(Posted 6/27/18) Hold on to more of your hard earned dollars! The LDA government affairs team just received guidance from the LA Department of Revenue (LDR) confirming that, effective July 1, 2018, the exemption from sales tax for dental devices will be fully reinstated to be effective in the same manner as it was prior to the implementation of all the "temporary" sales taxes three years ago. In the past, we have estimated that the average dental practice will save at least $5,000 per year with this sales tax exemption that the LDA has successfully lobbied to get reinstated!
The LDA is in the process of contacting dental labs through their association and as many of the supply companies that we can reach. Should you need to show your own dental supply representatives, the line that is specific to the dental device exemption, it is on page 14 of the attached document: Taxable Rate of Transactions for Exemptions and Exclusions for periods July 1, 2013 through June 30, 2025.
Also, Act 1 of the 2018 third special session is the statutory authority on which the LDR advisory is based: http://www.legis.la.gov/legis/ViewDocument.aspx?d=1105364
Note that the provisions in Act 1 that specifically exempt dental devices (which can be found on pages 9, 19, 28 and 38) all reference the original statutory language of the exemption in La. R.S. 47:305(D)(1)(t). That statute clearly states that the exemption applies to local sales taxes as well. So, all devices to which the exemption applies - which should be pretty much everything labs sell to dentists - should be exempt from both state AND local sales taxes beginning Sunday, July 1.
NOTE: We are checking with the LDR to see what the impact will be on taxes paid by dentists from October 1, 2017, through June 30, 2018, in light of the October 1, 2017, effective date in Act 395 of the 2017 regular session. More info coming soon.........