Official word has come that Louisiana Baptist churches no longer have to pay
sales tax on purchase of Bibles and other religious materials – at least
for now.
Official word has come that Louisiana Baptist churches no longer have to pay
sales tax on purchase of Bibles and other religious materials – at least
for now.
Earlier this year, the Louisiana Department of Revenue issued a bulletin that
a trio of tax exemptions had been revoked as a result of a suit won by the American
Civil Liberties Union. The ACLU had challenged the exemptions – and a federal
court had sided with the organization.
As a result, churches were informed they would have to start paying sales tax
on the purchase of Bibles, song books and materials used for religious instruction.
In addition, sales tax would have to be collected for the use of religious camp
and retreat facilities, such as Tall Timbers Baptist Conference Center in Woodworth.
The cost could have been significant.
However, religious leaders protested – and the state attorney generals
office decided to appeal the ruling in the case.
This summer, a federal appeals court reversed the lower court ruling. Essentially,
the court said it lacked jurisdiction in the case, saying the issue belonged
in state court.
That effectively reinstated the exemptions – except that the Department
of Revenue did not release official notice.
Now it has – in Revenue Information Bulletin No. 02-006B, dated Sept.
22, 2003.
The bulletin affirms the sales tax case decision has been reversed by the federal
appeals court. It also affirms the sales tax exemptions are back in place.
In addition, it notes that religious entities who have been paying or collecting
sales taxes as the recent case was going through the appeals channels now may
file for a refund of those monies.
To obtain a refund of state sales taxes, the bulletin advises entities to file
Form R-20127 (Claim for Refund of Taxes Paid) with the Department of Revenues
Taxpayer Services Division. The form may be downloaded on the departments
Web site at www.rev.state.la.us.
“A list of all transactions, including invoice numbers, dates, amounts
and descriptions must be provided to support state refund requests,” the
bulletin explains. “Copies of invoices must also be made available if requested
by the department.”
To obtain refunds on local sales taxes paid, the bulletin advises entities
to contact parish tax collectors.
The department bulletin is good news for churches and religious groups –
but the final word may not have been spoken on the issue of sales taxes for
them.
The ACLU could appeal the case to the U.S. Supreme Court, although time is
running short for doing so.
It also could file the suit in state court. At that point, jurisdiction would
not be an issue – and the merits of the case would have to be argued.
At this point, no such case has been filed in Louisiana courts.
(For additional information on the sales tax issue, persons may call the Louisiana
Department of Revenue at 225-219-7356)