§337.12.1. Road material construction contracts; determination of where tax is due; requirements and limitations

            A. Notwithstanding any other law to the contrary, for purposes of the imposition of sales and use tax by any political subdivision of the state, any raw materials converted by a road contractor into asphaltic concrete which has been documented for ultimate use by the road contractor pursuant to a road material construction contract shall be subject to tax as provided in this Section.

            (1) If the raw materials are purchased from a Louisiana dealer such that title or possession, or both, transfers to the road contractor at the dealer's place of business, sales tax is due in the taxing jurisdiction of the dealer.

            (2) If the raw materials are delivered to the road contractor such that title or possession, or both, transfers at the road contractor's facility where the raw materials are converted into asphaltic concrete, the "retail sale" of the raw materials is deemed to occur in the taxing jurisdiction in which the asphaltic concrete is ultimately used by the road contractor to fulfill the road material contract.

            (3) The exercise of any right or power over raw materials imported into a taxing jurisdiction for conversion into asphaltic concrete shall be deemed to be a "use" in the taxing jurisdiction in which the asphaltic concrete is ultimately used by the road contractor to fulfill the road material contract.

            B. No sales or use taxes shall be due to the taxing jurisdiction in which the road contractor converts the raw materials into asphaltic concrete unless any of the following occurs in the taxing jurisdiction:

            (1) The road contractor purchases raw materials from a dealer such that title or possession, or both, transfers to the road contractor at the dealer's place of business in the taxing jurisdiction in which the road contractor converts the raw materials into asphaltic concrete.

            (2) The asphaltic concrete is ultimately used by the road contractor to fulfill a road material contract in the taxing jurisdiction in which the road contractor converts the raw materials into asphaltic concrete.

            (3) The road contractor makes a taxable sale of asphaltic concrete to a third party such that title or possession, or both, transfers to the purchaser in the taxing jurisdiction in which the road contractor converts the raw materials into asphaltic concrete.

            Acts 2019, No. 359, §1, eff. June 11, 2019.