La. Admin. Code tit. 61 § V-1703

Current through Register Vol. 50, No. 6, June 20, 2024

Section V-1703 - Addendum

A. Addendum for Record Requirements

1. Proper records require that in addition to the above stated, should also include, but, is not limited to, a copy of the following:

a. the annual report for the business;

b. federal income tax return;

c. Louisiana state income tax return;

d. dealer manufacturer's operating reports- monthly;

e. floor plan statements-monthly;

f. insurance valuations and policies;

g. other inventory reports filed with state agencies-monthly e.g. (La. Dept. of Natural Resources Reports R-2, R-3, R-5T and R-6).

2. All reports are to be kept open and available for inspection by the tax assessor or his deputy, or other taxing authorities on demand.

B. Addendum for Reporting Requirements

1. The LAT Form 5 is required for each business location. If items of inventory are exempt under Louisiana Constitution article VII, §21(D-3), the inventory must be reported in section 1 (or attachment, if required), with type, number of units and value. Notation must be made that this inventory qualifies for exemption under the subject article and section of the state constitution that exempts such property from ad valorem taxation.

2. Inventories are to be reported on the actual physical inventory taken either at each month's end or taken at three points in the year (opening, mid and closing).

3. For reporting purposes, the value of this inventory is the average cost, production or purchase, at point of origin, plus carrying charges to the point of destination, for the preceding year. The accounting method used should be noted on the LAT form.

C. Addendum for Assessment Guidelines

1. There are a variety of generally accepted cost accounting methods for valuing inventory, such as LIFO (Last-in; First-out), which may not reflect a current fair market value for ad valorem tax purposes.

2. As a part of the assessment-appraisal process, an adjustment to the cost or value reported for the inventory on LAT Form 5 may be necessary to establish the current fair market value of the reported inventory.

3. The assessor-appraiser should request the additional taxpayer records (See: Addendum for Records) in order to determine what, if any, adjustment is necessary to bring the reported inventory value to fair market value.

La. Admin. Code tit. 61, § V-1703

Promulgated by the Department of Revenue and Taxation, Tax Commission, LR 8:102 (February 1982), amended LR 10:921 (November 1984), LR 15:1097 (December 1989), Amended by the Office of the Governor, Division of Administration, Tax Commission, LR 43656 (4/1/2017).

AUTHORITY NOTE: Promulgated in accordance with R.S. 47:1837, R.S. 47:1961 and R.S. 47:2326.