Louisiana's Board of Tax Appeals recently ruled that repairs on petroleum storage tanks were not taxable.
Repairs of immovable property are not subject to tax in Louisiana. The taxpayer was a business that provided service repairs to petroleum storage tanks. The tanks were located above ground and attached to pipes that ran into the ground. They were constructed at the location where they were to be used. The tanks were large and could not be moved without being disassembled and transported with heavy machinery.
The decision determined that these repairs were not subject to sales tax because the tanks qualified as immovable property. The decision reasoned that because the tanks were too heavy and difficult to move, they qualified as immovable property.