A. Collection from dealer. (1) The tax imposed under R.S. 47:302 shall be
collectible from all persons, as hereinafter defined, engaged as dealers, as hereinafter defined.
(2) On all tangible personal property imported, or caused to be imported, from other
states or foreign countries, and used by him, the "dealer", as hereinafter defined, shall pay
the tax imposed by this Chapter on all articles of tangible personal property so imported and
used, the same as if the said articles had been sold at retail for use or consumption in this
state. For the purposes of this Chapter, the use, or consumption, or distribution, or storage
to be used or consumed in this state of tangible personal property, shall each be equivalent
to a sale at retail, and the tax shall thereupon immediately levy and be collected in the
manner provided herein, provided there shall be no duplication of the tax in any event.
(3)(a) A credit against the use tax imposed by this Chapter shall be granted to
taxpayers who have paid a similar tax upon the sale or use of the same tangible personal
property in another state. The credit provided herein shall be granted only in the case where
the state to which a similar tax has been paid grants a similar credit as provided herein,
provided that members of the armed forces who are citizens of this state and whose orders
or enlistment contracts stipulate a period of active duty of two years or more and who
purchase automobiles outside of the state of Louisiana while on such tour of active duty shall
be granted such credit in connection with the purchase of such automobiles whether or not
the state to which such tax thereon has been paid grants a similar credit as herein provided.
The amount of the credit shall be calculated by multiplying the rate of the similar tax paid
in the other state by the cost price which is subject to Louisiana use tax at the time of the
importation of the tangible personal property. The proof of payment of a similar tax to
another state shall be made according to rules and regulations promulgated by the secretary.
In no event shall the credit be greater than the tax imposed by Louisiana upon the particular
tangible personal property which is the subject of the Louisiana use tax.
(b) The credits provided by this Section and R.S. 47:337.86 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.
B. Collection of tax on vehicles. The tax imposed by R.S. 47:302(A) on the sale or
use of any motor vehicle, automobile, motorcycle, truck, truck-tractor, trailer, semi-trailer,
motor bus, house trailer, or any other vehicle subject to the vehicle registration license tax
shall be collected as provided in this Subsection.
(1) The tax levied by R.S. 47:302(A) on any such vehicle shall be paid to the vehicle
commissioner as the agent of the collector of revenue at the time of application for a
certificate of title or vehicle registration license and such tax shall be administered and
collected by the vehicle commissioner in compliance with rules and regulations issued by the
collector of revenue and in compliance with the law as construed by the collector of revenue.
No certificate of title or vehicle registration license shall be issued until this tax has been
paid. The collector of revenue shall be the only proper party to defend or to institute any
legal action involving the tax imposed by R.S. 47:302(A) on the sale or use of any motor
vehicle, automobile, motorcycle, truck, truck-tractor, trailer, semi-trailer, motor bus, house
trailer or any other vehicle subject to the vehicle registration license tax. (R.S. 47:451 et
(a) The tax levied by R.S. 47:302(A)(1) on the sale of any such vehicle shall be due
at the time of registration or any transfer of registration as required by the Vehicle
Registration License Tax Law (R.S. 47:451 et seq.). However, the vehicle commissioner
shall waive penalties or interest on sales tax on timely filed applications for registration
rejected due to office of motor vehicles error.
(b) The tax levied by R.S. 47:302(A)(2) on the use of any such vehicle in this state
shall be due at the time first registration in this state is required by the Vehicle Registration
License Tax Law (R.S. 47:451 et seq.) subject to the following:
(i) The vehicle commissioner shall waive penalties or interest on use tax on timely
filed applications for registration rejected due to office of motor vehicles error.
(ii) A person or their spouse shall have ninety days following either's separation from
active duty from any branch of the armed forces of the United States to remit the tax levied
by R.S. 47:302(A)(2) on any vehicle registered in a foreign jurisdiction and required to be
registered in this state. Penalties and interest shall not accrue during this ninety-day time
period. However, a person or their spouse shall remit sales or use taxes imposed pursuant
to R.S. 47:302(A)(2) on a vehicle required to be registered in this state should the vehicle
registration and license plates issued by a foreign jurisdiction expire prior to or during the
ninety days following either's separation from active duty of any branch of the armed forces
of the United States.
