Louisiana – Tax Holiday Cash Register Reprogramming Credit

SALT Report 2798 – The Louisiana Department of Revenue issued guidance regarding the credit allowed to dealers who must reprogram their cash registers because of the annual sales tax holiday, which is scheduled for August 2 and 3, 2013.

Dealers who must pay to reprogram their cash registers as a result of the temporary change in the state sales and use tax rate may take a credit on their sales tax return of up to $25 for each cash register that is reprogrammed. The credit also applies to computer programming charges to reprogram cash registers.

Dealers may only claim the reprogramming costs that are invoiced to them by external services providers.  Dealers may not claim a credit for internal reprogramming services rendered by owners, officers, partners, or employees.

Dealers whose point-of-sale cash registers are controlled by host computers can deduct the costs invoiced by the external service providers to reprogram the tax rate or base information in those computers.  However, the deduction cannot exceed $25 for each cash register controlled by the host computers.  For example, a dealer or merchant whose host computer controls 20 point-of-sale cash registers can claim a credit of up to $500 for reprogramming services.

Dealers who do not use point-of-sale cash registers, but instead issue printed or electronic invoices on which the invoiced tax amounts are determined from the tax rate or base information housed in their computers, can deduct up to $25 in external reprogramming costs for each computer that must be reprogrammed.

Dealers should deduct the credit on line 12A of their tax return, R-1029.  In addition, a copy of the invoice received from the external service provider must be included with the return.

For Further Information

Louisiana Department of Revenue – Revenue Information Bulletin No. 13-015

SALT Report 2760 – Annual Sales Tax Holiday