Were pollution-control devices exempt from Jackson Parish sales tax because they were exempt from state sales tax?

Plain-English summary

Jackson Parish asked whether the state sales-tax treatment of pollution-control equipment also exempted a paper mill's purchase from parish sales tax. In 2000, the attorney general's office said no. The statute excluded qualifying pollution-control devices from the definition of a retail sale for state tax, but expressly included them for taxes levied by political subdivisions.

The request said state revenue and environmental agencies had approved the mill's equipment for the state treatment. The office reviewed parish sales-tax exemptions, including R.S. 47:305, and found no exemption for the same equipment at the parish level.

Currency note

This opinion was issued in 2000. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Jackson Parish tax officials at the time

The office concluded that the described pollution-control equipment remained a retail sale for parish sales and use tax despite its different state-tax treatment.

Industrial purchasers at the time

The agencies' approval of the equipment for the state exclusion did not create a parish exemption under the provisions examined in the opinion.

Common questions

Q: Did the state exemption also cover parish sales tax?
A: No. The opinion quoted a statute that expressly treated the sale as retail for local sales tax.

Q: Did the office find another local exemption?
A: No. After reviewing parish sales-tax exemptions, including R.S. 47:305, it found none for pollution-control devices.

Background and statutory framework

R.S. 47:301(10)(l) defined how pollution-control device sales were treated for state and local sales taxes. The opinion applied the distinct clauses to approved equipment installed at the Hodge Paper Mill and checked R.S. 47:305 for another exemption.

Citations and references

• R.S. 47:301(10)(l) (state and local treatment of pollution-control devices)
• R.S. 47:305 (reviewed exemptions)

Source

• Landing page: https://www.ag.state.la.us/Opinions
• Original PDF: https://www.ag.state.la.us/Opinion/Download/00-0475

Original opinion text

December 21, 2000
OPINION NUMBER 00-475
88
Police Juries-In General
119
Taxation-Exemptions-General
160
Taxation-Sales Tax

R.S. 47:301(10)(l) and 305
Mr. Douglas L. Stokes
The sale of pollution control devices or systems do not constitute a “sale at Assistant District Attorney retail” for purposes of state sales and use taxes. However, they do constitute a
P. O. Drawer 459
“sale at retail” for purposes of parish sales and use taxes. Consequently, there
is no exemption from parish sales and use taxes for the sale of pollution control
Jonesboro, LA 71251
devices or systems.

Dear Mr. Stokes:

You have requested an opinion of the Attorney General, in your capacity as legal advisor to the Jackson Parish Police Jury (Police Jury), relative to the applicability of the parish sales and use tax to pollution control equipment.

You state that, in order to comply with federal environmental regulations, Smurfit-Stone, Inc., installed certain pollution control equipment at its Hodge Paper Mill. The Louisiana Department of Revenue and the Louisiana Department of Environmental Quality approved the equipment and determined that the purchase of same would not be a sale at retail for purposes of State sales and use tax applicability.

You specifically ask whether the same exemption for the pollution control equipment would apply to the parish sales and use tax.

In answer to your question, I direct your attention to R.S. 47:301(10)(l) which provides, in pertinent part, the following:

(l) For purposes of the state sales and use tax, the term “sale at retail” shall not include the sale of a pollution control device or system. Pollution control device or system shall mean any tangible personal property approved by the Department of Revenue and the Department of Environmental Quality and sold or leased and used or intended for the purpose of eliminating, preventing, treating, or reducing the volume or toxicity or potential hazards of industrial pollution of air, water, groundwater, noise, solid waste, or hazardous waste in the state of Louisiana. For the purposes of any sales and use tax levied by a political subdivision, the term “sale at retail” shall include the sale of a pollution control device or system….(Emphasis added.)

Page 2

Opinion Number 00-475
Mr. Douglas L. Stokes
Assistant District Attorney
Page: -2-

As can be gleaned from the above, while the sale of pollution control devices or systems do not constitute a “sale at retail” for purposes of the state sales and use tax, it is clearly considered a “sale at retail” for purposes of the parish sales and use tax.

We have reviewed the statutory provisions relating to parish sales and use taxes and the exemptions therefrom, including R.S. 47:305, and can find no authority which would exempt the sale of pollution control devices or systems from the parish sales and use tax.

Trusting this adequately responds to your inquiry, I am

Very truly yours,

RICHARD P. IEYOUB
Attorney General

By:
ROBERT E. HARROUN, III
Assistant Attorney General

RPI/REH,3/sfj

Page 3

SYLLABUS
OPINION NUMBER 00-475

88 Police Juries-In General
119 Taxation-Exemptions-General
160 Taxation-Sales Tax

R.S. 47:301(10)(l) and 305

The sale of pollution control devices or systems do not constitute a “sale at retail” for purposes of state sales and use taxes. However, they do constitute a “sale at retail” for purposes of parish sales and use taxes. Consequently, there is no exemption from parish sales and use taxes for the sale of pollution control devices or systems.

Mr. Douglas L. Stokes
Assistant District Attorney
P. O. Drawer 459
Jonesboro, LA 71251

DATE RECEIVED:

DATE RELEASED: December 21, 2000

Robert E. Harroun, III
Assistant Attorney General