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eBulletin 2008-4

March 28, 2008

Louisiana State Tax Holiday

On May 24th and 25th of this year, Louisiana will hold a sales tax holiday on sales of hurricane preparedness items. During this two-day period, the first $1,500 of the sales price of qualifying merchandise is sales tax free.

The Louisiana Department of Revenue has now issued guidance on this holiday (Revenue Information Bulletin No. 08-013. Excerpts from this RIB follow.

Items eligible for this sales tax holiday are the following: each portable self- powered light source; portable self-powered radio, two-way radio, or weather band radio; tarpaulin or other flexible waterproof sheeting; any ground anchor system or tie-down kit; any gas or diesel fuel tank; any package of AAA-cell, AA- cell, C-cell, D-cell, 6-volt, or 9-volt batteries, excluding automobile and boat batteries; any cell phone battery and any cell phone charger; any non-electric food storage cooler; any portable generator used to provide light or communications or preserve food in the event of a power outage; any "storm shutter device", as defined in the Act; any carbon monoxide detector; and any blue ice product.

The sales tax holiday does not extend to hurricane-preparedness items or supplies purchased at any airport, public lodging establishment or hotel, convenience store, or entertainment complex.

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

• He/she buys and accepts delivery of eligible hurricane-preparedness items or supplies;
• He/she places eligible items or supplies on layaway;
• He/she makes final payment on and withdraws eligible items or supplies previously placed on layaway; or
• He/she orders an eligible item for immediate delivery, even if delivery must be delayed, provided that the customer has not requested delayed shipment.

Purchases of eligible items or supplies during the holiday with “rain checks” issued before the holiday are eligible for exemption, but purchases after the holiday with “rain checks” issued during the holiday are not eligible for exemption.

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.

Disclaimers: This written advice is not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. This eBulletin contains general information and cannot substitute for individual consultation. You should obtain professional advice before making financial business or tax decisions.

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