§ 70-31. Definitions.
The following words, terms and phrases, when used in this article, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
Agricultural commodity means horticultural, viticultural, poultry, farm and range products and livestock and livestock products.
Authority means the city.
Business means any activity engaged in by any person or caused to be engaged in by him with the object of gain, benefit or advantage, either direct or indirect. The term "business" shall not be construed to include the occasional and isolated sales by a person who does not hold himself out as engaged in business.
Collector means and includes the clerk of the authority or his duly authorized assistant or such other person, agency or instrumentality designated by the board of aldermen to handle and accomplish the collection, enforcement and administration of sales and use of taxes on behalf of the authority.
Cost price means the actual cost of the articles of tangible personal property without any deductions therefrom on account of the cost of materials used, labor or service cost, except those service costs for installing the articles of tangible personal property if such cost is separately billed to the customer at the time of installation, transportation charges, or any other expenses whatsoever, or the reasonable market value of the tangible personal property at the time it becomes susceptible to the use tax, whichever is less. In the case of tangible personal property which has acquired a state tax situs and is thereafter transported outside the state for repairs performed outside the state and is thereafter returned to the state, the cost price shall be deemed to be the actual cost of any parts and/or materials used in performing such repairs, if applicable labor charges are separately stated on the invoice. If the applicable labor charges are not separately stated on the invoice, it shall be presumed that the cost price is the total charge reflected on the invoice. Cost price shall not include the supplying and installation of board roads to oil field operators if the installation charges are separately billed to the customer at the time of installation. In the case of interchangeable components located in the state, a taxpayer may elect to determine the cost price of such components as follows:
(1)
The taxpayer shall send to the secretary written notice of the calendar month selected by the taxpayer as the first month for the determination of cost price under this definition (the "first month"). The taxpayer may select any month. The taxpayer shall send to the secretary notice of an election to designate a first month on the first day of the designated first month, or 90 days from July 1, 1990, whichever is later.
(2)
For the first month and each month thereafter, cost price shall be based and use tax shall be paid only on 1/60 of the aggregate cost price of the interchangeable components deployed and earning revenue within the state during the month, without regard to any credit or other consideration for state, political subdivision or school board use tax previously paid on such interchangeable components.
(3)
Any election made under this definition shall be irrevocable for a period of 60 consecutive months inclusive of the first month. If at any time after the 60-month period the taxpayer revokes its election, no credit or other consideration for use taxes paid pursuant thereto shall be applied to any use tax liability arising after such revocation.
(4)
For purposes of this definition, the term "interchangeable component" means a component that is used or stored for use in measurement-while-drilling instruments or systems manufactured or assembled by the taxpayer, which measurement-while-drilling instruments or systems collectively generate 80 percent or more of their annual revenue from their use outside of the state.
(5)
The term "measurement-while-drilling instruments or systems" means instruments or systems which measure information from a downhole location in a borehole, transmit the information to the surface during the process of drilling the borehole using a wireless technique, and receive and decode the information on the surface.
(6)
The method for determining cost price of interchangeable components provided for in this definition shall apply to any use taxes imposed by a local political subdivision or school board. For purposes of that application, the words "political subdivision" or "school board," as the case may be, shall be substituted for the words "Louisiana" or "state" in each instance where those words appear in this definition, and an appropriate official of the local political subdivision or school board shall be designated to receive the notices required by this definition.
Cost price shall not include any amount designated as a cash discount or a rebate by a vendor or manufacturer of any new vehicle subject to the motor vehicle license tax. For purposes of this definition the word "rebate" means any amount offered by the vendor or manufacturer as a deduction from the listed retail price of the vehicle. The cost price of refinery gas shall be $0.52 per 1,000 cubic feet multiplied by a fraction the numerator of which shall be the posted price for a barrel of West Texas Intermediate Crude Oil on December 1 of the preceding calendar year and the denominator of which shall be $29.00, and provided further that such cost price shall be the maximum value placed upon refinery gas by the state and by any political subdivision under any authority or grant of power to levy and collect use taxes. Cost price, for purposes of the use tax imposed by the state and its political subdivisions, shall exclude any amount that a manufacturer pays directly to a dealer of the manufacturer's product for the purpose of reducing and that actually results in an equivalent reduction in the retail cost price of that product. This exclusion shall not apply to the value of the coupons that dealers accept from purchasers as part payment of the sales price and that are redeemable by the dealers through manufacturers or their agents. The value of such coupons is deemed to be part of the cost price of the product purchased through the use of the coupons.
