Louisiana – Refund Claim Guidelines for Pollution Control Devices

SALT Report 2493 – The Louisiana Department of Revenue issued guidance regarding the procedures that must be followed when claiming a refund of the 4% sales and use tax paid on the purchase or lease of tangible personal property that is used to eliminate, prevent, treat, or reduce industrial air pollution, groundwater pollution, noise pollution, solid waste, or hazardous waste in the state.

Qualified Items

Equipment, either purchased or leased, that is used in the operation of a pollution control device and any component parts specific to that device.

Non-Qualifying Items

Small hand tools, safety equipment, blueprints, photographs, purchases made by a contractor that do not become a component part of the device, and repairs to existing equipment and rentals.

Application

All applicants requesting a refund must submit a Pollution Control Equipment Sales and Use Tax Exemption/Refund Application (R-1349) to the Department with all required certifications and documentation. In addition to the application, you must also include a list of all major equipment involved in the pollution control device or system. You will also be required to list all of the tangible personal property purchased or leased for pollution control purposes.

The application consists of four schedules:

Schedule A – Include a list of all items purchased or leased for which no sales or use tax was paid to the vendor, but tax was accrued and paid to the Department,

Schedule B – Include all items purchased or leased for which sales or use tax was paid to the vendor,

Schedule C – Include all items purchased by contractors, and

Schedule CA – Include all items purchased by contractors for which no sales or use tax was paid to the vendor, but tax was accrued and paid to the Department by the contractors

No refund or credit for over-payments will be made unless a claim for refund or credit is filed and received by the Secretary within three years from December the 31st of the year in which the tax was due.

Finally, credit will not be given on progress payments until the tangible personal property has been delivered. Invoices must be submitted with the refund claim to substantiate 100% of the taxes paid or accrued for the property.

For Further Information

Louisiana Department of Revenue – Pollution Control Devices Refund Guidelines