(2) Every vendor of such a vehicle shall furnish to the purchaser at the time of sale
a notarized statement showing the serial number, motor number, type, year, and model of the
vehicle sold, the total sales price, any allowance for and a description of any vehicle taken
in trade, and the total cash difference paid or to be paid by the purchaser between the vehicles
purchased and traded in and the sales or use tax to be paid, along with such other information
as the collector of revenue may by regulation require. All labor parts, accessories, and other
equipment which are attached to the vehicle at the time of sale and which are included in the
sale price are to be considered a part of the vehicle.
(3)(a) It is not the intention of this Subsection to grant an exemption from the sales
and use tax levied in this Title to any sale, use, items, or transaction which has heretofore
been taxable, and this Subsection is not to be construed as so doing. It is the intent of this
Subsection to transfer the collection of state and political subdivision sales and use taxes on
vehicles from the vendor to the vehicle commissioner as agent for the secretary of the
Department of Revenue and for the collectors of such political subdivision taxes and to
provide a method of collection of the tax directly from the vendee or user by the vehicle
commissioner as agent of the secretary and such collectors.
(b)(i) The vehicle commissioner and the governing body of any political subdivision
as defined in Article VI, Section 44(2) of the Constitution of Louisiana, in which a sales or
use tax has been imposed by such political subdivision on the sale or use of motor vehicles,
shall enter into an agreement by which the vehicle commissioner shall collect such tax on
behalf of the political subdivision. Except as provided in Paragraph (5) of this Subsection,
no certificate of title or vehicle registration license shall be issued until such local tax is paid.
(ii) The tax imposed by the political subdivisions on the sale or use of vehicles
subject to the Vehicle Registration License Tax Law (R.S. 47:451 et seq.) shall be collected
by the vehicle commissioner and distributed to the political subdivisions as provided for in
R.S. 47:301(10)(f) and (18)(b). The vehicle commissioner shall withhold from any such
taxes collected for the political subdivisions one percent of the proceeds of the tax so
collected, which shall be used by the commissioner to pay the cost of collecting and remitting
the tax to the political subdivisions.
(iii) The vehicle commissioner shall cause to be conducted annually, by the
legislative auditor, an audit or examination of the books and accounts of sales and use taxes
collected by the vehicle commissioner for each political subdivision. The scope of the audit
shall be sufficient to determine whether or not sales and use taxes collected for each political
subdivision have been properly and correctly distributed in accordance with law during the
period under audit. The cost of such audit shall be prorated to all local political subdivisions
for whom the vehicle commissioner collects sales and use taxes on the basis of total tax
dollars distributed to each local political subdivision, and the vehicle commissioner shall
withhold the cost of such audit from taxes collected. In the event the audit determines that
adjustments to tax distributions are required, the vehicle commissioner shall adjust future tax
distributions to applicable tax recipient bodies. The prescriptive period for adjustments
under this Section shall be three years from the thirty-first day of December of the year in
which such taxes became due.
(iv) All such agreements now existing between any political subdivision and the
secretary are hereby declared valid and the functions of the secretary thereunder are hereby
transferred to the director of public safety as vehicle commissioner.
(v)(aa) Political subdivisions which enter into a sales and use tax collection
agreement with the vehicle commissioner as provided for in this Subparagraph shall provide
the vehicle commissioner with geographic boundaries such as roads, streams, Global
Positioning System coordinates, or survey coordinates that can be converted to polygons on
a representation of a physical map of the state to be used in connection with the collection
of that political subdivision's sales and use taxes. A map outlining the boundaries of the
political subdivision shall also be provided to the commissioner.
(bb) In the event a boundary dispute occurs between two or more political
subdivisions regarding a taxpayer's domicile, the department shall collect the tax in the
amount of the highest rate among the competing rates. The amount collected shall be
deposited into a non-interest bearing escrow account. The department may proceed to title
and register the motor vehicle and issue appropriate credentials. The political subdivisions
shall then seek to resolve the dispute either by mutual agreement or judicially, and the funds
will be distributed to the appropriate taxing body. Funds remaining after the payment of the
taxes together with any penalty and interest that may be due shall be returned to the taxpayer.
(cc) If an incorrect tax has been assessed by the department based upon information
provided to the department by the local taxing authority which results in the taxpayer owing
additional taxes, the taxpayer shall be given thirty days from date of notice of the deficiency
before the taxpayer is assessed any penalties or interest.
(vi) A person or their spouse shall have ninety days following either's separation
from active duty from any branch of the armed forces of the United States to remit the sales
and use tax imposed by a political subdivision on any vehicle registered in a foreign
jurisdiction and required to be registered in this state. Penalties and interest shall not accrue
during this ninety-day time period. However, a person or their spouse shall remit sales or use
taxes imposed by a political subdivision on a vehicle required to be registered in this state
should the vehicle registration and license plates issued by a foreign jurisdiction expire prior
to or during the ninety days following either's separation from active duty of any branch of
the armed forces of the United States.
