Motor carrier taxes - Louisiana

Sales & use taxes

Total state tax is imposed in Louisiana, with some additional local taxes possible. Lease and rental of tangible personal property, as well as certain enumerated services, is also subject to this tax. Providing transportation services for hire is not one of the enumerated services, so the income from such services is exempt from sales tax.

The sales and use tax does not apply to the following:

• Trucks with a gross weight of 26,000 pounds or more, and to trailers given the trucks and trailers are subject to the jurisdiction of the United States DOT and are used at least 80 percent of the time in interstate commerce.
• The purchase, use, or lease of a qualifying truck, as well as the purchase, use, or lease of a qualifying trailer purchased, imported, or leased — with or without a qualifying truck — for use with a qualifying truck.
• Contract carrier buses which are used at least 80 percent of the time in interstate commerce.

A qualifying truck must meet the following requirements:

• Be registered as a Class 1 vehicle with a registered gross weight of at least 80,000 pounds.
• Be subject to the jurisdiction of the United States DOT.
• Be registered with apportioned plates through the International Registration Plan or be issued a special permit from the Louisiana DOT.

For a trailer to qualify, it must be subject to the jurisdiction of the United States DOT.

A tax is imposed on the cost price of tangible personal property used, consumed, distributed or stored in the State of Louisiana for use or consumption. A credit against the use tax due in Louisiana is granted to taxpayers who have already paid a similar tax in another state which grants tax reciprocity to Louisiana.

Franchise/Gross receipts taxes

Louisiana imposes a corporation franchise tax. The corporation franchise tax accrues on the first day of each accounting year, and the return for that period must be filed on or before the 15th day of the fifth month of that accounting year. The tax rate for franchise tax periods has reduced to a single rate of $2.75 for each $1,000, or major fraction thereof in excess of $300,000 capital employed within Louisiana.

In the case of motor carriers, a Louisiana sales factor is determined by multiplying gross receipts by the ratio of mileage within Louisiana to total mileage. The Louisiana property factor is computed in the same manner as it is for income tax purposes.

Louisiana also imposes a transportation and communication utilities tax. The tax rate is 2 percent of the gross receipts from intrastate business. All operators of public utilities — except a motor freight line — are required to file Form R-5201 monthly on or before the 20th day following the taxable period. All operators of motor freight lines are required to file quarterly on or before the 30th day following the taxable period.