Which purchases and sellers qualified for Louisiana's 2008 hurricane-preparedness sales tax holiday under Revenue Ruling 08-006?

Plain-English summary

Louisiana's 2008 hurricane-preparedness holiday exempted the first $1,500 of each eligible item from the state's 4% sales tax, but not from political-subdivision sales taxes. The holiday ran from 12:01 a.m. Saturday, May 24 through 11:59 p.m. Sunday, May 25, 2008.

The exemption did not apply when eligible supplies were sold at an airport, hotel or other public lodging establishment, convenience store, or entertainment complex. Revenue Ruling 08-006 defined those otherwise undefined seller categories.

Eligible hurricane-preparedness items

The ruling listed the following types of purchases:

• portable self-powered lights;
• portable self-powered, two-way, or weather-band radios;
• tarpaulins and other flexible waterproof sheeting;
• ground-anchor systems and tie-down kits;
• gas or diesel fuel tanks;
• packages of AAA, AA, C, D, 6-volt, or 9-volt batteries, excluding automobile and boat batteries;
• cell-phone batteries and chargers;
• nonelectric food-storage coolers;
• portable generators used for light, communications, or food preservation during a power outage;
• storm-shutter devices;
• carbon-monoxide detectors; and
• blue-ice products.

The first $1,500 of the sales price of each listed item qualified under the ruling.

State tax only

The ruling expressly limited the holiday to Louisiana's 4% state sales tax. It did not exempt sales taxes imposed by political subdivisions.

A footnote separately explained that Act 462 of 2007 provided a permanent state sales-and-use-tax exclusion for storm-shutter devices and allowed, but did not require, political subdivisions to adopt a similar exclusion.

Sellers where the holiday did not apply

Airports

Using La. R.S. 2:1(9), the ruling included land or water designed for aircraft landing and takeoff, related airport facilities and areas, rights of way, airspace interests, and other protections needed for safe approaches and efficient operation.

Hotels and public lodging establishments

Under La. R.S. 47:301(6)(a), a hotel furnished sleeping rooms, cottages, or cabins to transient guests and had at least six such units at one business location. The Department interpreted “public lodging establishment” more broadly to include other businesses offering compensated transient lodging, including bed-and-breakfast businesses.

Convenience stores

The ruling described smaller retail businesses emphasizing quick, convenient purchases from limited consumable-product lines. Their sales had to consist primarily of items such as motor fuel and lubricants, snack foods, alcoholic beverages, tobacco, soft drinks, fishing bait, newspapers, and magazines, with enough diversity not to be a specialty retailer.

Typical characteristics included an inside sales area under 5,000 square feet, off-street parking or convenient pedestrian access, and extended hours, often 24 hours a day.

Entertainment complexes

The definition included sites for musical, theatrical, or other entertainment; country, tennis, and swimming clubs; bowling establishments; skating rinks; movie theaters; amusement parks; zoos; and similar entertainment-oriented businesses.

What this means for you

Retailers

Eligibility depended on both the product and the seller's business category. A qualifying generator or battery package sold by an excluded location did not receive the holiday exemption under the ruling.

Consumers

The holiday did not eliminate local sales tax. The ruling addressed only the state 4% tax in effect for the 2008 event.

Current sellers and advisers

Do not reuse the 2008 dates, rate, dollar limit, or definitions without checking current Louisiana law and Department publications.

Common questions

Q: When was the 2008 holiday?

A: May 24 and 25, 2008.

Q: How much of each eligible item was exempt?

A: The first $1,500 of its sales price.

Q: Did the holiday cover local sales tax?

A: No. It applied only to the 4% state tax described in the ruling.

Q: Were generators eligible?

A: Portable generators used to provide light or communications or preserve food during a power outage were listed.

Q: Could a convenience store apply the exemption?

A: No, if the business met the ruling's convenience-store definition.

Q: Did bed-and-breakfast sales qualify?

A: The Department included bed-and-breakfast businesses within excluded public lodging establishments.

Citations and references

• La. R.S. 47:305.58 — annual hurricane-preparedness state sales tax holiday described in the ruling
• La. R.S. 2:1(9) — airport definition
• La. R.S. 47:301(6)(a) — hotel definition
• Act 429 of the 2007 Regular Session — enacted the holiday and defined storm-shutter devices
• Act 462 of the 2007 Regular Session — permanent state exclusion for storm-shutter devices and local option described in the footnote
• LAC 61:III.101.C — Revenue Ruling authority and reliance statement

Source

• Landing page: Louisiana Department of Revenue Policies
• Original PDF: LA Revenue Ruling 08-006

Original ruling text

Revenue Ruling No. 08-006
March 26, 2008
Sales and Use Tax
Definitions for State Sales Tax Holiday on Purchases of Hurricane-Preparedness Items

