La. Admin. Code tit. 61, § I-4411 - Contracts Prior to and within 90 Days of Tax Levy
A.R.S.
47:305.11 relieves a party to a construction
contract from the burden of added sales or use tax imposed by either the state
of Louisiana, any parish, municipality, or other political subdivision thereof
on the sales of materials or services involved in either lump-sum or unit price
contracts after the contractor has made himself liable for performance and
completion of a contract which did not provide for new or additional taxes. The
exemption from new taxes applies only to lump-sum or unit price contracts and
does not apply to contracts entered into on a cost plus or fixed fee basis. It
is also required that the contracts must have been entered into prior to the
effective date of the statute or ordinance levying the new tax. The exemption
does apply to sales and services involved in a contract reduced to writing
within 90 days after the effective date of a statute levying a new tax, but
only if the contractor had a contractual obligation entered into prior to the
effective date. The 90-day period is intended to cover a situation where a
contractor has computed and bid a contract on the basis of existing taxes prior
to the effective date of the new tax but where awarding of the contact and
formal signing thereof did not take place prior to the effective date, but
within 90 days after the effective date of the new tax.
Notes
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