HLS 12RS-336 ORIGINAL
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Regular Session, 2012
HOUSE BILL NO. 382
BY REPRESENTATIVE ABRAMSON
TAX/TAX REBATES: Establishes the BioDistrict New Orleans Tax Rebate Program in
Jefferson and Orleans parishes
AN ACT1
To enact Chapter 3 of Subtitle VII of Title 47 of the Louisiana Revised Statutes of 1950, to2
be comprised of R.S. 47:6301, relative to sales and use tax rebates; to establish the3
BioDistrict New Orleans Tax Rebate program; to provide for a state and local sales4
and use tax rebate program in Jefferson and Orleans parishes; to provide for certain5
eligibility requirements and limitations; to authorize the payment of such rebates; to6
provide for the administration of the program; to provide for an effective date; and7
to provide for related matters.8
Notice of intention to introduce this Act has been published9
as provided by Article III, Section 13 of the Constitution of10
Louisiana.11
Be it enacted by the Legislature of Louisiana:12
Section 1. Chapter 3 of Subtitle VII of Title 47 of the Louisiana Revised Statutes13
of 1950, comprised of R.S. 47:6301, is hereby enacted to read as follows: 14
CHAPTER 3. BIODISTRICT NEW ORLEANS TAX REBATE PROGRAM 15
ยง6301. BioDistrict New Orleans Tax Rebate Program; Jefferson and Orleans16
parishes; eligibility; limitations; payment of rebates; administration 17
A. This Chapter shall be known as the "BioDistrict New Orleans Tax Rebate18
Program Act".19 HLS 12RS-336 ORIGINAL
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B.(1) Purpose. In 2005, the legislature created the Greater New Orleans1
Biosciences Economic Development District in order to promote development of the2
medical and bioscience industries in the New Orleans area, and in 2011, the name3
of the district was changed to BioDistrict New Orleans. In 2004, the New Orleans4
medical and biosciences efforts employed approximately twenty-four thousand5
persons with average salaries well above the state average. The district receives6
considerable federal bioscience research funding. The district was created for the7
purpose of facilitating the creation of high paying jobs by assisting the biomedical8
institutions and employees in the district with development of bioscience facilities9
and programs, assisting with increasing research and training dollars for institutions10
within the district, increasing basic and clinical research, and the development of a11
health and bioscience workforce.12
(2) The legislature hereby finds and declares that the welfare of the people13
of Orleans and Jefferson parishes is dependent upon the continued encouragement,14
development, growth, and expansion of the medical and bioscience industries in the15
region. The legislature further finds and declares that it is the purpose of this16
Chapter to not only stimulate business and industrial growth in the medical and17
bioscience industries in Orleans Parish, but to encourage and promote employees of18
these industries to purchase, renovate, refurbish, or construct single-family19
residences on vacant, abandoned, or blighted lots or properties in Orleans or20
Jefferson parishes for use as their homesteads. One of the lingering, devastating21
effects of Hurricane Katrina in Orleans Parish is the increased number of vacant,22
abandoned, blighted, or destroyed homes and property. Since Orleans and Jefferson23
parishes are so closely connected and many residents in Orleans and Jefferson24
parishes shop and frequent retail businesses in both parishes, the legislature hereby25
establishes this sales and use tax rebate program in Jefferson and Orleans parishes26
as a way of forming a regional partnership between these parishes by authorizing27
certain purchases of tangible personal property and services necessary to purchase,28
renovate, refurbish, or construct single-family residences on vacant, abandoned, or29 HLS 12RS-336 ORIGINAL
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blighted lots or properties in Jefferson and Orleans parishes and return those1
properties to commerce.2
C. Tax rebate. (1) In accordance with the provisions of this Section, the3
sales and use tax imposed by the state and imposed by any political subdivision4
within Jefferson and Orleans parishes on the following transactions for items of5
tangible personal property or services shall be eligible for a rebate:6
(a) Purchases in Jefferson and Orleans parishes of materials used to7
purchase, renovate, refurbish, or construct single-family residences on vacant,8
abandoned, or blighted lots or properties located within Orleans Parish intended to9
house any legitimate employee of a hospital, medical, or bioscience facility located10
with the boundaries of the BioDistrict New Orleans, hereinafter referred to as11
"employee".12
(b) Purchases in Jefferson and Orleans parishes of materials or items of13
