Louisiana State Tax Rulings
Free plain-English summaries of state tax letter rulings and advisory opinions issued in Louisiana, with full citations and the original source on every page.
No Louisiana rulings match these filters
Try a different search term or clear the filters.
What application, certificate, spending, banking, and compliance requirements governed Louisiana's 2003 state sales-tax exclusion for motion picture productions?
A production company needed agency approval, an LDR exemption certificate, at least $250,000 of Louisiana-vendor spending within 12 consecutive months, and payment from a Louisiana bank account. The r…
Could an individual Louisiana public school, rather than its school board, document, bill, ship, and pay for tax-free purchases of office supplies and equipment?
Yes. The individual school could issue the certificate, appear as bill-to and ship-to, and pay with its own credit card. School-board and self-generated funds were public funds, but affiliated private…
Were a private club's optional locker, golf-club cleaning and storage charges, and mandatory capital-improvement fees subject to Louisiana sales tax?
Separately stated locker space and golf-club cleaning and storage were not taxable services. Mandatory capital-improvement fees were taxable because members had to pay them for club access. Refunds of…
How did PLR 03-006 apply the 2002 Louisiana film investor and employment credits to a layered LLC production and credit-allocation structure?
The investor credit arose when qualifying investment was made, post-completion funding counted only against bona fide debt, and written LLC agreements could specially allocate credits. The official hi…
Were separate monthly charges for a DSL package that consumers could use only for Internet access subject to Louisiana sales and use tax?
No. The package combined the physical DSL connection with Internet features, but consumers received only Internet access, not voice service. Its essence was Internet access protected from state sales …
Were five types of already-installed hospital imaging systems movable tangible personal property or immovable component parts under Louisiana Civil Code article 466?
All five were immovable component parts. They were hardwired electrical installations, two also connected to plumbing and cooling, and removal of every modality would substantially damage the equipmen…
When did the state-tax exemption for events and transactions at a parish-owned arena begin after local authorities adopted public-facility tax exemptions?
It began with the original 2001 ordinances because parish-owned facilities were then the only publicly owned facilities in the jurisdiction. The 2002 amendments covering all publicly owned facilities …
Were percentage-based usage fees paid to an equipment owner taxable lease or rental payments when the owner retained control and was paid only if the equipment reached a customer?
No. The Department treated the arrangement as revenue sharing, not a lease or rental to the leasing company, because the owner retained control and granted no enjoyment for a certain time. It also fou…
How did Louisiana's former first-purchase exclusion apply to digital television conversion equipment, multiple units, back orders, and pre-June 25, 2002 purchases?
A qualifying television licensee could designate one first purchase per statutory equipment category. Singular categories allowed one item; plural categories allowed multiple items on the same purchas…
Could a Louisiana LLC earn the former motion-picture investor credit using prepaid distributor funds, and when would the credit pass through to its members?
Yes, assuming an approved state-certified production and at least a $300,000 investment. The source of the LLC's capital did not disqualify it. Partnership tax treatment allowed member pass-through; c…
How could a certified Louisiana film investment use partnership allocations, letters of credit, escrow, and borrowed funds under the former investor and employment-credit rules?
Written partnership agreements could allocate up to 100% of the credits to one member. Investor-obtained irrevocable letters of credit or investor-funded escrow qualified when immediately available, a…
When could Louisiana's credit for donations to assist qualified playgrounds be claimed, and could an unused amount carry forward?
The credit was claimable only for the taxable period in which the donation was made. The statute provided no carryforward for any unused credit.
Which hybrid-vehicle equipment costs qualified for Louisiana's former clean-burning motor-vehicle fuel-property credit?
Equipment used to convert a gasoline vehicle to a hybrid qualified, but equipment used to convert a diesel vehicle did not. For hybrids originally built by a manufacturer, qualifying equipment costs c…
When did Louisiana's direct-from-the-farm exemption apply to livestock, poultry, produce, and horticultural products?
The product had to remain in the form produced on the farm and be sold by its producer. The sales location did not matter, but processed derivatives and products acquired from another producer did not…
How did a corporate owner compute Louisiana corporation franchise tax when all business activity occurred through its wholly owned single-member LLC?
