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What is the sales tax rate?
See tables below.
| Rates in Effect Oct. 1, 2006 |
All jurisdictions except Lake Charles, Ward 1 & Unincorporated |
LOCAL RATE |
STATE RATE |
TOTAL RATE |
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Regular |
5.25% |
4.00% |
9.25% |
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Food |
5.25% |
0.00% |
5.25% |
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Drugs |
5.25% |
0.00% |
5.25% |
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| Rates in Effect Oct. 1, 2006 |
Lake Charles |
LOCAL RATE |
STATE RATE |
TOTAL RATE |
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Regular |
5.00% |
4.00% |
9.00% |
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Food |
5.00% |
0.00% |
5.00% |
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Drugs |
5.00% |
0.00% |
5.00% |
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| Rates in Effect Oct. 1, 2006 |
Ward 1 (Moss Bluff, Gillis) |
LOCAL RATE |
STATE RATE |
TOTAL RATE |
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Regular |
5.25% |
4.00% |
9.25% |
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Food |
4.25% |
0.00% |
4.25% |
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Drugs |
4.25% |
0.00% |
4.25% |
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| Rates in Effect Oct. 1, 2006 |
Unincorporated Except Ward 1 |
LOCAL RATE |
STATE RATE |
TOTAL RATE |
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Regular |
5.00% |
4.00% |
9.00% |
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Food |
4.00% |
0.00% |
4.00% |
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Drugs |
4.00% |
0.00% |
4.00% |
Note: Call the Louisiana Department of Revenue at (225) 219-7356 concerning the state tax rate or visit them online at www.rev.state.la.us.
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Who do I contact to obtain an Occupational License?
Anyone needing to purchase an Occupational License should call the Business License and Permit Office in the city or town your business is located. For businesses located in the unincorporated areas, call the Parish License Office.
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How do I obtain local sales tax forms?
A Sales and Use Tax Report form can be mailed to you upon request by calling (337) 217-4280 or may be picked up from our office located at 2439 6th Street, Lake Charles, LA. Since the implementation of our new digital imaging system, only original forms will be accepted. Photocopies, fax copies, spreadsheets, and tax service prepared forms will no longer be accepted. You may also request online that a form be mailed to you. Many other forms are also available online by accessing the Tax Forms section on the Sales Tax Department home page.
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When are sales taxes due?
The due date for all registered filers is the 1st of the month in which the tax is due. A return is considered delinquent after the 20th of the same month. If the 20th falls on a weekend or holiday, the return must be postmarked by the next workday to be considered paid on time.
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Which date is used to determine if a return is paid on time?
The U.S. Post Office postmark is used to determine if a return is transmitted on time.
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When is the Occupational License Tax due?
For a new business, the Occupational License Tax is due prior to the opening date. Renewal of an Occupational License is due on January 1st and becomes delinquent on March 1st. Contact the appropriate municipal or parish license office for further information.
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What is the sales tax and occupational license tax penalty and interest rate?
The delinquent penalty is 5% for each month or fraction thereof and increases by 5% on the 1st day of each month to a maximum of 25%. The interest is 1.25% per month or fraction thereof and increases by 1.25% on the 1st day of each month until paid.
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Which columns should be used in completing the sales tax return?
Column A - Used to report data that relates to the unincorporated areas of the Parish except Ward One (1).
Column B Used to report data that relates to the City of Lake Charles
Column C Used to report data that relates to the City of Sulphur
Column D Used to report data that relates to the Town of Iowa
Column E Used to report data that relates to the City of DeQuincy
Column F Used to report data that relates to the Town of Vinton
Column G Used to report data that relates to the City of Westlake
Column H Used to report data that relates to Ward One (Moss Bluff, Gillis,Topsy)
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How are the sales taxes distributed?
