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.


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Texas Releases Detailed Guidance on Exempt Organizations

Thursday, October 18th, 2018 -The Texas Comptroller has released a publication that provides detailed information on how sales and use tax a...

Telephone Answering Services Taxable in Arkansas

Tuesday, October 16th, 2018 -The Arkansas Department of Finance and Administration recently ruled that the service of answering calls on be...

Washington Provides Guidance on Lodging Tax for Online...

Friday, October 12th, 2018 -The Washington Department of Revenue released updated guidance that provides tax reporting information for bed...

Economic Nexus in West Virginia

Wednesday, October 10th, 2018 -The West Virginia State Tax Department announced that it will require remote sellers to begin collecting sales...

Idaho Provides Guidance on the Exemption for Medical...

Monday, October 8th, 2018 -The Idaho State Tax Commission recently released guidance that explains Idaho's sales and use tax laws for buy...

Arkansas Does Not Follow Federal Law on Foreign Income

Friday, October 5th, 2018 -The Arkansas Department of Taxation and Finance recently released an opinion that says the state does not conf...