LATA Newsletter

 

Louisiana  Association of Tax Administrators                                                                                       Issue I, 2003

 

 

Constitutional Amendments…

 

Louisiana voters approve changes to the State Constitution. Six constitutional amendments on a statewide ballot were approved in November. This was a split as there were a total of 12 changes proposed or presented for voter approval.

 

A quick look at the winners…

           

· #1   Approved – a change in the legislative fiscal sessions from even to odd-numbered years will allow legislators to each introduce five non-money bills and unlimited local bills in a fiscal session and add an additional 15 days to the session.

 

            · #2   Approved – Are you ready…The Stelly Plan, will permanently exempt food, residential utilities and prescription drugs from the state sales tax. It will change the income tax brackets to reduce the tax on lower incomes and raise taxes on those with higher incomes as well as eliminate the income tax deduction for excess federal itemized deductions.

 

            · #3   Approved – Grants legislative authority for more flexibility in dealing with budget shortfalls by allowing (limited) cuts in most funds currently protected by the Constitution.

 

            · #4   Approved – Directs the termination of a public employee (state/local) that has been convicted of a felony during employment after all appeals have been exhausted. Currently such action is sort of  in the hands of the agency leadership.

 

            · #6   Approved – mandates a minimum pay supplement to all full-time local law enforcement/firefighters. The supplement is to be $300 per month. This is not new, in the past it has been paid, however, there was no permanent funding and was in the hands of the Legislature.

 

            · #7   Approved – Will allow seniors to apply and meet an income eligibility test only once to receive a property tax assessment instead of reapplying each year.

 

Those that failed were: #5- would have authorized property tax exemptions for developers of retirement communities, #8-  would have authorized public universities to invest up to 50% of endowments, #9- would have authorized the investment of 35% of Medicaid Trust Funds,

 

LATA Newsletter                                                                                                                                           Page II

 


Continued from page one…

 

#10- would have created a Drought Protection Fund for farmers not using groundwater in drought conditions, #11- would have exempted local property tax assessments on offshore drilling rigs used outside territorial waters, #12- would have allowed local coroner (Livingston) to run for reelection even if medical doctor decides to run.  Currently the position must be filled by a medical doctor, unless no-such person qualifies for the post.

 

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Lost Experience…

 

   The last issue published contained an article concerning those persons that had recently retired and the experience that our organization lost as a result of those retirements. In addition we also listed several others that had made tremendous contributions to the organization.

   Our friend Patrick S. brought to our attention that we had omitted one very important person from that list. He is right, and the one that was omitted was in fact my mentor many years ago when I was the “greenhorn” of the field.

   Joe Brown of Rapides Parish certainly has earned the right to be listed with the likes of  Babineaux, Ballard, Bourgeois, Buchert, Buttagig,  Calais, Crouchet, Dupre, Fitch,  Lamendola, Marcell and Purcell.

   What a select group…and without a doubt there are others, however, these are the past players, as yours truly remembers them, and they represent in excess of 400 years of tax experience.

   And, there are an untold number of outstanding industry representatives that have also made contributions to this great organization. They also should take their rightful place among our past leaders.

   Joe B… I hope you know that my omitting your name was certainly not a reflection of a lack respect and admiration, but, just old age and mental capacity. For everything that you did for this organization and for me on a personal level…once again, Thanks !

 

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Uniform Tax Code…

 

   The Louisiana Legislative will soon began its 2003 Regular Session with at least one item of interest on its agenda to this organization.

   The Uniform Tax Code (UTC), a long time dream of the Legislative Committee, is once again alive and kicking. With the assistance of Sen. Bill Jones our bill will again be introduced during the session.

   For those that may not know, this is something that our Legislative Committee has been working on for a number of years. After having been introduced once before, we agreed on a compromise issue as the bill was pulled while in Committee.

   This year it will be introduced as a package of bills instead of just one as before. Upon passage, in its proposed form, the UTC will standardize the definitions, exemptions and administrative procedures for local sales tax authorities. There are also provisions for a tax court and a method for the payment of both state and local sales taxes through a single website.