(4) The provision contained in R.S. 47:301(10) in the second unnumbered paragraph
which excludes isolated or occasional sales from the definition of a sale at retail is not to
apply to the sale of vehicles which are the subject of this subsection. Isolated or occasional
sales of vehicles are hereby defined to be sales at retail and as such are subject to the tax.
(5) Notwithstanding the provisions of this Section, a certificate of title or vehicle
registration license may be issued to a purchaser by the secretary of the Department of Public
Safety if he is so authorized in writing by the secretary of the Department of Revenue. The
secretary of the Department of Revenue shall grant such authorization upon written
application by the purchaser to said secretary showing that:
(a) all state and local taxes and fees due by the purchaser were paid in good faith at
the time of purchase to a motor vehicle dealer,
(b) the motor vehicle dealer has not remitted the taxes and fees to the secretary of the
Department of Public Safety,
(c) the motor vehicle dealer has refused or is unable to answer a written demand by
the purchaser that the taxes and fees be paid to the secretary of the Department of Public
(d) the certificate of title or vehicle registration license has not been issued within
six months after the date of sale. A refusal by the secretary of the Department of Revenue
to authorize the issuance of a certificate of title or a vehicle registration license may be
appealed to the Board of Tax Appeals within sixty days from the date the application for a
certificate of title is denied by the secretary of the Department of Revenue.
(6) Repealed by Acts 2005, No. 384, §1, eff. June 30, 2005.
(7) Whenever a licensed dealer in motor vehicles sells, assigns, or otherwise transfers
an agreement for the lease of a motor vehicle to a licensed lessor of motor vehicles for whom
the licensed dealer has prepared the agreement, the transfer shall include all unremitted taxes
collected by the licensed dealer, and the licensed lessor shall have the sole responsibility for
remitting such taxes to the proper taxing authorities.
(8) When a foreign corporation, foreign limited liability company, foreign limited
partnership, or foreign partnership acquires a vehicle on which the tax imposed by R.S.
47:302(A) would have been due had the vehicle been acquired by a business entity organized
under the laws of this state, the department may collect the tax from the foreign business
entity if the department determines that the purpose of the foreign business entity was tax
avoidance after considering all of the following:
(a) Whether there is a specific business purpose for the foreign business entity to
acquire the vehicle other than the avoidance of the tax imposed by R.S. 47:302(A).
(b) Whether the users of the vehicle compensate the foreign business entity
reasonably for the use of the vehicle.
(c) Whether the foreign business entity fails to maintain a physical location in the
(d) Whether the foreign business entity fails to employ individual persons and
provide those persons with Internal Revenue Service Form W-2 wage and tax statements.
(e) Whether the foreign business entity fails to file federal tax returns or fails to file
a required state tax return in the foreign state.
(f) The location of where the vehicle is stored.
(g) The jurisdiction where the vehicle is typically used.
(h) The domicile of the most frequent drivers and passengers of the vehicle.
(i) The duration of the trips for which the vehicle is used.
C. Auctioneers. All auctioneers shall register as dealers and shall display their
registration to the public as a condition of doing business in this state. Such auctioneers or
the company which they represent shall be responsible for the collection of all local and state
taxes on articles sold by them and shall report and remit to the collector as provided in this
D. Collection of tax on motorboats and vessels. (1) Except as provided for in R.S.
47:305(D)(1)(i), the secretary of the Louisiana Department of Wildlife and Fisheries shall
not register or issue a certificate of registration on any new boat or vessel purchased in this
state until satisfactory proof has been presented to him that all sales taxes provided by this
Part, and all municipal, school board and parish sales taxes, have been paid, nor shall he
register or issue a certificate of registration on any boat or vessel brought into this state until
satisfactory proof has been presented to him that all use taxes required by this Part, and all
municipal, school board and parish use taxes, have been paid.
(2) Any sales or use tax levied by the state or a statewide political subdivision due
under the provisions of this Chapter may be collected by special certificate agents of the
Department of Wildlife and Fisheries as provided for in R.S. 34:851.37. Upon receipt by
such department such taxes shall be remitted as soon as possible to the Department of
E. Collection of tax on off-road vehicles. (1) The vehicle commissioner shall not
issue a title or a certificate of registration on any off-road vehicle purchased in this state or
brought into this state from another state until satisfactory proof has been presented to him
that all sales taxes required by law have been paid. However, as provided for in R.S.
