Taxability of Movable Buildings...

Taxpayers who sell modular or movable buildings to purchasers as tangible personal property must collect or pay Louisiana sales or use tax. Under Louisiana law, transactions involving the sale and placing of a building on land on a non-permanent basis are considered sales of tangible personal property.

In such a case, the sellers are required to collect and remit sales tax on the full “sales or cost price” of the movable building, including fabrication labor and overhead charges.

Separately stated optional delivery and installation charges may be excluded from the property’s taxable sales or cost price.

Disposal sales of used movable buildings by non-dealers may be treated as isolated or occasional non-retail sales for sales tax purposes. When buildings are sold as immovable, the building seller is considered a contractor.

In this case, the seller is not required to collect sales or use tax from the buyer of such structure. Instead, the seller is required to pay the sales or use tax on all of the construction materials and components of the building structure.

                                                                                                                           (Revenue Ruling 02-005, 5/02)

 

A hotel could not appeal the city assessment on its personal property directly to a district court because the appeal concerned the correctness of the assessment, not the tax legality. After the city assessed the property based on a higher valuation than the  amount that the taxpayer provided on its rendition form, the taxpayer paid the tax under protest and filed suit for recovery.

The taxpayer claimed the assessor improperly assigned a much higher value to the property without a notice or providing an explanation. Under state law, a tax legality challenge could be filed directly in district court.

However, such issues of “correctness of assessments” by assessors were subject to review first by the parish governing body, then by the Louisiana Tax Commission and finally by the courts. “Correctness of assessment” refers to the right of the taxpayer to seek adjustments to the valuation of taxable property.

The issue in this case at hand was the correctness of the valuation. The tax rolls containing the assessment at issue had been properly open for inspection, which allowed ample opportunity for questioning the valuation at issue, and met the taxpayer’s legal or due process rights.  Therefore, filing a suit directly in the district court was not the appropriate method for challenging the assessment. Since the district court was not the proper forum to decide the taxpayer’s challenge, the assessor was not required to produce evidence regarding valuation to the court.                           

                                                  (Panacon v Kahn, La App, 4^th Cir, Dkt # 2002-CA-0314,5/02)

 

Act 6, allows school boards, municipalities, and parishes to exempt the first $50,000 of the sales price of certain farm equipment such as rubber-tired farm tractors, cane loaders and harvesters, cotton pickers, combines, haybalers and attachments, sprayers, clippers, cultivators, discs, plows, spreaders and etc.

RS 47:305.25 Exclusions and exemptions; farm equipment -- (C) (1) A city or parish school board may by resolution adopted by the board provide an exemption for farm equipment as defined in Subsection A of this Section from all of its sales and use taxes.

(2) The governing authority of a municipality may by resolution or ordinance provide an exemption for farm equipment as defined in Subsection A of this Section from all of its sales and use taxes.

(3) The governing authority of a parish may by resolution or ordinance provide an exemption for farm equipment as defined in Subsection A of this Section from all of its sales and use taxes and all sales and use taxes of political subdivisions levied solely within the territory of the parish, except municipal and school board taxes.

                                                                                                               (HB 73, Act6, Enact RS47:305.25(C))

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Bobby R. Simpson, Mayor-President of East Baton Rouge Parish and City of Baton Rouge, was installed as president of the Louisiana Municipal Association at the organization’s 65^th Annual Convention on August 10, 2002. Mayor Simpson succeeds Mayor Ned Randolph of Alexandria as LMA’s top officer.

Also elected were:

            1^st Vice President         Ronnie Harris, City of Gretna

                                    2^nd Vice President         Don Menard, Town of Cankton

                                    Vice Pres – Dist A        George Dement, City of Bossier City

                                                        Dist B       Robert Corley, Town of Ringgold

                                                        Dist C      Jack Hammons, Town of Winnsboro

                                                        Dist D      Wayne McCullen, City of Natchitoches

                                                        Dist E       Clarence Fields, City of Pineville

                                                        Dist F       John Olivier, Town of Sunset

                                                        Dist G      L.A. “Buddy” Henagan, City of DeQuincy

                                                        Dist I        Earle Brown, Town of Franklinton, and

                                                        Dist J        Richard Champagne, Town of Lockport

 

                                                                                                                                (Louisiana Municipal Review, Vol 67, # 9)

 

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A quick reference for 2002 Special and Regular Legislative Sessions -

Special Session…

Act 3, HB 104   - provides a sales and use tax exclusion for capital expenditures by biotechnology companies - RS 47:301(10)(a)(v)

Act 7, HB   30   - provides an exclusion for computer software - RS 47:301(16)(h),(22) and 23 and 305.52

Act 98, HB 127 - provides sales tax filing requirements of the state; state & local sales and use tax returns shall be filed annually -                                          RS  47:306(A)(1)( c) and (d)

 Regular Session…

            Act 64, HB 135 - extends the time limitation of the exclusion for motor vehicles purchased for lease

            Act 67, HB 158 - exclusion from state and local sales and use tax for certain cost of publishing businesses -
                                         RS 301(3)(h), 13(g) and 24

            Act 85, SB    86 - the sale of TPP by a dealer in connection with the sale or use of mobile telecommunications services -
                                         RS 47:301 (10)(v), (13)(g) and (h) and (18)(i)

            Act 61, HB 124 - excludes digital television and digital radio conversion equipment authorizes local taxing authorities to
                                         exempt purchases of certain equipment - RS 47:301(16)(h)

            Act 56, HB   82 - excludes certain transactions relating to manufactured homes from local sales and use tax -
                                         RS 47:301(16)(g)(iii) and (iv)

            Act 70, HB 205 - excludes from state and local sales and use tax purchases by non-profit blood banks and blood collection centers -                                         RS 47:301(16)(h)