tangible personal property to furnish or decorate the employee's home which shall14
be located in Orleans Parish.15
(c) Sales of services in Jefferson and Orleans parishes, including but not16
limited to the cleaning and renovation of furniture, carpet, and rugs, and the17
furnishing of repairs to tangible personal property, including but not limited to the18
repair and servicing of electrical and mechanical appliances and equipment.19
(2)(a) Eligibility for the state and local sales and use tax rebates authorized20
in this Section shall be limited to purchases of items of tangible personal property21
and sales of services, hereinafter collectively referred to as "purchases", by an22
employee who intends to purchase, renovate, refurbish, or construct single-family23
residences on vacant, abandoned, or blighted lots or properties located within24
Orleans Parish for housing for the employee or the employee's family and for which25
the employee claims the homestead exemption. The employee shall only be eligible26
for purchases made during the employees's first thirty-six months of employment27
with a hospital, medical, or bioscience facility located within the boundaries of28
BioDistrict New Orleans.29 HLS 12RS-336 ORIGINAL
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(b) The state and local sales and use tax rebates authorized pursuant to this1
Section may also apply to purchases by an employee who intends to purchase,2
renovate, refurbish, or construct single-family residences on vacant, abandoned, or3
blighted lots or properties located within Jefferson Parish for housing for the4
employee of a facility located within a subdistrict of BioDistrict New Orleans or the5
employee's family and for which the employee claims the homestead exemption.6
The employee shall only be eligible for purchases made during the employees's first7
thirty-six months of employment with a hospital, medical, or bioscience facility8
located within any subdistrict of BioDistrict New Orleans which is created in9
accordance with the provisions of R.S. 33:9039.68 and located in Jefferson Parish.10
D. Rebate Application and Administration. (1) Requests for the payment11
of a rebate shall be filed no later than six months from the date of purchase.12
Requests for a rebate of state sales and use taxes on eligible purchases shall be13
submitted to the Department of Revenue, and requests for a rebate of local sales and14
use taxes shall be submitted to the governing authorities of Jefferson and Orleans15
parishes. The amount to be rebated shall in no case be greater than the amount of the16
total sales and use taxes paid.17
(2) Requests for rebates of state sales and use taxes shall be administered by18
the Department of Revenue as follows:19
(a) The secretary of the Department of Revenue shall develop and publish20
a form to be used for the mailing of a request for a state rebate. An employee who21
applies for a rebate of state tax shall submit a properly completed rebate request to22
the Department of Revenue on forms provided by the department. For purposes of23
this Paragraph, a properly completed rebate request shall mean a rebate request that24
includes the general information required on the face of the request, is signed by the25
applicant, and shall include a copy of all original receipts and invoices of purchases26
eligible for the rebate. All rebate requests shall also include official documentation27
from the applicant's employer certifying the beginning date and current status of the28
applicant's employmen t with a hospital, medical, or bioscience facility located within29 HLS 12RS-336 ORIGINAL
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the boundaries of BioDistrict New Orleans or any subdistrict of the BioDistrict New1
Orleans located in Jefferson Parish. The request shall be submitted electronically2
unless the secretary of the Department of Revenue authorizes the submission by3
other means.4
(b) Within ten business days of the receipt of a properly completed rebate5
request, the Department of Revenue shall pay a rebate in an amount equal to eighty6
percent of the total amount claimed for rebate in the applicant's rebate request.7
Within three months of the date of receipt of the rebate request, the Department of8
Revenue shall audit the rebate request. During such three-month period, the9
Department of Revenue shall disallow purchases determined to be ineligible for10
rebate. Within ten business days following the expiration of such three-month11
period, the Department of Revenue shall pay a rebate in an amount equal to the12
remaining twenty percent of the amount claimed on the rebate request less any13
amounts properly disallowed during the audit period. The Department of Revenue14
shall pay such rebates from the current collections of the taxes collected pursuant to15
