La. Revenue and Taxation § 47:303

Current with changes from the 2024 Legislative Session

Section 47:303 - Collection

A. Collection from dealer.

(1) The tax imposed under R.S. 47:302 shall be collectible from all persons, as hereinafter defined, engaged as dealers, as hereinafter defined.

(2) On all tangible personal property imported, or caused to be imported, from other states or foreign countries, and used by him, the "dealer", as hereinafter defined, shall pay the tax imposed by this Chapter on all articles of tangible personal property so imported and used, the same as if the said articles had been sold at retail for use or consumption in this state. For the purposes of this Chapter, the use, or consumption, or distribution, or storage to be used or consumed in this state of tangible personal property, shall each be equivalent to a sale at retail, and the tax shall thereupon immediately levy and be collected in the manner provided herein, provided there shall be no duplication of the tax in any event.

(3)

(a) A credit against the use tax imposed by this Chapter shall be granted to taxpayers who have paid a similar tax upon the sale or use of the same tangible personal property in another state. The credit provided herein shall be granted only in the case where the state to which a similar tax has been paid grants a similar credit as provided herein, provided that members of the armed forces who are citizens of this state and whose orders or enlistment contracts stipulate a period of active duty of two years or more and who purchase automobiles outside of the state of Louisiana while on such tour of active duty shall be granted such credit in connection with the purchase of such automobiles whether or not the state to which such tax thereon has been paid grants a similar credit as herein provided. The amount of the credit shall be calculated by multiplying the rate of the similar tax paid in the other state by the cost price which is subject to Louisiana use tax at the time of the importation of the tangible personal property. The proof of payment of a similar tax to another state shall be made according to rules and regulations promulgated by the secretary. In no event shall the credit be greater than the tax imposed by Louisiana upon the particular tangible personal property which is the subject of the Louisiana use tax.

(b) The credits provided by this Section and R.S. 47:337.86 shall be applied together against the state and local taxes due on the use of a motor vehicle, automobile, motorcycle, truck, truck-tractor, trailer, semitrailer, motor bus, house trailer, or any other vehicle subject to the vehicle registration license tax, so that the applicant for title or registration in Louisiana of a vehicle that the applicant previously purchased and titled in another state is allowed credit against the state and local use taxes imposed in Louisiana for the full rate of sales or use tax paid in the other state.

B. Collection of tax on vehicles. The tax imposed by R.S. 47:302(A) on the sale or use of any motor vehicle, automobile, motorcycle, truck, truck-tractor, trailer, semi-trailer, motor bus, house trailer, or any other vehicle subject to the vehicle registration license tax shall be collected as provided in this Subsection.

(1) The tax levied by R.S. 47:302(A) on any such vehicle shall be paid to the vehicle commissioner as the agent of the collector of revenue at the time of application for a certificate of title or vehicle registration license and such tax shall be administered and collected by the vehicle commissioner in compliance with rules and regulations issued by the collector of revenue and in compliance with the law as construed by the collector of revenue. No certificate of title or vehicle registration license shall be issued until this tax has been paid. The collector of revenue shall be the only proper party to defend or to institute any legal action involving the tax imposed by R.S. 47:302(A) on the sale or use of any motor vehicle, automobile, motorcycle, truck, truck-tractor, trailer, semi-trailer, motor bus, house trailer or any other vehicle subject to the vehicle registration license tax. (R.S. 47:451 et seq.).

(a) The tax levied by R.S. 47:302(A)(1) on the sale of any such vehicle shall be due at the time of registration or any transfer of registration as required by the Vehicle Registration License Tax Law (R.S. 47:451 et seq.). However, the vehicle commissioner shall waive penalties or interest on sales tax on timely filed applications for registration rejected due to office of motor vehicles error.

(b) The tax levied by R.S. 47:302(A)(2) on the use of any such vehicle in this state shall be due at the time first registration in this state is required by the Vehicle Registration License Tax Law (R.S. 47:451 et seq.) subject to the following:

(i) The vehicle commissioner shall waive penalties or interest on use tax on timely filed applications for registration rejected due to office of motor vehicles error.

