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Finance - Sales, Use & Occupational License Tax

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1. Are businesses with internet sales required to collect sales tax on their sales?

Generally, businesses with internet sales are not required to collect tax on those internet sales. However, if the business has a presence in East Baton Rouge Parish or delivers into East Baton Rouge Parish in its own trucks, it should register for and collect East Baton Rouge Parish sales tax on the sales it makes to East Baton Rouge Parish customers.

2. When are sales taxes due?

The due date for all registered filers is the 1st of the month in which the tax is due. A return is considered delinquent after the 20th of the same month. If the 20th falls on a weekend or holiday, the return must be postmarked by the next work day to be considered paid on time.

3. Which date is used to determine if a return is paid on time?

The U.S. Post Office postmark is used to determine if a return is paid on time.

4. If I do not have any sales or purchases for a certain month, do I still need to file a sales tax return?

Yes.  A return is required to be filed even though you have no sales within the jurisdiction. Please indicate on the return the number "0" in the appropriate columns.

5. To what transactions is sales tax applied?

The sales and use tax is levied on the following transactions:

• The sale of tangible personal property at retail in this parish.
  
  
• The use, consumption, distribution, or storage for use or consumption in this parish of any tangible personal property.
  
  
• The lease or rental of tangible personal property within this parish.
  
  
• The sale of services as defined in the ordinance, which includes the furnishing of rooms by hotels, the sale of admission to places of amusement and to athletic and recreational events, and the furnishing of privileges of access to amusement, entertainment, athletic or recreational facilities; the furnishing of storage or parking privileges by parking lots; the furnishing of printing and over-printing; the furnishing of laundry, cleaning, pressing, and dyeing services; the furnishing of cold storage space and the preparation of property for such storage; and the furnishing of repairs to tangible personal property.

6. What are the sales and use tax rates for all taxing jurisdictions in East Baton Rouge Parish and how are sales taxes distributed?

For questions about the sales and use tax rates (PDF), please contact the Finance Department, Revenue Division, at 225-389-3084 or send an email.

7. Are there any exemptions from the sales tax?

The Sales and Use Tax Ordinance and state law exempts or excludes certain transactions from sales and use tax. Specific information regarding exemptions and exclusions can be obtained from the Revenue Division. Some of the major exemptions and exclusions are listed below:

• Sales of gasoline, natural gas, steam, and water when delivered to consumers via mains, pipes or conduits, electric power, newspapers, fertilizers, and containers used for farm products when sold directly to the farmer
• Isolated or occasional sales of tangible personal property by someone not engaged in the business of selling that type of property; casual or isolated sales shall not apply to the sale of vehicles
• Sales of human tissue transplants including all human organs, bone, skin, cornea, blood, or blood products transplanted from one person into another recipient person
• Sales of electricity for chlor-alkali manufacturing processes
• Sales to bona fide fire protection districts
• Purchases of motor vehicles for lease and autos for rental
• Purchases made with Food Stamps and WIC Vouchers
• Purchases by state and local governments

8. What is the mailing address for sales and use tax returns?

Sales Tax Section
Department of Finance - Revenue Division
City of Baton Rouge
P.O. Box 2590
Baton Rouge, LA 70821-2590

9. Which columns should be used in completing the Sales and Use Tax Report form?

• Column 'A' - Used to report data that relates to the City of Baton Rouge, East Baton Rouge Parish School District.
• Column 'B' - Used to report data that relates to the unincorporated areas of the Parish of East Baton Rouge, East Baton Rouge Parish School District.
• Column 'C' - Used to report data that relates to the unincorporated areas of the Parish of East Baton Rouge, Zachary School District.
• Column 'D' - Used to report data that relates to the City of Baker, Baker School District.
• Column 'E' - Used to report data that relates to the City of Baker, East Baton Rouge Parish School District.
• Column 'F' - Used to report data that relates to the City of Zachary, Zachary School District.
• Column 'G' - Used to report data that relates to the City of Central, Central Community School Board.
• Column 'H' - Used to report data that relates to the unincorporated areas of the Parish of East Baton Rouge, Central Community School Board.

10. What do I do if I owe taxes, but am unable to pay by the due date?

Submit your return by the due date. Any amount paid with your return will reduce the amount of interest and late payment penalty charges. The Revenue Division will bill you for the remainder of tax, interest, and penalties that are owed.

11. What do I do to set up arrangements to pay an outstanding tax liability?

Any local businesses that would like to make arrangements to clear outstanding tax liabilities should contact the Revenue Division - Field Enforcement Section at 225-389-3088, extension 703.  For those businesses that are located outside of East Baton Rouge Parish or out-of-state, please contact the Revenue Division, Taxpayer Assistance Section, at 225-389-3084.

