Louisiana Suspends Revenue Ruling on Taxability of Repair Parts for Rental Equipment

In February 2013, Louisiana issued Revenue Ruling No. 13-003 regarding the taxability of repair parts for rental equipment. The ruling stated that the Louisiana sales tax exclusion for items of tangible personal property that are sold for the purpose of lease or rental does not apply to repair parts or materials that are purchased and necessary for the repair or maintenance of lease or rental equipment covered by the exclusion. The ruling stated that repair parts and materials for lease or rental equipment do not qualify for the exclusion regardless of whether the the items are purchased and installed by the owner of the lease or rental equipment or installed as a repair service that is separately billed by a third party.

Effective July 18, 2013, Louisiana has temporarily suspended the implementation of Revenue Ruling No. 13-003. (Revenue Ruling No. 13-003, Louisiana Department of Revenue, February 27, 2013;Revenue Information Bulletin No. 13-014, Louisiana Department of Revenue, July 18, 2013)

Posted on April 10, 2014