The LLC itself was not subject to franchise tax, but its corporate member was. The corporation included its investment in the LLC in its base, attributed property and revenue to Louisiana under partne…
Which disputed delinquent tax items could be excluded when deciding whether a lottery retailer or vendor qualified for Louisiana tax clearance?
Only an item already under a properly filed Board of Tax Appeals proceeding or payment-under-protest refund suit could be excluded. Administrative review did not count, and an unfiled appeal did not c…
When could individual shareholders exclude income flowing through from a bank organized as an S corporation and subject to Louisiana bank shares tax?
For taxable periods beginning on or after January 1, 2003, the exclusion applied to qualifying S-bank flowthrough income. For earlier periods, the bank's corporate exemption did not extend to its indi…
What Louisiana credit applied when a Louisiana domiciliary working in a Washington, D.C. office of the state's congressional delegation paid income tax to a temporary-residence state?
A nonrefundable Louisiana individual income-tax credit equaled the net income tax imposed by and paid to the temporary-residence state on income also taxed by Louisiana. The ruling was limited to the …
Were customized television and radio audience-survey reports taxable when delivered on paper or other tangible media?
No. The true object was the customized research service and data, not the delivery medium, and audience measurement was not an enumerated taxable service. Generic unmodified publications were taxable,…
Could a mortgage company exclude a reserve for possible repurchase of defaulted loans sold with recourse from Louisiana franchise-tax surplus and undivided profits?
No. The reserve depended on future borrower defaults and was not a fixed liability, depreciation, bad debt, or valuation reserve. It therefore entered surplus and undivided profits in the franchise-ta…
Could the Louisiana Department of Revenue treat electronically digitized copies of its records as originals and use them in court or administrative proceedings?
Yes. Electronic images, microfilm, and microfiche could serve as original Department records and be admitted subject to evidence requirements such as relevance and authenticity. Original source docume…
What conditions did a blind vendor have to satisfy for Louisiana's sales-tax exemption on business sales and purchases?
The owner had to meet the statutory blindness definition, operate as a sole proprietor, and keep stock on hand, equipment, or enterprise capital at no more than $2,000 at all times. A corporation, LLC…
How did Louisiana phase in its former custom-software exclusion, and how were canned-software components taxed during the transition?
The custom-software exclusion rose from 25% in 2002-03 to 50% in 2003-04, 75% in 2004-05, and 100% after June 30, 2005. Canned software used in custom programs became taxable in the opposite percentag…
How much continuously outstanding debt under a multiyear master loan agreement entered Louisiana's corporation franchise-tax base?
The minimum balance outstanding at any point during the year was long-term borrowed capital because that amount financed the business continuously for more than a year. Qualifying vehicle, home, boat,…
Did Louisiana follow the former federal extraterritorial-income exclusion and the related federal disallowance of deductions for corporations and individuals?
Yes. Properly excluded federal extraterritorial income stayed excluded for Louisiana corporation and individual income tax, and federally disallowed related deductions remained disallowed. Existing Lo…
How did Louisiana conform to the 2002 federal 30% first-year depreciation deduction and five-year net-operating-loss carryback?
Both individuals and corporations followed the federal 30% first-year depreciation provision. Individuals followed the federal five-year NOL carryback for the covered 2001 and 2002 loss years, but cor…
Could a Louisiana corporation deduct expenses allocated to an IRC § 78 foreign-dividend gross-up that Louisiana excluded from corporation income tax?
No. The gross-up was income for Louisiana purposes but was specifically excluded from tax, so expenses attributed to that untaxed income were disallowed in computing Louisiana taxable income.
When was accrued vacation pay included in surplus and undivided profits rather than treated as a fixed liability for Louisiana franchise tax?
A pooled estimate subject to forfeiture was not a definitely fixed liability and entered surplus and undivided profits. Employee-level accruals guaranteed to be paid in addition to regular pay could b…
When did a foreign trademark holding company have Louisiana corporation-income-tax nexus from licensing intangible property used in the state?
