Form R-1020 at a glance
What it is: This form designates a construction contractor as the agent of a governmental entity for the purpose of making sales tax exempt purchases on behalf of the governmental body.
Who signs: This designation of agency form, when properly executed by both the contractor and the governmental entity, shall serve as evidence of the sales tax exempt status that has been conferred onto the contractor. No other exemption form is necessary to claim exemption from sales taxes.
A filled-in Form R-1020 example: a school board designates a roofing contractor
How to fill out Form R-1020, box by box
The governmental entity
Enter the Legal Name of Governmental Entity. The governmental entity is an agency of the United States government, or an agency, board, commission, or instrumentality of the State of Louisiana or its political subdivisions, including parishes, municipalities and school boards.
Name of Contractor, Address, City, State and ZIP
Enter the Name of Contractor, the Address, and the City, State and ZIP.
Construction Project and Contract Number
This designation of agency shall be effective for purchases of component construction materials, taxable services and leases and rentals of tangible personal property for the named construction project. Enter the Construction Project and the Contract Number.
The period of the designation
This designation and acceptance of agency is effective for the period you enter as Beginning Date (mm/dd/yyyy) and End Date (mm/dd/yyyy).
Purchases for the named project during this period by the designated contractor shall be considered as the legal equivalent of purchases directly by the governmental body.
Designation of Agency and Acceptance of Agency
Under Designation of Agency, the authorized designator signs, then enters the Date (mm/dd/yyyy), the Name of Authorized Designator, the Name of Governmental Entity, and the Address, City, State and ZIP. Under Acceptance of Agency, the contractor or subcontractor authorized acceptor signs, then enters the Date (mm/dd/yyyy), the Name of Contractor's or Subcontractor's Acceptor, the Name of Contractor, and the Address, City, State and ZIP.
More rules for Form R-1020
Any materials purchased by this agent shall immediately, upon the vendor's delivery to the agent, become the property of this government entity, which, as principal, assumes direct liability to the vendor for the payment.
This agreement does not void or supersede the obligations of any party created under any construction contract related to this project, including any contractual obligation of the construction contractor to submit payment to the vendors of materials or services for the project.
The agency agreement must be implemented at the time of contract execution with the governmental entity. The contract between the governmental entity and his agent must contain provisions to authenticate the conferment of agency.
Common questions about Form R-1020
Is there a deadline?
In order for a purchase for an eligible governmental entity through a designated agent to be eligible for sales tax exemption, the designation of agency must be made, accepted, and disclosed to the vendor before or at the time of the purchase transaction.
What am I certifying when I sign?
The undersigned hereby certify that this designation is the entirety of the agency designation agreement between them.
When is this form not the right one?
This contractor-agent is not authorized to delegate this purchasing agency to others; separate designations of agency by this governmental entity are required for each contractor or sub-contractor who is to purchase on behalf of this governmental entity.
Sources
[1] Form R-1020 (4/12), Designation of Construction Contractor as Agent of a Governmental Entity, Louisiana Department of Revenue (the Official source link on this page).