Sales taxes are distributed as follows for transactions occurring within the:
|
City Limits of Lake Charles |
As of October 1, 2002 |
As of October 1, 2006 |
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| City of Lake Charles |
2.00% |
2.00% |
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| Parish School Board |
2.00% |
2.00% |
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City of LC Employees |
0.25% |
0.25% |
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| CP Law Enforcement #1 |
0.25% |
0.75% |
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| Total |
4.50% |
5.00% |
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| Unincorporated Limits of Parish (Except Ward 1) |
As of October 1, 2002 |
As of October 1, 2006 |
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| Police Jury STX Dist #1 |
1.00% |
1.00% |
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| Parish School Board |
2.00% |
2.00% |
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| Police Jury STX Dist #4a |
1.25% |
1.25% |
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| CP Law Enforcement #1 |
0.25% |
0.75% |
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| Total |
4.50% |
5.00% |
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Ward One (Moss Bluff, Gillis and Topsy) |
As of October 1, 2002 |
As of October 1, 2006 |
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| Parish School Board Dist #3 |
1.50% |
1.50% |
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| Parish School Board |
2.00% |
2.00% |
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| Police Jury STX Dist #1 |
1.00% |
1.00% |
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| CP Law Enforcement |
0.25% |
0.75% |
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| Total |
4.75% |
5.25% |
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What is use tax?
Use tax is complementary to sales tax. When items are purchased locally, sales tax is often charged with each transaction. Purchases of similar items from out of town or out of state concerns generally do not include taxes and the use tax would be due on the purchase price. Other examples of transactions which require the purchaser to report use taxes are those where purchases are made through catalogs or over the Internet.
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What do I do if I owe taxes, but am unable to pay by the due date?
Submit your return by the due date. Any amount paid with your return will reduce the amount of interest charged. The office will bill you for the remainder of tax and interest owed.
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What do I do to set up arrangements to pay an outstanding tax liability?
Installment arrangements are handled by the Tax Compliance Section at (337) 217-4280 extensions 3406 or 3414.
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Are charges for labor subject to the sales tax?
Labor charges associated with the repairing and routine servicing of most tangible, personal property such as appliances, automobiles, office equipment and similarly related items are subject to a sales tax. Separately stated labor charges with the installation of new tangible, personal property is not subject to the tax.
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Are delivery charges taxable?
Delivery charges in and by themselves are classified as a service and ordinarily would not be subject to a sales tax. However, there are instances where delivery charges are an inseparable part of the transaction and consequently would be includable in the taxable base. A simple rule of thumb has been the use of certain terminology such as FOB origin and FOB destination. FOB origin transactions tend to reflect that delivery charges are not part of the sale although the vendor may as a customary service to their clients make the arrangements predicated on information given them by their customer. In these transactions any separately stated delivery charges would not be includable in the taxable base since the dealer is not responsible for delivering articles purchased to the customer. On the other hand, when the vendor has an obligation to deliver items purchased from them, more than likely any stated charges for delivery would be includable in the taxable base. In this instance the transaction is not completed and transfer of ownership does not occur until delivery is made. Other forms of delivery charges such as inbound freight or freight in are includable in the taxable base regardless of a separate charge appearing on the invoice.
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Is a vendor required to give you a receipt for your purchase?
The law requires each and every retail dealer of goods and/or services to issue purchaser a receipt noting a transaction that has occurred. Often times this is done in the form of a cash register receipt, which reflects the name of the business, the item(s) or services purchased along with a breakdown of prices and separately stated taxes. These receipts are important for both parties as they are used either for tracking sales within the particular business concern or may be used for refund purposes by the purchaser. Persons who do not receive a receipt from the business they have purchased articles and/or services should contact the sales tax office for possible investigation.
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If I donate my car to my daughter, will she owe taxes on it?
Donations of motor vehicles to family members are customarily not subject to sales or use tax. However, other fees associated with the transfer of title from one owner to another will typically apply. The Office of Motor Vehicles generally requires a duly notarized Act of Donation presented at the time of transfer in order to validate the intent of both parties.
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If I buy a boat from my neighbor will I owe tax?
This type of transaction, one occurring between individuals who do not hold themselves out as being in the business of selling such property, is typically viewed as a casual or isolated sale and not subject to tax. However, if the transaction involves a trailer, then sales or use taxes will be due at the time the title is transferred at the Office of Motor Vehicles. The tax will be based upon the value of the trailer only. Although the sale of a boat between individuals is usually not subject to tax for the reason earlier stated, the buyer will be unable to secure a hull number from the Department of Wildlife and Fisheries until evidence is provided that all taxes have been satisfied. The Department of Wildlife and Fisheries provides a form that must be taken to the Louisiana Department of Revenue and our office for their signatures, which will reflect whether taxes have been paid or no taxes were due.
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