Louisiana ~ Sales and Use Tax: Tax Clearance Required for Resale Certificate and Approval of State Procurement Contracts

CCH Tax Day Report

A tax clearance from the Louisiana Department of Revenue is required for an issuance or renewal of a sales tax resale certificate and for the approval of certain state contracts for the procurement of personal, professional, consulting, or social services or the purchasing of food, supplies, or major repairs. The tax clearance must show that the resale certificate applicant or the proposed contractor is current in filing all tax returns and paying all taxes, interest, penalties, and fees owed to the state of Louisiana.

A tax clearance is not required for purposes of bidding on or solicitation of a procurement contract. New provisions describe the types of state procurement contracts that require a tax clearance prior to approval, list certain contracts that are exempt from the requirement, and set forth the procedures for requesting a tax clearance and disclosing tax information.

The tax clearance provisions shall apply to any request for issuance or renewal of a resale certificate submitted to the Department of Revenue and to any approval or request for approval of a contract submitted to the Central Purchasing Agency on or after October 1, 2017.

Act 211 (H.B. 307), Laws 2017, effective June 14, 2017, and as noted

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