CALCASIEU TAX REVIEW
Volume 14, Issue 1 January 2002

2001 Legislative Highlights
The following is a summary of legislation that impacts local sales and use tax matters. All Acts are effective August 15, 2001, unless otherwise indicated.

ACT 13 – Requires licensed dealers in motor vehicles who sell, assign, or otherwise transfer a lease agreement to a motor vehicle lessor to include all unremitted taxes collected. Requires the lessor to remit such taxes to the appropriate tax authorities.

ACT 60 - Excludes from local sales and use taxes the purchase, lease, or rental of tangible personal property when the transaction is made under Medicare. Effective 5-24-01

ACT 245 – Provides for Tax Free Shopping where a dealer is allowed to absorb all or part of the sales tax and relieve the purchaser from payment of the tax. Dealer is required to include language in the advertisement and on the receipt given the purchaser that the dealer will pay the tax on the purchaser’s behalf.

ACT 1140 – Authorizes a court to allow a taxpayer to post a commercial bond in lieu of making a payment under protest as required when a taxpayer is aggrieved by the collector’s assessment. Requires a suit to be filed within 30 days of receipt of a final assessment. Effective 6-29-01

We’re Moving!!!
After 19 years at our present location, your tax office will be moving to a new facility, located at 2439 Sixth Street. We expect to be in these new offices around March 1, 2002. Further notice will be given at the appropriate time.

Certificate of Authority
Since July 1, 1968, dealers who purchase or import tangible personal property for resale are required to file for a certificate of registration within three (3) days after opening (or starting) a business. Within five (5) days after such registration, the collector shall issue a certificate of authority empowering such dealer when applicable to collect the tax from purchasers.

Each certificate or duplicate (if multiple locations) shall state the place of business for which it is applicable. In addition, the certificate of authority shall be prominently displayed in all places of business of the dealer. However, in the case of itinerant vendors where no regular place of doing business exists, the certificate shall be displayed by attaching it to the dealers cart, stand, truck or other appropriate merchandising device. Further, the certificates are non-assignable or non-transferable and must be surrendered immediately to the collector upon ceasing business at the place named.

Policy on Filing Frequencies
Although our registration application offers dealers a choice of filing frequencies, there are general rules considered before assigning a frequency. Typically, the frequencies listed (monthly, quarterly, occasionally, semi-annual, and annual) seem self explanatory with exception of our occasional frequency.

The occasional filing frequency is assigned normally to dealers who are not expected to generate a tax liability on a regular basis thus making a monthly or quarterly choice impractical. Our general concept is to allow a dealer under the irregular conditions to file a return only when a liability exists. A large number of dealers assigned an occasional filing status send “no sales” or “zero tax due” returns every month. Again, the “occasional” frequency is assigned to reduce the filing obligation from every month, quarter, etc. to only when taxes are due. If your return has “Occasional” printed above your account number, don’t send in a return if there are no taxes due. Keep in mind; you only get two (2) returns for this frequency every six months. Use them wisely!

Dealers who are on a monthly, quarterly, semi-annual, or annual reporting basis are expected to file a return at the end of the appropriate tax period. This requirement does include filing “no sales” or “zero” returns.

Officer and Director Liability
When a corporation, limited liability company, or limited partnership fail to file sales tax returns or to remit taxes collected from purchasers or consumers under the provisions of the Sales Tax Ordinance, the Collector is authorized to hold officers or directors, managers or members who have direct control or supervision of such taxes or charged with the responsibility of filing such returns personally liable when they willfully fail to remit or account for taxes collected. Their liability shall include the total amount of taxes collected and not remitted in addition with applicable penalties, interest and fees. Collection of the amounts due may be made from anyone or any combination of officers or directors, managers or members who willfully fail to remit such taxes collected as authorized by the sales tax ordinance.

Membership Fees Taxable
Most persons presume health clubs are not taxable because their primary business evolves around providing access to fitness equipment and other fitness related facilities. Contrary to that presumption, under the provisions of the Sales Tax Ordinance, contracts for membership in a health and physical fitness club are taxable. The computation of tax shall be based on the amount paid each month less any actual or imputed interest or collection fees or unpaid reserve amounts not received by the health club. This obligation shall be due and payable on a monthly basis.

The general authority to tax membership fees is supported in Section 1.18 of the Ordinance under the description of “Sales of Services”. Item “B” of that section clearly describe this taxable event as the cost of admission to having access to the club or privilege of using the club and/or facilities.

Membership fees and dues of non-profit civic organizations such as the YMCA, CYO, and the YWCA shall not be included under the definition of “sales of services” and therefore, shall not be treated as taxable.

ADDRESS CHANGE
Our mailing address is P. O. Drawer 2050, Lake Charles, LA 70602-2050. Please ensure that all correspondence, returns, and remittances being forwarded to the Sales Tax Department are sent to this address.

**PLEASE NOTE**

The Sales Tax Department will be closed for the following holidays:

M. L. King, Jr. Day January 21, 2002
Mardi Gras February 11-13, 2002
Easter March 29, 2002 – April 3, 2002

RETURN DUE DATES
(Also applicable to Hotel/Motel Occupancy Tax)

January return due by February 20th
February return due by March 20th
March return due by April 22nd
April return due by May 20th
May return due by June 20th
June return due by July 22nd