Taxpayer Services Division
Revenue Information Bulletin 04-012
Effective January 1, 2006 manufacturers located in Jefferson Parish no longer pay Parish sales and use tax (4.75%) on qualified machinery and equipment (M&E).
Louisiana manufacturers will no longer pay sales and use tax on qualified machinery and equipment (M&E). The phase-out of state sales and use tax on the purchase or lease of M&E by manufacturers began on July 1, 2004 with a five percent exclusion of the price of eligible M&E upon which the state’s four percent sales tax is computed and increases annually with 100 percent exclusion by July 1, 2010. The current state sales tax exclusion of the price of qualified M&E is 35 percent. Through June 30, 2007, a 100% state sales and use tax exemption for the replacement of qualified machinery and equipment damaged during Hurricane Katrina or Hurricane Rita is in effect. The sales tax charged on repair parts or services for these items is also excluded.
Certified Parish manufacturers can qualify for 100% exclusion from local sales and use taxes on qualified manufacturing equipment. Manufacturer’s must be certified by the Louisiana Department of Revenue and present that certification to the Jefferson Parish Sheriff’s Office, Bureau of Taxation and Revenue and register with to get a Jefferson Parish Certificate of Exemption for local parish taxes exclusion. This Certificate of Exemption is then presented by the company to its vendors. Contact Greg Ruppert at email@example.com for additional program information.
The state’s sales tax exclusion for manufacturing and agricultural machinery and equipment became effective July 1, 2004 and is being phased-in each subsequent year until it is fully implemented on July 1, 2010. The phase-in rate is:
July 1, 2006-June 30, 2007 35% exclusion
July 1, 2007-June 30, 2008 54% exclusion
July 1, 2008-June 30, 2009 68% exclusion
July 1, 2009-and thereafter 100% exclusion