Dealer means every person who manufactures or produces tangible personal property for sale at retail, for use, or consumption, or distribution, or for storage to be used or consumed in this state. The word "dealer" is further defined to mean:
(1)
Every person who imports, or causes to be imported, tangible personal property from any state or foreign country for sale at retail, for use, or consumption, or distribution, or for storage to be used or consumed in this state.
(2)
Every person who sells at retail, or who offers for sale at retail, or who has in his possession for sale at retail, or for use, or consumption, or distribution, or storage to be used or consumed in this state, tangible personal property as defined in this section.
(3)
Any person who has sold at retail, or used, or consumed, or distributed, or stored for use or consumption in this state, tangible personal property and who cannot prove that the tax levied by this article has been paid on the sale at retail, the use, the consumption, the distribution, or the storage of such tangible personal property.
(4)
Any person who leases or rents tangible personal property for a consideration, permitting the use or possession of the property without transferring title thereto. However, a person who leases or rents tangible personal property to customers who provide information to such person that they will use the property only offshore beyond the territorial limits of the state shall not be included in the term "dealer" for purposes of the collection of the rental or lease tax of the state, statewide political subdivisions, and other political subdivisions on such lease or rental contracts. For purposes of this definition, the word "use" means the operational or functional use of the property and not other uses related to its possession such as transportation, maintenance and repair. It is the intention of this definition that the customers of such persons shall remit any tax due on the lease or rental of such property directly to the state and local taxing bodies to whom they are due.
(5)
Any person who is the lessee or rentee of tangible personal property and who pays to the owner of such property a consideration for the use or possession of such property without acquiring title thereto.
(6)
Any person, who sells or furnishes any of the services subject to tax under this article.
(7)
Any person, as such term is used in this article, who purchases or receives any of the services subject to tax under this article.
(8)
Any person engaging in business in this state. The expression "engaging in business in this state" means and includes any of the following methods of transacting business: maintaining directly, indirectly or through a subsidiary, an office, distribution house, sales house, warehouse or other place of business, or by having an agent, salesman or solicitor operating within the state under the authority of the seller or its subsidiary irrespective of whether such place of business, agent, salesman or solicitor is located in this state permanently or temporarily or whether such seller or subsidiary is qualified to do business in this state, or any person who makes deliveries of tangible personal property into the state other than by a common or contract carrier.
(9)
Any person who sells at retail any tangible personal property to a vending machine operator for resale through coin-operated vending machines.
(10)
Any person who makes deliveries of tangible personal property into the state in a vehicle owned or operated by such person.
(11)
The term "dealer" shall not include lessors of railroad rolling stock used either for freight or passenger purposes. However, the term "dealer" shall include lessees, other than a railway company or railroad corporation, of such property, and such lessees shall be responsible for the collection and payment of all state and local sales and use taxes.
(12)
The term "dealer" shall include every person who engages in regular or systematic solicitation of a consumer market in this state by the distribution of catalogs, periodicals, advertising fliers or other advertising, or by means of print, radio or television media, by mail, telegraphy, telephone, computer data base, cable, optic, microwave or other communication system.
Distraint or distrain means the right to levy upon and seize and sell, or the levying upon or seizing and selling, any property or rights to property of the delinquent dealer by the officer charged with the collection of the tax for the purpose of satisfying any tax, interest or penalties due under the provisions of this article.
Engaging in business in the authority means and includes any of the following methods of transacting business: Maintaining directly, indirectly or through a subsidiary, an office, distribution house, sales house, warehouse or other place of business, or by having an agent, salesman, solicitor or employee operating within the authority under the authority of the seller or its subsidiary, irrespective of whether such place of business, agent, salesman, solicitor or employee is located in the authority permanently or temporarily, or whether such a seller or subsidiary is qualified to do business in the authority, or by having within the authority any choses in action or causes of action, or any property, or any liens on property, or any indebtedness due it in the authority, protected by the laws and courts of the authority.
Gross sales means the sum total of all sales of tangible personal property, as provided and defined in this section, and sales of services without any deductions whatsoever of any kind or character, except as provided in this article.
Hotel means and includes any establishment engaged in the business of furnishing sleeping rooms, cottages or cabins to transient guests where such establishment consists of six or more sleeping rooms, cottages or cabins at a single business location.
