2012 Louisiana Hurricane Preparedness Sales Tax Holiday
Saturday, May 26 & Sunday, May 27

Louisiana Revised Statute 47:305.58 provides for an annual state sales tax holiday on sales of hurricane-preparedness items or supplies made on the last Saturday and Sunday of each May. During the two-day annual holiday, tax-free purchases are authorized on the first $1,500 of the sales price of each of the following items:

• portable self-powered light source;
• portable self-powered radio, two-way radio, or weather band radio;
• tarpaulin or other flexible waterproof sheeting;
• any ground anchor system or tie-down kit;
• any gas or diesel fuel tank;
• any package of AAA-cell, AA-cell, C-cell, D-cell, 6-volt, or 9-volt batteries, excluding automobile and boat batteries;
• any cellular phone battery and any cellular phone charger;
• any non-electric food storage cooler;
• any portable generator used to provide light or communications or preserve food in the event of a power outage;
• any “storm shutter device,” as defined in the Act;
• any carbon monoxide detector; and
• any blue ice product.

La. R.S. 47:301(10)(ee), and 301(18)(o), as enacted by Act 462 of the 2007 Regular Session, provide a permanent state sales and use tax exclusion for storm shutter devices. La. R.S. 47:337.10(m) authorizes, but does not require, political subdivisions of the state to provide a similar exclusion from their sales and use taxes. Accordingly, the state sales tax exemption on storm shutter devices is not limited to the two days of the sales tax holiday. The term “storm shutter device” is defined for purposes of both the holiday and the permanent exclusion as materials and products manufactured, rated, and marketed specifically for the purposes of preventing window damage from storms.

Conditions for Exemption

The following activities will be eligible during the two days of each annual holiday for the sales tax exemption:

• buying and accepting delivery of eligible hurricane-preparedness items or supplies;
• placing eligible items or supplies on layaway;
• making final payment on and withdrawing eligible items or supplies previously placed on layaway; or
• ordering an eligible item for immediate delivery, even if delivery must be delayed, provided that the customer has not requested delayed shipment.

Special Provisions

The Act provides that:

• The exemption is allowed on both inputs to and withdrawals from layaway.
• Purchases of eligible items or supplies during the holiday with “rain checks” issued before the holiday are eligible for exemption, but purchases after the holiday with “rain checks” issued during the holiday are not eligible for exemption;
• Orders for immediate shipment are eligible for exemption even if the shipment is after the holiday, provided that the customer does not request delayed shipment;
• The post-holiday exchange of merchandise to effectuate changes in size, color, or correction of defects does not create a tax liability, but exchanges after the holiday for dissimilar items will be considered the purchase of new property on which the sales tax will be payable;
• For a 60-day period after the holiday, dealers who issue refund or credit for the return of merchandise that was eligible for sales tax exemption during the holiday can issue refund or credit for the state sales tax on that returned merchandise only if the customers returning the property have receipts showing that the tax was actually paid on the original purchases, or the dealers are otherwise able to document that the state sales tax was paid on the original purchases.

The sales tax holiday does not extend to hurricane-preparedness items or supplies purchased at any airport, public lodging establishment or hotel, convenience store, or entertainment complex. Since these terms are not defined by La. R.S. 47:305.58 the department has published a rule, LAC 61:I.4423, to define the terms.

The 2012 sales tax holiday will begin at 12:01 a.m. on Saturday, May 26 and conclude at 11:59 p.m. on Sunday, May 27.

Return Filing Procedures 

Retailers should report exempt sales on Line 24 of the Sales Tax Return (R-1029).

A historic agreement between the Covington Fire Department and St. Tammany Fire Protection District 12 was signed Monday morning, putting an end to decades-old turf disputes between the two government entities.

The intergovernmental agency agreement establishes the service areas of the Covington Fire Department and FD12 and ends a longstanding dispute over annexation and tax collection for the two entities.

“You have put your citizens first and put together a plan that serves everyone,” said St. Tammany Parish President Pat Brister, who was present for the signing.

Covington Fire Chief Richard Badon, left, and FD12 Chief Darrell Guilot shake hands at the signing of the agreement between the two entities. (Staff Photo by Debbie Glover)

Covington Mayor Mike Cooper and FD 12 Board Chairman Joe Mitternight signed the agreement, flanked by Covington Chief Richard Palmisano and FD 12 Chief Darrell Guilot.

“In the short time Pat has been president, it seems we have a friend in parish government to help us move together,” said Covington Councilman-At-Large Sam O’Keefe. “This is a situation we have been working on since 1987, and it’s a good agreement. The fire agencies have gotten together and worked for the betterment of the community. Thank you for working for our citizens.”

Councilman-at-large Lee Alexius added, “Kudos to Sam and his committee who have worked tirelessly on this agreement. We had some concerns, and the agreement is not ideal. By that, I mean there has been some give and take on both sides. There are still things to be worked out, but we are not letting the grass grow under our feet. There is already a meeting scheduled to iron out the details and resolve them. Thank you for your cooperation.”

“Thank you to all parties,” said Cooper. “We have laid the foundation for any needed changes. We have worked together for a high level of enhanced service for the mutual benefit of the citizens with a partnership we hope we last well into the future.”

The agreement will ensure the withdrawal of lawsuits regarding taxation of annexed properties into the city that date back many years. The new agreement will set the date of Jan. 1, 2011, as the date by which fire millage will be determined. Properties within the city limits as defined on that date will be subjected to the ad valorem millage fire millage of Covington of 10 mills. Any property that was annexed after that date will be subjected to the FD 12 ad valorem millage or property tax of 25 mills.

Many of the problems over the past 20 years have resulted from the city’s annexation of property outside the city limits that was covered by FD12 and paying the 25 mills in ad valorem tax to the St. Tammany Parish Sheriff’s Office for FD12 fire protection. As part of the city, the fire protection ad valorem tax collected by the Sheriff’s Office is 10 mills.

In some of these cases the property owners were being billed twice, and the result was lawsuits to determine who should give them fire protection and how much millage they should pay. This agreement addresses those issues.

The agreement states that as consideration for the “district providing fire protection services within the city of Covington and outside of the city’s service area, the city shall, within 60 days of receipt of its annual fire millage payments, remit to the district the collected city’s fire millage proceeds for all properties lying within the city limits of Covington as defined Jan. 1, 2011, but outside the city service area.”

The agreement also provides that “for the city providing fire protection services within the city service area but outside the city limits, the district shall, within 60 days of receipt of its annual millage payment, remit to the city the district’s collected tax proceeds for all properties lying within the city service area but outside the city limits as defined Jan. 1, 2011.”

In other words, there will be no more double taxation for residents, and the resulting lawsuits have all been dropped.

“Citizens in both FD12 and Covington Fire Department’s service areas will continue to receive excellent fire protection, including mutual aid, and we can all remain even more focused on protecting the public,” said Mitternight. “We are grateful to Mayor Cooper and to the City Council for working with us in this cooperative effort, and we’re excited to have finally resolved these issues.”

“We’re happy to be putting these issues behind us,” said Cooper, who led negotiations to end the longstanding dispute. “Our mission as public servants is to ensure the delivery of essential services while being good stewards of taxpayer dollars. This agreement advances that mission.”