(ii) A person or their spouse shall have ninety days following either's separation from active duty from any branch of the armed forces of the United States to remit the tax levied by R.S. 47:302(A)(2) on any vehicle registered in a foreign jurisdiction and required to be registered in this state. Penalties and interest shall not accrue during this ninety-day time period. However, a person or their spouse shall remit sales or use taxes imposed pursuant to R.S. 47:302(A)(2) on a vehicle required to be registered in this state should the vehicle registration and license plates issued by a foreign jurisdiction expire prior to or during the ninety days following either's separation from active duty of any branch of the armed forces of the United States.

(2) Every vendor of such a vehicle shall furnish to the purchaser at the time of sale a statement showing the serial number, type, year, and model of the vehicle sold, the total sales price, any allowance for and a description of any vehicle taken in trade, and the total cash difference paid or to be paid by the purchaser between the vehicles purchased and traded in and the sales or use tax to be paid, along with such other information as the collector of revenue may by regulation require. All labor parts, accessories, and other equipment which are attached to the vehicle at the time of sale and which are included in the sale price are to be considered a part of the vehicle.

(3)

(a) It is not the intention of this Subsection to grant an exemption from the sales and use tax levied in this Title to any sale, use, items, or transaction which has heretofore been taxable, and this Subsection is not to be construed as so doing. It is the intent of this Subsection to transfer the collection of state and political subdivision sales and use taxes on vehicles from the vendor to the vehicle commissioner as agent for the secretary of the Department of Revenue and for the collectors of such political subdivision taxes and to provide a method of collection of the tax directly from the vendee or user by the vehicle commissioner as agent of the secretary and such collectors.

(b)

(i) The vehicle commissioner and the governing body of any political subdivision as defined in Article VI, Section 44(2) of the Constitution of Louisiana, in which a sales or use tax has been imposed by such political subdivision on the sale or use of motor vehicles, shall enter into an agreement by which the vehicle commissioner shall collect such tax on behalf of the political subdivision. Except as provided in Paragraph (5) of this Subsection, no certificate of title or vehicle registration license shall be issued until such local tax is paid.

(ii) The tax imposed by the political subdivisions on the sale or use of vehicles subject to the Vehicle Registration License Tax Law (R.S. 47:451 et seq.) shall be collected by the vehicle commissioner and distributed to the political subdivisions as provided for in R.S. 47:301(10)(f) and (18)(b). The vehicle commissioner shall withhold from any such taxes collected for the political subdivisions one percent of the proceeds of the tax so collected, which shall be used by the commissioner to pay the cost of collecting and remitting the tax to the political subdivisions.

(iii) The vehicle commissioner shall cause to be conducted annually, by the legislative auditor, an audit or examination of the books and accounts of sales and use taxes collected by the vehicle commissioner for each political subdivision. The scope of the audit shall be sufficient to determine whether or not sales and use taxes collected for each political subdivision have been properly and correctly distributed in accordance with law during the period under audit. The cost of such audit shall be prorated to all local political subdivisions for whom the vehicle commissioner collects sales and use taxes on the basis of total tax dollars distributed to each local political subdivision, and the vehicle commissioner shall withhold the cost of such audit from taxes collected. In the event the audit determines that adjustments to tax distributions are required, the vehicle commissioner shall adjust future tax distributions to applicable tax recipient bodies. The prescriptive period for adjustments under this Section shall be three years from the thirty-first day of December of the year in which such taxes became due.

(iv) All such agreements now existing between any political subdivision and the secretary are hereby declared valid and the functions of the secretary thereunder are hereby transferred to the director of public safety as vehicle commissioner.

(v)

(aa) Political subdivisions which enter into a sales and use tax collection agreement with the vehicle commissioner as provided for in this Subparagraph shall provide the vehicle commissioner with geographic boundaries such as roads, streams, Global Positioning System coordinates, or survey coordinates that can be converted to polygons on a representation of a physical map of the state to be used in connection with the collection of that political subdivision's sales and use taxes. A map outlining the boundaries of the political subdivision shall also be provided to the commissioner.

