§ 70-67. Tax on certain purchases and rental property; credits and refunds.

(a)

Sales or use taxes paid to the board of aldermen on the purchase of new motor trucks and new motor tractors licensed and registered for 12,000 pounds or more, under the provisions of R.S. 47:462, new trailers and new semitrailers licensed and registered for 16,000 pounds or more under the provisions of such section for rental may be deducted as a credit against the tax due on the rental of that item of property so that no tax is payable on rental income until the tax paid on the purchase price has been exceeded. The sales tax paid to another authority or taxing authority in the state, or in an authority in a state other than the State of Louisiana on the purchase price of property is not deductible from the tax subsequently due on the rental of such property in the authority. Property imported by the lessee for use in the authority that has been previously used by him in another authority is not subject to any tax on the value when imported, but is only subject to the tax that applies on rental payments.

(b)

If the tax on rental income fails to exceed the credits for sales or use tax paid, no refund is due the purchaser.

(c)

A dealer in the authority who ordinarily purchases personal property for sale and who withdraws a piece of property from stock for rental is not liable for a sales or use tax on the purchase price of the property when withdrawn from stock. Such person is liable only for the tax applicable on the rental income.

(d)

Any sales tax paid on any maintenance or operation expenses of a rental business is not deductible as a credit against the tax due on rental income. Such expenses are part of the cost of doing business and do not constitute a part of the cost of the identical property being rented.

(Code 1958, § 15B-52)