Welding Gases for Commercial Use Taxable in Louisiana

Monday, May 15th, 2017

Close-up of a person welding in a commerical workspace.

The Louisiana Department of Revenue recently ruled that gases used for commercial welding are taxable. The taxpayer was in the business of commercial welding. The taxpayer paid sales tax on its purchases of welding gases, but later requested a refund.

This case addresses a unique situation involving conflicting laws. The Louisiana legislature passed two laws on March 14, 2008. The first law passed in the morning. It exempted all sales of fuel and gas. The second law passed in the afternoon. It limited the exemption to residential consumers.

Because the two laws conflict, the most recent law is controlling. Although both laws were passed on March 14, 2008, the law limiting the exemption to residential consumers was passed later in the day. It is, therefore, the controlling law. Since the taxpayer was not a residential consumer, its purchases of welding gases were taxable, and the refund was denied.


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