Louisiana Sales Taxes – Newspapers



LOUISIANA SALES TAX – NEWSPAPER INDUSTRYIn the last 10+ years, several major Legislative changes have occurred that affect the newspaper industry as it relates to the taxation of production and distribution of publications:The sales tax exemption for newspapers that was formerly provided by R.S. 47:305(D)(1)(e), and which was fully or partially suspended at varying rates since 1986, was repealed and replaced with an exclusion for newspapers from the definition of “tangible personal property”. The advance sales tax, formerly imposed upon retailers on their purchases of tangible personal property for resale, was repealed. A sales, use, lease, and rental tax exclusion for machinery and equipment used primarily to produce “news publications” was added. The law was amended to provide a special methodology for the payment and collection of the tax on purchases by a publishing business of printing services provided by an unrelated third party to print “news publications” was added. The sales tax exemption for certain raw materials used in the printing process (see R.S. 47:305.44) was restored to three-quarters effectiveness, with only the one percent (“permanent penny”) remaining due. The following sales tax matrix provides a synopsis of the interpretation of Louisiana laws regarding the taxation of various components of producing and distributing a publication. The matrix is divided into two categories - “Production” and “Distribution”. This matrix should be viewed as providing “best practices”, but should not be relied upon as tax advice being rendered by the LPA, Broussard Partners & Associates or Roedel Parsons.A.PRODUCTIONPublisher publishes and prints at its own printing plant the following publications:Paid Distribution, NewspaperPurchase Of Newsprint/Ink State Sales Tax – None (resale items); can be purchased tax-free with resale certificateLocal Sales Tax – None (resale items); can be purchased tax-free with resale certificatePurchase Of Other Printing MaterialsState Sales Tax – Tax due (1%)Local Sales Tax – None Free Distribution, Non-Newspaper ProductPurchase Of Newsprint/InkState Sales Tax – Tax due (1%)Local Sales Tax – Tax due – applicable local ratePurchase Of Other Printing MaterialsState Sales Tax – Tax due (1%)Local Sales Tax – Tax due – applicable local ratePaid Distribution, Non-Newspaper ProductPurchase Of Newsprint/InkState Sales Tax – None; paper, ink, and packaging material can be purchased tax-free with resale certificate Local Sales Tax – None; paper, ink, and packaging material can be purchased tax-free with resale certificate Purchase Of Other Printing MaterialsState Sales Tax – Tax due (1% on items listed in R.S. 47:305.44; 4% on all other items) Local Sales Tax – None on items listed in R.S. 47:305.44; all other items taxable at applicable local rate Publisher/Printer prints the following publications for non-related publisher:Paid Distribution, NewspaperPurchase Of Newsprint/InkState Sales Tax – None (resale items); can be purchased tax-free with resale certificate Local Sales Tax – None (resale items); can be purchased tax-free with resale certificate Purchase Of Other Printing MaterialsState Sales Tax – Tax due (1% on items listed in R.S. R.S. 47:305.44; 4% on all other items) Local Sales Tax – None on items listed in R.S. 47:305.44; all other items taxable at applicable local rate Free Distribution, Non-Newspaper ProductPurchase Of Newsprint/InkState Sales Tax – Since the advance sales tax is no longer levied, can be purchased tax-free with a resale certificate Local Sales Tax – can be purchased tax-free with resale certificate Purchase Of Other Printing MaterialsState Sales Tax – Tax due (1% on items listed in R.S. R.S. 47:305.44; 4% on all other items) Local Sales Tax – None on items listed in R.S. 47:305.44; all other items taxable at applicable local ratePaid Distribution, Non-Newspaper ProductPurchase Of Newsprint/InkState Sales Tax – None; can be purchased tax-free with resale certificate Local Sales Tax – None; can be purchased tax-free with resale certificatePurchase Of Other Printing MaterialsState Sales Tax – Tax due (1% on items listed in R.S. R.S. 47:305.44; 4% on all other items) [Ray – is 4% correct?] Local Sales Tax – Materials that are eligible for the exemption provided by R.S. 47:305.44 can be purchased tax-free. The partial and indefinite suspension does not apply to local sales and use taxesB.DISTRIBUTIONI.Paid Distribution, Newspaper1.Sale Of Newspaper By Publisher, Convenience Stores, Newsstands, et al. – no state or local sales tax due on publication that “qualifies” as a newspaper, whether directly by publishers to subscribers, by dealers, convenience stores or newsstands to subscribers or purchasers, to dealers for resale, or through coin racks II.Free Distribution, Non-Newspaper ProductFree Distribution By PublisherState Sales Tax – NoneLocal Sales Tax – NoneIII.Paid Distribution, Non-Newspaper ProductSale of Non-Newspaper By PublisherFrom Publisher’s Coin RacksState Sales Tax –None Local Sales Tax – Tax due at applicable local rateAll Other Sales By PublisherState Sales Tax – Tax due (4%) Local Sales Tax – Tax due - applicable local rateIV.Sale Of Newspaper or Non-Newspaper/Printing Services To Publisher/Buyer (Subsequent Paid Distribution)State Sales Tax – None; publisher/buyer can purchase the printed newspapers tax-free with resale certificateLocal Sales Tax – None; publisher/buyer can purchase the printed newspapers tax-free with resale certificateC.“NEWS PUBLICATIONS”I.Sale Of Non-Newspaper/Printing Services To Publisher/Buyer (Subsequent Free Distribution)State Sales Tax – If the printed product qualifies as a “news publication”, the publisher/buyer can acquire the printed product/printing services tax-free withR-1320 state sales tax exemption certificate. The publisher/buyer will then calculate and pay the state sales tax directly to the state LDR in accord with R.S. 47:301(3)(h) or 47:301(13)(i) If the printed product does not qualify as a “news publication”, tax due (4%)Local Sales Tax – If the printed product qualifies as a “news publication”, the publisher/buyer can acquire the printed product tax-free with R-1320 state sales tax exemption certificate or comparable local sales tax exemption certificate. The publisher/buyer will then calculate and pay the tax directly to the local tax authority in accord with R.S. 47:301(3)(h) or 47:301(13)(i)If the printed product does not qualify as a “news publication”, tax due – applicable local rate ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download