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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2012
SENATE BILL NO. 144
BY SENATOR MILLS
TAX/SALES. Phases in an exemption from local sales tax on certain inhibitors and complex
biologics if the Revenue Estimating Conference estimates a certain percentage increase in
state general sales tax. (7/1/12)
AN ACT1
To enact R.S. 47:337.11.2, relative to the sales and use tax of political subdivisions of the2
state; to provide for a conditional phased-in exemption for certain inhibitors and3
complex biologics; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 47:337.11.2 is hereby enacted to read as follows: 6
§337.11.2. Phased-in exemption; certain inhibitors and complex biologics7
A.(1) If the secretary of the Department of Revenue determines that the8
estimate of the item "Sales Tax - General" for an upcoming fiscal year in the9
last official forecast of the Revenue Estimating Conference prior to the10
beginning of that fiscal year shows a growth that equals at least two percent of11
the estimate of the item "Sales Tax - General" for the current fiscal year in12
which the estimate is made, then fifty percent of the sales or cost price of the13
certain inhibitors and complex biologics provided for in this Section shall be14
exempt from the sales and use tax imposed by all political subdivisions in the15
state beginning January first of the calendar year occurring during the16
upcoming fiscal year. One hundred percent of the sales or cost price of the17 SB NO. 144
SLS 12RS-335 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
certain inhibitors and complex biologics provided for in this Section shall be1
exempt from the sales and use tax imposed by all political subdivisions in the2
state beginning on January first of the next calendar year, and each calendar3
year thereafter.4
(2) No later than August first after the determination made by the5
secretary as provided for in Paragraph (1) of this Subsection, the secretary shall6
provide written notification by certified mail of such determination and of the7
exemption provided for in this Section to the single sales tax collector in each8
parish and to the Louisiana Law Institute.9
B. The provisions of this Section shall apply to the sale, purchase, or use10
of the following:11
(1) Vaso-endothelial growth factor, known as VEGF inhibitors, including12
but not limited to Visudyne and Macugen.13
(2) Complex biologics such as monoclonal antibodies, including but not14
limited to Infliximab.15
Section 2. This Act shall become effective on July 1, 2012, and the exemption16
provided for in this Act shall not begin to be phased-in before January 1, 2014.17
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Riley Boudreaux.
DIGEST
Proposed law requires the following phase-in of an exemption from local sales tax on the
following inhibitors and complex biologics if the secretary of the Department of Revenue
determines that the estimate of the item "Sales Tax - General" for an upcoming fiscal year
in the last official forecast of the Revenue Estimating Conference prior to the beginning of
that fiscal year shows a growth that equals at least two percent of the estimate of the item
"Sales Tax - General" for the current fiscal year in which the estimate is made.
If the secretary determines that such growth is in the official forecast, then 50% of the sales
or cost price of the following inhibitors and complex biologics are exempted from local sales
tax beginning January first of the calendar year occurring during the upcoming fiscal year.
One hundred percent of such is exempt beginning on January first of the next calendar year,
and each calendar year thereafter.
The exemption applies to:
(1) Vaso-endothelial growth factor, known as VEGF inhibitors, including but not limited
to Visudyne and Macugen. SB NO. 144
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(2) Complex biologics such as monoclonal antibodies, including but not limited to
Infliximab.
Effective July 1, 2012, but the exemption cannot begin to be phased-in before January 1,
2014.
(Adds R.S. 47:337.11.2)