Louisiana – Annual Sales Tax Holiday

SALT Report 2760 – The Louisiana Department of Revenue issued a reminder regarding the state’s upcoming sales tax holiday that is scheduled for August 2 – 3, 2013.  During that time, the first $2,500 of the purchase price of tangible personal property for non-business use will be exempt from the 4% state sales tax.  However, state taxes will apply to any amounts over $2500 and local taxes will apply unless the local taxing authority provides its own exemption.

Items Eligible for the Exemption

The exemption will apply to all consumer purchases of tangible personal property, so long as the purchased property is not for use in a business, trade, or profession.

Exemption Conditions for Retailers

A customer will be eligible for the sales tax exemption if:

  • The customer buys and accepts delivery of the eligible property,
  • The customer places the property on layaway,
  • The customer acquires property that was previously placed on layaway, or
  • The customer places an order for immediate delivery.  This applies even if delivery will be delayed, provided the customer has not requested the delayed shipment

Nonexempt Purchases

The sales tax exemption does not apply to:

  • Vehicles subject to license and title,
  • Meals prepared for consumption on premises or to-go, and
  • Taxable services, such as hotel occupancy, laundry services, printing services, telecommunication services, the furnishing of cold storage space, leases or rentals of tangible personal property, repairs to tangible personal property, and admission to athletic, amusement, or recreational facilities or events

Deduction for School Supplies

Shoppers should maintain all receipts for back-to-school items, such as supplies, uniforms, and educational equipment required by schools, as these items may also be eligible for tax deductions on the 2013 Louisiana individual income tax returns due May 15, 2014.

This deduction is available to public, private, parochial, and home schools. To claim the deductions, taxpayers must be able to claim the student as a dependent on their state return and provide documentation for the expenses.

For Further Information

Louisiana Department of Revenue – News Release