Chapter 2, Chapter 2-A, or Chapter 2-B of Subtitle II of Title 47 of the Louisiana16
Revised Statutes of 1950, as amended. Any state tax rebate issued shall be subject17
to subsequent audit by the Department of Revenue, and any rebate amount18
determined to be in excess of that which should have been allowed shall be subject19
to collection by the department.20
(c) Failure of the Department of Revenue to timely pay rebates as provided21
herein shall entitle the applicant to interest, which shall begin to accrue three months22
after the completed rebate request is submitted and shall be paid at the rate23
established pursuant to the provisions of R.S. 13:4202. Payments of such interest24
shall be made from the current collections of taxes collected pursuant to Chapter 2,25
Chapter 2-A, or Chapter 2-B of Subtitle II of Title 47 of the Louisiana Revised26
Statutes of 1950, as amended.27
(3) Requests for local sales and use tax rebates shall be administered by the28
governing authorities of Jefferson and Orleans parishes as provided in this29 HLS 12RS-336 ORIGINAL
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Paragraph. The governing authorities shall develop and publish a form to be used1
for the making of a request for a rebate of local taxes.2
(a) Within ninety days from the date that an applicant submits a properly3
completed rebate request to the appropriate local taxing authority, the taxing4
authority shall review the rebate request and shall pay a rebate to the applicant for5
taxes paid on eligible purchases and shall notify the applicant of any disallowed6
purchases for which no rebate was paid. For purposes of this Paragraph, a properly7
completed rebate request shall mean a rebate request that includes the general8
information required on the face of the request, is signed by the applicant, and shall9
include a copy of all original receipts and invoices of purchases eligible for the10
rebate. All rebate requests shall also include official documentation from the11
applicant's employer certifying the beginning date and current status of the12
applicant's employment with a hospital, medical, or bioscience facility located within13
the boundaries of BioDistrict New Orleans or any subdistrict of BioDistrict New14
Orleans located in Jefferson Parish. Within sixty days from receipt of the notification15
of disallowed purchases, the applicant may resubmit a properly completed rebate16
request for disallowed purchases for reconsideration by the taxing authority. The17
time periods for reconsideration of disallowed purchases in a rebate request shall be18
the same as the time periods for consideration of the initial rebate request. Rebate19
requests may be submitted electronically as may be determined by the respective20
local taxing authority. 21
(b) Failure by the appropriate taxing authority to timely process and pay a22
local tax rebate shall entitle the applicant to interest on the total amount of the23
allowed purchases contained in a properly completed rebate request. Interest shall24
begin to accrue on the date the properly completed rebate request or request for25
reconsideration of disallowed purchases is received by the taxing authority and shall26
be paid at the rate established pursuant to the provisions of R.S. 13:4202.27 HLS 12RS-336 ORIGINAL
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E. Neither the state nor the governing authorities of Jefferson or Orleans1
parishes shall charge a fee as a precondition to authorizing the rebate provided for2
in this Section.3
F. Any sales and use taxes imposed by a political subdivision which are4
dedicated to the repayment of bonded indebtedness or dedicated to schools shall not5
be eligible for rebate. All other state and local sales and use taxes shall be eligible6
for rebate.7
G. The provisions of this Section shall be applicable to all eligible purchases8
made after July 1, 2012.9
Section 2. This Act shall become effective on July 1, 2012, and shall be applicable10
to all eligible purchases made on or after July 1, 2012.11
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)]
Abramson HB No. 382
Abstract: Establishes the BioDistrict New Orleans Tax Rebate Program in Jefferson and
Orleans parishes for the rebate of state and local sales and use taxes collected on
certain items of tangible personal property and services.
Proposed law establishes the BioDistrict New Orleans Tax Rebate Program which provides
that the sales and use tax imposed by the state and by any political subdivision within
Jefferson and Orleans parishes on the following purchases of items of tangible personal
property and services shall be eligible for a rebate:
(1)Purchases in Jefferson and Orleans parishes of materials used to purchase, renovate,
refurbish, or construct single-family residences on vacant, abandoned, or blighted
lots or properties located within Orleans Parish.
