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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.
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.
In addition to the specific exclusions in the Act for vehicles and meals, the state sales tax holiday does not apply to:
A customer is eligible for the sales tax exemption if during the two days of each annual holiday:
A customer will be eligible for the sales tax exemption if during the two days of each annual holiday:
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.
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.
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.
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