What conditions did a blind vendor have to satisfy for Louisiana's sales-tax exemption on business sales and purchases?

Plain-English summary

A blind vendor qualified only by satisfying all three conditions: the statutory blindness definition, sole-proprietor operation, and a business-property ceiling that never exceeded $2,000.

The exemption covered qualifying sales or purchases made in conducting the business. The ruling did not say whether the requesting business's stock, equipment, or capital actually stayed within the ceiling.

Blindness standard

The cited statute covered a person totally blind in both eyes or whose sight in both eyes was so impaired that it offered no practical benefit in pursuing business or earning a living.

Business form

The blind individual had to operate the business as a sole proprietorship. Although corporations, LLCs, associations, and trusts were “persons” for sales-tax purposes, the ruling said an entity could not possess sight or become legally blind.

Property ceiling

The stock of goods on hand, equipment, or capital stock of the enterprise could never exceed $2,000. Meeting the blindness definition alone was not enough.

Common questions

Q: Did being 99% legally blind automatically establish the exemption?

A: No. The taxpayer also had to meet the statutory functional definition, use a sole proprietorship, and satisfy the $2,000 ceiling.

Q: Could an LLC owned by a blind person claim the exemption?

A: No, under the ruling.

Q: Did the source confirm that the requester qualified?

A: It listed the criteria but did not provide the requester's stock, equipment, or capital value, so qualification cannot be confirmed from the text.

Citations and references

• La. R.S. 47:305.15 — sales and use tax exemption tied to the blind-vendor provisions
• La. R.S. 46:371-373 — blindness, business privileges, and property ceiling
• La. R.S. 47:301(8)(a) — entity “person” definition discussed in the ruling
• La. Acts 1973, No. 61 and La. Acts 1994, No. 26
• LAC 61:III.101 — Private Letter Ruling authority and reliance statement

Source

• Landing page: Louisiana Department of Revenue Policies
• Original PDF: LA PLR 02-003

Original ruling text

STATE OF LOUISIANA

DEPARTMENT OF REVENUE
M. J. "MIKE" FOSTER, JR.

CYNTHIA BRIDGES

Governor

Secretary

Private Letter Ruling No. 02-003
Redacted version
Sales Tax
August 29, 2002
Exemption for Sales or Purchases by Blind Persons
This private letter ruling identifies the criteria necessary to qualify for a sales tax exemption as a
blind vendor. The facts of the case are presented below.
A business, operated as a sole proprietorship, teaches disabled individuals to repair small tools.
After training, the company sells parts to these individuals, who repair small tools for private and
governmental customers. The owner is 99 percent legally blind and the company exists
exclusively to provide financial support for the owner and the owner’s family.
La. R.S. 47:305.15 (La. Acts 1973, No. 61 as amended by La. Acts 1994, No. 26) provides an
exemption from state sales and use taxes for sales or purchases made in the conduct of a business
by blind persons when they are exempt from license, privilege or vocational taxes under La. R.S.
46:371 through 373. La. R.S. 46:371 defines a blind person as one “…who is totally blind in
both eyes, or … any person whomsoever, whose sight with the use of both eyes is so impaired as
to make the sense of sight of no practical benefit or help in the pursuit of business, or in the
course of earning a living.” La. R.S. 46:372(A), adds that without obtaining an occupational
license, “Any blind person as defined in this Sub-part may exercise the privileges of peddler,
news dealer, lunch counter operator, or may exercise the right to trade, traffic or sell any
merchandise, whether on foot, by vehicle or in stores, when the stock of goods on hand, or the
equipment or capital stock of the enterprises, never exceeds the sum of two thousand dollars.”
Also, the blind individual must operate as a sole proprietorship. Although La. R.S. 47:301(8)(a)
defines corporations, limited liability companies, associations, trusts, etc. as “persons” for sales
tax purposes, these entities do not possess the sense of sight and cannot become legally blind and
qualify for exemption under La. R.S. 47:305.15 and 46:372(A).
Therefore, in addition to meeting the definition of a blind person under La. R.S. 46:371, the
value of the stock on hand, equipment, or capital stock of the business must never exceed $2,000
for the taxpayer to be exempt under La. R.S. 47:305.15 and 46:372. Taxpayers that meet all of
the conditions listed above qualify for the sales tax exemption granted under La. R.S. 47:305.15.
Questions and comments about this matter should be directed to the Policy Services Division at
(225) 219-2780.
Cynthia Bridges
Secretary
By:

Julius A. Cline, Jr., CPA
Revenue Tax Research Analyst
Policy Services Division

This correspondence constitutes a private letter ruling (PLR) by the Louisiana Department of Revenue, as provided for by section 61:III.101 of the
Louisiana Administrative Code. A PLR provides guidance to a specific taxpayer at the taxpayer's request. It is a written statement that applies
principles of law to a specific set of facts or a particular tax situation. A PLR does not have the force and effect of law, and is not binding on the person
who requested it or on any other taxpayer. This PLR is binding on the department only as to the taxpayer to whom it is addressed, and only if the facts
presented were truthful and complete and the transaction was carried out as proposed. It continues as authority for the department's position unless a
subsequent declaratory ruling, rule, court case, or statute supersedes it.