Sales Tax Articles
Sales Tax State Activity Update - August 2008
Leased Pallets in Louisiana "Skid" Past Sales & Use Tax
Effective July 1, 2008, leases and rentals of pallets to be used in packaging products produced by manufacturers are excluded from the state and local sales taxes. The 2007 Regular Session of the Louisiana Legislature's Act 419 enacted La. R.S. 47:301(7)(1) providing for the exclusion.
To be eligible for sales tax exclusion on the rented pallets, a manufacturer's primary activity must be manufacturing and the Louisiana Department of Labor must have assigned the manufacturer a North American Industry Classification System (NAICS) code within the manufacturing sectors 31-33, as they existed in 2002. Manufacturers must use Exemption Form R-1381 to document eligibility for the sales tax exclusion.
The full text can be viewed on the Louisiana Department of Revenue Web site.
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