of most individual items of tangible personal property for non-business use. The state sales tax is payable on the portion of the purchase price of any individual item in excess of $2,500.

The holiday applies only to the 4 percent state sales tax. It does not apply to sales taxes levied by parishes, municipalities, school boards, and other political subdivisions of the state.

Under Louisiana law, the annual sales tax holiday takes place on the first consecutive Friday and Saturday each August. The 2014 sales tax holiday begins at 12:01 a.m. on Friday, August 1, and continues through 11:59 p.m. on Saturday, August 2.

top of page

What items are eligible for exemption?

The exemption applies statewide to all consumer purchases of tangible personal property, other than vehicles subject to license and title and meals furnished for consumption on the premises where purchased, including to-go orders, provided that the property is not for use in a business, trade, or profession.

top of page

What items are NOT eligible for exemption?

In addition to the specific exclusions in the Act for vehicles and meals, the state sales tax holiday does not apply to:

  • Purchases of taxable services (such as hotel occupancy)

  • Amusement, recreational, and athletic admissions

  • Repairs to tangible personal property

  • Laundry, cleaning, pressing, and dyeing services

  • Vehicle parking

  • The furnishing of cold storage space

  • Printing services

  • Telecommunication services

  • Leases or rentals of tangible personal property

top of page

What are the conditions for exemption?

A customer is eligible for the sales tax exemption if during the two days of each annual holiday:

  • The customer buys and accepts delivery of eligible property;

  • The customer places property on layaway;

  • The customer acquires property that was previously placed on layaway; or

  • The customer places an order for immediate delivery, even if delivery must be delayed, provided that the customer has not requested delayed shipment.

top of page

Are there any special provisions?

The following special provisions apply:

  • The exemption is allowed on both inputs to and withdrawals from layaway.

  • Purchases during the holiday with "rain checks" issued before the two-day holiday are eligible for exemption, but purchases after the holiday with "rain checks" issued during the holiday are not eligible for exemption

  • Orders for immediate shipment are eligible for exemption even if the shipment is after the holiday, provided that the customer does not request delayed shipment

  • The post-holiday exchange of merchandise to effectuate changes in size, color, or correction of defects does not create a tax liability, but exchanges after the holiday for dissimilar items will be considered the purchase of new property on which the sales tax will be payable

  • Items that are normally sold as a unit, such as dining tables and chairs, cannot be individually priced for the purpose of creating a separate eligibility cap for each individual item

  • For a 60-day period after the holiday, dealers who issue refund or credit for the return of merchandise that was eligible for sales tax exemption during the holiday can issue refund or credit for the state sales tax on that returned merchandise only if the customers returning the property have receipts showing that the tax was actually paid on the original purchases, or the dealers are otherwise able to document that the state sales tax was paid on the original purchases

top of page

Retailers

What is the Annual Sales Tax Holiday?

The Louisiana Annual Sales Tax Holiday provides an exemption from state sales tax on the first $2,500 of the purchase price of most individual items of tangible personal property for non-business use. The state sales tax is payable on the portion of the purchase price of any individual item in excess of $2,500.

The holiday applies only to the 4 percent state sales tax. It does not apply to sales taxes levied by parishes, municipalities, school boards, and other political subdivisions of the state.

Under Louisiana law, the annual sales tax holiday takes place on the first consecutive Friday and Saturday each August. The 2014 sales tax holiday begins at 12:01 a.m. on Friday, August 1, and continues through 11:59 p.m. on Saturday, August 2.

top of page

What items are eligible for exemption?

The exemption applies statewide to all consumer purchases of tangible personal property, other than vehicles subject to license and title and meals furnished for consumption on the premises where purchased, including to-go orders, provided that the property is not for use in a business, trade, or profession.

top of page

What items are NOT eligible for exemption?

In addition to the specific exclusions in the Act for vehicles and meals, the state sales tax holiday does not apply to:

  • Purchases of taxable services (such as hotel occupancy)

  • Amusement, recreational, and athletic admissions

  • Repairs to tangible personal property

  • Laundry, cleaning, pressing, and dyeing services

  • Vehicle parking

  • The furnishing of cold storage space

  • Printing services

  • Telecommunication services

  • Leases or rentals of tangible personal property

top of page

What are the conditions for exemption?

A customer will be eligible for the sales tax exemption if during the two days of each annual holiday:

  • The customer buys and accepts delivery of eligible property;

  • The customer places property on layaway;

  • The customer acquires property that was previously placed on layaway; or

  • The customer places an order for immediate delivery, even if delivery must be delayed, provided that the customer has not requested delayed shipment.

top of page

Are there any special provisions?

The following special provision apply:

  • The exemption is allowed on both inputs to and withdrawals from layaway

  • Purchases during the holiday with "rain checks" issued before the two-day holiday are eligible for exemption, but purchases after the holiday with "rain checks" issued during the holiday are not eligible for exemption

  • Orders for immediate shipment are eligible for exemption even if the shipment is after the holiday, provided that the customer does not request delayed shipment

  • The post-holiday exchange of merchandise to effectuate changes in size, color, or correction of defects does not create a tax liability, but exchanges after the holiday for dissimilar items will be considered the purchase of new property on which the sales tax will be payable

  • Items that are normally sold as a unit, such as dining tables and chairs, cannot be individually priced for the purpose of creating a separate eligibility cap for each individual item

For a 60-day period after the holiday, dealers who issue refund or credit for the return of merchandise that was eligible for sales tax exemption during the holiday can issue refund or credit for the state sales tax on that returned merchandise only if the customers returning the property have receipts showing that the tax was actually paid on the original purchases, or the dealers are otherwise able to document that the state sales tax was paid on the original purchases.

top of page

How does the Cash Register Reprogramming Credit work?

Dealers who incur costs to reprogram cash registers, including computer programming, as a result of a change in the state sales and use tax rate or base shall be allowed credits on their sales tax returns of up to $25 for each cash register reprogrammed. Dealers are allowed to claim credit only for reprogramming costs invoiced to them by external providers of services, but not for internal reprogramming services rendered within their businesses by such internal persons as owners, officers, partners, or employees.

Dealers whose point-of-sale cash registers are controlled from host computers can deduct the costs invoiced by external service providers to reprogram tax rate or base information in those computers, not to exceed $25 times the number of cash registers controlled from the host computers. For example, a dealer or merchant whose host computer controls 20 point-of-sale cash registers can claim credit for up to $500 in charges for reprogramming services associated with a change in the state sales tax rate or base.

Dealers who do not use point-of-sale cash registers, but who instead issue printed or electronic invoices on which the invoiced tax amounts are determined from tax rate or base information housed in their computers, can deduct up to $25 in external reprogramming costs for each computer that must be reprogrammed because of a change in the state sales tax rate or base.

The credit is deductible on Line 12A of the state sales and use tax return. Copies of invoices from external service providers must be attached to the tax return to support the amount of credit claimed. More detailed information about the reprogramming credit is available from Revenue Information Bulletin No. 03-009.

top of page

What are the return filing procedures?

Retailers should report exempt sales on Line 24 of the Louisiana State Sales Tax Return (R-1029).

Questions concerning this matter can be directed to the Customer Service Division at 225-219-7318 or 855-307-3893.

top of page