Sales and Use Tax

Note: Call the Louisiana Department of Revenue at (225) 219-7356 concerning the state tax rate or visit them online at www.rev.state.la.us.

The Sales/Use Tax Ordinance stipulates the requirement of every dealer to keep records. Proper records must be maintained in support of each sales/use tax return that is filed with this office.

The local ordinance, the Uniform Tax Code (UTC), is very specific about preserving adequate records. It states that every dealer is required to keep and maintain suitable records of sales, purchases, or the purchase or sale of services as the case may dictate. LA R.S. 47:309 states that the system of records should be suitable enough to support the accuracy of every return filed with the department. Some of the records necessary, but not limited to, are sales invoices, purchase orders, merchandise records, inventory records, bills of lading, shipping records, and all other pertinent records to sales, purchases, or use of tangible personal property, whether or not the dealer thinks they are subject to sales or use tax. Within this scope of records to keep are the details of property leased or rented in the instance of both rentals from and to others. It should be noted that bank deposits alone are not suitable records without the backup from other documents including cash register tapes (z-tapes) and sales invoices.

The consequences of not making records available for inspection by the Collector or for not preserving adequate records enough to confirm the correct tax liability could subject the violator to a fine up to $500 for each reporting period or imprisonment for up to sixty (60) days or both as stated in the provisions of LA R.S. 47:309 of the UTC.

Anyone needing to purchase an Occupational License should call the Business License and Permit Office in the city or town your business is located. For businesses located in the unincorporated areas, call the Parish License Office.

A Sales and Use Tax Report form can be mailed to you upon request by calling (337) 217-4280 or may be picked up from our office located at 2439 6th Street, Lake Charles, LA. Since the implementation of our new digital imaging system, only original forms will be accepted. Photocopies, fax copies, spreadsheets, and tax service prepared forms will no longer be accepted. You may also request online that a form be mailed to you. Many other forms are also available online by accessing the “Tax Forms” section on the Sales Tax Department home page.

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 workday to be considered paid on time.

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

For a new business, the Occupational License Tax is due prior to the opening date. Renewal of an Occupational License is due on January 1st and becomes delinquent on March 1st. Contact the appropriate municipal or parish license office for further information.

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 1.25% per month or fraction thereof and increases by 1.25% on the 1st day of each month until paid.

• Column A – Used to report data that relates to the unincorporated areas of the Parish except Ward One (1)
• Column B – Used to report data that relates to the City of Lake Charles
• Column C – Used to report data that relates to the City of Sulphur
• Column D – Used to report data that relates to the Town of Iowa
• Column E – Used to report data that relates to the City of DeQuincy
• Column F – Used to report data that relates to the Town of Vinton
• Column G – Used to report data that relates to the City of Westlake
• Column H – Used to report data that relates to the Ward One (Moss Bluff, Gillis, Topsy)
• Column I – Used to report data that relates to the Hope Economic Development District (Sulphur)
• Column J – Used to report data that relates to the Opelram Economic Development District (Sulphur)
• Column K – Used to report data that relates to the Executive Economic Development District (Sulphur)
• Column L – Used to report data that relates to the MorganField Econ. Dev. District (Lake Charles)
• Column M – Used to report data that relates to the Lakefront Economic Development District (Lake Charles)
• Column N – Used to report data that relates to the Nelson Market Economic Development District (Lake Charles)

Sales taxes are distributed as follows for transactions occurring within the:

Use tax is complementary to sales tax. When items are purchased locally, sales tax is often charged with each transaction. Purchases of similar items from out of town or out of state concerns generally do not include taxes and the use tax would be due on the purchase price. Other examples of transactions which require the purchaser to report use taxes are those where purchases are made through catalogs or over the Internet.

Submit your return by the due date. Any amount paid with your return will reduce the amount of interest charged. The office will bill you for the remainder of tax and interest owed.

Installment arrangements are handled by the Tax Compliance Section at (337) 217-4280 extensions 3409, 3414, 3419, or 3424.

Labor charges associated with the repairing and routine servicing of most tangible, personal property such as appliances, automobiles, office equipment and similarly related items are subject to a sales tax. Separately stated labor charges with the installation of new tangible, personal property is not subject to the tax.