Nexus existed when the intangible purposefully generated Louisiana income and the company's Louisiana connection was more than de minimis. Public Law 86-272 did not protect licensing or continuing exp…
How did Louisiana tax a dealer's sale of a movable building, and when did a permanently installed structure instead make the seller a contractor?
A temporarily installed movable building was tangible personal property taxed on its full price, including fabrication, overhead, and profit; optional separately stated delivery and installation were …
Were charges for high-speed satellite downloading, bundled or satellite-only Internet access, dedicated lines, and purchased Internet access taxable in the four scenarios presented?
No. Downloading was an excluded information service, Internet access was protected by the then-applicable federal moratorium, dedicated lines were sourced outside Louisiana, and purchased Internet acc…
When was an MRI scanner an immovable hospital component rather than taxable movable equipment for Louisiana sales-tax purposes?
A traditional MRI wired into a specially designed imaging room was an immovable component, so dealers paid tax on acquisition or repair parts rather than charging tax on the scanner transaction. Porta…
Before Louisiana's 2002 QSub legislation took effect, how did an S-corporation parent and qualified Subchapter S subsidiary report Louisiana income and franchise tax?
Both remained separate Louisiana taxpayers and filed separate income and franchise returns, but used a consolidated statement eliminating intercompany items. Revenue normally attributed all resulting …
Does a Louisiana sales-tax filing extension also prevent late-payment penalties and preserve vendor compensation?
Yes, if the filer submits the return and pays all tax by the extension deadline. The payment is timely, so no late-payment penalty applies and vendor compensation is preserved, but interest still runs…
Was a permanently constructed cogeneration power plant on leased land an immovable, making later title transfers outside Louisiana sales tax?
Yes. The plant qualified as a building because of its manufacturing use, walls, roof, permanent materials, and long-term installation. Its structure and permanently attached components were immovable,…
Which cylinder inspection, blasting, pressure-testing, and recoating charges were taxable, and what happened when they were billed together?
Inspection and hydrostatic testing were nontaxable, and blasting needed only to expose markings and permit inspection shared that treatment when separately stated. Recoating a blasted cylinder was a t…
Could Louisiana Revenue pay an Enterprise Zone sales-tax rebate when the final application was filed after the statutory and regulatory deadline?
No. Absent a judicial order, Revenue said it lacked authority to issue a late rebate. The statute required filing within six months after receipt of the completion report, while the cited rule used si…
How did original Revenue Ruling 01-018 treat continuously outstanding debt under a multiyear master loan, and what later change affected floor-plan financing?
The annual minimum balance was included as long-term borrowed capital because it financed the business continuously for more than a year. A later statute excluded specified floor-plan financing for pe…
Which carpet, furniture, contents, structural-cleaning, storage, and drying-equipment charges were taxable when separately stated?
Carpet and furniture cleaning were taxable. Carpet reinstallation, miscellaneous-content cleaning, and structural cleaning were nontaxable when separately stated. Drying equipment was taxable if the c…
When must a Louisiana seller report sales tax on season tickets purchased through installment payments?
The seller reported the sale when full payment was collected, tickets were issued, or admission was provided—whichever happened first. With installments, that was generally the final-payment month unl…
Did the interstate-vessel exemption cover fuel, supplies, repairs, and laundry for stevedoring or cargo-handling vessels that never left Louisiana waters?
No for periods beginning November 28, 2001. The vessel's own movement controlled, not the interstate destination of the barges or cargo, so purchases for vessels operating wholly in Louisiana waters w…
What disclosures and records did a Louisiana dealer need when advertising that it would absorb sales or use tax for a purchaser?
The advertisement had to say the dealer would remit the unpaid tax for the purchaser, and the invoice or other writing had to separately show the tax the dealer accepted. “All taxes included” was insu…
Who owed state tax on newspaper advertising inserts while Louisiana's newspaper exemption was suspended through June 30, 2002?
An advertiser buying printed flyers for free delivery to a newspaper owed tax on the full flyer and printing cost at the stated 4% rate. A commercial publisher selling the newspaper could continue buy…
When were roustabout or work-as-directed company charges taxable repairs, fabrication, or property sales rather than nontaxable supervised personnel services?