Lease or rental means the leasing or renting of tangible personal property and the possession or use thereof by the lessee or renter, for a consideration, without transfer of the title of such property. For the purpose of the leasing or renting of automobiles, the word "lease" means the leasing of automobiles and the possession or use thereof by the lessee, for a consideration, without the transfer of the title of such property for a 180-day period or more. Rental means the renting of automobiles and the possession or use thereof by the renter, for a consideration, without the transfer of the title of such property for a period less than 180 days. The term "lease or rental," however, shall not mean or include the lease or rental made for the purposes of re-lease or re-rental of casing tools and pipe, drill pipe, tubing, compressors, tanks, pumps, power units, other drilling or related equipment used in connection with the operating, drilling, completion or reworking of oil, gas, sulphur or other mineral wells. The term "lease or rental," shall not mean or include a lease or rental of property to be used in performance of a contract with the United States Department of the Navy for construction or overhaul of U.S. Naval vessels. The term "lease or rental," shall not mean the lease or rental of airplanes or airplane equipment by a commuter airline domiciled in the state. The term "lease or rental," shall not mean the lease or rental of items including, but not limited to, supplies and equipment, which are reasonably necessary for the operation of free hospitals. Lease or rental shall not mean the lease or rental of educational materials or equipment used for classroom instruction by approved parochial and private elementary and secondary schools which comply with the court order from the Dodd Brumfield decision and section 501(c)(3) of the Internal Revenue Code, limited to books, workbooks, computers, computer software, films, videos and audio tapes. Lease or rental shall not mean the lease or rental of tangible personal property to Boys State of Louisiana, Inc. and Girls State of Louisiana, Inc. which is used by such organizations for their educational and public service programs for youths.
New article means the original stock in trade of the dealer and shall not be limited to newly manufactured articles. The original stock or article, whether it is a used article or not, shall be subject to the tax.
Person means any individual, firm, copartnership, joint venture, association, corporation, estate, trust, business trust, receiver, syndicate, this state, any parish, city and parish, municipality, district or other political subdivision thereof or any board, agency, instrumentality or other group or combination acting as a unit.
Purchaser means any person who acquires or receives any tangible personal property or the privilege of using any tangible personal property or receives any services pursuant to a transaction subject to taxes under this article.
Retail sale or sale at retail means:
(1)
A sale to a consumer or to any other person for any purpose other than for resale as tangible personal property, or for the lease of motor vehicles in an arm's length transaction, and shall mean and include all such transactions as the collector, upon investigation, finds to be in lieu of sales; provided, however, that sales for resale or for lease of motor vehicles in an arm's length transaction must be made in strict compliance with the rules and regulations. Any dealer making a sale for resale or for the lease of motor vehicles, which is not in strict compliance with the rules and regulations shall himself be liable for and pay the tax.
(2)
Retail sale or sale at retail, for purposes of sales and use taxes imposed by the state on transactions involving the sale for rental of automobiles which take place on or after January 1, 1991, and by political subdivisions on such transactions on or after July 1, 1996, and state sales and use taxes imposed on transactions involving the lease or rental of tangible personal property other than automobiles which take place on or after July 1, 1991, means a sale to a consumer or to any other person for any purpose other than for resale as tangible personal property, or for lease or rental in an arm's length transaction in the form of tangible personal property, and shall mean and include all such transactions as the secretary, upon investigation, finds to be in lieu of sales; provided, however, that sales for resale or for lease or rental in an arm's length transaction must be made in strict compliance with the rules and regulations. Any dealer making a sale for resale or for lease or rental, which is not in strict compliance with the rules and regulations, shall himself be liable for and pay the tax.
(3)
Retail sale or sale at retail, for purposes of sales and use taxes imposed by the state on transactions involving the sale for rental of automobiles which take place prior to January 1, 1991, and by political subdivisions on such transactions prior to July 1, 1996, and imposed on transactions involving the lease or rental of tangible personal property other than autos which take place prior to July 1, 1991, and for purposes of local sales and use taxes levied by political subdivisions except for transactions involving the sale for rental of automobiles on or after July 1, 1996, means a sale to a consumer or to any other person for any purpose other than for resale in the form of tangible personal property, and shall mean and include all such transactions as the secretary, upon investigation, finds to be in lieu of sales; provided, however, that sales for resale must be made in strict compliance with the rules and regulations. Any dealer making a sale for resale, which is not in strict compliance with the rules and regulations, shall himself be liable for and pay the tax. However, contrary provisions of law notwithstanding, any political subdivision may, by ordinance, adopt the definition of retail sale or sale at retail provided in subsection (2) of this definition for purposes of the imposition of its sales and use tax.
(4)
The sale of tangible personal property to a dealer who purchases such property for resale through coin-operated vending machines shall be considered a sale at retail, subject to the tax levied by R.S. 47:302(A) and R.S. 47:321(A). The subsequent resale of the property by the dealer through coin-operated vending machines shall not be considered a sale at retail.
