HLS 12RS-70 ORIGINAL
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2012
HOUSE BILL NO. 769
BY REPRESENTATIVE TIM BURNS
TAX/SALES-USE, LOCAL: Exempts custom computer software from local sales and use
taxes by excluding it from the definition of tangible personal property
AN ACT1
To amend and reenact R.S. 47:301(16)(h), to enact R.S. 47:337.9(D)(15), and to repeal R.S.2
47:305.52, relative to local sales and use tax; to exclude custom computer software3
from the definition of tangible personal property to which local sales and use taxes4
are applicable; to repeal the local option for a local sales and use tax exemption for5
custom computer software; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 47:301(16)(h) is hereby amended and reenacted and R.S.8
47:337.9(D)(15) is hereby enacted to read as follows: 9
§301. Definitions10
As used in this Chapter the following words, terms, and phrases have the11
meaning ascribed to them in this Section, unless the context clearly indicates a12
different meaning:13
* * *14
(16)15
* * *16
(h)(i) Solely for For purposes of the imposition of the sales and use tax17
levied by the state or any political subdivision whose boundaries are coterminous18
with those of the state, for the period beginning July 1, 2002, and ending on June 30,19 HLS 12RS-70 ORIGINAL
HB NO. 769
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are additions.
2003, the term "tangible personal property" shall not include one-quarter of the cost1
price of custom computer software.2
(ii) Solely for purposes of the imposition of the sales and use tax levied by3
the state or any political subdivision whose boundaries are coterminous with those4
of the state, for the period beginning July 1, 2003, and ending on June 30, 2004, the5
term "tangible personal property" shall not include one-half of the cost price of6
custom computer software.7
(iii) Solely for purposes of the imposition of the sales and use tax levied by8
the state or any political subdivision whose boundaries are coterminous with those9
of the state, for the period beginning July 1, 2004, and ending on June 30, 2005, the10
term "tangible personal property" shall not include three-quarters of the cost price11
of custom computer software.12
(iv) Solely for purposes of the imposition of the sales and use tax levied by13
the state or any political subdivision whose boundaries are coterminous with those14
of the state, for all taxable periods beginning on or after July 1, 2005, the term15
"tangible personal property" shall not include custom computer software.16
* * *17
§337.9. Exemptions applicable to local tax in Chapters 2, 2-A, and 2-B; other18
exemptions applicable19
* * *20
D.21
* * *22
(15) R.S. 47:301(16)(h), "keywords": custom computer software.23
* * *24
Section 2. R.S. 47:305.52 is hereby repealed in its entirety.25 HLS 12RS-70 ORIGINAL
HB NO. 769
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
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)]
Tim Burns HB No. 769
Abstract: Excludes custom computer software from the definition of tangible personal
property for purposes of local sales and use tax.
Present law excludes custom computer software from the definition of tangible personal
property for purposes of state sales and use tax.
Present law authorizes a local option to provide an exemption for custom computer software
for purposes of local sales and use tax. The exemption may be authorized by an ordinance
enacted by the governing authority of the political subdivision imposing the tax.
Proposed law retains exemption of custom computer software from state sales and use tax
and exempts such software from local sales and use tax by excluding it from definition of
tangible personal property for purposes of such tax.
Proposed law repeals present law regarding the local option for the exemption.
(Amends R.S. 47:301(16)(h); Adds R.S. 47:337.9(D)(15); Repeals R.S. 47:305.52)