La. Admin. Code tit. 61 § I-903

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

Section I-903 - Standard Dry-Weight Conversion Factors

A. In order to minimize instances in which the cost to the taxpayer of testing waste to determine the actual dry-weight exceeds the tax liability, and to minimize instances in which the cost to the state of administering and enforcing the tax exceeds the tax revenue, the secretary herein establishes standard dry-weight conversion factors and guidelines for the use of these factors. The standard conversion factors can be used only in instances which meet all conditions established by the guidelines.

B. The guidelines for use of the standard conversion factors are:

1. any generator may use the standard conversion factors in computing the taxable dry-weight of a hazardous waste when the wet weight is 40 tons or less for the taxable quarter;

2. when a taxpayer files a consolidated return covering several generation sites, the 40-ton limit is to be applied on a per-site basis;

3. the 40-ton limit applies to each waste. The total tons of all wastes which are substantially the same must be combined in determining if the 40-ton limit is exceeded. A taxpayer may qualify to use the standard factors in computing the dry-weight of some wastes on a return while being required to use the actual conversion factor for other wastes on the same return;

4. taxpayers are not required to use the standard conversion factors. The actual conversion factor or the wet weight may be used; however, if the standard conversion factors are used as a deliberate means to avoid paying a higher amount of tax, then the use of the standard conversion factors will be disallowed and the actual dry-weight determination will be used.

C. When the use of the standard conversion factors is allowed, and the taxpayer elects to use them, the allowable factor is based upon the method of disposal. Listed below are the disposal methods for which standard conversion factors have been established, and their associated factors.

Landfill 0.75, i.e., total weight x 0.75 = dry weight

Landfarm 0.25, i.e., total weight x 0.25 = dry weight

Impoundments 0.05, i.e., total weight x 0.05 = dry weight

Injection wells 0.02, i.e., total weight x 0.02 = dry weight

La. Admin. Code tit. 61, § I-903

Promulgated by the Department of Revenue and Taxation, Excise Taxes Section, LR 13:105 (February 1987).

AUTHORITY NOTE: Promulgated in accordance with R.S. 47.821.