Frequently Asked Questions
Louisiana Resale Certificate
- When does a business need to renew the Louisiana Resale Certificate(s)?
- I have an R-1055 Louisiana Limited Resale Certificate. Will it be automatically renewed?
- What is a NAICS code and where can I locate it? What is the industry title? What is the title of the NAICS code?
- The Resale application asks for 2-year prior resale inventory purchase amounts. What figures are needed? Where can I obtain this?
- Why was my Resale Certificate application for renewal denied?
- I am logged into LaTAP, but don’t see a link to Request/Renewal of Resale Certificates.
- The Resale Certificate application status indicates “Not yet submitted.”
- How can I get a copy of my Louisiana Resale Certificate(s)?
- $15.00 for a copy of any tax return or other document previously filed by the taxpayer, or authorized representative, for each year or tax period requested, regardless of whether the requested return or document is located.
- $25.00 for each certified copy of a return or other document requested.
- My Louisiana Resale Certificate approval letter states, “Purchases for use or consumption are still taxable and you must pay tax at the time of purchase.” What does this mean?
- As a sales tax account registrant, is it required to apply for a Louisiana Resale Certificate?
- I operate a used motor vehicle dealership. Can I get a Louisiana Resale Certificate?
Businesses should renew their Louisiana Resale Certificate (R-1064) within 60 days of the expiration date on the certificate. Businesses must renew their certificates online through the LDR Louisiana Taxpayer Access Point (LaTAP) system. If the request is submitted prior to the 60-day renewal period, it will not be processed. Resale dealers not registered for LaTAP must register for LaTAP in order to complete the renewal process.
LDR will no longer issue the Limited Resale Dealer Certificate (Form R-1055). Instead, all dealers who renew Resale Certificates will receive the Louisiana Resale Certificate (R-1064). R-1055 certificates will be valid through their expiration date.
The North American Industry Classification System (NAICS) is a standard used by federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. NAICS codes can be found online at the U.S. Census Bureau website (www.census.gov/eos/www/naics). NAICS codes can be found on federal corporation tax returns and Louisiana Workforce Commission account numbers.
The Louisiana Department of Revenue uses the NAICS code to determine if a business is eligible for the Louisiana Resale Certificate. New businesses are automatically issued a Louisiana Resale Certificate if the NAICS code indicates sales are part of the business activity. However, if the dealer’s NAICS code does not indicate sales as a primary business activity but the dealer does occasionally purchase items for resale, the business may be eligible for the Louisiana Resale Certificate. Businesses should apply online for the Resale Certificate using LDR’s LaTAP system.
Resale inventory purchase amounts are the total amount of goods purchased for resale by a business. This figure is sometimes called the “cost of goods sold.” If your business is a sole proprietorship and files a Schedule C (Profit or Loss from Business) on your federal income tax return, use the amount shown on Line 4 “Cost of Goods Sold.” If your business is a corporation and files Form 1120 (U.S. Corporation Income Tax Return), use the “Cost of Goods Sold” amount shown on Line 2. Or, you may use the cost of goods sold amounts shown in your general ledger.
Resale certificate renewal applications may be denied for a number of reasons. A dealer seeking renewal of its Louisiana Resale Certificate must have a consistent state sales tax return filing history within the current twelve-month period. Sales activity must be reported on Lines 1 or 3 of sales tax returns within the last 12 months.
In LaTAP, you must first select an account on the My Summary page. Be sure to select the ID for the sales tax account needing the certificate renewal. Once an account is selected, a link to “Request/Renewal of Resale Certificates” will appear in the upper right corner of the screen. Follow the indicated steps to submit a renewal application. If there are multiple exemption certificates to be renewed, select the “Multi Business Locations Consolidated Account” option from the menu. If you don’t see your sales tax ID number, select “Add Access to Another Account,” then select “Sales Account” in order to display the link to “Request/Renewal of Resale Certificates.”
Applications cannot be processed until the renewal application is submitted. In the online application, please select “Step 3: Submit Requests” to submit a renewal application. Normally, applications take 2-3 days for processing. Applications reported as “Success” have been approved and can be printed from LaTAP. LDR will also mail Resale Certificate renewals 7 – 10 business days after the application is approved.
Businesses may also request a copy by completing a Tax Information Disclosure Authorization, Form R-7004. This form authorizes the one-time release of information to yourself or the appointee you list on the form. Instructions for the form can be found here.
Act 130 of the 2015 Regular Session of the Louisiana Legislature amended Revised Statute 47:1507 to provide for fees for searching for tax returns and other documents, authenticating records, and certifying copies of tax returns and other documents (see Louisiana Administrative Code 61:III.1701). As of July 17, 2015, the fees are as follows:
All fees must be paid when you submit the Tax Information Disclosure Authorization, Form R-7004 by check or money order, made payable to the Department of Revenue. Cash cannot be accepted.
Only purchases for resale can be purchased without payment of the state sales tax. Purchases for the use of the business are still subject to state tax, including items withdrawn from resale inventory for business use. If no state sales tax was paid at the time of purchase, sales/use tax is due on the value of the item withdrawn from resale inventory. For example: an office supply store withdraws paper from the resale inventory for use in the store manager’s office. It would owe the state sales/use tax of 4% because the paper was “used” by the business and not resold to a customer.
If you are a new sales tax account registrant, your Louisiana Resale Certificate will be issued automatically to you if your NAICS code indicates your business makes sales of tangible personal property. If your NAICS code does not indicate your business makes sales of tangible personal property, you must apply online for a Resale Certificate through LDR’s LaTAP system.
Used motor vehicle dealers cannot use the Louisiana Resale Certificate to purchase parts or repair services that will become a component and integral part of vehicles held for resale. Used motor vehicle dealers must use the Vehicle Dealer Purchases of Parts and Services for Vehicles for Resale (R-1311) exemption certificate to document their exempt status. Holders of the R-1311 can use the certificate to purchase tangible personal property or repair services that will become components of vehicles for resale exempt from state sales tax.
In order to receive a R-1311, used motor vehicle dealers must submit a completed Resale Certificate Application for Used Vehicle Dealer Purchases of Parts and Services (R-1393), along with a copy of the applicant’s current Louisiana Recreational and Used Motor Vehicle and Parts Commission license, to the Special Programs Division, Louisiana Department of Revenue, P.O. Box 66362, Baton Rouge, LA 70821-6362.
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