(5)
The term "sale at retail" does not include sale of materials for further processing into articles of tangible personal property for sale at retail. Natural gas when used in the production of iron in the process known as the "direct reduced iron process" is not a catalyst and is recognized by the legislature to be a material for further processing into an article of tangible personal property for sale at retail. The term "sale at retail" does not include sales of electricity for chlor-alkali manufacturing processes, nor does it include an isolated or occasional sale of tangible personal property by a person not engaged in such business.
(6)
The term "sale at retail" does not include the sale of any human tissue transplants, which shall be defined to include all human organs, bone, skin, cornea, blood or blood products transplanted from one individual into another recipient individual.
(7)
The term "sale at retail" does not include the sale of raw agricultural commodities, including, but not limited to, feed, seed and fertilizer, to be utilized in preparing, finishing, manufacturing or producing crops or animals for market. The state department of agriculture and forestry shall develop and promulgate guidelines to determine who meets this definition. Any person meeting such guidelines shall receive a certificate from the state department of agriculture and forestry indicating that such person is eligible to purchase such items without paying tax thereon.
(8)
Notwithstanding any other law to the contrary, for purposes of the imposition of the sales and use tax of any political subdivision, the sale of a vehicle subject to the Vehicle Registration License Tax Law (R.S. 47:451 et seq.) shall be deemed to be a retail sale or a sale at retail.
a.
In the political subdivision of the principal residence of the purchaser if the vehicle is purchased for private use; or
b.
In the political subdivision of the principal location of the business if the vehicle is purchased for commercial use, unless the vehicle purchased for commercial use is assigned, garaged, and used outside of such political subdivision, in which case the sale shall be deemed a retail sale or a sale at retail in the political subdivision where the vehicle is assigned, garaged and used.
(9)
The term "retail sale" does not include a sale of corporeal movable property which is intended for future sale to the United States government or its agencies, when title to such property is transferred to the United States government or its agencies prior to the incorporation of that property into a final product.
(10)
The term "sale at retail" does not include the sale of food items by youth serving organizations chartered by Congress.
(11)
The term "sale at retail" does not include the purchase of a new school bus or a used school bus which is less than five years old by an independent operator, when such bus is to be used exclusively in a public school system. This exclusion shall apply to all sales and use taxes levied by any local political subdivision.
(12)
The term "sale at retail" does not include the sale of tangible personal property to food banks, as defined in R.S. 9:2799.
(13)
The term "sale at retail" shall not include the sale of airplanes or airplane equipment or parts to a commuter airline domiciled in the state.
(14)
Pollution control device or system shall mean any tangible personal property approved by the state department of revenue and taxation and the state department of environmental quality and sold or leased and used or intended for the purpose of eliminating, preventing, treating or reducing the volume or toxicity or potential hazards of industrial pollution of air, water, groundwater, noise, solid waste or hazardous waste in the state. For the purposes of any sales and use tax levied by a political subdivision, the term "sale at retail" shall include the sale of a pollution control device or system. In order to qualify, the pollution control device or system must demonstrate either: a net decrease in the volume or toxicity or potential hazards of pollution as a result of the installation of the device or system; or that installation is necessary to comply with federal or state environmental laws or regulations.
(15)
The term "sale at retail" shall not include the sales of state manufactured or assembled passenger aircraft with a capacity in excess of 50 persons, if, after all transportation, including transportation by the purchaser, has been completed, the aircraft is ultimately received by the purchaser outside of the state.
(16)
For purposes of sales and use taxes imposed or levied by the state or any political subdivision thereof, the term "sale at retail" shall not include the sales of pelletized paper waste when purchased for use as combustible fuel by an electric utility or in an industrial manufacturing, processing, compounding, reuse or production process, including the generation of electricity or process steam, at a fixed location in this state. However, such sale shall not be excluded unless the purchaser has signed a certificate stating that the fuel purchased is for the exclusive use designated herein. For purposes of this subsection, the term "pelletized paper waste" means pellets produced from discarded waste paper that has been diverted or removed from solid waste which is not marketable for recycling and which is wetted, extruded, shredded or formulated into compact pellets of various sizes for use as a supplemental fuel in a permitted boiler.
(17)
For the purposes of sales and use taxes imposed or levied by the state or any local governmental subdivision or school board, the term "sale at retail" shall not include the sale or purchase of equipment used in firefighting by bona fide volunteer fire departments.
(18)
For purposes of state and political subdivision sales and use tax, the term "sale at retail" shall not include the sale of items including, but not limited to, supplies and equipment, or the sale of services as provided in this section, which are reasonably necessary for the operation of free hospitals.
(19)
For purposes of state and political subdivision sales and use tax, the term "sale at retail" shall not include:
a.
