SLS 12RS-891 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2012
SENATE BILL NO. 539
BY SENATOR PEACOCK
TAX/LOCAL. Provides for credit against local taxes when tangible personal property is
brought into this state under certain circumstances. (1/1/13)
AN ACT1
To amend and reenact R.S. 47:337.86(A) and (B)(1), relative to local sales and use taxes;2
to provide for credits against local sales and use taxes when tangible personal3
property is brought into the state under certain circumstances; and to provide for4
related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 47:337.86(A) and (B)(1) are hereby amended and reenacted to read7
as follows: 8
ยง337.86. Credit for taxes paid9
A.(1) A credit against the sales and use tax imposed by any taxing authority10
of the state shall be granted to a taxpayer who paid monies, whether or not paid in11
error, absent bad faith, based upon a similar tax, levy, or assessment upon the same12
tangible personal property in a taxing jurisdiction of this state or another state. The13
credit granted herein shall be applicable only when a similar taxing authority when14
a taxing authority in this state is seeking to impose and collect a similar tax, levy,15
or assessment from a taxpayer upon the same tangible personal property for which16
the taxpayer has paid a similar tax, levy, or assessment to a similar another state or17 SB NO. 539
SLS 12RS-891 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
other taxing authority.1
(2) A taxing authority shall give credit against the use taxes due on the2
importation of a vehicle for taxes paid in another state to the state or other taxing3
authority in that state where the vehicle was previously purchased and titled, less4
the credit given by this state for sales tax paid in another state pursuant to R.S.5
47:303, regardless of the authority's similarity to jurisdictions in the other state to6
which the sales or use taxes were paid. With respect to vehicles, the credit shall be7
calculated by multiplying the rate of the sales or use tax paid in the other state by the8
cost price that is subject to the authority's use tax at the time of the importation of the9
vehicle, less the credit given by this state for sales tax paid in another state. The10
credits provided by this Section and R.S. 47:303 shall be applied together against the11
state and local taxes due on the use of a motor vehicle, automobile, motorcycle,12
truck, truck-tractor, trailer, semitrailer, motor bus, house trailer, or any other vehicle13
subject to the vehicle registration license tax, so that the applicant for title or14
registration in Louisiana of a vehicle that the applicant previously purchased and15
titled in another state is allowed credit against the state and local use taxes imposed16
in Louisiana for the full rate of sales or use tax paid in the other state.17
B.(1) The credit provided herein for monies paid to a another state or other18
taxing authority of another state shall be granted only in the case where such state19
or authority of another state to which monies have been paid grants a similar credit.20
* * *21
Section 2. This Act shall become effective on January 1, 2013.22
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Jerry J. Guillot.
DIGEST
Present law, relative to local sales and use taxes, requires that a credit against sales and use
tax imposed by any taxing authority of the state be granted to a taxpayer who paid monies,
whether or not paid in error, absent bad faith, based upon a similar tax, levy, or assessment
upon the same tangible personal property in a taxing jurisdiction of this state or another
state. Provides that the credit is applicable only when a similar taxing authority is seeking
to impose and collect a similar tax, levy, or assessment from a taxpayer upon the same
tangible personal property for which the taxpayer has paid a similar tax, levy, or assessment
to a similar taxing authority. SB NO. 539
SLS 12RS-891 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Proposed law provides that the credit is applicable when a taxing authority in this state is
seeking to impose and collect a similar tax, levy, or assessment from a taxpayer upon the
same tangible personal property for which the taxpayer has paid a similar tax, levy, or
assessment to another state or other taxing authority.
Present law provides a taxing authority shall give credit against the use taxes due on the
importation of a vehicle for taxes paid in another state where the vehicle was previously
purchased and titled, regardless of the authority's similarity to jurisdictions in the other state
to which the sales or use taxes were paid. With respect to vehicles, the credit shall be
calculated by multiplying the rate of the sales or use tax paid in the other state by the cost
price that is subject to the authority's use tax at the time of the importation of the vehicle.
The credits against state and local use taxes shall be applied together against the state and
local taxes due on the use of a motor vehicle, automobile, motorcycle, truck, truck-tractor,
trailer, semitrailer, motor bus, house trailer, or any other vehicle subject to the vehicle
registration license tax, so that the applicant for title or registration in Louisiana of a vehicle
that the applicant previously purchased and titled in another state is allowed credit against
the state and local use taxes imposed in Louisiana for the full rate of sales or use tax paid in
the other state.
Proposed law requires that a taxing authority give credit against the use taxes due on the
importation of a vehicle for taxes paid in another state to the state or other taxing authority
in that state where the vehicle was previously purchased and titled, less the credit given by
this state for sales tax paid in another state, regardless of the authority's similarity to
jurisdictions in the other state to which the sales or use taxes were paid. With respect to
vehicles, the credit shall be calculated by multiplying the rate of the sales or use tax paid in
the other state by the cost price that is subject to the authority's use tax at the time of the
importation of the vehicle, less the credit given by this state for sales tax paid in another
state.
Present law provides that the credit for monies paid to a taxing authority of another state be
granted only in the case where such authority of another state to which monies have been
paid grants a similar credit.
Proposed law provides that the credit for monies paid to another state or other taxing
authority of another state be granted only in the case where such state or authority of another
state to which monies have been paid grants a similar credit.
Proposed law otherwise retains present law.
Effective January 1, 2013.
(Amends R.S. 47:337.86(A) and (B)(1))