(2)Purchases in Jefferson and Orleans parishes of materials or items of tangible
personal property intended to furnish or decorate a home located in Orleans Parish.
(3)Sales of services in Jefferson and Orleans parishes, including the cleaning and
renovation of furniture, carpet, and rugs and the furnishing of repairs to items such
as the repair and servicing of electrical and mechanical appliances and equipment.
Proposed law provides that in order to be eligible for the sales and use tax rebates authorized
by proposed law, purchases of items and sales of services, hereinafter collectively called
"purchases", shall be made by a legitimate employee of a hospital, medical, or bioscience
facility located within the boundaries of BioDistrict New Orleans (BDNO) and the purchases
shall be intended for a home located within Orleans Parish which is intended to house the
employee or the employee's family and for which the employee claims the homestead HLS 12RS-336 ORIGINAL
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exemption. An employee shall only be eligible for purchases made during the employees's
first 36 months of employment with a facility located within the boundaries of BDNO.
Proposed law extends the eligibility requirement provided for in proposed law to purchases
by an employee intended to purchase, renovate, refurbish, or construct single-family
residences on vacant, abandoned, or blighted lots or properties located within Jefferson
parish which is intended to house the employee of a facility located within a subdistrict of
BDNO or the employee's family, and for which the employee claims the homestead
exemption. The employee shall only be eligible for purchases during the employees's first
36 months of employment with a hospital, medical, or bioscience facility located within any
subdistrict of BDNO, created in accordance with the provisions of present law which is
located in Jefferson Parish.
Proposed law requires that rebate applications be filed no later than six months from the date
the purchase is made. Further requires that rebate requests for state taxes be submitted to
the Dept. of Revenue (DOR) and rebate requests for local sales and use taxes be submitted
to the appropriate taxing authorities of Jefferson and Orleans parishes.
Proposed law requires that all rebate requests include official documentation from the
applicant's employer certifying the beginning date and current status of the applicant's
employment with a facility located within the boundaries of BDNO or a subdistrict of
BDNO located within Jefferson parish. Requires, within 10 business days of the receipt of
a properly completed rebate request, DOR to pay a rebate equal to 80% of the total amount
claimed for rebate and within three months of the date of filing the rebate request, DOR shall
audit the rebate request. During the three-month period, DOR shall disallow purchases
ineligible for rebate. Within 10 business days following the expiration of such three-month
period, DOR shall pay a rebate equal to the remaining 20% of the amount claimed on the
rebate request less any amounts properly disallowed during the audit period. Failure of DOR
to timely pay rebates shall entitle the applicant to interest, which shall begin to accrue three
months after the completed request is received by DOR.
Proposed law requires DOR to pay rebate amounts from the current collections of sales and
use taxes collected pursuant to present law.
Proposed law requires rebate requests for local sales and use taxes to be processed by the
governing authorities of Jefferson and Orleans parishes. Within 90 days from the date a
properly completed rebate request is received by the appropriate authority, the rebate request
shall be reviewed, and the authority shall pay a rebate in the amount requested for allowed
purchases. The authority shall notify the applicant of any disallowed purchases. Within 60
days from receipt of the notification of disallowed purchases, the applicant may resubmit a
properly completed rebate request for disallowed purchases for reconsideration. Failure by
the local taxing authority to timely process and pay a local tax rebate shall entitle the
applicant to interest on the amount of the allowed purchases contained in the properly
completed rebate request.
Proposed law prohibits the state and the governing authorities of Jefferson or Orleans
parishes from charging a fee as a precondition to authorizing the rebate.
Proposed law prohibits sales and use taxes imposed by a political subdivision dedicated to
the repayment of bonded indebtedness or dedicated to schools from being eligible for rebate.
Effective July 1, 2012, and applicable for all eligible purchases made on or after July 1,
2012.
(Adds R.S. 47:6301)