(bb) In the event a boundary dispute occurs between two or more political subdivisions regarding a taxpayer's domicile, the department shall collect the tax in the amount of the highest rate among the competing rates. The amount collected shall be deposited into a non-interest bearing escrow account. The department may proceed to title and register the motor vehicle and issue appropriate credentials. The political subdivisions shall then seek to resolve the dispute either by mutual agreement or judicially, and the funds will be distributed to the appropriate taxing body. Funds remaining after the payment of the taxes together with any penalty and interest that may be due shall be returned to the taxpayer.

(cc) If an incorrect tax has been assessed by the department based upon information provided to the department by the local taxing authority which results in the taxpayer owing additional taxes, the taxpayer shall be given thirty days from date of notice of the deficiency before the taxpayer is assessed any penalties or interest.

(vi) A person or their spouse shall have ninety days following either's separation from active duty from any branch of the armed forces of the United States to remit the sales and use tax imposed by a political subdivision on any vehicle registered in a foreign jurisdiction and required to be registered in this state. Penalties and interest shall not accrue during this ninety-day time period. However, a person or their spouse shall remit sales or use taxes imposed by a political subdivision on a vehicle required to be registered in this state should the vehicle registration and license plates issued by a foreign jurisdiction expire prior to or during the ninety days following either's separation from active duty of any branch of the armed forces of the United States.

(4) The provision contained in R.S. 47:301(10) in the second unnumbered paragraph which excludes isolated or occasional sales from the definition of a sale at retail is not to apply to the sale of vehicles which are the subject of this subsection. Isolated or occasional sales of vehicles are hereby defined to be sales at retail and as such are subject to the tax.

(5) Notwithstanding the provisions of this Section, a certificate of title or vehicle registration license may be issued to a purchaser by the secretary of the Department of Public Safety if he is so authorized in writing by the secretary of the Department of Revenue. The secretary of the Department of Revenue shall grant such authorization upon written application by the purchaser to said secretary showing that:

(a) all state and local taxes and fees due by the purchaser were paid in good faith at the time of purchase to a motor vehicle dealer,

(b) the motor vehicle dealer has not remitted the taxes and fees to the secretary of the Department of Public Safety,

(c) the motor vehicle dealer has refused or is unable to answer a written demand by the purchaser that the taxes and fees be paid to the secretary of the Department of Public Safety, and

(d) the certificate of title or vehicle registration license has not been issued within six months after the date of sale. A refusal by the secretary of the Department of Revenue to authorize the issuance of a certificate of title or a vehicle registration license may be appealed to the Board of Tax Appeals within sixty days from the date the application for a certificate of title is denied by the secretary of the Department of Revenue.

(6) Repealed by Acts 2005, No. 384, §1, eff. June 30, 2005.

(7) Whenever a licensed dealer in motor vehicles sells, assigns, or otherwise transfers an agreement for the lease of a motor vehicle to a licensed lessor of motor vehicles for whom the licensed dealer has prepared the agreement, the transfer shall include all unremitted taxes collected by the licensed dealer, and the licensed lessor shall have the sole responsibility for remitting such taxes to the proper taxing authorities.

(8) When a foreign corporation, foreign limited liability company, foreign limited partnership, or foreign partnership acquires a vehicle on which the tax imposed by R.S. 47:302(A) would have been due had the vehicle been acquired by a business entity organized under the laws of this state, the department may collect the tax from the foreign business entity if the department determines that the purpose of the foreign business entity was tax avoidance after considering all of the following:

(a) Whether there is a specific business purpose for the foreign business entity to acquire the vehicle other than the avoidance of the tax imposed by R.S. 47:302(A).

(b) Whether the users of the vehicle compensate the foreign business entity reasonably for the use of the vehicle.

(c) Whether the foreign business entity fails to maintain a physical location in the foreign state.

(d) Whether the foreign business entity fails to employ individual persons and provide those persons with Internal Revenue Service Form W-2 wage and tax statements.

(e) Whether the foreign business entity fails to file federal tax returns or fails to file a required state tax return in the foreign state.

(f) The location of where the vehicle is stored.

(g) The jurisdiction where the vehicle is typically used.

(h) The domicile of the most frequent drivers and passengers of the vehicle.

