Louisiana – New Resale Certificates (again)
Posted by salestax on July 14, 2009
**UPDATE** To verify any resale certificate received, you can check the LA account number on the LA Resale Certificate Validation link located at the right or by clicking here.
For the Vendors: If you were a diligent vendor and collected the Resale Certificate (R-1042) that became applicable on Jan 1, 2009 with the repeal of the LA advanced sales tax, then prepare to become diligent again. Yes, vendors, the resale certificate you collected in January is already obsolete (as of July 1st) and will no longer be valid as of Oct 31, 2009.
Now, you must – again – ask your resale customers for either form R-1064 (Primary Dealer) or for R-1055 (Limited Dealer) which the LA Dept. of Revenue has started issuing.
For the Resellers: If the LA Dept. of Revenue believes you are a regular dealer, according to your NAICS code, they will send you a R-1064 automatically. However, if they do not think your NAICS code makes you a primary dealer, then you must apply for a Limited Dealer R-1055 certificate.
Find the Louisiana Information Bulletin No. 09-015 here for more details: http://www.rev.state.la.us/forms/lawspolicies/RIB09015.pdf
sb said
Ridiculous. They said they’d have a verification website for vendors. Hasn’t happened. Have they even begun sending out the new form? Can’t find a blank one anywhere on their website. What a waste of time.
salestax said
Dear SB… after your comment, I reveiewed the LA website, and they do now have a validation page for LA resale certificates. Hopefully this will ease some vendor frustration. Although, it’s just one more item to put vendors on the hook for policing all of their customers.
SB said
Thank you!
That is precisely why I follow your site!
Have a great day!
Robert pecom said
This trend is becoming more popular. Florida recently dropped the mtc form to only allow the state issued license. Wa is moving away from sst standards and will be looking for copies of the license next year. I think more states will use this approach in the upcoming months to collect on unregistered busineses.
LY said
From a RESELLER: What about the local parishes? Are they all (64 of them) accepting the new form from the state as proof or do we still need to have a separate parish issued certificate/blanket certificate that you fill out yourself?
salestax said
I’ve contacted LAOTA about this and will let you know how they respond.
JH said
If I am reading LA RS 47:306(A)(7) correctly, ALL taxing bodies are PROHIBITED from requiring those selling to resale dealers. So why are so many suppliers charging these taxes???
salestax said
This is in connection with the advance tax process that was repealed in January. Meaning that the taxing jurisdiction can no longer require the tax to be paid up front to a supplier and then take credit for it after the product is sold with taxes. It doesn’t mean that a customer doesn’t still have to prove that they are eligible for the resale exemption.
Shelton Spell said
Where can I get a La.form R-1064? I can’t find one on the
Louisiana Sales tax site?
salestax said
You won’t find a R-1064 on the LA website. If you’re a wholesaler/large reseller you should automatically get one from the state per the NAICS code you have on file with them.
If they did not automatically send you one, you should apply using the Reseller Application: Form R-1067
You can find it here: http://www.revenue.louisiana.gov/forms/taxforms/1067(5_09)F.pdf
If Louisian doesn’t believe you’re primary business is reselling, then you’ll most likely get a R-1055 (Limited Resale Dealer certificate)
Hope this helps!