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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. 47:337.11.4, 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. 47:337.11.4 is hereby enacted to read as follows: 6
§337.11.4. Phased-in exemption; certain inhibitors and complex biologics7
A.(1) If the executive director of the Louisiana Association of Tax8
Administrators determines that the estimate of the item "Sales Tax - General"9
for an upcoming fiscal year in the last official forecast of the Revenue10
Estimating Conference prior to the beginning of that fiscal year shows a growth11
that equals at least two percent of the estimate of the item "Sales Tax -12
General" for the current fiscal year in which the estimate is made, then fifty13
percent of the sales or cost price of the certain inhibitors and complex biologics14
provided for in this Section shall be exempt from the sales and use tax imposed15
by all political subdivisions in the state beginning January first of the calendar16
year occurring during the upcoming fiscal year. One hundred percent of the17 SB NO. 144
SLS 12RS-335 REENGROSSED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
sales or cost price of the certain inhibitors and complex biologics provided for1
in this Section shall be exempt from the sales and use tax imposed by all2
political subdivisions in the state beginning on January first of the next calendar3
year, and each calendar year thereafter.4
(2) No later than August first after the determination made by the5
executive director as provided for in Paragraph (1) of this Subsection, the6
executive director shall provide written notification by certified mail of such7
determination and of the exemption provided for in this Section to the single8
sales tax collector in each parish and to the Louisiana State 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 was prepared by Riley Boudreaux. The following
digest, which does not constitute a part of the legislative instrument, was
prepared by Tammy Crain-Waldrop.
DIGEST
Mills (SB 144)
Proposed law requires the following phase-in of an exemption from local sales tax on the
following inhibitors and complex biologics if the executive director of the Louisiana
Association of Tax Administrators 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 director 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: 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.
1. Vaso-endothelial growth factor, known as VEGF inhibitors, including but not limited
to Visudyne and Macugen.
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. 47:337.11.4)
Summary of Amendments Adopted by Senate
Senate Floor Amendments to engrossed bill
1. Makes technical changes
.
2. Changes who determines the estimate of the item from the secretary of the
Department of Revenue to the executive director of the Louisiana
Association of Tax Administrators.