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In an informational bulletin, the Louisiana Department of Revenue explains how Act 442 of the Regular Session of the Louisiana Legislature changes the definition of “tangible personal property” to exclude certain property. The Act provides that the term “tangible personal property” shall not include any property that would have been considered immovable property prior to the enactment of Act 632 on July 1, 2008 by the 2008 Louisiana Legislature. Act 632 defines component parts of immovable property as things attached to a building, such as doors, shutters, gutters, cabinetry, plumbing, heating, cooling, electrical and similar systems, or things that are attached to a construction other than a building and attached to such a degree that they cannot be removed without substantial damage to themselves or to the building or other construction. As a result, the purchase, lease, and repair of immovable property shall be excluded from sales tax. In addition, the exclusion shall be applied retroactively and is applicable to all transactions occurring on or after July 1, 2008. (Revenue Information Bulletin No. 09-036, Louisiana Department of Revenue, October 15, 2009)


The City of New Orleans is offering a sales tax amnesty program that will run from October 1, 2009 through December 4, 2009. The program will allow businesses to come forward and pay their tax liabilities without any late penalties. The program also offers a 50 percent reduction in interest. Businesses that owe overdue sales, use, hotel/motel, parking, alcoholic beverage, mayoralty and occupational license taxes are eligible to participate (Sales Tax Amnesty Program, Bureau of Revenue,, September 9, 2009)


The Louisiana Tax Delinquency Act of 2009, which establishes a tax amnesty program, is set to run from September 1, 2009 through October 31, 2009. The amnesty program will apply to all taxes administered by the Department with the exception of motor fuel taxes and waive all penalties and half of the interest due. This amnesty will be applicable to taxes that became due on or after July 1, 2001 and before January 1, 2009, taxes due prior to January 1, 2009 for which LDR has issued a billing notice or demand for payment on or after July 1, 2001 and before May 31, 2009, taxes for which the taxpayer and LDR have entered into an agreement to suspend the running of prescription until December 31, 2009, or taxes due on or before July 1, 2001, but were ineligible for an earlier amnesty program due to having a matter in civil litigation. A taxpayer qualifies for the amnesty program if they failed to file a tax return or report; failed to report all income or all tax, interest and penalties that were due; claimed incorrect credits or deductions; misrepresented or omitted any tax due; or are under audit or in administrative or judicial litigation. (Tax Topics, Louisiana Department of Revenue, July 14, 2009)


The recently enacted Louisiana Tax Delinquency Act of 2009 establishes a tax amnesty program for a period not to exceed two consecutive months, set for July 1, 2009 and June 30, 2010. The amnesty program will apply to all taxes administered by the Department with the exception of motor fuel taxes. The legislation introduces post amnesty collection penalties. If, following termination of the tax amnesty period, the secretary issues a deficiency assessment for a period for which amnesty was taken, the secretary shall have the authority to impose penalties and institute civil or criminal proceedings as authorized by law only with the respect to the difference between the amount shown on the amnesty application and the correct amount of tax due. The legislation also provides a 20% cost of collection penalty on any deficiency assessed for any taxable period due on or after July 1, 2001 and ending before January 1, 2009 (H.B. 720, Regular Session 2009).


Louisiana Governor Bobby Jindal has proposed legislation for a Tax Amnesty program. The program would take place in the fiscal year 2009-2010 for a two month period which would be determined by the Secretary of Revenue. Amnesty would apply to all tax periods beginning July 2001 and ending December 30, 2008. If a taxpayer pays all unpaid taxes and 50% of accrued interest, then the state will waive all penalties owed, as well as half of the interest. Taxpayers will be eligible for the program if they have an existing tax liability, did not file a required return or report, or who have understated or omitted any tax liability on a filed return. Amnesty would not be granted for motor fuel inspection fees, inspection and supervision fees, or motor fuel taxes. (Press Release, Office of Gov. Bobby Jindal, February 18, 2009)



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