LAC 61:I.4353 — Collection from Interstate and Foreign Transportation Dealers

A. R.S. 47:306.1 specifically provides for an option by persons engaged in interstate or foreign commerce transporting passengers or property for hire to register as dealers and pay the taxes imposed by R. S. 47:302(A) on the basis of the formula hereinafter provided; however, since the intent is apparent, the option equally applies to the tax imposed by R.S. 47:321(A) and R.S. 47:331(A). All persons engaged in the business of transporting passengers or property for hire in interstate or foreign commerce can avail themselves of this option; however, only such purchases and importations, as hereinafter defined, used in the furtherance of the interstate or foreign commerce activity will come under this option. Specifically, a person engaged in activities and operations of another nature cannot apply the option to such purchases and importations, as hereinafter defined, and must pay the tax in the manner prescribed in R.S. 47:302(A), R.S. 47:321(A), and R.S. 47:331(A).
B. Carriers which do not elect to report and pay Louisiana sales and use taxes under the optional formula provided by R.S. 47:306.1 shall report and pay the Louisiana sales tax on all purchases made within the state of Louisiana, and shall report and pay the use tax on all tangible personal property imported into the state of Louisiana and becoming a part of the mass of the taxpayer's property located within the state.
C. Carriers which elect to report and pay Louisiana sales and use taxes under the optional formula provided by R.S. 47:306.1 shall be governed by the provisions set forth below.
D. For purposes of this regulation, gross purchases and importations means all tangible personal property purchased by the taxpayer, within or without the state of Louisiana, and all property imported into Louisiana subsequent to the effective date of this regulation, on which no Louisiana sales or use tax has been paid.
E. Carriers desiring to avail themselves of the provisions of this optional formula, which have not previously registered with the secretary for such purposes, shall apply to the secretary for an interstate or foreign carrier dealer's number, and submit satisfactory proof to the secretary that they are engaged in the transporting of passengers or property for hire in interstate or foreign commerce. Proof that they are subject to appropriate federal regulatory agencies, such as the ICC, CAA, etc., shall normally be sufficient. The secretary shall then issue a registration number which may be used for the purpose of making purchases or importations into this state without payment of sales or use taxes at the time of purchase or importation.
F. Carriers currently registered with the secretary as an interstate or foreign carrier may continue to operate under the interstate or foreign carrier dealer's number which has been issued to them; however, carriers electing to report under this optional formula must expressly signify their election, in writing, at the time of filing their first sales tax return following the effective date of this regulation. All carriers who do not expressly so elect to report under the optional formula shall be presumed conclusively to have elected not to report under the formula.
G. An election either to report under the optional formula or not to report under the optional formula may not be withdrawn without written consent of the secretary for good cause shown.
H. Sellers of tangible personal property may recognize the claim of a buyer that the property concerned is to be used in the transporting of passengers or property for hire in interstate or foreign commerce only if the buyer is properly registered hereunder, and only if the buyer submits a blanket certificate, Form LGST 12, signed by and bearing the name, address and registration number of the buyer, to the effect that he is using the property purchased in the business of transporting persons or property or services purchased in the business of transporting persons or property for hire in foreign or interstate commerce and that he will pay the taxes owed directly to the secretary under the provisions of R.S. 47:306.1. Blank certificates may be obtained from the secretary. Sellers will be responsible for the collection of tax on all sales made to persons who have not secured the proper registration number. A dealer who fails to secure or keep for the secretary examination certificates signed by the buyer will be liable for and must pay the tax himself.
I. On or before the twentieth day of each month, the carrier shall transmit to the secretary on forms furnished by the secretary, returns showing the gross purchases and importations. The taxable base shall be determined by applying the mileage ratio (miles traveled in Louisiana divided by total miles traveled) to the gross amount referred to above. The prevailing tax rate shall be applied to the taxable base to determine the amount of tax due.
J. R.S. 47:306.1 applies only to the tax imposed on sales and use of tangible personal property, as set forth in R.S. 47:302(A), R.S. 47:321(A), and R.S. 47:331(A). The tax imposed on the lease or rental of tangible personal property [R.S. 47:302(B), R.S. 47:321(B), and R.S. 47:331(B)] and the tax on sales of services [R.S. 47:302(C), R.S. 47:321(C), and R.S. 47:331(C)] may not be paid and reported under the optional method provided by R. S. 47:306.1.