§ 20-97. Special provisions for rentals.

(a)

Sales or use taxes paid to this city on the purchase of new motor trucks, tandem trucks, and truck-tractors, or motor trucks, tandem trucks, or truck-tractors used in combination with a trailer or semitrailer, any of which are licensed and registered for ten thousand (10,000) pounds or more, under the provisions of R.S. 47:462 may be deducted as a credit against the tax due on the rental of that item of property so that no tax is payable on rental income until the tax paid on the purchase price has been exceeded. The sales tax paid to another city on the purchase price of property is not deductible from the tax subsequently due on the rental of the property in this city. Property imported by the lessee for use in this city that has been previously used by him in another city is not subject to any tax on the value when imported, but is only subject to the tax that applies on rental payments.

(b)

If the tax on rental income fails to exceed the credits for sales or use tax paid, no refund is due the purchaser.

(c)

A dealer in the city who ordinarily purchases personal property for sale and who withdraws a piece of property from stock for rental is not liable for a sales or use tax on the purchase price of the property when withdrawn from stock. The person is liable only for the tax applicable on the rental income.

(d)

Any sales tax paid on any maintenance or operation expenses of a rental business is not deductible as a credit against the tax due on rental income; such expenses are part of the cost of doing business and do not constitute a part of the cost of the identical property being rented.

(Ord. No. 173, § 2.01, 11-10-78)