Louisiana sales and use tax laws are not applicable to revenue sharing agreements between leasing companies and an owner of tangible personal property for leasing purposes. This is due to the fact that the arrangement isn’t within the scope of the definition of “lease or rental” of tangible personal property. The property owner supplied items to be leased by the leasing company in exchange for a usage fee. The usage fees were not considered lease or rental payments because the property owner still held control of the property and supplied the items at its own discretion. The usage fee was paid only if the property was rented. Under the Louisiana Civil Code, a company must have “enjoyment of the property during a certain time” to be considered a lease or rental from the property owner. (Private Letter Ruling No. 03-002, Louisiana Department of Revenue, February 25, 2003)