Stay up to date with sales tax: Join our mailing list!


Guidelines were issued that discuss the taxability of computer software maintenance agreements. Many software maintenance agreements provide multiple services as part of a total package. If a maintenance agreement includes both taxable and nontaxable items, the whole package will be "taxable at the highest rate applicable to any component of the package, unless the non-taxable or lower-percentage taxable components can be purchased separately from those that are taxable at higher rates, and are separately priced." (Revenue Ruling No. 04-001, Louisiana Department of Revenue, March 17, 2004)

(05/15/2004)

In an Extraordinary Session, the Louisiana Legislature has decided to amend the term "tangible personal property" to no longer include "other constructions" permanently attached to the ground. This change is for sales and use tax purposes only. "Other constructions" will now be considered "immovable property when permanently attached to the land, regardless of ownership of the land." Sales tax should no longer be collected by sellers, lessors, or repair dealers on sales and leases of or on repair services on these types of constructions. Tax will now be applied at the acquisition price of materials acquired for the construction or repair of this type of property. (Louisiana Department of Revenue, Information Bulletin No. 04-010, April 20, 2004)

(05/15/2004)

Revenue Ruling 04-001 identifies that computer software agreements may include non-taxable maintenance service packages in addition to the taxable sale of new or enhanced software. The department's position is that a package of products and services that consists of both taxable and non-taxable components should be considered taxable at the highest rate applicable to any component of the package. An alternative consideration would be to purchase the non-taxable or lower-percentage taxable components separately from those that are taxable at higher rates. (Letter No 200402388L, Comptroller of Public Accounts, March 17, 2004)

(04/15/2004)

Governor Kathleen Blanco has called a special session of the Louisiana Legislature, starting on March 7, 2004 and set to adjourn on March 23, 2004. The regular session will begin on March 29, 2004. Many tax issues are slated to be discussed during this special session, including: (1) phasing out the sales tax on manufacturing machinery and equipment; (2) eliminating the sales tax on residential gas for cooking and heating; (3) extending the state sales tax refund program that applies to retail purchases made by international visitors; and (4) extending several Louisiana sales and use tax exemptions slated to expire in 2004 and future fiscal years. (Proclamation No. 7 KBB 2004, Governor Kathleen Blanco, March 1, 2004.)

(04/15/2004)

Tax payers already registered with the Louisiana Department of Revenue can register to pay their taxes on-line at www.rev.state.la.us. The state's "E-asy Pay" program allows users to pay their corporate taxes, sales taxes, withholding taxes, and most excise taxes (those that are enabled for electronic funds transfer) electronically. (Department of Revenue Notice, November 24, 2003.)

(03/15/2004)

Pages

Scroll to Top