2016 Tax Answers

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A webinar was presented by Louisiana Department of Revenue to assist with questions regarding the new tax structure that will impact local non-profits and organizations.

Here are highlights of the conversation:

  • Sponsorship of an event are not taxable, even if receiving tickets are a part of the benefits.
  • The amount of the ticket and the applicable tax must be printed on the ticket if printed after April 1, 2016.
  • Membership dues are taxable is they are really the sale of admission tickets to a facility (museum, theatre).
  • Raffle tickets are not taxable.
  • Gala (and like event) tickets are taxable.
  • Booth fees for a festival are not taxable.
  • Admission to a monthly luncheon (Rotary, AFP, Kiwanis) is not taxable.
    Any resale of tangible personal property is taxable.

This conversation is certainly ongoing and LPA (Louisiana Partnership for the Arts) will update new information as it is shared. We encourage you to send any specific questions to the LDR (Louisiana Department of Revenue) contact info listed below.

Questions and Answers

If an event is held this August, and some tickets will be sold prior to June 30, and some will be sold after July 1st, how is state sales tax handled? Does the included tax amount have to be printed on the ticket, and if so, do both rates have to be printed on the ticket?-

-The sales tax imposed on the date of payment will apply.

-Yes, the amount of tax should be printed on the tickets if the tickets were printed after the sales tax went into effect.

Are admissions to a 5K run or sponsorships subject to sales tax?

-No

For an annual banquet whose ticket price includes dinner/entertainment and a donation component, what portion of the ticket is subject to sales tax as admissions?

-The entire ticket is subject to sales tax because it is an entertainment.

Are membership dues paid to a little theater organization taxable?

The dues are taxable only if the organization owns the theater and the membership allows free access to the theater.

-The membership dues could be taxed as admissions if the membership is really the sale of tickets.

A little theater organization renovating their theater-having a “brick sale” to raise funds- you can pay $100 to get your name inscribed on a brick that is part of the wall of the building- is this taxable?

No, this is not the sale of tangible personal property nor is it a taxable service.

Is the sale of raffle tickets taxable?

-No, this is not the sale of tangible personal property

Admissions/Sponsorships. For a gala fund raising event the price of a ticket is $100 and anyone can buy a ticket for that price. They also reach out to major supporters and offer various sponsorship levels, such as $5000 will provide for acknowledgment in the program and a table with 10 seats, Would the 10 admissions be considered as non-taxable comp tickets in return for the donation, or would they be taxable at the $1,000 value of ten seats, or would the entire $5,000 be taxable admission for ten people?

-Nontaxable sponsorship, the value of the tickets is small compared to the total amount paid.

Museum Admissions; If a museum rents out a facility for a wedding or reception, is this considered taxable admission? They rent the facility to non-profit organizations that will hold a fundraiser in the museum, would this be a taxable admission?

-No, the rental is not taxable.

Civic or business organizations; An event such as an annual meeting is held at a hotel and includes lunch. Activities such as awards presentation and introduction of new officers are the program for the meeting. Fees are charged that cover the lunch and include some amount as a fundraiser for the organization. It would not seem that this would be a taxable admission under the statute. Is this a correct interpretation?

-No, this is not a taxable admission because the event is not entertainment.

Would contestant entry fees be subject to sales tax? For instance, an entry fee to participate in a state skeet shoot competition? What rate?

-Yes, this would be considered a taxable admission to an entertainment or recreational event. Taxable 5%.

Have contestant entry fees been subject to sales tax all along? Ex: Miss Louisiana Pageant entry fees?

-Most admissions to events sponsored by nonprofits were exempt under prior law.

How to Register for a Sales Tax Account

Nonprofit organizations that are not registered with the Louisiana Department of Revenue for sales tax should complete and submit an application for a Louisiana sales tax account.

Form R-16019 (Application for Louisiana Revenue Account Number) should be submitted.

The Department is encouraging nonprofit organizations with isolated sales tax collection and remittance obligations to register as “casual filers.” This will eliminate the need to file monthly or quarterly sales tax returns.

To register as a “casual filer,” applicants should write “casual filer” at the top of form R-16019. The completed form R-16019 may be submitted to the Department via email at sales.inquiries@la.gov

Sales Tax Compliance

Sales tax returns and tax payments are due on or before the 20th of the month following the close of the calendar month or calendar quarter of the reporting period.

Assistance with sales tax questions

Call the Contact Center at 225-219-7462 or submit an inquiry through the sales tax inquiry mailbox at sales.inquiries@la.gov

More Tax Info…

Listed below are links regarding the new sales tax rate changes.   This is the LDR Press Release Sales Tax Changes and the New Tax Rate Table that explains the sales tax changes enacted by Act 25 & 26 of the 2016 Extraordinary Session of the Louisiana Legislature.

Information about the new sales tax changes can be found on : http://www.revenue.louisiana.gov/NewsAndPublications/PressReleaseDetails/2437

Instructions for opening a sales tax account can be found on the special events page:  www.revenue.louisiana.gov/specialevents

Questions concerning the applicable exemptions and exclusions in effect can be directed to sales.inquiries@la.gov.

