La. Admin. Code tit. 25, § 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.
I.
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.
Notes
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