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Out-of-state companies who provide high-speed downloading capabilities are not subject to Louisiana sales and use tax. This service is not considered a "telecommunications service" which falls under the information services currently taxable in the state. Purchasing dedicated lines solely for accessing high-speed downloads would be included under the definition of telecommunication services but would not be taxable if outsourced from another state. (Private Letter Ruling No. 02-002, Louisiana Department of Revenue, April 1, 2002)

(04/15/2003)

Effective January 1, 2003, the state sales tax rate on food for home consumption, electricity, natural gas and water sold for residential use will be reduced from 3.9% to 2% and will be eliminated as of July 1, 2003. Items such as bottled water, vitamins, ice, and alcoholic beverages are not included in the exemption and will remain taxable at the regular 4% rate. (Revenue Informational Bulletin 02-020, December 6, 2002)

(02/15/2003)

The first purchase of a piece of equipment by an individual who holds a Federal Communications Commission (FCC) license is now exempt from sales tax. An exemption was enacted for digital television conversion equipment and digital radio conversion equipment, effective June 25, 2002. Taxpayers operating under several broadcaster licenses are allowed one exempt purchase of each piece of equipment per license. Subsequent purchases are subject to tax. (Sec.47:301 (16) (i))

(12/15/2002)

An injunction is in place which prohibits the enforcement of Act 85(S.B 85). This Act allowed for a sales and use tax exclusion for any transaction involving the transfer of cellular/wireless phones or other equipment which was originally given away or sold below cost to sell a wireless service contract. The injunction was requested after a suit challenged the constitutionality of the Act. Wireless service providers and independent cellular retailers should file their state sales and use tax returns according to the law previous to the implementation of Act 85. Refund claims may be submitted for any amount of tax paid exceeding the requirements of Act 85. If Act 85 is found constitutional, refunds will then be processed. (Revenue Information Bulletin No. 02-015, Dept. of Revenue, Sales and Use Tax, 9/18/02)

(11/15/2002)

The taxpayer believed that their manufacturing of covers to be applied to their customer's rolls of paper constituted manufacturing and should therefore be exempt. However, it was ruled that the re-covering of rolls used in the paper manufacturing was viewed more as a repair of tangible personal property and hence was considered a taxable transaction. (Louisiana Court of Appeal, Second Circuit, No. 36,100-CA, June 14, 2002)

(10/15/2002)

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