Independent responsibility for a specific repair, fabrication, or delivered product made the full charge taxable regardless of invoice format. Charges might be nontaxable when personnel functioned as …
When were freight or delivery charges excluded from the taxable price of tangible personal property, and when were they taxable seller overhead?
Optional, avoidable, separately stated delivery from the completed place of sale to the buyer's destination was excluded. Mandatory or bundled delivery was taxable, and freight incurred to bring goods…
When must a Louisiana diving service company collect sales tax on underwater repair work?
Repairs performed in Louisiana on movable property—including ships, barges, boats, and vessels—were taxable unless an exemption applied. Repairs to immovable property were not taxable services, though…
In which income-tax and franchise-tax periods did a taxpayer claim Louisiana's inventory tax credit?
For income tax, the credit belonged to the period when the inventory tax was paid, not the assessment year. For franchise tax, the payment entered the immediately following franchise-tax period becaus…
Did a private nonprofit corporation operating a leased public hospital inherit the hospital service district's governmental sales-tax exclusion?
No. The exclusion applied to the public hospital service district and specified governmental bodies, not to the private nonprofit lessee. Operating the district-owned hospital did not exempt the nonpr…
Did Louisiana corporation franchise tax apply to an unincorporated workers' compensation group self-insurance fund?
No. A fund organized under La. R.S. 23:1195 that was unincorporated and did no business independently of its members did not meet the definition of a domestic or foreign corporation and was not subjec…
Was severance paid by a Louisiana employer sourced to Louisiana after the former employee moved to another state?
Only payments received while the former employee was a Louisiana resident were sourced to Louisiana. Because the severance was not related to services, payments received after the employee established…
Did an entity's federal Form 8832 election to be taxed as a corporation determine whether it was subject to Louisiana corporation franchise tax?
No. A check-the-box election established federal income-tax treatment, not the entity's actual legal form, and had no significance in deciding Louisiana franchise-tax liability under the ruling.
Did a facility performing complete scheduled overhauls and restoration of commercial aircraft or aircraft engines count as a manufacturer for Louisiana's inventory tax credit?
Yes. The facility did more than repair nonfunctioning equipment: it completely restored aircraft or engines to original design specifications, giving new qualities or combinations to processed matter …
Was folding customer-supplied preprinted invoices and placing them into customer-supplied preprinted envelopes a taxable sale or service?
No, when that was the entire transaction. The work was not an enumerated taxable service, did not transfer property for consideration, and did not fabricate a new product. If performed with another ta…
Which purchases qualified for Louisiana's construction exemption for vessels of at least 50 tons after the Showboat Star decision?
The exemption covered a qualifying builder's vessel sale and original construction components permanently installed so removal would damage the item or vessel. Removable, function-specific, replacemen…
Did Louisiana apply a throwback rule to a Louisiana corporation's sales into a state where P.L. 86-272 prevented income taxation?
No. Louisiana had not enacted UDITPA's throwback approach, so its corporation income- and franchise-tax statutes did not return those sales to Louisiana merely because the destination state could not …
Was a qualifying lump-sum retirement distribution taxable to a Louisiana resident when it was excluded from federal adjusted gross income?
No, to the extent the lump-sum distribution was properly excluded from federal adjusted gross income. Louisiana tax-table income started with federal adjusted gross income and made no separate modific…
Could Louisiana garnish a resident seaman's or master's federal income-tax refund to collect past-due state tax?
Yes. The Department treated an income-tax refund as a debt owed to the taxpayer rather than protected wages, so the federal refund of a seaman or master who was a Louisiana resident could be garnished…
Browse Louisiana rulings by topic
These are official tax letter rulings and advisory opinions issued by Louisiana's revenue authority in response to questions from specific taxpayers about how the tax law applies to their facts. A ruling is binding on the department only for the taxpayer who requested it and cannot be relied on by anyone else, but it is strong evidence of how the state reads the law. Every ruling above has a plain-English question and short answer, plus a link to the full original source.