The sale of tangible personal property by approved parochial and private elementary and secondary schools which comply with the court order from the Dodd Brumfield decision and section 501(c)(3) of the Internal Revenue Code, or students, administrators or teachers, or other employees of the school, if the money from such sales, less reasonable and necessary expenses associated with the sale, is used solely and exclusively to support the school or its program or curricula. This exclusion shall not be construed to allow tax-free sales to students or their families by promoters or regular commercial dealers through the use of schools, school faculty, or school facilities.
b.
The sale to approved parochial and private elementary and secondary schools which comply with the court order from the Dodd Brumfield decision and section 501(c)(3) of the Internal Revenue Code of educational materials or equipment used for classroom instruction limited to books, workbooks, computers, computer software, films, videos and audio tapes.
(20)
For purposes of state and political subdivision sales and use tax, the term "sale at retail" shall not include the sale of tangible personal property to Boys State of Louisiana, Inc. and Girls State of Louisiana, Inc. which is used by such organizations for their educational and public service programs for youth.
Retailer means and includes every person engaged in the business of making sales at retail or for distribution, or use or consumption, or storage to be used or consumed in the authority or any person rendering services taxable under this article.
Sale means any transfer of title or possession, or both, exchange, barter, lease or rental, conditional or otherwise, in any manner or by any means whatsoever, of tangible personal property, for a consideration, and includes the fabrication of tangible personal property for consumers who furnish, either directly or indirectly, the materials used in fabrication work, and the furnishing, preparing or serving, for a consideration, of any tangible personal property, consumed on the premises of the person furnishing, preparing or serving such tangible personal property. A transaction whereby the possession of property is transferred but the seller retains title as security for the payment of the price shall be deemed a sale. The term "sale" shall also include the "sales of services" which means and includes the following:
(1)
The furnishing of sleeping rooms, cottages or cabins by hotels;
(2)
The sale of admissions to places of amusement, to athletic entertainment other than that of schools, colleges and universities, and recreational events, and the furnishing, for dues, fees or other consideration, of the privilege of access to clubs or the privilege of having access to or the use of amusement, entertainment, athletic or recreational facilities, but shall not include membership fees or dues of nonprofit, civic organizations;
(3)
The furnishing of storage or parking privileges by auto hotels and parking lots and trailer parks;
(4)
The furnishing of printing or overprinting, lithographic, multilith, blueprinting, photostating or other similar services or reproducing written or graphic matter;
(5)
The furnishing of laundry, cleaning, pressing and dyeing services including, by way of extension and not of limitation, the cleaning and renovation of clothing, furs, furniture, carpets and rugs, and the furnishing of storage space for clothing, furs and rugs;
(6)
The furnishing of cold storage space and the furnishing of the service of preparing tangible personal property for cold storage, where such service is incidental to the operation of storage facilities; and
(7)
The furnishing of repairs to tangible personal property including, by way of illustration and not of limitation, the repair and servicing of automobiles and other vehicles, electrical and mechanical appliances and equipment, watches, jewelry, refrigerators, radios, shoes and office appliances and equipment.
Sales of services means and includes the following:
(1)
The furnishing of sleeping rooms, cottages or cabins by hotels.
(2)
The sale of admissions to places of amusement, to athletic entertainment other than that of schools, colleges and universities, and recreational events, and the furnishing, for dues, fees or other consideration of the privilege of access to clubs or the privilege of having access to or the use of amusement, entertainment, athletic or recreational facilities. The term "sales of services" shall not include membership fees or dues of nonprofit, civic organizations including, by way of illustration and not of limitation, the Young Men's Christian Association, the Catholic Youth Organization, and the Young Women's Christian Association.
(3)
Places of amusement shall not include museums, which are hereby defined as public or private nonprofit institutions which are organized on a permanent basis for essentially educational or aesthetic purposes and which use professional staff to do all of the following:
a.
Own or use tangible objects, whether animate or inanimate.
b.
Care for those objects.
c.
Exhibit them to the public on a regular basis.
(4)
Museums include, but are not limited to, the following institutions:
a.
Museums relating to art, history, including historic buildings, natural history, science and technology.
b.
Aquariums and zoological parks.
c.
Botanical gardens and arboretums.
d.
Nature centers.
e.
Planetariums.
(5)
The furnishing of storage or parking privileges by auto hotels and parking lots.
(6)
The furnishing of printing or overprinting, lithographic, multilith, blueprinting, photostating or other similar services of reproducing written or graphic matter.
(7)
The furnishing of laundry, cleaning, pressing and dyeing services including, by way of extension and not of limitation, the cleaning and renovation of clothing, furs, furniture, carpets and rugs, and the furnishing of storage space for clothing, furs and rugs.
