La. Admin. Code tit. 25 § I-1113

Current through Register Vol. 50, No. 11, November 20, 2024

Section I-1113 - Sales Tax Exemption

A. Effective on the first day of the month following certification of the cultural district, sales and use taxes imposed by the state of Louisiana or any of its political subdivisions shall not apply to the sale of original, one-of-a-kind works of art from an established location within the boundaries of a cultural district.

B. An established location shall be any location within the boundaries of the cultural district, and may include, at the discretion of the local governing authority, events and activities authorized by the local governing authority held in temporary locations such as markets, fairs, and festivals.

C. Vendors of original, one-of-a-kind works of art should register with the department in order to receive regular communication from the office of cultural development and the Department of Revenue on rulings, guidelines, and advice regarding the implementation of this provision. If a vendor meets the definition of a dealer as provided in R.S. 47:301(4), then the vendor must register with the Department of Revenue as provided by law.

D. Vendors shall certify and document the tax-exempt sale of original, one-of-a-kind works of art in the format prescribed by the Department of Revenue, and shall include the following:

1. a description of the work of art including its medium and dimensions, the name of the artist, its date of creation, and the name, contact information, and qualifications of the person vouching for this information; and

2. a statement by the vendor certifying that to the best of his knowledge the work of art meets the definition of a tax-exempt work of art.

E. The certificates and documents described above shall be retained by the vendor for purposes of audit. Vendors may provide to the purchaser documentation in the form of an exemption certificate certifying the purchase of an original, one-of-a-kind work of art.

F. Vendors shall retain copies of said certificates and documents for inspection by the Department of Revenue and local taxing authorities, and may submit copies of said certificates and documentation to the local governing authority and the department on an annual basis, by January 1, for the activity of the preceding year.

G. Prior to the sale, vendors may seek advance advisory opinions from the department, acting through the office of cultural development, to determine whether a specific work of art meets the definition of a tax-exempt work of art.

H. After the sale and upon request of any taxing authority, the office of cultural development, may issue rulings on whether a specific work of art meets the definition of a tax-exempt work of art.

1. A work of art is tax exempt if it is sold from an established location within a cultural district and it is:

a. original;

b. one-of-kind, except as further defined in Paragraph 2 below;

c. visual art;

d. conceived and made by hand of the artist or under his direction; and

e. not intended for mass production.

2. Examples of eligible media and products include:

a. visual arts and crafts, including but not limited to drawing, painting, sculpture, clay, ceramics, fiber, glass, leather, metal, paper, wood, or mixed media, installation art, light sculpture, digital sculpture, and wearable art; and

b. limited, numbered editions (up to 100) of lithographs, photography, silk screen, intaglios, etchings, and graphic design.

3. Examples of ineligible media and products include:

a. performing art;

b. food products;

c. live plants, such as bonsai trees, floral arrangements, wreaths, and garland;

d. music recordings; and

e. reproductions.

J. If an audit reveals that sales tax was not collected properly on a work of art, the vendor or purchaser shall remit the amount of the uncollected tax to the proper taxing authorities, along with any penalties or fees. This provision does not affect the assessment and collection procedures undertaken by the Department of Revenue.

La. Admin. Code tit. 25, § I-1113

Promulgated by the Department of Culture, Recreation and Tourism, Office of Cultural Development, LR 34:600 (April 2008), amended LR 36:470 (March 2010).

AUTHORITY NOTE: Promulgated in accordance with Act 298 of the 2007 Regular Session of the Louisiana Legislature.