(i) The duration of the trips for which the vehicle is used.

C. Auctioneers. All auctioneers shall register as dealers and shall display their registration to the public as a condition of doing business in this state. Such auctioneers or the company which they represent shall be responsible for the collection of all local and state taxes on articles sold by them and shall report and remit to the collector as provided in this Chapter.

D. Collection of tax on motorboats and vessels.

(1) Except as provided for in R.S. 47:305(D)(1)(i), the secretary of the Louisiana Department of Wildlife and Fisheries shall not register or issue a certificate of registration on any new boat or vessel purchased in this state until satisfactory proof has been presented to him that all sales taxes provided by this Part, and all municipal, school board and parish sales taxes, have been paid, nor shall he register or issue a certificate of registration on any boat or vessel brought into this state until satisfactory proof has been presented to him that all use taxes required by this Part, and all municipal, school board and parish use taxes, have been paid.

(2) Any sales or use tax levied by the state or a statewide political subdivision due under the provisions of this Chapter may be collected by special certificate agents of the Department of Wildlife and Fisheries as provided for in R.S. 34:851.37. Upon receipt by such department such taxes shall be remitted as soon as possible to the Department of Revenue.

E. Collection of tax on off-road vehicles.

(1) The vehicle commissioner shall not issue a title or a certificate of registration on any off-road vehicle purchased in this state or brought into this state from another state until satisfactory proof has been presented to him that all sales taxes required by law have been paid. However, as provided for in R.S. 47:305.56, an out-of-state purchaser of an off-road vehicle shall be exempt from the payment of state sales and use taxes. The purchaser of an off-road vehicle from a seller who is not registered with the Department of Public Safety and Corrections shall pay the sales tax at the time the vehicle is titled the same as is required for the registration and licensing of other vehicles under the provisions of Subsection B of this Section.

(2) After payment of the taxes due, the commissioner shall issue a decal, in a form prescribed, said decal to be affixed to the vehicle, as directed, by the commissioner, which shall be conclusive proof of registration and payment of the required taxes. All 1987 and later model off-road vehicles sold as new and subsequently sold as used shall be required to display this decal, commencing September 1, 1986. The decal shall be a two-year renewal type and the fees for issuance of new, renewal, transfer, lost, or illegible decals shall be the same amount as those fees charged for the registration stickers of other motor vehicles. Failure to have this decal affixed to the off-road vehicle within thirty days of purchase will result in a fine, not to exceed fifty dollars, or the impounding of the vehicle, or both, and the payment of all taxes due, if any. All peace officers, including the Department of Wildlife and Fisheries, may require proof of registration and shall have concurrent jurisdiction to enforce the provisions of this Section.

F. Collection of tax on membership in health and physical fitness clubs. The sales tax due under the provisions of this Chapter on contracts for membership in a health and physical fitness club shall be assessed and shall be due and payable on a monthly basis computed on the amount paid each month less any actual or imputed interest or collection fees or unpaid reserve amounts not received by the health and fitness club, provided that no sales or use tax of the state or any of its political subdivisions not collected by such clubs shall be due or payable on amounts collected on such contracts prior to the effective date of the Act originally enacting this Subsection.

G. Direct Payment Numbers. Notwithstanding any provision of law to the contrary, a Louisiana taxpayer who obtains a DP Number as provided in R.S. 47:303.1 shall remit sales and use taxes due on purchases and rentals of tangible personal property and taxable services directly to the state and local taxing bodies to whom the sales and use taxes are due, and shall not be liable to remit the tax to the vendor or lessor of the tangible personal property and taxable services, as provided in R.S. 47:303.1.

H. Collection of tax on tooling in a compression molding process. Notwithstanding any other law to the contrary, any tax due on customer-owned tooling imported into this state and used in a compression molding process shall only be collected from the person actually using the tooling in his process. Such person shall be considered a dealer using property in this state for purposes of this Chapter.

I. The state sales tax collected by dealers as defined in R.S. 47:301(4)(n) shall be filed and paid electronically to the secretary.

