Louisiana Revised Statutes 47:303.1 – Direct Payment Numbers
Terms Used In Louisiana Revised Statutes 47:303.1
- Appeal: A request made after a trial, asking another court (usually the court of appeals) to decide whether the trial was conducted properly. To make such a request is "to appeal" or "to take an appeal." One who appeals is called the appellant.
- Collector: shall mean and include (a) the secretary of the Department of Revenue for the state of Louisiana and includes his duly authorized assistants, when used in reference to a sales and use tax levied by the state, or (b) the individual or entity designated as collector of the appropriate single sales and use tax collection office, and his duly authorized assistants, of any political subdivision authorized under the constitution and laws of the state of Louisiana to levy and collect a sales and use tax, except a statewide political subdivision, when used in reference to a sales and use tax levied by such political subdivision. See Louisiana Revised Statutes 47:301
- Contract: A legal written agreement that becomes binding when signed.
- Manufacturer: means :
(I) A person whose principal activity is manufacturing, as defined in this Subparagraph, and who is assigned by the Louisiana Workforce Commission a North American Industrial Classification System code within the agricultural, forestry, fishing, and hunting Sector 11, the manufacturing Sectors 31-33, the information Sector 511110 as they existed in 2002, or industry code 423930 as a recyclable material merchant wholesaler engaged in manufacturing activities, which must include shredding facilities, as determined by the secretary of the Department of Revenue. See Louisiana Revised Statutes 47:301
- Manufacturing: means putting raw materials through a series of steps that brings about a change in their composition or physical nature in order to make a new and different item of tangible personal property that will be sold to another. See Louisiana Revised Statutes 47:301
- Personal property: All property that is not real property.
- Purchaser: means and includes any person who acquires or receives any tangible personal property, or the privilege of using any tangible personal property, or receives any services pursuant to a transaction subject to tax under this Chapter. See Louisiana Revised Statutes 47:301
- Tangible personal property: means and includes personal property which may be seen, weighed, measured, felt or touched, or is in any other manner perceptible to the senses. See Louisiana Revised Statutes 47:301
- use: include the donation of food items to a food bank as defined in Louisiana Revised Statutes 47:301
- Use tax: includes the use, the consumption, the distribution, and the storage as herein defined. See Louisiana Revised Statutes 47:301
A. Notwithstanding any other law to the contrary except for the provisions of La. Rev. Stat. 47:303(B) and (E), the state and local sales and use tax due on the purchase, importation, or lease of tangible personal property or taxable services by taxpayers who have obtained a Direct Payment Number, hereinafter referred to as a “DP Number,” shall be remitted directly to the state and appropriate political subdivision by such taxpayer, as provided in this Section. The vendor or lessor of tangible personal property or taxable services shall not be responsible for collecting sales and use tax on such sales or leases, and shall not be liable for such tax as provided in La. Rev. Stat. 47:304(C), upon presentation to him of a valid DP Number by such purchaser or lessee, provided that the vendor or lessor notes the DP Number on the untaxed contract or invoice submitted to such purchaser and lessee.
B.(1) A DP Number shall be issued to and shall be continued to be held by a taxpayer who obtains the required approvals and who meets all of the qualifications provided for in this Section and the following qualifications:
(a) The taxpayer’s primary business in the state is that of a manufacturer of tangible personal property for resale where such manufacturing occurs at a manufacturing establishment or facility within the state.
(b) The taxpayer has reported and paid timely substantially all of the taxes which the taxpayer believes are legally due to the state and its political subdivisions.
(c) The taxpayer has an annual average of five million dollars of taxable purchases or leases of tangible personal property and taxable services for three calendar years prior to the year of application by the taxpayer, and has such an average for each subsequent three-year period.
(d) The taxpayer maintains adequate procedures and practices, records and reports for accrual and timely reporting and paying the state and political subdivision sales and use taxes due.
(2)(a) A DP Number shall be issued to and shall be continued to be held by a taxpayer that is a private, nonprofit, tax-exempt organization as defined under Section 501 (c)(3) of the Internal Revenue Code, that obtains the required approvals, and that meets all of the qualifications provided for in this Section except Subparagraph (1)(a) of this Subsection.
(b) Separate DP Numbers shall be issued to and shall be continued to be held by taxpayers that are subsidiary entities of a private, nonprofit, tax-exempt organization, as defined under Section 501(c)(3) of the Internal Revenue Code, that meets the requirements of Subparagraph (a) of this Paragraph, as well as to those taxpayer entities in which the tax-exempt organization is the sole member, provided that these entities are licensed by the Louisiana Department of Health, Louisiana Board of Pharmacy, or otherwise have as their mission promoting the delivery of healthcare and patient medical services and products and further provided that these entities and the tax exempt organization together have in the aggregate an annual average of ten million dollars of taxable purchases or leases of tangible personal property and taxable services for three calendar years prior to the year of application, and have such an average for each subsequent three-year period, and which obtain the required approvals and meet the qualifications provided for in Subparagraphs (1)(b) and (1)(d) of this Subsection.
