USA – LOUISIANA Law and Practice Contributed by: Jeffrey P. Good, Susan M. Tyler and B. Trevor Wilson, Jones Walker LLP
7.7 Requirements Before Use or Inhabitation
state and local government units may levy trans - fer taxes on transfers of real estate, but there are no such transfer taxes in Louisiana. While Louisiana does not impose transfer taxes on real estate transactions, sales tax may apply to certain movable property included in real estate transactions. 8.2 Mitigation of Tax Liability There are no federal or Louisiana transfer taxes on real estate transfers. In some states, owner - ship of real estate assets in a legal entity and transfer of ownership of the legal entity may miti - gate any applicable transfer taxes. Although Louisiana does not impose transfer taxes on real estate transfers, sophisticated investors utilise various strategies to optimise their overall tax position, including entity struc - ture planning, tax-deferred exchanges under IRC Section 1031 and opportunity zone investments. 8.3 Municipal Taxes In Louisiana, municipal occupational licence taxes are generally levied on real estate busi - nesses. Specific licence tax rates vary by parish and municipality. 8.4 Income Tax Withholding for Foreign Investors See the discussion of FIRPTA in 2.11 Legal Restrictions on Foreign Investors . In certain cir - cumstances, the seller of real estate may apply to the Internal Revenue Service for a withholding certificate certifying an exemption from FIRPTA withholding or a reduction of the amount to be withheld. Foreign investors receiving rental income from US real estate are generally subject to a with -
Upon completion of construction, and in compli - ance with the Act, the owner and contractor will execute a notice of termination or substantial completion and record it in the mortgage records of the parish where the property is located. If a notice of contract was properly filed in a timely manner as set forth in the Act, then the filing of the notice of termination or substantial comple - tion commences a 30-day lien period in which claimants under the Act have the right to file a statement of claim or privilege. Upon the expira - tion of the period, the clerk of the court will issue a lien and privileges certificate and, if clear, the owner and contractor will file a notice of cancel - lation of the notice of contract. During this process, a certificate of occupancy is issued by a local government agency following an inspection of the building to certify its com - pliance with current zoning and building laws, including that all utility services are established and operating, and that all equipment has been installed and connected. In addition, the Loui - siana state fire marshal will inspect the build - ing and determine that it satisfies the National Fire Code and the Americans With Disabilities Act, and complies with the American National Standards Institute standards, the Underwriters Laboratories (UL) fire resistance standards, the Energy Code and the Office of State fire marshal manual.
8. Tax 8.1 VAT and Sales Tax
There is no VAT in the USA, and there are no transfer taxes on real estate at the federal level other than those imposed by FIRPTA (see 2.11 Legal Restrictions on Foreign Investors ). Some
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