Louisiana – Local Exemption for Resale of Services

SALT Report 1559 – The Louisiana State Legislature recently passed a bill that provides a local sales and use tax exemption for services for resale.  The Bill, HB 1120, states that “a local collector is required to accept a resale certificate issued by the Louisiana Department of Revenue that exempts services for resale” from local sales and use taxes.

All taxpayers are required to provide a resale certificate that includes the parish name, principal place of business, and local sales tax account number. However, in the case of an intra-parish transaction, the local tax collector may require that a local exemption certificate be used rather than the state exemption certificate.

Additionally, any dealer who makes a sale for resale that is later found to be noncompliant will be liable for and shall pay any taxes due.

This exemption takes effect August 1, 2012.

For Further Information:

Louisiana State Legislature – Act #438