§305.50. Exemption; vehicles used in interstate commerce; rail rolling stock; railroad ties

A.(1) The sales and use tax imposed by the state of Louisiana or any of its local political subdivisions shall not apply to trucks with a gross weight of twenty-six thousand pounds or more and to trailers if such trucks and trailers are used at least eighty percent of the time in interstate commerce and whose activities are subject to the jurisdiction of the United States Department of Transportation. The determination of whether a truck is used at least eighty percent of the time in interstate commerce shall be based solely on the actual mileage of such truck; however, no truck shall have more than twenty percent Louisiana intrastate miles.

(2)(a) The sales and use tax imposed by the state or any of its political subdivisions shall not apply to the purchase, use, or lease of a qualifying truck or to the purchase, use, or lease of a qualifying trailer purchased, imported, or leased, with or without a qualifying truck, for use with a qualifying truck.

(b) For purposes of this Paragraph, a qualifying truck shall meet the following requirements:

(i) Be registered as a Class 1 vehicle as defined in R.S. 47:462 and shall have a registered gross weight as defined in R.S. 47:451 of at least eighty thousand pounds.

(ii) Be subject to the jurisdiction of the United States Department of Transportation.

(iii) Will be registered or is registered with apportioned plates through the International Registration Plan or will be issued or is issued a special permit according to the provisions of R.S. 32:387(J) from the Louisiana Department of Transportation and Development. In cases of issuance of a special permit pursuant to the provisions of R.S. 32:387(J), the qualifying truck shall engage in no less than two hundred intermodal container moves per year regardless of whether such moves require a special permit. In the year of acquisition, sale, disposal, or destruction of the qualifying truck, the intermodal container moves per year requirement shall be prorated for the portion of the year the qualifying truck was owned, operated, or owned and operated by the taxpayer.

(c) For purposes of this Paragraph, a qualifying trailer shall be a trailer which is subject to the jurisdiction of the United States Department of Transportation.

(3) The secretary shall promulgate rules and regulations in accordance with the Administrative Procedure Act, subject to oversight by the House Ways and Means Committee and the Senate Revenue and Fiscal Affairs Committee, to implement the provisions of this Subsection, including rules and regulations providing for the administration of audits, audit procedures, and the documents a taxpayer must retain in order to document the tax exemption authorized by this Subsection.

(4) Notwithstanding the provisions of any other law to the contrary, prior to the commencement of an audit or investigation for purposes of determining the correct amount of the tax exemption, and prior to an examination or investigation of the place of business and the books, records, papers, vouchers, accounts, and documents of any taxpayer, the auditor shall submit written justification of such audit or investigation to the secretary of the Department of Revenue. The secretary shall approve the scope of action of the department. No audit or investigation shall proceed without approval by the secretary. However, there shall be no approval from the secretary necessary for a political subdivision to audit, examine, or investigate for the purpose of determining the correct amount of the tax exemption.

(5) During a gubernatorially declared state of emergency, if the declared emergency or related relief efforts of a taxpayer who is eligible for an exemption according to the provisions of this Subsection undermines the ability of such taxpayer to comply with the provisions of this Subsection, the secretary shall waive the requirements of this Subsection.

(6) For purposes of this Subsection, the terms "trucks" and "trailers" shall have the meanings ascribed to the terms truck, trailer, road tractor, semitrailer, tandem truck, tractor, and truck-tractor in R.S. 47:451.

B. The sales and use tax imposed by the state of Louisiana or any of its local political subdivisions shall not apply to contract carrier buses if such buses are used at least eighty percent of the time in interstate commerce.

C.(1) For purposes of this Section, the term "bus" shall mean a commercial vehicle with a minimum passenger capacity of thirty-five persons and a minimum gross vehicle weight of twenty-six thousand pounds.

(2) For purposes of this Section, the term "contract carrier" shall mean any person transporting, other than as a common carrier, persons for hire, charge, or compensation, over any highway of this state, or however utilizing said public facilities for private gain to be realized chiefly out of such transportation service.

D. The deputy secretary of public safety services of the Department of Public Safety and Corrections is hereby authorized to promulgate such forms and rules as may be necessary to implement the provisions of this Section.

E.(1) The sales and use tax imposed by the state of Louisiana or any of its local political subdivisions or statewide taxing authorities shall not apply to rail rolling stock sold or leased in this state.

(2) The sales and use tax imposed by the state of Louisiana or statewide taxing authorities shall not apply to parts or services used in the fabrication, modification, or repair of rail rolling stock. A political subdivision may, by ordinance, provide that sales and use tax imposed by the political subdivision shall not apply to parts or service used in the fabrication, modification, or repair of rail rolling stock.

F. The sales and use tax imposed by the state, its statewide taxing authorities, or any of its political subdivisions shall not apply to the "sales price" or "cost price" of railroad ties that a railroad purchases prior to long-term preservative treatment and installs into the railroad's track system outside the taxing jurisdiction of the respective taxing authority, whether it be the state, a statewide taxing authority, or a political subdivision.

Acts 1996, No. 8, §1, eff. July 1, 1996; Acts 1996, No. 36, §1, eff. July 1, 1996; Acts 1998, No. 41, §1, eff. June 30, 1998; Acts 2000, No. 27, §1, eff. June 30, 2000; Acts 2002, No. 2, §1, eff. June 30, 2002; Acts 2004, 1st Ex. Sess., No. 10, §1, eff. June 30, 2004; Acts 2005, No. 397, §1, eff. July 1, 2005; Acts 2007, No. 209, §1, eff. June 29, 2007; Acts 2009, No. 442, §1, eff. July 1, 2009.