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Regular Session, 2013
HOUSE BILL NO. 714
BY REPRESENTATIVE STOKES
TAX/SALES & USE: Provides for the taxability of the sale, use, consumption, distribution,
or storage of tangible personal property and the sale of services
AN ACT1
To amend and reenact R.S. 4:168 and 227, R.S. 32:707(A), R.S. 47:301, 301.1(B)(2), (D),2
and (E), 302(D), 303(E)(1) and (F), 304(A), 305, 305.6, 305.7, 305.9, 305.11,3
305.16, 305.17, 305.19, 305.20(A), 305.28, 305.41, 305.43(A), (B), and (E),4
305.44(A)(introductory paragraph), 305.49, 305.50(F), 305.57(A), 305.59, 305.61,5
305.62(B)(1), 305.64(A)(1) and (B), 305.65, 305.68, 305.70, 306(A)(3), and 6001(A)6
and to repeal R.S. 47:305.18, 305.20(C), 305.26, 305.33, 305.40, 305.42, 305.54,7
305.56, 305.58, 305.60, 305.64(C), 305.66, 315.2, 315.3, 315.5, 306.1, and Section8
4 of Act No. 386 of the 1990 Regular Session of the Legislature, relative to state9
sales and use taxes; to provide for the taxability of certain sales and other10
transactions involving certain tangible personal property and services; to provide11
with respect to exclusions, exemptions, and other special tax treatment; to provide12
with respect to the collection of tax; to provide for effectiveness; and to provide for13
related matters.14
Be it enacted by the Legislature of Louisiana:15
Section 1. R.S. 4:168 and 227 are hereby amended and reenacted to read as follows:16 HLS 13RS-1302 ORIGINAL
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§168. License fees, commissions, and taxes of this Part in lieu of all other such1
taxes2
The license fees, commissions, and taxes imposed in this Part are in lieu of3
all other such licenses, sales, excise and occupational taxes to the state or to any4
parish, city, town, or other political subdivision thereof.5
* * *6
§227. License fees, commissions, and taxes of this Part in lieu of all other such taxes7
The license fees, commissions, and taxes imposed upon an off track wagering8
facility in this Part are in lieu of all other such licenses, sales, excise, and9
occupational taxes to the state or to any parish, city, town, municipality, or other10
political subdivision thereof.11
Section 2. R.S. 32:707(A) is hereby amended and reenacted to read as follows: 12
§707. Application for certificates of title; exception; salvage title; antique vehicles;13
reconstructed title14
A. Any purchaser of a vehicle, other than a mobile home, as defined by R.S.15
9:1149.2(3), shall file an application for a new certificate of title within five days16
after the delivery of a previously issued certificate of title for such vehicle, or within17
five days of the delivery of the vehicle, if a certificate of title has not been previously18
issued. However, dealers need not apply for certificates of title for any vehicle19
acquired for stock purposes, if upon reselling such vehicle, the dealer complies with20
the requirements of R.S. 32:705. A purchaser of a mobile home, as defined by R.S.21
9:1149.2(3), shall apply for a new certificate of title on or before the twentieth day22
of the month following the month of delivery of the home.23
* * *24
Section 3. R.S. 47:301, 301.1(B)(2), (D), and (E), 302(D), 303(E)(1) and (F),25
304(A), 305, 305.6, 305.7, 305.9, 305.11, 305.16, 305.17, 305.19, 305.20(A), 305.28,26
305.41, 305.43(A), (B), and (E), 305.44(A)(introductory paragraph), 305.49, 305.50(F),27
305.57(A), 305.59, 305.61, 305.62(B)(1), 305.64(A)(1) and (B), 305.65, 305.68, 305.70,28
306(A)(3), and 6001(A) are hereby amended and reenacted to read as follows:29 HLS 13RS-1302 ORIGINAL
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§301. Definitions1
As used in this Chapter the following words, terms, and phrases have the2
meaning ascribed to them in this Section, unless the context clearly indicates a3
different meaning:4
(1) "Business" includes any activity engaged in by any person or caused to5
be engaged in by him with the object of gain, benefit, or advantage, either direct or6
indirect. The term "business" shall not be construed to include the occasional and7
isolated sales by a person who does not hold himself out as engaged in business.8
(2) "Collector" shall mean and include (a) the secretary of the Department9
of Revenue for the state of Louisiana and includes his duly authorized assistants,10
when used in reference to a sales and use tax levied by the state, or (b) the individual11
or entity designated as collector of the appropriate single sales and use tax collection12
office, and his duly authorized assistants, of any political subdivision authorized13
under the constitution and laws of the state of Louisiana to levy and collect a sales14
and use tax, except a statewide political subdivision, when used in reference to a15
sales and use tax levied by such political subdivision.16
(3)(a) "Cost price" means the actual cost of the articles of tangible personal17
property without any deductions therefrom on account of the cost of materials used,18
labor, or service cost, except those service costs for installing the articles of tangible19
personal property if such cost is separately billed to the customer at the time of20
installation, transportation charges, or any other expenses whatsoever, or the21
reasonable market value of the tangible personal property at the time it becomes22
