For Immediate Release
February 19, 2003
LOUISIANA PROVIDES NEW EXEMPTION FOR REPAIRS TO OFFSHORE DRILLING RIGS
Effective July 1, 2002, the repair, renovation,
or conversion of certain drilling rigs and equipment is exempt from Louisiana
state and local sales and use tax.
The revised statute provides that services rendered in Louisiana to repair,
renovate, or convert drilling rigs or their component machinery and equipment
that is brought into Louisiana from the Outer Continental Shelf is not
subject to sales tax, provided the repaired property is returned to the
OCS rigs and that the rigs and machinery and equipment are used exclusively
for the exploration or development of minerals. The exemption applies
regardless of whether the repaired property is delivered to the OCS by
the repairer, the customer, or another person.
Until July 1, 2002, repairs performed in Louisiana to property brought into the state from drilling rigs in the Outer Continental Shelf were taxable even when the repairer delivered the property back to the OCS.
If you would like additional information on this topic or have any questions, please contact J. Lynne Fontana, Regional Vice President - Sales & Use Tax Group at (281) 578-3700. E-mail lfontana@thesaltgroup.com
The HJH Consulting Group Plaza | 874 Harper Road | Suite 101 | Kerrville, Texas 78028 | 830.257.1290 | Fax 830.257.2138
©2001-2007 The SALT Group® - All
Rights Reserved