Questions concerning charitable gaming, donations, raffles, etc. can be directed to:

Office of Charitable Gaming
Website:  www.ocg.louisiana.gov
Email:  ocg@la.gov
Phone: 225-925-1835

Confusion Over New Sales Tax

The April 1, 2016 sales tax changes are making our work more challenging. This process will take time and will not be perfect. LPA is working on the best resources possible, but the time frame for solid answers is currently long.

below is a link to a sample of a letter received by a non-profit regarding their event, which included silent and live auctions.

Please see the page link below for the information we have located. A link to create a Sale Tax Account is listed on this page also:

Special Events
http://revenue.louisiana.gov/Businesses/SpecialEventsCraftShowsAndTradeShows

Frequently Asked Questions

What if I’m a Nonprofit organization, do I have to collect sales tax on my sales?

As of April 1, 2016, all nonprofit organizations are subject to collecting and remitting sales tax to the Louisiana Department of Revenue.

Are admissions taxable?

Yes, admissions to any place providing amusement, entertainment or recreational services require sales tax.

Click here for sample letter on sales tax.

Block-booking Session Conference Call

Louisiana Partnership for the Arts Presenters Network

Please note that LPN’s State-wide Block-booking Session Conference Call has been changed from Tuesday, February 16th to March 1, 2016, 1:30 PM

All Louisiana Presenters are invited to join in the conference call.
You will get great savings on artists fees when you block-book with fellow presenters.

Conference call dial-in instructions and a compilation of the artists submitted will then be sent to you via email.
To be a part of the call or to get more information, please contact:
Naomi Cordill
State Coordinator for the Louisiana Presenters Network
lapresenters1@aol.com
318-435-0029 / 318-498-0094

SAVE THE DATE

Meet us in Natchitoches!

Louisiana Partnership for the Arts (LPA) will be holding its November Cultural Forum in beautiful and historic Natchitoches on November 4th and 5th, 2015.

This will be the most exciting and interactive convening to date! There will be a cocktail mixer, selected performances, cultural excursion and Professional Development presentations from Regional Development Agencies all across the state. Sound interesting? Then read on and see what is in store!

Wednesday, November 4th

6 P.M. Cocktail Swirl This will be a fun and informal opportunity to get to know our Louisiana Partnership for the Arts Board members, RDA’s from across the state, State Arts Council Members, artists, presenters and those who advocate for the arts in Louisiana. There will be abundant libations and buffet style cocktail horsderves served.

Address for the Cocktail Swirl will be emailed directly to all of those who *RSVP.

7:30 P.M. Highlights from NSU’s production of “Rent”

After cocktails there is nothing better than a little high quality entertainment. The party will continue as we head over to Northwestern State University of Louisiana, for a viewing of some of the highlights of their acclaimed production of “Rent.” It is rumored that it is equalled only by the Broadway show itself, so don’t miss it!

Thursday, November 5th
Cultural Forum
The Forum will be held in the Recital Hall on the campus of the Louisiana School for Math, Science, and the Arts (LSMSA) of Northwestern State University.
715 University Pkwy, Natchitoches, LA 71457

8:45 am. – 9:15 am – Coffee & Networking

9:15 am – 9:45 am – Welcome and Opening Comments

9:45 am – 10:00 am – State of the Arts in Louisiana

10:00 am – 11:30 am – Professional Development
The Regional Development Agencies (RDAs) across the state will each give a presentation that will describe the area it serves and information specific to the region it serves, including: the programming it offers, the grant programs available in its region, and opportunities for artists. 

11:30 am – 1:00 pm – Lunch and Discussions
Lunch will be provided for all Cultural Forum attendees at the LSMSA cafeteria.

1:00 pm – Cultural Excursion
In the afternoon, all of our attendees will have a comp viewing of the recently refurbished murals of plantation life painted by Clementine Hunter, and an opportunity to visit the Louisiana Sports Hall of Fame and NW Louisiana Historical Museum.  This much-discussed building has won international architectural awards and is part of the Natchitoches Historic District and famed “Front Street”.

All of our events are free and open to the public but you must *RSVP!

*R.S.V.P

It’s easy! To RSVP to any or all events, simply email us directly at louisianapartnership4arts@gmail with the subject line November Forum and the names and events of those attending in the body of the email.
(Example)
Jane and John Deaux
Cocktail Swirl and Cultural Forum
Since we will be providing catered horsderves and lunch, we will need an accurate headcount for each event. RSVP’s must be received by October 28th.

Need accommodations? 
LPA has blocked off rooms for the; Judge Porter House, Andrew Morris House, Queen Anne, and Violet Hill (http://www.natchitochesbandb.com) You must mention LPA when making these reservations.We also recommend rooms at the following locations:
The Rusca House (http://www.ruscahouse.com/)
Church Street Inn (http://www.churchstinn.com)

Book you room today!