   The bills by Sen. Jones are SB551, SB 952, SB835, SB708, SB674 and SB719. It is expected that the Louisiana Association of Business and Industry (LABI) will also introduce its own version of the Uniform Tax Code.

 


LATA Newsletter                                                                                                                                          Page III

                                                                                       


Economic Development…

 

   Another issue expected for the upcoming session is an Occupational License Tax Bill dealing with local economic development.

   The bill, expected to be introduced by Sen. John Hainkel, will allow with a two-thirds vote of a municipal governing authority, a 50% increase in local occupational license tax dedicated to economic development efforts.

 

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 Digital conversion equipment…

 

   The Louisiana Department of Revenue has issued a rule amendment to implement HB 124 (Act 61)(2002 Session), which provided an exclusion from sales tax for certain items of digital television conversion equipment.

   The rule is set to clarify the first purchase of each item from the categories of digital television conversion equipment listed in LA RS 47:301(16),(h),(I). A taxpayer who holds a Federal Communications License issued under 47 CFR Part 73, is excluded from the definition of tangible personal property on these categories for state sales tax purposes.

   Political Subdivisions are authorized to adopt similar exclusions from their local sales taxes.

   License holders must submit an annual report to the Department on which they list the purchases of digital equipment for which they have claimed a tax exclusion. This annual report must include all information required by the Department to verify the value of the exclusions claimed.

                                         (Admin Code 61:I.4031)

 

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The best tranquilizer: The two tablets Moses brought down from the mount…

Publishing cost…

 

The Louisiana Department of Revenue clarifies HB 158 (Act 67)(2002 Session), which took effect in July of 2002. Changing the definition of “cost price” and “sales price,” applies only to publishing businesses that pay unrelated third parties to print their news publication, and distribute those publications at no cost to readers.

   For those businesses that qualify, the terms “cost price” and “sales price” for both state and local sales/use tax purposes mean the lesser of the following cost: (1) the printing cost paid to unrelated third parties to print such news publications, less itemized freight charges for shipping the news publications from the printer to the publishing business and itemized charges for paper and ink, or (2) payments to a dealer or distributor as consideration for distribution of the new publications.

 

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Electronic images…

 

   The Department has ruled that electronic images of its records, created for archival purposes are admissible in courts and administrative proceedings. This ruling does not address federal information received under the Federal Exchange Agreement.  Imaging, a form of electronic data storage, can be used to store and preserve records, forms, and other such documents.LA RS 47:1506.1 authorizes the use of electronic and other such storage to preserve records, forms, and documents. Making such copies in this form admissible as evidence in courts and administrative proceedings.

 

               


LATA Newsletter                                                                                                                                          Page IV

 


Digital conversion…

 

   Act 61 of the 2002 Legislative Session (HB124), provides an exclusion from tax for the first purchase of  each enumerated item” as listed in the Act that is bought by eligible taxpayer broadcasters to convert to a digital broadcast signal from an analog signal. A later purchase of an enumerated item is subject to tax. There is a distinction between the Act’s enumerated items that are expressed in the singular and those that are expressed in the plural.

   If an enumerated item, such as a “DTV antenna,” is expressed in the singular, only one of such an item is excluded from tax, if it is the eligible taxpayer’s first purchase of this item. Accordingly, even if a broadcasting station needs a number of DTV antennas for its conversion to digital, it can only obtain a sales tax exclusion for the first one that it buys.

   If an enumerated item, such as “high definition up-converters,” is expressed in the plural, one or more of such an item are excluded from tax, if they are all bought at the same time, as part of the taxpayer’s first purchase of the item. Accordingly, if a station needs three high definition up-converters for its conversion to digital, it must buy all three at the same time to obtain the sales tax exclusion for all three. If, at the time the station makes its first purchase of a high definition up-converter, it buys only two converters, the station is not entitled to a tax exclusion for a later purchase of a third converter.  (OAG, #02-0362, October 02)

 

 

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Louisiana Association of Tax Administrators

P.O. Box 398

Vidalia, Louisiana 71373

 

 

 

 

 

 

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