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State Sales Tax Rate Increases July 1, 2000

Traditionally exempt items go from 3 percent to 4 percent

June 29, 2000

BATON ROUGE - Department of Revenue Secretary Cynthia Bridges reminds consumers and dealers that the rate of sales tax on traditionally exempt transactions increases from 3 percent to 4 percent effective July 1, 2000. The change is due to the enactment of Act 33 of the 2000 Regular Session of the Louisiana Legislature.

Bridges says that for most consumers, the transactions that will be most affected are purchases of water utility services, electricity, natural gas, food for home consumption, and newspapers. She adds that the rate of sales tax on many other transactions, mostly commercial, will also be increased to 4 percent. However, telecommunications services will remain at 3 percent. Other transactions that have not been affected by prior suspensions (for example, prescription drugs and medical-related property) will also not be affected by this suspension. A notice providing details of the tax rate change has been mailed to all dealers who are registered with the Department of Revenue for the collection and remittance of the state''s sales tax.

Examples of transactions that become taxable at 4% include:


  • sales of food for preparation and consumption in the home;
  • sales of electricity, natural gas, and water utility services;
  • sales of newspapers;
  • sales of steam;
  • purchases by nonprofit electrical cooperatives;
  • purchases of butane, propane, and other liquefied petroleum gases for residential use;
  • purchases of certain materials for use in commercial printing processes;
  • purchases of certain materials by organizations that sponsor Mardi Gras balls;
  • purchases of materials for construction and operation of nonprofit retirement centers;
  • sales of energy sources used for boiler fuel or to fuel the generation of electric power for resale or for use by an industrial manufacturing plant for self-consumption or co-generation.
  • sales of admission tickets by Little Theater organizations;
  • the first $50,000 of the sales price of irrigation well drives, motors, and on-the-farm facilities used to store grain;
  • sales of feed and feed additives for animals used for business purposes;
    sales of certain supplies used in harvesting crawfish or
  • catfish;
  • vehicles and aircraft removed from inventory for use as demonstrators;
  • catalogs distributed in the state free of charge;

Bridges says dealers or consumers with questions about the rate change can call or visit any of the Department''s offices listed below. Information is also available through the Department''s website at www.rev.state.la.us.

Alexandria
900 Murray Street, Room B-100
(318) 487-5333

Baton Rouge (Main Office)
330 N. Ardenwood Drive
(225) 925-7356

Baton Rouge (Regional Office)
8490 Picardy Avenue, Suite 600
(225) 763-5700

Lafayette
825 Kaliste Saloom Road, Brandywine III
(337) 262-5455

Lake Charles
One Lakeshore Drive, Suite 1550
(337) 491-2504

Monroe
122 St. John Street, Room 105
(318) 362-3151

New Orleans
1555 Poydras Street, Suite 900
(504) 568-5233

Shreveport
1525 Fairfield Avenue
(318) 676-7505

Thibodaux
1418 Tiger Drive
(504) 447-0976