47:305.56, an out-of-state purchaser of an off-road vehicle shall be exempt from the payment
of state sales and use taxes. The purchaser of an off-road vehicle from a seller who is not
registered with the Department of Public Safety and Corrections shall pay the sales tax at the
time the vehicle is titled the same as is required for the registration and licensing of other
vehicles under the provisions of Subsection B of this Section.
(2) After payment of the taxes due, the commissioner shall issue a decal, in a form
prescribed, said decal to be affixed to the vehicle, as directed, by the commissioner, which
shall be conclusive proof of registration and payment of the required taxes. All 1987 and
later model off-road vehicles sold as new and subsequently sold as used shall be required to
display this decal, commencing September 1, 1986. The decal shall be a two-year renewal
type and the fees for issuance of new, renewal, transfer, lost, or illegible decals shall be the
same amount as those fees charged for the registration stickers of other motor vehicles.
Failure to have this decal affixed to the off-road vehicle within thirty days of purchase will
result in a fine, not to exceed fifty dollars, or the impounding of the vehicle, or both, and the
payment of all taxes due, if any. All peace officers, including the Department of Wildlife and
Fisheries, may require proof of registration and shall have concurrent jurisdiction to enforce
the provisions of this Section.
F. Collection of tax on membership in health and physical fitness clubs. The sales
tax due under the provisions of this Chapter on contracts for membership in a health and
physical fitness club shall be assessed and shall be due and payable on a monthly basis
computed on the amount paid each month less any actual or imputed interest or collection
fees or unpaid reserve amounts not received by the health and fitness club, provided that no
sales or use tax of the state or any of its political subdivisions not collected by such clubs
shall be due or payable on amounts collected on such contracts prior to the effective date of
the Act originally enacting this Subsection.
G. Direct Payment Numbers. Notwithstanding any provision of law to the contrary,
a Louisiana taxpayer who obtains a DP Number as provided in R.S. 47:303.1 shall remit
sales and use taxes due on purchases and rentals of tangible personal property and taxable
services directly to the state and local taxing bodies to whom the sales and use taxes are due,
and shall not be liable to remit the tax to the vendor or lessor of the tangible personal
property and taxable services, as provided in R.S. 47:303.1.
H. Collection of tax on tooling in a compression molding process. Notwithstanding
any other law to the contrary, any tax due on customer-owned tooling imported into this state
and used in a compression molding process shall only be collected from the person actually
using the tooling in his process. Such person shall be considered a dealer using property in
this state for purposes of this Chapter.
Acts 1962, No. 182; Acts 1964, No. 171, §1; Acts 1964, No. 519, §1; Acts 1964,
Ex.Sess., No. 7, §1; Acts 1965, No. 122, §1; Acts 1966, No. 271, §1; Acts 1970, No. 656,
§1; Acts 1972, No. 96, §3, eff. Jan. 1, 1973; Acts 1975, No. 197, §1; Acts 1978, No. 377, §1;
Acts 1978, No. 584, §1, eff. July 12, 1978, Acts 1980, No. 137, §2; Acts 1982, No. 699, §2,
eff. Aug. 2, 1982; Acts 1985, No. 661, §1; Acts 1986, No. 1067, §1; Acts 1987, No. 379, §1,
eff. July 7, 1987; Acts 1987, No. 682, §1, eff. Sept. 1, 1987; Acts 1989, No. 264, §1, eff.
Aug. 1, 1989; Acts 1990, No. 427, §1; Acts 1991, No. 198, §1, eff. July 2, 1991; Acts 1992,
No. 796, §1; Acts 1993, No. 569, §2, eff. July 1, 1993; Acts 1993, No. 688, §1; Acts 1995,
No. 476, §1, eff. June 17, 1995; Acts 1999, No. 553, §1; Acts 2001, No. 13, §1; Acts 2001,
No. 1032, §15; Acts 2003, No. 1186, §1; Acts 2003, No. 1240, §3, eff. July 1, 2003; Acts
2005, No. 133, §2, eff. June 22, 2005; Acts 2005, No. 384, §1, eff. June 30, 2005; Acts 2005,
No. 394, §1, eff. July 1, 2005; Acts 2006, No. 291, §1; Acts 2007, No. 291, §1, eff. Oct. 1,
2007; Acts 2009, No. 442, §1, eff. July 1, 2009; Acts 2015, No. 107, §1, eff. June 19, 2015;
Acts 2016, No. 25, §1, eff. May 9, 2016.