(8)
The furnishing of cold storage space and the furnishing of the service of preparing tangible personal property for cold storage, where such service is incidental to the operation of storage facilities.
(9)
The furnishing of repairs to tangible personal property including, but not restricted to, the repair and servicing of automobiles and other vehicles, electrical and mechanical appliances and equipment, watches, jewelry, refrigerators, radios, shoes and office appliances and equipment. Charges for the furnishing of repairs to tangible personal property may be excluded from sales of services, when the repaired property is delivered to the customer in another state either by common carrier or the repair dealer's own vehicle; however, as to aircraft, delivery may be by the best available means. This exclusion shall not apply to sales and use taxes levied by the parish, city or school board. However, the parish, city or school board may apply the exclusion to sales or use taxes levied by the parish, city or school board. Offshore areas shall not be considered another state for the purpose of this definition. For the purposes of this definition, tangible personal property shall include machinery, appliances and equipment which have been declared immovable by declaration under the provisions of article 467 of the Louisiana Civil Code, and things which have been separated from land, buildings or other constructions permanently attached to the ground or their component parts as defined in article 466 of the civil code.
(10)
The term "sales of services" shall not include an action performed pursuant to a contract with the United States Department of the Navy for construction or overhaul of U.S. Naval vessels.
(11)
The furnishing of telecommunication services for compensation. Except as otherwise provided in this definition, the term "telecommunication services" means:
a.
Local telephone service, private communication service, toll telephone service, including such service provided by alternate operator service providers, and teletypewriter or computer exchange service.
b.
Cellular mobile telephone or telecommunication service, specialized mobile radio or paging service, and any other form of mobile or portable one-way or two-way communication.
c.
Charges for the connection of or change to any of the services described in subsections (11)a or (11)b of this definition.
(12)
The term "telecommunication services" shall not include:
a.
Telecommunication services paid for by inserting coins in coin-operated telephones available to the public.
b.
Any excise, franchise or similar tax or like fee or assessment levied by the United States, by the state, or by any political subdivision as defined in article VI, section 44(2) of the state constitution, upon the purchase, sale, use or consumption of any telecommunication services, which tax, fee or assessment is collected by the seller from the purchaser.
c.
Any interstate telecommunication services, or any telecommunication services for which rates are approved by or subject to approval by the Federal Communications Commission, including interstate subscriber line charges.
d.
The furnishing of any telecommunication services for resale, including charges for the use of intercompany facilities pursuant to shared network facility arrangements, access charges paid by intrastate or interstate interexchange telecommunications carriers and interconnection charges paid by providers of cellular, mobile, and paging telecommunication services, provided that any dealer making a sale of telecommunication services for resale shall obtain a certificate from the purchaser of such services certifying that such services are purchased for the purpose of resale, the form of the certification to be determined by rules and regulations to be promulgated by the secretary.
e.
Services or transactions defined in this definition among entities classified as members of an affiliated group as provided by federal law (26 USC 1504); provided, however, that these provisions shall not apply to any services that would have been taxable under this article as it existed on October 1, 1990.
f.
Information and data services, including storage of data or information for subsequent retrieval, the retrieval of data or information, or the processing, or reception and processing, of data or information intended to change its form or content.
(13)
For the purposes of this definition, the following definitions shall apply:
a.
The term "local telephone service" means the access to a local telephone system and the privilege of telephonic-quality communication with substantially all persons having telephone or radio telephone stations constituting a part of such local telephone system.
b.
The term "teletypewriter or computer exchange service" means the access from a teletypewriter, telephone, computer or other data station and the privilege of intercommunication by such station with substantially all persons having teletypewriter, telephone, computer or other data stations constituting a part of the same teletypewriter or computer exchange system. The term "teletypewriter or computer exchange service" does not include the storage of data or information for subsequent retrieval, the retrieval of data or information, or the processing, or reception and processing, of data or information intended to change its form or content.
c.
The term "toll telephone service" means a telephonic-quality communication for which there is a toll charge that varies in amount according to the distance and elapsed transmission time of each individual communication; or a service that entitles the subscriber or user, upon the payment of a periodic charge that is determined as a flat amount or upon the basis of total elapsed transmission time, or upon some combination thereof, to the privilege of an unlimited number of telephonic communications to or from all or a substantial portion of the persons having telephone or radio telephone stations in a specified area which is outside the local telephone system area in which the station provided with this service is located. The term "toll telephone service" includes intrastate wide-area telephone service charges.
d.
