Sales tax refunds available for property destroyed in 2016 floods
BATON ROUGE - Taxpayers in certain parishes can claim refunds for state sales taxes paid on personal property destroyed by last week’s historic flooding or the March 2016 flooding.
According to the Louisiana Department of Revenue, those refunds are only available to residents living in a parish declared a federal disaster area.
According to state law, eligible losses must meet the following criteria:
The loss was suffered by a Louisiana taxpayer on property used in or about the individual’s home, apartment, or homestead which is located in Louisiana; property owned by corporations, partnerships or any type of business does not qualify for a sales tax refund.
The destroyed property must have been moveable at the time of its purchase and at the time of its destruction. Examples are: clothing, furniture, televisions. Motor vehicles are not eligible.
The taxpayer must have paid Louisiana state sales tax on the purchase of the destroyed property.
The Department of Revenue says refunds are equal to the state sales tax paid on the original purchase of the destroyed property, not on the purchase of replacement property.
The refunds are issues for unreimbursed losses only. Losses reimbursed by insurance or disaster relief funds are not eligible.
The following parishes have been declared federal disaster areas following severe storms and flooding in August 2016: Acadia, Ascension, Avoyelles, East Baton Rouge, East Feliciana, Evangeline, Iberia, Iberville, Jefferson Davis, Lafayette, Livingston, Pointe Coupee, St. Helena, St. Landry, St. Martin, St. Tammany, Tangipahoa, Vermillion, Washington and West Feliciana. If additional parishes are declared federal disaster areas, they will receive the same relief.
The following parishes were declared federal disaster areas following severe storms and flooding in March 2016: Allen, Ascension, Beauregard, Bienville, Bossier, Caddo, Calcasieu, Caldwell, Catahoula, Claiborne, DeSoto, East Carroll, Franklin, Grant, Jackson, LaSalle, Lincoln, Livingston, Madison, Morehouse, Natchitoches, Ouachita, Rapides, Red River, Richland, Sabine, St. Helena, St. Tammany, Tangipahoa, Union, Vernon, Washington, Webster, West Carroll and Winn.
For more information, including the process for claiming a sales tax refund for destroyed property, read Revenue Information Bulletin 16-049.