- Are purchases of clothing and supplies made with Red Cross or FEMA vouchers and debit cards exempt from the sales tax?
Yes. The Red Cross is an instrumentality of the United States and FEMA is a federal agency, both of which are exempt from state sales tax on their direct purchases. The Department treats vouchers and debit cards issued by the two agencies, for sales tax purposes, to be the equivalent of the agencies’ direct purchases.
- Are purchases of clothing and supplies made from funds that were paid by check or deposited directly into a person’s checking or savings account by the Red Cross or FEMA exempt from the sales tax?
No. Only purchases made directly by federal, state, or local governments are exempt from sales tax. When the Red Cross or FEMA assistance money is paid by check or deposited directly into an individual’s checking or savings account, it becomes the individual’s personal asset and subsequent purchases made with these funds are not exempt from taxation.
- Are nonprofit agencies that are purchasing items for assistance or distribution to hurricane victims exempt from sales tax?
No. There is no special exemption granted by law to either individuals or private nonprofit organizations on their purchases of items to be donated for use in disaster assistance. Some organizations are specifically exempt from sales tax on their purchases, and will be able to provide exemption certificates to their vendors to confirm their exempt status. If legislation is enacted to provide exemption on purchases for use in disaster assistance, information will be posted on the Department’s website.
- How should taxpayers file sales tax returns with local sales tax authorities that have addresses and zip codes that the U.S. Post Office has indicated will not be delivered mail?
The Louisiana Department of Revenue (LDR) and the Louisiana Association of Tax Administrators (LATA) are working to provide assistance to the areas affected by the hurricanes. Local sales tax returns and payments for parishes that do not have mail service should be mailed to P. O. Box 91138, Baton Rouge, LA 70821-9138. The date of receipt by LDR should satisfy the filing date requirements for the local returns.
- Will there be a sales tax amnesty for businesses closed due to the disaster?
Tax amnesty programs must be enacted by the state legislature. If the legislature enacts an amnesty program related to Hurricane Rita, information will be posted on the Department’s website.
- Will individuals and businesses located in disaster areas be penalized if they are unable to timely file because of the extensive damage caused by the hurricane?
For taxpayers located in a disaster area, the Secretary has granted a 30-day extension for any state sales tax due for the month of September 2005 and a 60-day extension for all taxes other than income. These extensions also apply to taxpayers whose tax preparers are located in a disaster area. The extension for state income tax returns will be the same as the extension granted by the Internal Revenue Service for federal income tax returns.
When filing returns, taxpayers should write the words “Hurricane Rita” in black or blue ink on the top of the return to indicate the late filing status.
- How should businesses that file a consolidated sales tax return for all of their locations in Louisiana report sales from their locations in disaster areas?
Business that file consolidated returns for multiple locations should report sales from those locations that are not in the disaster area for the September 2005 return filed in October. Before the end of the extension, the company can file an amended return including the disaster area locations’ sales tax information without penalty by writing the words “Hurricane Rita” on the top of the return. If all of the locations are within the disaster area, the return can be filed by the end of the extension without penalty.