The term "private communication service" means a communication service furnished to a regular subscriber or user that entitles the subscriber or user to exclusive or priority use of a communication channel or group of channels, or to the use of an intercommunication system for the subscriber's stations, regardless of whether such channel, group of channels, or intercommunication system may be connected through switching with a service described in subsections (13)a, (13)b or (13)c of this definition; switching capacity, extension lines and stations, or other associated services which are provided in connection with, and which are necessary or unique to the use of, channels or systems described in this clause; or the channel mileage which connects a telephone station located outside a local telephone system area with a central office in such local telephone system.
e.
The term "alternate operator service provider" means any reseller of toll telephone service, as defined in subsection (13)c of this definition, that provides live or mechanical operator assistance to the end user of such toll telephone service.
(14)
Local political subdivisions are prohibited from levying a sales and use tax on telecommunication services not in effect on July 1, 1990. The provisions of this subsection shall not be construed to prohibit the levy or collection of any franchise, excise, gross receipts or similar tax or assessment by any political subdivision of the state as defined in article VI, section 44(2) of the state constitution.
Sales price means:
(1)
The total amount for which tangible personal property is sold, less the market value of any article traded in including any services, except services for financing, that are a part of the sale valued in money, whether paid in money or otherwise, and includes the cost of materials used, labor or service costs, except costs for financing which shall not exceed the legal interest rate and a service charge not to exceed six percent of the amount financed, and losses; provided, however, that cash discounts allowed and taken on sales shall not be included, nor shall the sales price include the amount charged for labor or services rendered in installing, applying, remodeling or repairing property sold.
(2)
The term "sales price" shall not include any amount designated as a cash discount or a rebate by the vendor or manufacturer of any new vehicle subject to the motor vehicle license tax. For purposes of this definition the word "rebate" means any amount offered by a vendor or manufacturer as a deduction from the listed retail price of the vehicle.
(3)
Sales price shall not include the first $50,000.00 of the sale price of new farm equipment used in poultry production.
(4)
Notwithstanding any other provision of law to the contrary, for purposes of state and political subdivision sales and use tax, the sales price of refinery gas and other petroleum byproducts, except for feedstock, not ultimately consumed as an energy source by the person who owns the facility in which the refinery gas or other petroleum byproduct is created as provided for in this section, but sold to another person, whether at retail, wholesale or for further processing, shall be the average of the monthly spot market price per 1,000 cubic feet of natural gas delivered into pipelines in the state as reported by the Natural Gas Clearing House and as determined by the state department of revenue and taxation for natural gas severance tax purposes at the time of such sale, or the price for which such property is actually sold, whichever is greater, and such sale shall be taxable.
(5)
The term "sales price," for purposes of the sales tax imposed by the state and its political subdivisions, shall exclude any amount that a manufacturer pays directly to a dealer of the manufacturer's product for the purpose of reducing and that actually results in an equivalent reduction in the retail sales price of that product. This exclusion shall not apply to the value of the manufacturer's coupons that dealers accept from purchasers as part payment of the sales price and that are redeemable by the dealers through manufacturers or their agents. The value of such coupons is deemed to be part of the sales price of the product purchased through the use of the coupons.
Storage means and includes any keeping or retention in the authority of tangible personal property for use or consumption in the authority or for any other purpose other than for sale at retail in the regular course of business.
Tangible personal property means and includes:
(1)
Personal property which may be seen, weighed, measured, felt or touched, or is in any other manner perceptible to the senses.
(2)
The term "tangible personal property" shall not include:
a.
Stocks, bonds, notes or other obligations or securities.
b.
Gold, silver or numismatic coins, or platinum, gold or silver bullion having a total value of $1,000.00 or more.
c.
Proprietary geophysical survey information or geophysical data analysis furnished under a restricted use agreement even though transferred in the form of tangible personal property.
(3)
The term "tangible personal property" shall not include the repair of a vehicle by a licensed motor vehicle dealer which is performed subsequent to the lapse of the applicable warranty on that vehicle and at no charge to the owner of the vehicle. For the purpose of assessing a sales and use tax on this transaction, no valuation shall be assigned to the services performed or the parts used in the repair.
Use means and includes:
(1)
The exercise of any right or power over tangible personal property incident to the ownership thereof, except that it shall not include the sale at retail of that property in the regular course of business or the donation to a school in the state which meets the definition provided in R.S. 17:236 or to a public or recognized independent institution of higher education in the state of property previously purchased for resale in the regular course of a business. The term "use" shall not include the purchase, the importation, the consumption, the distribution, or the storage of motor vehicles to be leased in an arm's length transaction.
(2)
The term "use," for purposes of sales and use taxes imposed by the state on the use for rental of automobiles which take place on or after January 1, 1991, and by political subdivisions on such use on or after July 1, 1996, and state sales and use taxes imposed on the use for lease or rental of tangible personal property other than automobiles which take place on or after July 1, 1991, shall not include the purchase, the importation, the consumption, the distribution, or the storage of tangible personal property to be leased or rented in an arm's length transaction as tangible personal property.