La. Revenue and Taxation § 47:303

Acts 1962, No. 182; Acts 1964, No. 171, §1; Acts 1964, No. 519, §1; Acts 1964, Ex.Sess., No. 7, §1; Acts 1965, No. 122, §1; Acts 1966, No. 271, §1; Acts 1970, No. 656, §1; Acts 1972, No. 96, §3, eff. Jan. 1, 1973; Acts 1975, No. 197, §1; Acts 1978, No. 377, §1; Acts 1978, No. 584, §1, eff. July 12, 1978, Acts 1980, No. 137, §2; Acts 1982, No. 699, §2, eff. Aug. 2, 1982; Acts 1985, No. 661, §1; Acts 1986, No. 1067, §1; Acts 1987, No. 379, §1, eff. July 7, 1987; Acts 1987, No. 682, §1, eff. Sept. 1, 1987; Acts 1989, No. 264, §1, eff. Aug. 1, 1989; Acts 1990, No. 427, §1; Acts 1991, No. 198, §1, eff. July 2, 1991; Acts 1992, No. 796, §1; Acts 1993, No. 569, §2, eff. July 1, 1993; Acts 1993, No. 688, §1; Acts 1995, No. 476, §1, eff. June 17, 1995; Acts 1999, No. 553, §1; Acts 2001, No. 13, §1; Acts 2001, No. 1032, §15; Acts 2003, No. 1186, §1; Acts 2003, No. 1240, §3, eff. July 1, 2003; Acts 2005, No. 133, §2, eff. June 22, 2005; Acts 2005, No. 384, §1, eff. June 30, 2005; Acts 2005, No. 394, §1, eff. July 1, 2005; Acts 2006, No. 291, §1; Acts 2007, No. 291, §1, eff. Oct. 1, 2007; Acts 2009, No. 442, §1, eff. July 1, 2009; Acts 2015, No. 107, §1, eff. June 19, 2015; Acts 2016, No. 25, §1, eff. May 9, 2016; Acts 2020, No. 278, §2, eff. Jan. 1, 2021; Acts 2022, No. 343, §2, eff. Jan. 1, 2023.

Amended by Acts 2022, No. 343,s. 2, eff. 8/1/2018.

Amended by Acts 2020, No. 278,s. 2, eff. 7/1/2020.

Amended by Acts 2016, No. 25,s. 1, eff. 5/9/2016.

Amended by Acts 2015, No. 107,s. 1, eff. 6/19/2015.

Acts 1962, No. 182; Acts 1964, No. 171, §1; Acts 1964, No. 519, §1; Acts 1964, Ex.Sess., No. 7, §1; Acts 1965, No. 122, §1; Acts 1966, No. 271, §1; Acts 1970, No. 656, §1; Acts 1972, No. 96, §3, eff. 1/1/1973; Acts 1975, No. 197, §1; Acts 1978, No. 377, §1; Acts 1978, No. 584, §1, eff. 7/12/1978, Acts 1980, No. 137, §2; Acts 1982, No. 699, §2, eff. 8/2/1982; Acts 1985, No. 661, §1; Acts 1986, No. 1067, §1; Acts 1987, No. 379, §1, eff. 7/7/1987; Acts 1987, No. 682, §1, eff. 9/1/1987; Acts 1989, No. 264, §1, eff. 8/1/1989; Acts 1990, No. 427, §1; Acts 1991, No. 198, §1, eff. 7/2/1991; Acts 1992, No. 796, §1; Acts 1993, No. 569, §2, eff. 7/1/1993; Acts 1993, No. 688, §1; Acts 1995, No. 476, §1, eff. 6/17/1995; Acts 1999, No. 553, §1; Acts 2001, No. 13, §1; Acts 2001, No. 1032, §15; Acts 2003, No. 1186, §1; Acts 2003, No. 1240, §3, eff. 7/1/2003; Acts 2005, No. 133, §2, eff. 6/22/2005; Acts 2005, No. 384, §1, eff. 6/30/2005; Acts 2005, No. 394, §1, eff. 7/1/2005; Acts 2006, No. 291, §1; Acts 2007, No. 291, §1, eff. 10/1/2007; Acts 2009, No. 442, §1, eff. 7/1/2009.