Sales Tax Statutes and Regulations - Louisiana Department of ...

LAC 61:I.4403.B
the gross proceeds from the sale of such ships,
vessels, or barges when sold by the builder thereof.
B. The taxes imposed by R.S. 47:302 and R.S.
47:321 shall not apply to materials and supplies
purchased by the owners or operators of ships or
vessels operating exclusively in foreign or interstate
coastwise commerce, where such materials
and supplies are loaded upon the ship or vessel
for use or consumption in the maintenance and
operation thereof; nor to repair services performed
upon ships or vessels operating exclusively
in foreign or interstate coastwise commerce;
nor to the materials and supplies used in such
repairs where such materials and supplies enter
into and become a component part of such ships
or vessels; nor to laundry services performed for
the owners or operators of such ships or vessels
operating exclusively in foreign or interstate coastwise
commerce, where the laundered articles are
to be used in the course of the operation of such
ships or vessels.
C. The exemption from the state sales tax provided
in this Section shall be applicable to any
sales tax levied by a local governmental subdivision
or school board.
D. Repealed by Acts 1982, No. 56, eff. July 10,
1982.
LAC 61:I.4403. Ships and Ships’ Supplies
A. R.S. 47:305.1 specifically provides for an exemption
from the sales tax imposed by R.S.
47:302(A), R.S. 47:321(A), and R.S. 47:331(A) to
the following transactions:
1. The sales, by a builder thereof, of a ship, vessel
or barge, including commercial fishing vessels,
drilling ships, and drilling barges, of 50 tons load
displacement and over if built in Louisiana;
2. The sale of materials, equipment and machinery
which enter into and become component parts of
the ship, vessels or barges described above provided
the seller thereof obtains an exemption certificate,
Form LGST 51-A, as hereinafter provided
for. This provision applies to materials, equipment
and machinery which are incorporated into the
initial construction of the ship, vessel or barge; or
are incorporated into the reconstruction of a ship,
vessel or barge to:
a. modify the craft’s function, such as conversion
of a deck barge to a crane barge; or
b. restore the craft to seaworthiness following its
destruction caused by either sinking, collision, or
fire. Materials, machinery and equipment sold to
the owner of a ship, vessel or barge to repair or
replace worn components are not exempt under
this Sub-section A.
B. The various taxes imposed by this Chapter shall
not apply to the following transactions provided an
exemption certificate, Form LGST 51-B, is obtained
as hereinafter provided for:
1. the sale of materials and supplies to the owner
or operator of a ship or vessel operating exclusively
in foreign or interstate coastwise commerce where
such materials or supplies are loaded upon the
ship or vessel for use or consumption in the maintenance
or operation thereof. In order for the exemption
to be recognized, actual delivery of the
merchandise to dockside will be sufficient indication
to the vendor that the merchandise will be
loaded upon the ship or vessel;
2. repair services performed upon ships or vessels
operating exclusively in foreign or interstate coastwise
commerce, and the sale of materials and
supplies used in such repairs if the materials and
supplies enter into and become component parts of
such ships and vessels. The exemption will still
apply in instances where it is necessary to perform
the repair services away from the ship or vessel;
3. laundry services performed for the owner or
operator of ships or vessels operating exclusively
in foreign or interstate coastwise commerce where
the laundered articles are to be used in the course
or operation of such ships or vessels;
4. persons claiming exemption under this regulation
shall secure certificates of exemption from
their purchasers and shall retain them on file
together with a copy of the sales invoice which
shall be exhibited to the secretary upon request;
5. since not all shipping companies maintain an
office in the state of Louisiana nor do all the owners
of vessels reside in the state of Louisiana, the
secretary will recognize an exemption certificate
signed by an authorized agent purchasing tangible
personal property for use or consumption in
the operation of the vessel;
6. ships and vessels operating exclusively in foreign
or interstate coastwise commerce, arriving in
Louisiana without an authorized agent in this
state may make purchases of tangible personal
property for use and maintenance in the operation
Louisiana Sales Tax Law and Regulations 77