12. How can I become a "Quarterly" filer?

Dealers whose sales tax liabilities average less than $50 per month after filing 12 returns may apply to file on a quarterly basis. If you average more than $50 per month, you will be required to file on a "monthly" basis

13. What are local sales taxes used for?

• The City of Baton Rouge levies a 2% sales and use tax, which is used for general municipal purposes and for servicing bonded indebtedness.
• Unincorporated areas of the Parish levy a 2% sales and use tax, which is used for general parochial purposes and for servicing bonded indebtedness.
• The City of Baker levies a 2-1/2% sales and use tax (effective 10/1/01)for use by that municipality.
• The City of Zachary levies a 2% sales and use tax for use by that municipality.
• The City of Central levies a 2% sales and use tax for use by that municipality (effective July 11, 2005).
• The East Baton Rouge Parish School Board levies a 2% sales tax for teacher salaries and benefits and school system general operations.
• The City-Parish levies a 1/2% parish-wide sales and use tax for sewer improvement purposes, including the cost of operating/maintaining the system, rehabilitation, and new construction.
• The City-Parish levies a 1/2% parish-wide sales and use tax for street improvement purposes, including street and road resurfacing and new construction.
• The City of Baker School District levies a 2% sales tax for school system general operations (effective July 1, 2003).
• The Zachary Community School District levies a 2% sales tax for school system general operations (effective July 1, 2003).
• The City of Central levies a 2% sales tax for general municipal purposes (effective July 11, 2005).
• The Central Community School Board levies a 2.5% sales and use tax for school system general operations (effective July 1, 2009).

14. What is the sales tax and occupational license tax penalty and interest rate?

The delinquent penalty is 5% for each month or fraction thereof and increases by 5% on the 1st day of each month to a maximum of 25%. The interest is 15% per annum calculated on a daily basis until paid.

15. How do I request a waiver of penalty?

A letter explaining the reasons a penalty should be waived should be sent to the Revenue Manager at the following address:

City-Parish Finance Department
Revenue Division
P.O. Box 2590
Baton Rouge, LA 70821

16. What are the guidelines the department uses to decide whether or not to waive penalties?

The following are the primary factors considered when acting on a request for waiver:

• Level of Cooperation with Auditors - If a taxpayer has imposed needless time delays in providing the necessary records to conduct an audit, uses abusive language, subjects auditors to unnecessarily uncomfortable working conditions, or has provided incomplete records, he is less likely to receive favorable consideration.
  
  
• Previous Audits - A taxpayer is more likely to receive a penalty waiver on an initial audit than on subsequent audits. Additionally, if the tax issues in question have previously been the subject of an audit with the taxpayer requesting a waiver, the taxpayer is less likely to receive favorable consideration.
  
  
• Level of Taxpayer Effort - If a taxpayer is attempting to collect or accrue taxes properly and the errors made do not appear to be intentional, then the taxpayer is more likely to receive favorable consideration.
  
  
• Taxpayer Payment History - If a taxpayer has been paying taxes timely in prior periods, his chances of receiving favorable consideration are enhanced.
  
  
• Taxpayer Registration - A taxpayer that has not registered for sales and use taxes with Revenue is less likely to receive favorable consideration than one who has been properly registered.
  
  
• Taxes Collected but Not Remitted - If a taxpayer has collected, but not remitted taxes, he is not in a good position for obtaining favorable consideration.
  
  
• Complexity of Tax Issue. If the tax issue in question is a complex one where the applicability of tax to the transaction is not clear, the taxpayer is in a better position to obtain favorable consideration.
  
  
• Special or Unusual Conditions Relative to Audit Findings - If the tax in question resulted from apparent inadvertent coding errors, the taxpayer is in a better position for obtaining favorable consideration than under other circumstances.
  
  
• Prompt Payment - If a taxpayer pays the tax and interest in a timely manner after being billed following their audit, he is in a better position to obtain favorable consideration.
  
  
• Correction Action - Willingness of a taxpayer to take corrective action to prevent a recurrence of tax underpayment is an important consideration. If a taxpayer is willing to change his method of accounting and procedures in order to reduce the likelihood of the same error occurring again, he is more likely to obtain favorable consideration.

Requests for waivers of penalties may be granted or denied in whole or part.  In all cases, the goal of the Finance Department is to maintain a consistent and effective policy while treating all taxpayers fairly. The factors listed above are also utilized, to the extent applicable, in making decisions relative to penalty waivers in non-audit situations.

17. How is a taxpayer selected for audit?

The taxpayer is selected for an audit based on one or more of the following reasons:

• Not charging tax or incorrectly charging tax
• Not accruing tax
• Improper use of exemption certificate
• Collecting and not remitting tax
• Industry non-compliance problem
• Volume of business in the parish
• Tips from individuals
• Not registered for sales tax and/or occupational license tax