susceptible to the use tax, whichever is less.23
(b) In the case of tangible personal property which has acquired a tax situs24
in a taxing jurisdiction and is thereafter transported outside the taxing jurisdiction for25
repairs performed outside the taxing jurisdiction and is thereafter returned to the26
taxing jurisdiction, the cost price shall be deemed to be the actual cost of any parts27
and/or materials used in performing such repairs, if applicable labor charges are28
separately stated on the invoice. If the applicable labor charges are not separately29 HLS 13RS-1302 ORIGINAL
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stated on the invoice, it shall be presumed that the cost price is the total charge1
reflected on the invoice.2
(c) "Cost price" solely for purposes of sales and use tax imposed by a3
political subdivision shall not include the supplying and installation of board roads4
to oil field operators if the installation charges are separately billed to the customer5
at the time of installation.6
(d)(i) In Solely for purposes of sales and use tax imposed by a political7
subdivision, in the case of interchangeable components located in Louisiana, a8
taxpayer may elect to determine the cost price of such components as follows:9
(aa) The taxpayer shall send to the secretary political subdivision a written10
notice of the calendar month selected by the taxpayer as the first month for the11
determination of cost price under this Paragraph (the "First Month"). The taxpayer12
may select any month. The taxpayer shall send to the secretary political subdivision13
notice of an election to designate a First Month on the first day of the designated14
First Month, or ninety days from July 1, 1990, whichever is later.15
(bb) For the First Month and each month thereafter, cost price shall be based16
and use tax shall be paid only on one-sixtieth of the aggregate cost price of the17
interchangeable components deployed and earning revenue within Louisiana during18
the month, without regard to any credit or other consideration for Louisiana state,19
political subdivision, or school board use tax previously paid on such20
interchangeable components.21
(cc) Any election made under this Paragraph shall be irrevocable for a period22
of sixty consecutive months inclusive of the First Month. If at any time after the23
sixty-month period the taxpayer revokes its election, no credit or other consideration24
for use taxes paid pursuant thereto shall be applied to any use tax liability arising25
after such revocation.26
(ii)(aa) For purposes of this Paragraph, "interchangeable component" means27
a component that is used or stored for use in measurement-while-drilling instruments28
or systems manufactured or assembled by the taxpayer, which measurement-while-29 HLS 13RS-1302 ORIGINAL
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drilling instruments or systems collectively generate eighty percent or more of their1
annual revenue from their use outside of the state.2
(bb) "Measurement-while-drilling instruments or systems" means3
instruments or systems which measure information from a downhole location in a4
borehole, transmit the information to the surface during the process of drilling the5
borehole using a wireless technique, and receive and decode the information on the6
surface.7
(iii) The method for determining cost price of interchangeable components8
provided for in this Paragraph shall apply to any use taxes imposed by a local9
political subdivision or school board. For purposes of that application, the words10
"political subdivision" or "school board" as the case may be, shall be substituted for11
the words "Louisiana" or "State" in each instance where those words appear in this12
Paragraph and an appropriate official of the local political subdivision or school13
board shall be designated to receive the notices required by this Paragraph.14
(e) "Cost price" shall not include any amount designated as a cash discount15
or a rebate by a vendor or manufacturer of any new vehicle subject to the motor16
vehicle license tax. For purposes of this Paragraph "rebate" means any amount17
offered by the vendor or manufacturer as a deduction from the listed retail price of18
the vehicle.19
(f) The "cost price" of refinery gas shall be fifty-two cents per thousand20
cubic feet multiplied by a fraction the numerator of which shall be the posted price21
for a barrel of West Texas Intermediate Crude Oil on December first of the preceding22
calendar year and the denominator of which shall be twenty-nine dollars, and23
provided further that such cost price shall be the maximum value placed upon24
refinery gas by the state and by any political subdivision under any authority or grant25
of power to levy and collect use taxes.26
(g) "Cost price", for purposes of the use tax imposed by the state and its27
political subdivisions, shall exclude any amount that a manufacturer pays directly to28
a dealer of the manufacturer's product for the purpose of reducing and that actually29 HLS 13RS-1302 ORIGINAL
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results in an equivalent reduction in the retail "cost price" of that product. This1
exclusion shall not apply to the value of the coupons that dealers accept from2
