Louisiana Sales Tax for Contractors Working on Immovable Property
- Aug 21, 2012 | Will Frei
A Louisiana new rule states that sales of tangible personal property made to contractors ". . . for use in the construction, alteration, or repair of immovable property . . . " are subject to sales tax (LAC 61:I.4372).
The rule goes into effect August 20, 2012. The Louisiana Department of Revenue specifies that under the rule these types of sales do not constitute sales for resale, and therefore ". . . the contractor is liable for sales and use taxes on its purchases or importations of such tangible personal property."