La. Admin. Code tit. 61 § I-4416

Current through Register Vol. 50, No. 9, September 20, 2024

Section I-4416 - Purchases of Mardi Gras Specialty Items

A.R.S. 47:305.40 grants an exemption solely from state sales or use tax on purchases of specialty items for use in connection with Mardi Gras activities. The exemption is available to:

1. carnival organizations domiciled within Louisiana that plan to sponsor either a Mardi Gras ball or parade during the next Mardi Gras season; and

2. nonprofit organizations domiciled within Louisiana that plan to participate in a parade sponsored by a carnival organization.

B. Each such eligible organization shall annually request and obtain from the Department of Revenue and Taxation a Certificate of Exemption that may be presented to vendors of specialty items in lieu of the tax at the time of purchase. The request may be either in the form of a letter or on forms supplied by the Department of Revenue and Taxation, and shall contain the following information:

1. name and address of the organization;

2. type of organization, either:

a. carnival organization sponsoring a parade or ball during next Mardi Gras season; or

b. nonprofit organization participating in a carnival organization parade during next Mardi Gras season;

3. event or events to be sponsored or participated in for which tax-free purchases are being made;

4. type of specialty items to be purchased tax-free under the authority of the exemption certificate;

5. name of the officer authorized to make purchases on behalf of the organization;

6. name and signature of the officer of the organization making the request.

C. Subsection 4416. B defines specialty items for purposes of the exemption as those items which are specially designed for the carnival or nonprofit organization and bear the organization's name or insignia. Examples of such items are doubloons, necklaces, beads, throws, cups, and coasters. Other types of specialty items may also qualify for the exemption if they are purchased for use in a Mardi Gras activity, bear the name or insignia of the organization, and are either for free distribution to the public or for use in conjunction with a Mardi Gras ball, such as flags, posters, invitations, programs, decorations, napkins, and tablecloths.

D. The resale of specialty items by the purchasing organization to its members shall be regarded as exempt sales under the provisions of this Section, but only when those items are used exclusively in conjunction with a Mardi Gras parade or ball. The sale of novelty items such as shirts and hats, on a continuing basis, which are not used exclusively in conjunction with a Mardi Gras parade or ball, shall be regarded as taxable sales under the provisions of this Chapter.

La. Admin. Code tit. 61, § I-4416

Promulgated by the Department of Revenue and Taxation, Sales Tax Section, LR 13:107 (February 1987), amended by the Department of Revenue, Policy Services Division, LR 31:93 (January 2005).

AUTHORITY NOTE: Promulgated in accordance with R.S. 47:305.40 and R.S. 47:1511.