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For Immediate Release
May 19, 2008
Louisiana Shows Its Charitable Side by Exempting Certain Non-Profit
Organizations
Effective January 1, 2008, a qualified charitable
institution that submits an application to the Secretary of the LA DOR
will be entitled to receive an exemption of Louisiana sales and use tax
that the qualified institution has collected on the sale of donated
tangible personal property, or items made from such donated tangible
personal property. The exemption comes in the form of a restricted refund
of the taxes.
A qualified charitable institution is defined as an
organization that meets the following standards:
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has qualified for exemption from Federal income
taxation under IRC Section 501)c)(3);
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has its principal place of business located in
Louisiana;
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spends at least 75% of its annual revenue on job
training, job placement, direct employment of or other related community
services or support programs for people with workplace disabilities or
disadvantages; and
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routinely sells donated tangible personal property or
items made from such donated tangible personal property.
The refund must be used exclusively in Louisiana for
land acquisition, capital construction or equipment, or related debt
service, and/or job training, job placement, employment or other related
community services and support program costs.
These qualified charitable institutions must be
pre-approved for the exemption prior to being able to keep the sales tax
collected as a restricted refund. The DOR has the right to audit these
refunds within four (4) year of the date the applicable for exemption is
received.
If you would like additional
information on this topic or have any questions,
please contact the taxdesk@thesaltgroup.com
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