2008 Holiday Scheduled May 24 and 25, 2008
Purpose

The purpose of this Revenue Ruling is to provide guidance to the public and Department of
Revenue employees on the interpretation of certain terms related to the annual sales tax holiday
for hurricane-preparedness items.
Act 429 of the 2007 Regular Session enacted La. Rev. Stat. Ann. § 47:305.58, which provides
for an annual state sales tax exemption on sales made on the last Saturday and Sunday of each
May of hurricane-preparedness items or supplies. Section 47:305.58 provides that sales of
otherwise eligible hurricane-preparedness items will not be eligible for exemption when sold at
certain types of businesses, including “airports,” “public lodging establishments or hotels,”
“convenience stores,” or “entertainment complexes.” Since none of these four terms are defined
in § 47:305.58, the Department is exercising the authority granted by law to make reasonable
interpretations, not inconsistent with the law, that are needed to carry out the administration of
the law.
The annual sales tax holiday for 2008 will begin at 12:01 a.m. on Saturday, May 24, and will
conclude at 11:59 p.m. on Sunday, May 25. The holiday applies only to the four percent sales
tax imposed by the State of Louisiana and does not apply to sales taxes imposed by political
subdivisions of the state.
Background/Analysis

During the two-day annual state sales tax holiday, tax-free purchases are authorized on the first
$1,500 of the sales price of each portable self-powered light source; portable self-powered radio,
two way radio, or weather band radio; tarpaulin or other flexible waterproof sheeting; any
ground anchor system or tie-down kit; any gas or diesel fuel tank; any package of AAA-cell,
AA-cell, C-cell, D-cell, 6-volt, or 9-volt batteries, excluding automobile and boat batteries; any
cell phone battery and any cell phone charger; any nonelectric food storage cooler; any portable
generator used to provide light or communications or preserve food in the event of a power
outage; any “storm shutter device”1; any carbon monoxide detector; and any blue ice product.
However, § 47:305.58 provides that the exemption does not apply “…to hurricane-preparedness
1

Act 429 of the 2007 Regular Session defines “storm shutter device” as “materials and products manufactured,
rated, and marketed specifically for the purpose of preventing window damage from storms. In addition, Act 462 of
the 2007 Regular Session provides a permanent state sales and use tax exclusion for “storm shutter devices,” and
authorizes, but does not require, political subdivisions of the state to provide a similar exclusion from their sales and
use tax.
A Revenue Ruling is issued under the authority of LAC 61III.101.C. A Revenue Ruling is written to provide guidance to the public
and to Department of Revenue employees. It is a written statement issued 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.

Revenue Ruling No. 08-006
Page 2 of 3

items or supplies sold at any airport, public lodging establishment or hotel, convenience store, or
entertainment complex.”
For purposes of § 47:305.58, the following terms, as utilized in the statute, are deemed to have
the following meanings:
The term “airport”, as defined by La. Rev. Stat. Ann. § 2:1(9), means and includes “any
area of land or water, except a restricted landing area, which is designed for the landing
and takeoff of aircraft, whether or not facilities are provided for the sheltering, servicing,
or repairing of aircraft or for receiving or discharging passengers or cargo; all
appurtenant areas used or suitable for airport buildings or other airport facilities; and all
appurtenant rights of way including easements through or other interests in air space over
land or water and other protection privileges, the acquisition or control of which is
necessary to insure safe approaches to the landing areas and efficient operation thereof.”
The term “hotel,” as defined by La. Rev. Stat. Ann. § 47:301(6)(a), means and includes
“any establishment engaged in the business of furnishing sleeping rooms, cottages, or
cabins to transient guests, where such establishment consist of six or more sleeping
rooms, cottages, or cabins at a single business location.” The term “public lodging
establishment” is interpreted to include other businesses that offer lodging to transient
guests for compensation, including “bed and breakfast” businesses.
“Convenience stores” are retail businesses that are smaller in square footage than full-line
grocery stores, discount stores, department stores, or pharmacies, and that place primary
emphasis on providing the public convenient locations from which to quickly purchase
from limited lines of consumable products. In order to be considered a “convenience
store,” sales must consist primarily of motor fuel and lubricants; snack foods, including
sandwiches, hot dogs, candy, nuts, and chips; beer; liquor; wine; tobacco products; soft
drinks; fishing baits; newspapers; and magazines, and the sales of the business must be
sufficiently diversified within these product lines so that the businesses is not classified
as a specialty retailer such as a liquor store, sandwich shop, newsstand, or tobacco shop.
Convenience stores typically have the following characteristics:
Inside sales areas that are less than 5,000 sq. ft;
Off-street parking and/or convenient pedestrian access; and
Extended hours of operation with many open 24 hours, seven days a week.
For purposes of § 47:305.58, “entertainment complex” includes a premise that is a site
for the performance of musical, theatrical, or other entertainment; country clubs; tennis
clubs; swimming clubs; bowling establishments; skating rinks; movie theatres;
amusement parks; zoos; or similar entertainment-oriented businesses.
Conclusion

Section 47:305.58 enacts a state sales tax holiday during the last Saturday and Sunday of each
month of May. During this period, sales and use tax should not be collected on the purchase of
the first $1,500 of hurricane-preparedness items, as defined above. However, should a vendor

Revenue Ruling No. 08-006
Page 3 of 3

fall within the definition of an “airport,” “public lodging establishment or hotel,” “convenience
store,” or “entertainment complex,” as defined above, the sales and use tax exemption found in
§ 47:305.58 shall not apply.
Cynthia Bridges
Secretary
By:

Bradley Blanchard
Attorney, Policy Services Division