Could Louisiana Revenue pay an Enterprise Zone sales-tax rebate when the final application was filed after the statutory and regulatory deadline?

Plain-English summary

Revenue could not issue an Enterprise Zone sales or use tax rebate after the legal filing deadline unless a court ordered it.

Businesses expecting a rebate had to monitor the applicable completion and contract dates and submit the final application on time.

Deadlines quoted in the ruling

La. R.S. 51:1787(A)(1) required the final rebate application no later than six months after receipt of the project completion report specified by Economic Development rule.

The cited administrative rule stated that final refund requests had to be filed with the state or local government no later than six months after project completion or six months after the governor signed the contract, whichever was later.

No late administrative remedy stated

The ruling said neither the Enterprise Zone Act nor the related administrative code provided a specific appeal method for a person who missed the application deadline.

Common questions

Q: Could Revenue waive the deadline on its own?

A: No, according to the ruling.

Q: What property could the historical rebate cover?

A: The ruling described construction materials for a business building or improvement and machinery and equipment used in the enterprise.

Citations and references

• La. R.S. 51:1781 et seq. — Louisiana Enterprise Zone Act
• La. R.S. 51:1787(A)(1) — final rebate application deadline
• LAC 13:I.701(C)(4) — deadline language quoted in the ruling
• LAC 61:III.101.C — Revenue Ruling authority and reliance statement

Source

• Landing page: Louisiana Department of Revenue Policies
• Original PDF: LA Revenue Ruling 01-011

Original ruling text

Revenue Ruling
No. 01- 011
Effective January 1, 2002
Applications for Sales and Use Tax Rebate Under the Enterprise Zone Program Must
Be Submitted Before Legal Deadline
The Louisiana Enterprise Zone Act (Revised Statute 51:1781 et seq.) provides a number of financial
incentives and inducements for businesses that enter into contracts with the State of Louisiana under
the Act. Among the incentives and inducements that Louisiana state and local government can provide
is the rebate of sales and use tax paid on the material used in the construction of a building, or any
addition or improvement thereon, for housing any legitimate business enterprise and machinery and
equipment used in that enterprise. Rebates of state sales tax are issued by the Louisiana Department of
Revenue. R.S. 51:1787(A)(1) provides a deadline for the submission of claims for rebate, as follows:
“Final application for the payment of any rebate of sales and use taxes granted pursuant
to this Subsection must be filed no later than six months after receipt of the project
completion report as provided by rule by the Department of Economic Development.”
The rules promulgated by the Department of Economic Development in connection with the Louisiana
Enterprise Zone Act are also very clear in discussing the statutory deadline for the submission of
applications for sales tax rebate. Section 13:I.701(C)(4) of the Louisiana Administrative Code
provides, in pertinent part, as follows:
“Final requests for the payment of any refund must be filed, with the state (Department
of Revenue and Taxation) and/or its local governmental subdivision no later than six
months after the project’s completion or six months after the date of the governor’s
signature on the contract, whichever is later.”
The Department of Revenue is not authorized to issue and, absent a judicial order, cannot issue a
rebate of sales or use taxes under the Louisiana Enterprise Zone Act to any person who submits his/her
application for rebate after the deadline specified in the above statute and rule. Neither the Louisiana
Enterprise Zone Act nor the Louisiana Administrative Code promulgated in connection with the Act
provides a specific means of appeal by persons who fail to timely submit applications. Persons who
enter into Enterprise Zone contracts with the state, who anticipate state sales and use tax rebates under
those contracts, must assure that their applications for rebate are timely submitted.
Cynthia Bridges
Secretary
By:

Raymond E. Tangney
Senior Policy Consultant
Policy Services Division

A Revenue Ruling is written to provide guidance to the public and to Department of Revenue
employees. It is issued under Section 61:III.101(C) of the Louisiana Administrative Code to apply
principles of law to a specific set of facts. A Revenue Ruling does not have the force and effect of law
and is not binding on the public. It is a statement of the department's position and is binding on the
department until superseded or modified by a subsequent change in statute, regulation, declaratory
ruling, or court decision.