Delivery charges in and by themselves are classified as a service and ordinarily would not be subject to a sales tax. However, there are instances where delivery charges are an inseparable part of the transaction and consequently would be includable in the taxable base. A simple rule of thumb has been the use of certain terminology such as FOB origin and FOB destination. FOB origin transactions tend to reflect that delivery charges are not part of the sale although the vendor may as a customary service to their clients make the arrangements predicated on information given them by their customer. In these transactions any separately stated delivery charges would not be includable in the taxable base since the dealer is not responsible for delivering articles purchased to the customer. On the other hand, when the vendor has an obligation to deliver items purchased from them, more than likely any stated charges for delivery would be includable in the taxable base. In this instance the transaction is not completed and transfer of ownership does not occur until delivery is made. Other forms of delivery charges such as inbound freight or freight in are includable in the taxable base regardless of a separate charge appearing on the invoice.

The law requires each and every retail dealer of goods and/or services to issue purchaser a receipt noting a transaction that has occurred. Often times this is done in the form of a cash register receipt, which reflects the name of the business, the item(s) or services purchased along with a breakdown of prices and separately stated taxes. These receipts are important for both parties as they are used either for tracking sales within the particular business concern or may be used for refund purposes by the purchaser. Persons who do not receive a receipt from the business they have purchased articles and/or services should contact the sales tax office for possible investigation.

Donations of motor vehicles to family members are customarily not subject to sales or use tax. However, other fees associated with the transfer of title from one owner to another will typically apply. The Office of Motor Vehicles generally requires a duly notarized Act of Donation presented at the time of transfer in order to validate the intent of both parties.

This type of transaction, one occurring between individuals who do not hold themselves out as being in the business of selling such property, is typically viewed as a casual or isolated sale and not subject to tax at the local level only. Please visit the Louisiana Dept. of Revenue's website for a complete breakdown of the state tax rate for this type of transaction. However, if the transaction involves a trailer, then sales or use taxes will be due at the time the title is transferred at the Office of Motor Vehicles. The tax will be based upon the value of the trailer only. Although the sale of a boat between individuals is usually not subject to local tax for the reason earlier stated, the buyer will be unable to secure a hull number from the Department of Wildlife and Fisheries until evidence is provided that all taxes have been satisfied. The Department of Wildlife and Fisheries provides a form that must be taken to our office for signature which will reflect whether taxes have been paid or no taxes were due (effective October 2015 our office collects boat registrations on behalf of the State).

Collecting sales tax at special events ensures fair treatment to all customers and vendors, and helps both the state and local economies. The vendor collects sales tax from the consumer and remits it to the appropriate taxing authority. The money collected funds schools, roads, and police and fire protection. All persons and entities making retail sales are to collect and remit local sales tax.

Special events include fairs, craft shows, trade shows, flea markets, art shows, farm markets, concerts, festivals, carnivals, swap meets, and fund raising events. They may also include conventions, picnics, and other gatherings where retail sales are made.

What is an event? – An event is an occurrence, occasion, activity, or function at which merchandise is sold or traded or taxable services are provided.

Who is a vendor? – A vendor is defined as a person or entity selling merchandise, providing a taxable service, or attending to an informational booth. A vendor may also be referred to as a seller, exhibitor, or booth owner.

Why must I collect and remit local sales taxes? – It is the law. Provided every one complies, local sales tax ensures fair opportunity for all vendors.

Are admissions taxable? – Admissions to any place providing amusement, entertainment, or recreational services require local sales tax to be collected.

Is there local sales tax on food? – Local sales tax is required to be charged on all prepared food sales.

What if I didn’t collect local sales tax? – Local sales tax is collected on all sales. Local sales tax may be added to the price of an item or included in the price of an item. If local sales tax is included in the price of an item, the vendor must post, in a conspicuous location, a sign stating that “All prices include local sales tax”. You will be responsible for the local sales tax whether you intentionally collected it or not.

There is another 2% sales tax increase to take effect July 1, 2016. Please click here to see a map of the boundaries of this district that is located within the Executive Economic Development District. This rate increase is NOT for the entire City of Sulphur. Currently, there are no businesses that are located in this district. This will appear on Column K (Executive Economic Development District) of the parish sales tax return. This increase will bring the overall rate for sales and use tax in Column K (Executive EDD) to 7.75%. The new rate will also reflect an increase of 2% hotel/motel tax on Column D (Executive Economic Development District) of the parish hotel/motel return. This increase will bring the overall rate for hotel/motel tax in Column D (Executive EDD) to 6%.