            Act 71, HB 207 - excludes from state and local sale and use tax apheresis kits and leuko reduction filters used by non-profit
                                         blood  banks and blood collection centers - RS 47:301(16)(h)

            Act   4, HB   54 - extends the exemption for boiler fuel

            Act  37, SB   57 - provides an exemption for the sales, administration or procurement of certain prescription drugs from
                                         local sales tax - RS 47:305(D)(5)

            Act  42, SB   71 - provides an exemption from local sales and use tax for cancer and related chemotherapy prescription drugs -
                                         RS 47:305(D)(4)

Act  31, SB   39 - provides an exemption from state and local sales and use taxes for repairs on drilling rigs and equipment
                                         used offshore - RS 47:305(I)

            Act  40, SB   62 - defines “foreign or interstate coastwise commerce” with respect to the exemption provided owners and
                                         operators of ships or vessels operating in such commerce - RS 47:305.1 ( C) and (D)

Act  41, SB   70 - provides an exemption from state and local sales and use tax for ships and ship supplies and to define
                                         “foreign or interstate coastwise commerce” - RS 47:305.1( C) and (D)

            Act  27, SB   11 - to provide an exemption from state and local sales and use tax for non-profit literacy organizations -
                                         RS 47:305.14 (A)(5)

            Act  49, HB  26 - extends the exemption for purchases of utilities used by certain steelworks and blast furnaces - RS 47: 305.51

            Act   6, HB   73 - provides an exemption from local sales and use taxes for farm equipment - RS 47:305.25 ( c)

            Act   2, HB   40 - extends the exemption for certain buses, trucks and trailers used in interstate commerce -
                                         RS 47:305.50 (A)(1)(a) 22and pg 75 line 1

            Act 20, HB 166 - extends the automobile rental tax - RS 47:551(A) and RS 47:551(D)(3) and (4)

 

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Ducote's upcoming retirement...

Assistant Attorney General Glenn Ducote, a 20 plus year veteran of the Louisiana Justice Department is retiring. Glenn served as chief of the Attorney General’s Public Finance and Contracts Section and as chair of the Louisiana State Bar Association Section on Government and Public Law.

Glenn a graduate of LSU and a native of Avoyelles Parish expects to open a practice in the Baton Rouge area specializing in government relations. He joins a long list of true “public servants” that 2002 seems to have claimed for retirement.

As one of the good guys, that actually returned phone calls, he is surely to be missed. Without a doubt, he was on top of the heap when it came to knowledge of public procurement law.

Good Luck Glenn, we wish you and your family all the good things that this old world has to offer. And thanks again for all your help over the years…

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Election of Officers...

As part of the Organization’s Annual Meeting, leadership roles were filled via general elections for the 3 Officers and 8 Board of Directors positions. Those persons selected to lead our organization during 2003 were:

Officers:
	President	J.C. Blank, Jr.	Jeff Davis Parish School Board
	1st Vice Pres	Chris Robinette	Desoto Parish Tax Commission
	2nd Vice Pres	Donna Andries	Rapides Parish Police Jury
Directors:
	1st District	Ron Carter	Morehouse Tax Commission
	2nd District	Barry Dufrene	St. Mary Parish Government
	3rd District	Michael Veillon	Evangeline Tax Commission
	4th District	Earl Primeaux	Beauregard Sheriff’s Office
	5th District	Bobby Craig	East Baton Rouge Parish/City of Baton Rouge
	6th District	Cynthia Boudreaux	Assumption Parish School Board
	7th District	Michael Curtis	Livingston Parish School Board
	8th District	Eugene Barham	City of Bossier City

Representatives of our Affiliate Organizations, also serving on the Board of Directors for 2003 are 1) Raymond Tangney – Louisiana Department of Revenue, 2) Susan Gordon – Louisiana Municipal Association, 3) Mayo Canulette – Louisiana Sheriff’s Association, and 4) Ron Wascom – Louisiana School Boards Association.

After a most successful year, Mr. Carl Meche, 2002 President, will join our group of Trustees also serving on our Board of Directors. Those persons serving with Meche are: Jerry Bailey, Roger Bergeron, Levoy Dupre, Rufus Fruge, Bubby Gauthreaux, Kenneth Kirspel, George Marretta, Jerry McWherter, Patrick Segura, Linda Schrock, Steve Thomas, Mark West and Jackie Yarbrough.

 

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Lost Experience...

What a year this has been …2002 under the leadership of Carl Meche is certain to be remembered as one of our most successful years. As unfortunate as it may be, it will also be remembered as the year that we lost our veterans.

Last year Gaston Bourgeois  retired and moved on to greener pastures …this year we have seen Courtland Crouchet, Ed Fitch and Thaddeus “T-Boy” Marcell follow in the foot steps of the likes of not only Bourgeois but Denver Ballard, Levoy Dupre, Pat Calais, Bonnie Lamendola, Joan  Buttagig (Glennon), Bill Buchert and Tom “Mr. LATA”  Purcell.

There were others and certainly they all played a part, however, these were the “players” of yesterday, and I am not the only one that remembers them.

Over the past two years we have not only given up our last two charter members, but we have also given up over a hundred and fifty years of experience. Let me say that slow…1 5 0 years!

 

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MEMBERSHIP INVITATION AND APPLICATION Name _________________________________________ Title ___________________________ Department/Division ____________________________________________________________ Representative of __________________________ Mailing Address _______________________ City ____________________________ State __________________ Zip ___________________ Phone _____________________ Fax ____________________ E-Mail _____________________ Annual Dues: $100.00 Payable to : Louisiana Association of Tax Administrators P.O. Box 398 Vidalia, LA 71373

 

Louisiana Association of Tax Administrators
P.O. Box 398
Vidalia, Louisiana 71373