A.
To qualify for exemption under
R.S.
47:305.1(A), materials,
machinery, and equipment that become component parts of ships, vessels, or
barges of 50 tons load displacement and over, built in Louisiana, must be added
during construction or reconstruction. Materials, machinery, and equipment that
replace worn components are not exempt under
R.S.
47:305.1(A).
B. Reconstructions qualify for exemption
under
R.S. 47:305.1(A)
if they:
1. modify the craft's function, such
as conversion of a deck barge to a crane barge; or
2. restore the craft to seaworthiness
following its destruction by sinking, collision, or fire.
C.
1. For
the purposes of the exemption provided in
R.S.
47:305.1(B), vendors may
assume that ships' supplies and materials delivered to the dock will be loaded
upon the vessel for use or consumption in the maintenance of the
vessel.
2. The exemption provided
in R.S.
47:305.1(B) for repair
services performed upon ships and vessels operating exclusively in foreign or
interstate coastwise commerce also applies to component parts removed from
those ships, vessels, or barges and repaired elsewhere.
D. For the purposes of the exemption granted
under
R.S. 47:305.1, the following
definitions apply.
Commerce-the transporting of goods or
persons by ship, vessel, or barge exclusively to carry on a trade or
business.
Load Displacement-the weight of the volume
of water displaced by a ship, vessel, or barge when loaded to its maximum
capacity.
Owner or Operator-any person who has title
to, possession of, or control over the operation of any ship, vessel, or barge
defined in
R.S.
47:305.1.
Ship, Vessel, or Barge-any
craft used primarily for transporting persons or property by water, or any
craft designed or altered to perform specialized marine-related services, such
as dredging, fleeting, geological surveying, cargo transferring, and which
possesses all of the following characteristics:
a. performs its services in navigable
waters;
b. is capable of being
moved by floatation from one location to another in navigable waters;
and
c. is registered as a vessel
with the United States Coast Guard or is eligible for registration.
Ships Supplies and Materials-all tangible
personal property loaded on and used or consumed in the maintenance or
operation of a ship, vessel, or barge and its crew.
Notes
La. Admin. Code
tit. 61, §
I-4403
Promulgated by the
Department of Revenue and Taxation, Sales Tax Section, LR 13:107 (February
1987), amended by Department of Revenue, Policy Services Division, LR 30:1044
(May 2004).
AUTHORITY NOTE:
Promulgated in accordance with
R.S.
47:305.1.