There is another 2% sales tax increase to take effect April 1, 2016. Please click here to see a map of the boundaries of this district that is located within the Opelram Economic Development District. This rate increase is NOT for the entire City of Sulphur. Currently, there are no businesses that are located in this district. This will appear on Column J (Opelram Economic Development District) of the parish sales tax return. This increase will bring the overall rate for sales and use tax in Column J (Opelram EDD) to 7.75%. The new rate will also reflect an increase of 2% hotel/motel tax on Column C (Opelram Economic Development District) of the parish hotel/motel return. This increase will bring the overall rate for hotel/motel tax in Column C (Opelram EDD) to 6%.

There is another 2% sales tax increase to take effect January 1, 2016. This will appear on Column I (Hope Economic Development District) of the parish sales tax return. This increase will bring the overall rate for sales and use tax in Column I (Hope EDD) to 7.75%. The new rate will also reflect an increase of 2% hotel/motel tax on Column B (Hope Economic Development District) of the parish hotel/motel return. This increase will bring the overall rate for hotel/motel tax in Column B (Hope EDD) to 6%. Please click here to see a map of the boundaries of this district that is located within the Hope Economic Development District. This rate increase is NOT for the entire City of Sulphur. Currently, there are no businesses that are located in this district.  

There is a 1% sales tax increase to take effect January 1, 2018. This will appear on Column L (MorganField Economic Development District) of the parish sales tax return. This increase will bring the overall rate for sales and use tax in Column L (MorganField EDD) to 6.75%. The new rate will also reflect an increase of 1% hotel/motel tax on Column E (MorganField Economic Development District) of the parish hotel/motel return. This increase will bring the overall rate for hotel/motel tax in Column E (MorganField EDD) to 5%. Please click here to see a map of the boundaries of this district that is located within the MorganField Economic Development District. This rate increase is NOT for the entire City of Lake Charles. Currently, there are no businesses that are located in this district.

There is a 1% sales tax increase to take effect January 1, 2018. This will appear on Column M (Lakefront Economic Development District) of the parish sales tax return. This increase will bring the overall rate for sales and use tax in Column M (Lakefront EDD) to 6.75%. Please click here to see a map of the boundaries of this district that is located within the Lakefront Economic Development District. This rate increase is NOT for the entire City of Lake Charles.

There is a 1% sales tax increase to take effect July 1, 2021. This will appear on Column N (Nelson Market Economic Development District) of the parish sales tax return. This increase will bring the overall rate for sales and use tax in Column N (Nelson Market EDD) to 6.75%. Please click here to see a map of the boundaries of this district that is located within the Nelson Market Economic Development District. This rate increase is NOT for the entire City of Lake Charles.

Effective November 1, 2009, locally prepared Resale Exemption Certificates shall no longer be issued by the Calcasieu Parish Sales/Use Tax Office. Resale exemption certificates R-1064 or R-1055 will now be issued by the LA Department of Revenue. Existing retail dealers should have received their certificate(s) already while new registrants will receive them either by virtue of their business classification (NAICS Code) or through application. Since the LA Department of Revenue commenced the issuance of their Resale Exemption Certificate effective Nov. 1, 2009, the Calcasieu Parish Sales/Use Tax Office discontinued issuance of a local certificate. We advised our local dealers that they could accept the LA State Resale Exemption in lieu of a local certificate. Act 438 of the 2012 Legislative Session states that local tax collections shall accept an exemption certificate issued by the DOR. Local certificates may be requested for intra-parish activity as an exception. Calcasieu does not require dealers to have a local certificate if they have secured their state resale exemption certificate. Interested parties should visit the Department's website at www.rev.state.la.us for further information.

Are you a new business owner and overwhelmed by the number of forms and information you need to produce? Maybe you've been in business a while but are unsure of exactly what forms you need to complete. Our office has the answer--Sales Tax 101 is a short session offered to dealers to help answer questions and make filing returns easier. CLICK HERE to download the presentation (rates effective July 1, 2016). You may also call our office for more information or to schedule an appointment for individual assistance.

Effective September 1, 2012, credit cards are no longer accepted.