A.
Definitions
Cash Discounts-reduction to the total
invoiced amount based upon a payment method or timing of payment such as
payment by electronic funds transfer, automatic withdrawal or full payment
within a specified period.
Promotional Incentives-product provided to
the Louisiana dealer and listed on the invoice at no cost.
Trade Discounts-reduction in list price or
unit price given by a manufacturer or other supplier. These discounts are
listed in the product line item as either a percentage or specified amount and
are reflected in the extended price of the product on the invoice.
B. The tobacco tax is imposed on
the invoice price of cigars, smoking tobacco, smokeless tobacco, and other
tobacco products.
R.S.
47:842(6) defines invoice
price as the manufacturer's net invoiced price as invoiced to the Louisiana
tobacco dealer.
C. Manufacturer's
net invoiced price is the product line item price charged to the dealer by the
manufacturer, supplier, jobber or other person who sells the tobacco product to
the dealer inclusive of any trade discount reflected in the line item
price.
D. Federal excise and other
taxes, shipping charges, and freight charges separately stated on an invoice
are not considered part of the price of the taxable product and are excluded
from the determination of manufacturer's net invoiced price.
E. Cash discounts shall not be considered
when determining the manufacturer's net invoiced price.
F.R.S.
47:854(B) requires that any
tobacco products given away at no cost must be taxed in the same manner as
products sold, used, consumed, handled or distributed in this state. The
tobacco tax due on promotional incentives listed on an invoice at no cost shall
be determined as follows.
1. If the invoice
reflects a purchase of the same product, then the tobacco excise tax should be
calculated on the invoiced price charged on the invoice for the same
product.
2. If the invoice does not
show the purchase of the same product, then the tax is calculated on the
manufacturer's list price for that product.
