[AARA] Hurricane Preparedness Sales Tax Holiday

[Herman Campbell]

For Your Information
See website for more info at:
http://revenue.louisiana.gov/sections/Publications/HurricanePrepSalesTaxHoliday.aspx

*2014 Louisiana Hurricane Preparedness Sales Tax Holiday
Saturday, May 24 & Sunday, May 25 *

Louisiana Revised Statute 47:305.58 provides for an annual state sales 
tax holiday on sales of hurricane-preparedness items or supplies made on 
the last Saturday and Sunday of each May. During the two-day annual 
holiday, tax-free purchases are authorized on the first $1,500 of the 
sales price of each of the following items:

  * portable self-powered light source;
  * portable self-powered radio, two-way radio, or weather band radio;
  * tarpaulin or other flexible waterproof sheeting;
  * any ground anchor system or tie-down kit;
  * any gas or diesel fuel tank;
  * any package of AAA-cell, AA-cell, C-cell, D-cell, 6-volt, or 9-volt
    batteries, excluding automobile and boat batteries;
  * any cellular phone battery and any cellular phone charger;
  * any non-electric food storage cooler;
  * any portable generator used to provide light or communications or
    preserve food in the event of a power outage;
  * any "storm shutter device," as defined in the Act;
  * any carbon monoxide detector; and
  * any blue ice product.

La. R.S. 47:301(10)(ee), and 301(18)(o), as enacted by Act 462 of the 
2007 Regular Session, provide a permanent state sales and use tax 
exclusion for storm shutter devices. La. R.S. 47:337.10(m) authorizes, 
but does not require, political subdivisions of the state to provide a 
similar exclusion from their sales and use taxes. Accordingly, the state 
sales tax exemption on storm shutter devices is not limited to the two 
days of the sales tax holiday. The term "storm shutter device" is 
defined for purposes of both the holiday and the permanent exclusion as 
materials and products manufactured, rated, and marketed specifically 
for the purposes of preventing window damage from storms.

*Conditions for Exemption *

The following activities will be eligible during the two days of each 
annual holiday for the sales tax exemption:

  * buying and accepting delivery of eligible hurricane-preparedness
    items or supplies;
  * placing eligible items or supplies on layaway;
  * making final payment on and withdrawing eligible items or supplies
    previously placed on layaway; or
  * ordering an eligible item for immediate delivery, even if delivery
    must be delayed, provided that the customer has not requested
    delayed shipment.

*Special Provisions*

The Act provides that:

  * The exemption is allowed on both inputs to and withdrawals from layaway.
  * Purchases of eligible items or supplies during the holiday with
    "rain checks" issued before the holiday are eligible for exemption,
    but purchases after the holiday with "rain checks" issued during the
    holiday are not eligible for exemption;
  * Orders for immediate shipment are eligible for exemption even if the
    shipment is after the holiday, provided that the customer does not
    request delayed shipment;
  * The post-holiday exchange of merchandise to effectuate changes in
    size, color, or correction of defects does not create a tax
    liability, but exchanges after the holiday for dissimilar items will
    be considered the purchase of new property on which the sales tax
    will be payable;
  * For a 60-day period after the holiday, dealers who issue refund or
    credit for the return of merchandise that was eligible for sales tax
    exemption during the holiday can issue refund or credit for the
    state sales tax on that returned merchandise only if the customers
    returning the property have receipts showing that the tax was
    actually paid on the original purchases, or the dealers are
    otherwise able to document that the state sales tax was paid on the
    original purchases.

The sales tax holiday does not extend to hurricane-preparedness items or 
supplies purchased at any airport, public lodging establishment or 
hotel, convenience store, or entertainment complex. Since these terms 
are not defined by La. R.S. 47:305.58 the department has published a 
rule, LAC 61:I.4423 
<http://www.revenue.louisiana.gov/forms/lawspolicies/LAC61_I_4423_NOI.pdf>, 
to define the terms.

The 2014 sales tax holiday will begin at 12:01 a.m. on Saturday, May 24 
and conclude at 11:59 p.m. on Sunday, May 25.

*Return Filing Procedures *

Retailers should report exempt sales on Line 24 of the Sales Tax Return 
(R-1029).


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