purchasers as part payment of the "sales price" and that are redeemable by the3
dealers through manufacturers or their agents. The value of such coupons is deemed4
to be part of the "cost price" of the product purchased through the use of the coupons.5
(h)(i) For purposes of a publishing business which distributes its news6
publications at no cost to readers and pays unrelated third parties to print such news7
publications, the term "cost price" shall mean only the lesser of the following costs:8
(aa) The printing cost paid to unrelated third parties to print such news9
publications, less any itemized freight charges for shipping the news publications10
from the printer to the publishing business and any itemized charges for paper and11
ink.12
(bb) Payments to a dealer or distributor as consideration for distribution of13
the news publications.14
(ii) The definition of "cost price" provided for in this Subparagraph shall be15
applicable to taxes levied by all tax authorities in the state.16
(i)(i) For purposes of the imposition of the use tax levied by the state and any17
political subdivision whose boundaries are coterminous with those of the state, the18
cost price of machinery and equipment used by a manufacturer in a plant facility19
predominately and directly in the actual manufacturing for agricultural purposes or20
the actual manufacturing process of an item of tangible personal property, which is21
for ultimate sale to another and not for internal use, at one or more fixed locations22
within Louisiana, shall be reduced as follows: 23
(aa) For the period ending on June 30, 2005, the cost price shall be reduced24
by five percent.25
(bb) For the period beginning July 1, 2005, and ending on June 30, 2006, the26
cost price shall be reduced by nineteen percent.27
(cc) For the period beginning July 1, 2006, and ending on June 30, 2007, the28
cost price shall be reduced by thirty-five percent.29 HLS 13RS-1302 ORIGINAL
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(dd) For the period beginning July 1, 2007, and ending on June 30, 2008, the1
cost price shall be reduced by fifty-four percent.2
(ee) For the period beginning July 1, 2008, and ending on June 30, 2009, the3
cost price shall be reduced by sixty-eight percent.4
(ff) For all periods beginning on or after July 1, 2009, the cost price shall be5
reduced by one hundred percent.6
(ii) For purposes of this Subparagraph, the following definitions shall apply:7
(aa) "Machinery and equipment" means tangible personal property or other8
property that is eligible for depreciation for federal income tax purposes and that is9
used as an integral part in the manufacturing of tangible personal property for sale.10
"Machinery and equipment" shall also mean tangible personal property or other11
property that is eligible for depreciation for federal income tax purposes and that is12
used as an integral part of the production, processing, and storing of food and fiber13
or of timber.14
(I) Machinery and equipment, for purposes of this Subparagraph, also15
includes but is not limited to the following:16
(aaa) Computers and software that are an integral part of the machinery and17
equipment used directly in the manufacturing process.18
(bbb) Machinery and equipment necessary to control pollution at a plant19
facility where pollution is produced by the manufacturing operation.20
(ccc) Machinery and equipment used to test or measure raw materials, the21
property undergoing manufacturing or the finished product, when such test or22
measurement is a necessary part of the manufacturing process.23
(ddd) Machinery and equipment used by an industrial manufacturing plant24
to generate electric power for self consumption or cogeneration.25
(eee) Machinery and equipment used primarily to produce a news26
publication whether it is ultimately sold at retail or for resale or at no cost. Such27
machinery and equipment shall include but not be limited to all machinery and28
equipment used primarily in composing, creating, and other prepress operations,29 HLS 13RS-1302 ORIGINAL
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electronic transmission of pages from prepress to press, pressroom operations, and1
mailroom operations and assembly activities. The term "news publication" shall2
mean any publication issued daily or regularly at average intervals not exceeding3
three months, which contains reports of varied character, such as political, social,4
cultural, sports, moral, religious, or subjects of general public interest, and5
advertising supplements and any other printed matter ultimately distributed with or6
a part of such publications.7
(II) Machinery and equipment, for purposes of this Subparagraph, does not8
include any of the following:9
(aaa) A building and its structural components, unless the building or10
structural component is so closely related to the machinery and equipment that it11
houses or supports that the building or structural component can be expected to be12
replaced when the machinery and equipment are replaced.13
(bbb) Heating, ventilation, and air-conditioning systems, unless their14
installation is necessary to meet the requirements of the manufacturing process, even15
though the system may provide incidental comfort to employee s or serve, to an16
insubstantial degree, nonproduction activities.17
