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Regular Session, 2010
HOUSE BILL NO. 1404
BY REPRESENTATIVE MILLS
TAX/SALES-USE, LOCAL-EXEM: Provides for a local sales and use tax exemption for
the procurement or administration of certain prescription drugs
AN ACT1
To amend and reenact R.S. 47:337.9(C)(21) through (26), to enact R.S. 47:305(D)(5)(d) and2
337.9(C)(27), and to repeal R.S. 47:305(D)(5)(c) and 337.10(A), relative to sales and3
use tax exemptions by political subdivisions; to provide relative to the local sales and4
use tax exemption for the procurement or administration of certain prescription5
drugs; to provide for certain requirements; to provide relative to "key words" for6
mandatory tax exemptions by political subdivisions; to repeal certain optional tax7
exemptions for political subdivisions; to repeal certain "key words" for optional tax8
exemptions by political subdivisions; and to provide for related matters.9
Be it enacted by the Legislature of Louisiana:10
Section 1. R.S. 47:337.9(C)(21) through (26) are hereby amended and reenacted and11
R.S. 47:305(D)(5)(d) and 337.9(C)(27) are hereby enacted to read as follows: 12
§305. Exclusions and exemptions from the tax13
* * *14
D. 15
* * *16
(5)17
* * *18
(d) Sales taxes authorized and imposed by any school board, municipality,19
or other local taxing authority shall not apply to the procurement or the20 HLS 10RS-1924 ENGROSSED
HB NO. 1404
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administration of prescription drugs by a physician's office, infusion clinic, or other1
out-patient facility, including but not limited to chemotherapy, used exclusively by2
the patient in the medical treatment of various diseases or injuries when administered3
exclusively to the patient by a physician, nurse, or other health care professional in4
a physician's office, infusion clinic, or any other out-patient facility where patients5
are not regularly kept as bed patients for twenty-four hours or more.6
* * *7
§337.9. Exemptions applicable to local tax in Chapters 2, 2-A, and 2-B; other8
exemptions applicable9
* * *10
C.11
* * *12
(21) R.S. 47:305(D)(5)(d), "key words": the procurement or administration13
of prescription drugs by a physician's office, infusion clinic, or other out-patient14
facility, including but not limited to chemotherapy, when administered by a health15
care professional in a physician's office, infusion clinic, or any out-patient facility.16
(22) R.S. 47:305(D)(6), "key words": exemptions from the state sales and17
use tax provided in R.S. 47:305 in existence as of the effective date of Act No. 20518
of 1978, except as otherwise specifically provided in R.S. 47:305(D); the19
requirement concerning specifically providing in the title and body of any Act20
subsequent to the effective date of that Act that it is applicable to a political21
subdivision in order for such Act to be effective.22
(22)(23) R.S. 47:305(E), "key words": articles of tangible personal property23
imported into a taxing jurisdiction, or produced or manufactured in a taxing24
jurisdiction, for export, and for bona fide interstate commerce; the intention of any25
local ordinance and this Chapter that a tax be levied on the sale at retail, the use, the26
consumption, the distribution, and the storage to be used or consumed in the taxing27
jurisdiction, of tangible personal property after it has come to rest in the taxing28
jurisdiction and has become a part of the mass of property in the taxing jurisdiction.29 HLS 10RS-1924 ENGROSSED
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(23)(24) R.S. 47:305(F), "key words": broadcasters or exhibit rights.1
(24)(25) R.S. 47:305(G), "key words": home renal dialysis machines.2
(25)(26) R.S. 47:305(H), "key words": demonstrators.3
(26)(27) R.S. 47:305(I), "key words": drilling rigs and component parts.4
* * *5
Section 2. R.S. 47:305(D)(5)(c) and 337.10(A) are hereby repealed in their entirety.6
Section 3. This Act shall become effective upon signature by the governor or, if not7
signed by the governor, upon expiration of the time for bills to become law without signature8
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If9
vetoed by the governor and subsequently approved by the legislature, this Act shall become10
effective on the day following such approval.11
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Mills HB No. 1404
Abstract: Provides for a local sales and use tax exemption for the procurement or the
administration of prescription drugs by a physician's office, infusion clinic, or other
out-patient clinic, including chemotherapy, when administered to a patient by a
health care professional in a physician's office, infusion clinic, or any other out-
patient facility.
Present law provides that a "professional service" shall include the administration of
prescription drugs used exclusively by a patient in the treatment of various diseases or
injuries when administered exclusively to the patient by a physician, nurse, or other health
care professional in a physician's office where patients are not regularly kept as bed patients
for more than 24 hours.
Present law authorizes school boards, municipalities, and other local taxing authorities to
adopt an exemption for the sale of prescription drugs administered as a "professional
service", as well as an exemption for the procurement and administration of chemotherapy
drugs used exclusively by the patient if administered exclusively to the patient by a
physician, nurse, or other health care professional in a physician's office where patients are
not regularly kept as bed patients for more than 24 hours. Further authorizes local taxing
authorities to provide amnesty for any person responsible for imposing, collecting, or
remitting the tax imposed on such transactions prior to adoption by the local taxing authority
of an exemption for such taxes or amnesty.
Proposed law changes present law by changing the local sales tax exemption for prescription
drugs, including but not limited to chemotherapy, administered to a patient in a physician's
office where patients are not regularly kept as bed patients for more than 24 hours from a
permissive exemption to a mandatory exemption. HLS 10RS-1924 ENGROSSED
HB NO. 1404
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Proposed law further adds to the mandatory local sales tax exemption, prescription drugs
procured or administered by a physician's office, infusion clinic, or other out-patient clinic
administered in an infusion clinic or any other out-patient facility where patients are not
regularly kept as bed patients for more than 24 hours.
Present law provides with respect to a listing of "key words" related to mandatory and
optional exemptions for sales and use taxes imposed by political subdivisions in the Uniform
Local Sales Tax Code.
Proposed law retains present law but adds to the listing of "key words" for mandatory local
sales and use tax exemptions, the exemption for the procurement or administration of
prescription drugs by a physician's office, infusion clinic, or other out-patient clinic,
including but not limited to chemotherapy, when administered by a health care professional
in a physician's office, infusion clinic, or any out-patient facility.
Proposed law repeals the reference to the exemption for the sale of prescription drugs used
in the treatment of various diseases or injuries from the "key words" listing for optional
exemptions by political subdivisions. Further repeals references to amnesty for a person
responsible for imposing, collecting, or remitting such taxes prior to the time amnesty or the
exemption was granted by the local taxing authority.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:337.9(C)(21) - (26); Adds R.S. 47:305(D)(5)(d) and 337.9(C)(27); Repeals
R.S. 47:305(D)(5)(c) and 337.10(A))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Ways and Means to the
original bill.
1. Specified that the mandatory exemption applies to the procurement or
administration of prescription drugs by a physician's office, infusion clinic, or
other out-patient clinic.