(3)
The term "use," for purposes of sales and use taxes imposed by the state on the use for rental automobiles which take place prior to January 1, 1991, and by political subdivisions on such use prior to July 1, 1996, and imposed on the use for lease or rental of tangible personal property other than automobiles which take place prior to July 1, 1991, and for purposes of local sales and use taxes levied by political subdivisions, except for any use for rental automobiles on or after July 1, 1996, shall include the purchase, the importation, the consumption, the distribution, or the storage of tangible personal property to be leased or rented in an arm's length transaction as tangible personal property.
(4)
Notwithstanding any other law to the contrary, for purposes of the imposition of the sales and use tax of any political subdivision, the use of a vehicle subject to the Vehicle Registration License Tax Law (R.S. 47:451 et seq.) shall be deemed to be a use:
a.
In the political subdivision of the principal residence of the purchaser if the vehicle is purchased for private use; or
b.
In the political subdivision of the principal location of the business if the vehicle is purchased for commercial use, unless the vehicle purchased for commercial use is assigned, garaged and used outside of such political subdivision, in which case the use shall be deemed a use in the political subdivision where the vehicle is assigned, garaged and used.
(5)
For purposes of state and political subdivision sales and use tax, the word "use" shall not include the exercise of any right or power by a free hospital over items including, but not limited to, supplies and equipment, which are reasonably necessary for the operation of the free hospital.
(6)
Notwithstanding any other provision of law to the contrary, and except as provided in subsection (6)c of this definition, for purposes of state and political subdivision sales and use tax, "use" means and includes:
a.
The exercise of any right or power over tangible personal property incident to the ownership thereof, except that it shall not include the further processing of tangible personal property into articles of tangible personal property for sale.
b.
Except as provided in subsection (6)c of this definition for refinery gas, for purposes of state and political subdivision use tax, the word "use" shall not include the storage, consumption or the exercise of any other right of ownership over tangible personal property which is created or derived as a residue or byproduct of such processing. Such residue or byproduct shall include, but shall not be limited to, catalyst cracker coke derived from crude oil, wood chips, bark and liquor derived from the processing of sawlogs or pulpwood timber, or bagasse derived from sugarcane. If petroleum byproducts other than feedstock is sold to another person, whether at retail, wholesale or for further processing, such sale shall be taxable and the value shall be as provided for in this section.
c.
Notwithstanding any other provision of law to the contrary, and notwithstanding the provisions of this definition, the word "use" shall include the exercise of any right of ownership over the consumption, the distribution, and the storage for use or consumption in this state of refinery gas, except the sale to another person, whether at retail or wholesale, only if the refinery gas is ultimately consumed as an energy source by the person who owns the facility in which it is created and is not sold. Notwithstanding any other law to the contrary, the use of refinery gas shall be taxed at the cost price value provided in this section. If refinery gas, except for feedstock, is sold to another person, whether at retail, wholesale, or for further processing, such sale shall be taxable and the value shall be as provided for in this section. The provisions of this definition shall not apply to feedstock.
(7)
For purposes of state and political subdivision sales and use tax, the word "use" shall not include the purchase of or the exercise of any right or power over:
a.
Tangible personal property sold by approved parochial and private elementary and secondary schools which comply with the court order from the Dodd Brumfield decision and section 501(c)(3) of the Internal Revenue Code, or students, administrators or teachers, or other employees of the school, if the money from such sales, less reasonable and necessary expenses associated with the sale, is used solely and exclusively to support the school or its program or curricula.
b.
Educational materials or equipment used for classroom instruction by approved parochial and private elementary and secondary schools which comply with the court order from the Dodd Brumfield decision and section 501(c)(3) of the Internal Revenue Code, limited to books, workbooks, computers, computer software, films, videos and audio tapes.
(8)
For purposes of state and political subdivision sales and use tax, the word "use" shall not include the purchase of or the exercise of any right or power over tangible personal property used by Boys State of Louisiana, Inc. and Girls State of Louisiana, Inc. for their educational and public service programs for youths.
Use tax means the use, the consumption, the distribution and the storage as defined in this section. No use tax shall be due to or collected by any political subdivision on tangible personal property used, consumed, distributed or stored for use or consumption in such political subdivision if the sale of such property would have been exempted or excluded from sales tax at the time such property became subject to the taxing jurisdiction of the political subdivision.
(Code 1958, § 15B-31)
Cross reference
Definitions generally, § 1-2.