Current through Register Vol. 50, No. 9, September 20, 2024
A. This
Section describes the conditions under which certain sale or lease transactions
involving tangible personal property used for pollution control purposes may be
excluded from the definition of sale at retail for purposes of
the 3 percent tax levied by this Chapter and the Louisiana Tourism Promotion
District. It contains the qualifications which must be met by the property
under consideration, the requirements which are imposed upon the applicant for
the tax relief granted under this Act, and the procedures to be followed in
applying for the relief.
B.
Definitions. For purposes of this Section, the following terms shall have the
meaning ascribed herein.
Act or This Act- Act 1019 of the 1991
Regular Session of the Louisiana Legislature.
Industrial Application- the use,
construction, or installation of a pollution control device or system by a
business which is primarily engaged in the exploration for or mining of
minerals, the manufacture or processing of raw materials into tangible personal
property for resale, or the processing, treatment, disposition, control or
containment, of polluting materials produced by another business.
Pollution- the environment of the state by
any means that would tend to degrade the chemical, physical, biological, or
radiological integrity of such environment. Pollution includes solid waste,
hazardous waste, sludge, chemical waste, radiological wastes, noise, and any
other pollutants resulting from industrial emissions, discharges, or releases
into air, water, or land.
Pollution Control Device or System- any one
or more pieces of tangible personal property which is intended and installed
for the purpose of eliminating, preventing, treating, or reducing the volume or
toxicity or potential hazards of industrial pollution of air, water,
groundwater, noise, solid waste, or hazardous waste in the state of Louisiana
and which has been approved by the Department of Environmental Quality and the
Department of Revenue and Taxation for the tax relief granted by this
Act.
C. Qualifications. To qualify for
the tax relief provided under this Act, a pollution control device or system
must comply with the following requirements.
1. It must demonstrate to the Department of
Environmental Quality its efficacy to a particular process or application. The
equipment must be approved by both the Department of Environmental Quality and
the Department of Revenue and Taxation in order to be excluded from the
definition of sale at retail for state sales and use tax
purposes.
2. It (or the applicant)
must demonstrate either:
a. a net decrease in
the volume or toxicity or potential hazards of pollution as a result of the
installation of the device or system; or
b. that installation is necessary to comply
with federal or state environmental laws or regulations.
3. It must be intended for use in an
industrial application. Use in residential, commercial, recreational, or other
applications do not qualify.
D. Restrictions. This exclusion and the tax
relief provided under this Act does not apply to:
1. modifications to processes carried out
primarily for reasons other than the reduction of pollution;
2. installation or replacement of existing
process units carried out primarily for reasons other than the reduction of
pollution;
3. vehicles used to
assist in operations.
E.
Application and Documentation
1. Applicants
seeking relief under this Act must submit an application to the Department of
Revenue and Taxation for a certification of the pollution control device or
system.
2. The
respective departments may require the applicant to provide cost estimates,
engineering drawings, equipment specification sheets, and any other
documentation necessary to establish the identity and value of the property
qualifying for the exclusion. The documentation must be sufficient to enable
the Department of Environmental Quality to establish the efficacy of the
pollution control device or system, and to allow the Department of Revenue and
Taxation to ascertain the allowable tax relief.
3. After receiving certification from the
Department of Environmental Quality, a certificate of tax exclusion and/or
refund of taxes paid on approved pollution control equipment will be issued by
the Department of Revenue and Taxation. Applicants must assemble and
consolidate all invoices on purchases made by themselves and their
subcontractors. Refunds will not be issued to subcontractors.
a. Owners and/or operators of qualifying
pollution control devices or systems may apply for certification and refund of
taxes paid on or after September 6, 1991, and prior to the date of
certification.
b. In order for a
pollution control device or system to qualify as tax free at the time of
purchase, applicants must have received a certification of approval from the
Department of Environmental Quality and the Department of Revenue and Taxation
prior to the purchase or lease of the equipment. The applicant, or contractors
who are duly authorized to act as an agent of the applicant, may present an
approved certification in lieu of the tax at the time of purchase.
c. If the application for the tax exemption
on the pollution control device or system cannot be processed and approved
before purchases are made or property is imported into the state for the
project, the state sales or use tax shall be paid at the time of purchase or
importation. Tax refunds will be issued upon approval of the project and the
filing of proper claims. Applicants filing for refunds will have purchased and
installed, or intend to install, the pollution control device or
system.
4. The owner
and/or operator must report the final cost of the pollution control devices or
systems to the Department of Revenue and Taxation. Audits and inspections may
be performed by the respective departments to ascertain the efficacy of the
equipment. The tax refund will be forfeited if the pollution control device or
system does not meet the requirements of this Act.
5. Approval of the equipment for a sales tax
refund does not relieve the applicant from obtaining any other permits
otherwise required for the pollution control device or system, including
permits to install or construct prior to start of construction.
6. Each application for tax relief must be
signed by an officer, principal, or other person authorized to act in the
behalf of the applicant, and must be accompanied by a certification affidavit
executed by the owner and/or operator and a certification affidavit executed by
a professional engineer. Both certification affidavits will be prepared on the
application form supplied by the Department of Revenue and Taxation.
F. Confidentiality. Applications
and all documentation and cost information which are submitted to the
Department of Revenue and Taxation under this Act are considered confidential
taxpayer information under the provisions of
R.S.
47:1508. Information which pertains to
pollution control devices or systems costs will be maintained only at the
office of the Department of Revenue and Taxation.
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
47:301(10)(l).