(3)(a) A DP Number shall be issued to a taxpayer who has entered into a tax exemption contract with the Department of Economic Development as provided by La. Rev. Stat. 47:4302 or a similar successor program and who obtains the required approvals and meets all of the qualifications provided for in this Section except Subparagraph (1)(a) of this Subsection. The DP Number shall be continued to be held by the taxpayer for the term of the tax exemption contract.
(b) Notwithstanding the provisions of Subsection A of this Section, a taxpayer issued a DP Number pursuant to Subparagraph (3)(a) of this Subsection shall not be responsible for the remittance of use taxes on purchases when filing monthly state sales and use tax returns when such purchases are exempt pursuant to the annual tax exemption contract cap.
(4) A DP Number shall be issued to a taxpayer who has entered into a cooperative endeavor agreement with the state as provided by La. Rev. Stat. 33:9029.2 and who obtains the required approvals and meets all of the qualifications provided for in this Section except Subparagraph (1)(c) of this Subsection. The DP Number shall be continued to be held by the taxpayer for the term of the cooperative endeavor agreement or until the taxpayer otherwise qualifies for a DP Number.
C.(1) Upon application by a taxpayer to the department for a DP Number pursuant to Paragraph (B)(1) or (2) of this Section, the department shall submit the application to the local collector in the parish or parishes in which the taxpayer has a manufacturing establishment or facility or is a taxpayer that meets the requirements of Paragraph (B)(2) of this Section. The application shall be submitted to the local collector in a manner that provides actual notice of the application including but not limited to submission by certified mail that is signed for and received by the local collector. The department and the local collector shall review the application and may audit the taxpayer to determine that the taxpayer meets the qualifications provided in Paragraph (B)(1) or (2) of this Section, if the department or local collector consider an audit necessary.
(2)(a) If the taxpayer applying for a DP Number meets the qualifications of Paragraph (B)(1) or (2) of this Section and obtains written approval from the local collector in the parish or parishes in which the taxpayer has a manufacturing establishment or facility or is a taxpayer that meets the requirements of Paragraph (B)(2) of this Section within sixty days of receipt of the application by the local collector, the department shall issue the DP Number to the taxpayer.
(b) If the taxpayer meets the qualifications of Paragraph (B)(1) or (2) of this Section but written approval is not provided by the local collector within sixty days after receipt of the application by the local collector in the parish or parishes in which the taxpayer has a manufacturing establishment or facility or is a private, nonprofit, tax-exempt organization, the department shall issue a DP Number to the taxpayer.
(c) If the taxpayer meets the qualifications of Paragraph (B)(1) or (2) of this Section but approval is denied in writing by the local collector within sixty days of receipt of the application by the local collector in the parish or parishes in which the taxpayer has a manufacturing establishment or facility or is a private, nonprofit, tax-exempt organization that meets the requirements of Paragraph (B)(2) of this Section, the department shall issue a DP Number to the taxpayer that shall be applicable only for the purposes of state sales and use tax.
(3) If a local collector determines that a taxpayer no longer qualifies for a DP Number, the local collector shall notify the department and request an examination of the taxpayer for the limited purpose of determining continued eligibility for a DP Number. If, after examination, the department determines that the taxpayer no longer qualifies for a DP Number, the department shall revoke the DP Number and notify the local collector.
D. Repealed by Acts 2022, No. 428, §2, eff. Jan. 1, 2023.
E. The department shall review the procedures and practices, records and reports of the taxpayer at least once in every three calendar years after the year in which the application for the DP Number is granted, and the department shall audit the books and records of such taxpayer unless the department decides, in its discretion, that such an audit is not necessary.
F. The DP Number issued by the department under this Section may be revoked by the secretary at any time if the taxpayer fails to meet the qualifications provided in this Section, or if the department receives written notice of the revocation of approval for issuance of the DP Number from all of the local tax collection agencies that had previously given their approval pursuant to Subsection D of this Section.
G.(1) The taxpayer may appeal the denial or revocation of a DP Number to the Board of Tax Appeals.
(2) A local collector may appeal the department’s failure to revoke a taxpayer’s DP Number pursuant to Paragraph (C)(3) of this Section.
H. The department shall promulgate rules and regulations necessary for the implementation of this Section.
Acts 1987, No. 682, §1, eff. Sept. 1, 1987; Acts 1988, No. 512, §1; Acts 1993, No. 895, §1; Acts 2003, No. 141, §1, eff. July 1, 2003; Acts 2008, No. 456, §1; Acts 2010, No. 960, §1, eff. July 6, 2010; Acts 2018, No. 250, §1, eff. July 1, 2018; Acts 2022, No. 428, §§1, 2, eff. Jan. 1, 2023.