Electronic Filing Required for Dealers Who Lease or Rent Motor Vehicles
Because this information is not separately reported on the sales tax return, Form R-1029, the Department has adopted Emergency Rule LAC 61:III.1511 to require dealers that collect sales tax on motor vehicle leases or rentals to file their sales tax returns electronically using a special sales tax return that includes lines for reporting motor vehicle leases and rentals.
R.S. 47:1520(A)(1)(d) authorizes the secretary to require electronic filing if the report is required for dedicated fund distribution. Paragraph A(2) provides that the electronic filing requirement be implemented by administrative rule. Subsection B contains penalty provisions for failure to comply.
For the purpose of the electronic filing mandate, a motor vehicle is defined as any self-propelled device that is used to transport people or property on the public highways. Dealers that collect sales tax on motor vehicle leases or rentals will be required to file their state sales tax returns electronically. Dealers have the following two options for electronic filing:
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Electronic filing via the Department’s Louisiana Taxpayer Access Point (LaTAP) system, or
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Electronic filing using one of the software vendors listed on the Department’s website.
Dealers who use the LaTAP system will be given step-by-step instructions for setting up electronic filing as a motor vehicle lease or rental dealer.
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Gross proceeds from motor vehicle leases and rentals, which include taxable and exempt transactions, should be reported on Line 3(a).
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All other leases, rentals and services should be reported on line 3(b).
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Exempt motor vehicle leases and rentals to federal, state, or local governmental entities should be reported on Schedule A, Line 26-A.
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All other sales and use transactions should be reported as usual.
R.S. 48:77 dedicates the sales tax collections from motor vehicle leases or rentals to the Transportation Trust Fund.
Questions concerning this electronic filing mandate should be directed to email at sales.inquiries@la.gov or call 855-307-3893.