(ccc) Tangible personal property used to transport raw materials or18
manufactured goods prior to the beginning of the manufacturing process or after the19
manufacturing process is complete.20
(ddd) Tangible personal property used to store raw materials or21
manufactured goods prior to the beginning of the manufacturing process or after the22
manufacturing process is complete.23 HLS 13RS-1302 ORIGINAL
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(bb) "Manufacturer" means:1
(I) A person whose principal activity is manufacturing, as defined in this2
Subparagraph, and who is assigned by the Louisiana Workforce Commission a North3
American Industrial Classification System code within the agricultural, forestry,4
fishing, and hunting Sector 11, the manufacturing Sectors 31-33, the information5
Sector 511110 as they existed in 2002, or industry code 423930 as a recyclable6
material merchant wholesaler engaged in manufacturing activities, which must7
include shredding facilities, as determined by the secretary of the Department of8
Revenue.9
(II) A person whose principal activity is manufacturing and who is not10
required to register with the Louisiana Workforce Commission for purposes of11
unemployment insurance, but who would be assigned a North American Industrial12
Classification System code within the agricultural, forestry, fishing, and hunting13
Sector 11, the manufacturing Sectors 31-33, the information Sector 511110 as they14
existed in 2002, as determined by the Louisiana Department of Revenue from federal15
income tax data, if he were required to register with the Louisiana Workforce16
Commission for purposes of unemployment insurance.17
(cc) "Manufacturing" means putting raw materials through a series of steps18
that brings about a change in their composition or physical nature in order to make19
a new and different item of tangible personal property that will be sold to another.20
Manufacturing begins at the point at which raw materials reach the first machine or21
piece of equipment involved in changing the form of the material and ends at the22
point at which manufacturing has altered the material to its completed form. Placing23
materials into containers, packages, or wrapping in which they are sold to the24
ultimate consumer is part of this manufacturing process. Manufacturing, for25
purposes of this Subparagraph, does not include any of the following:26
(I) Repackaging or redistributing.27
(II) The cooking or preparing of food products by a retailer in the regular28
course of retail trade.29 HLS 13RS-1302 ORIGINAL
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(III) The storage of tangible personal property.1
(IV) The delivery of tangible personal property to or from the plant.2
(V) The delivery of tangible personal property to or from storage within the3
plant.4
(VI) Actions such as sorting, packaging, or shrink wrapping the final material5
for ease of transporting and shipping.6
(dd) "Manufacturing for agricultural purposes" means the production,7
processing, and storing of food and fiber and the production, processing, and storing8
of timber.9
(ee) "Plant facility" means a facility, at one or more locations, in which10
manufacturing, referred to in Sectors 11 and 31-33 of the North American Industrial11
Classification system System as of 2002, of a product of tangible personal property12
takes place.13
(ff) "Used directly" means used in the actual process of manufacturing or14
manufacturing for agricultural purposes.15
(iii) No person shall be entitled to purchase, use, lease, or rent machinery or16
equipment as defined herein without payment of the tax imposed by R.S. 47:302, 321,17
and 331 before receiving a certificate of exclusion from the secretary of the18
Department of Revenue certifying that he is a manufacturer as defined herein.19
(iv) The secretary of the Department of Revenue is hereby authorized to adopt20
rules and regulations in order to administer the exclusion provided for in this21
Subparagraph.22
(j) For the purpose of the sales and use taxes imposed by the state or any23
political subdivision whose boundaries are coterminous with those of the state, the24
"cost price" of electric power or energy, or natural gas for the period beginning July25
1, 2007, and thereafter, purchased or used by paper or wood products manufacturing26
facilities shall not include any of such cost.27
(k)(i) For purposes of the imposition of the sales and use tax levied by the28
state or any political subdivision whose boundaries are coterminous with those of the29 HLS 13RS-1302 ORIGINAL
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state, the tax on the cost price of tangible property consumed in the manufacturing1
process, such as fuses, belts, felts, wires, conveyor belts, lubricants, and motor oils2
and the tax on the cost price of repairs and maintenance of manufacturing machinery3
and equipment shall be reduced as follows:4
(aa) For the period beginning July 1, 2010, and ending on June 30, 2011, the5
state sales and use tax on the cost price shall be reduced by twenty-five percent.6
(bb) For the period beginning July 1, 2011, and ending June 30, 2012, the7
state sales and use tax on the cost price shall be reduced by fifty percent.8
(cc) For the period beginning July 1, 2012, and ending June 30, 2013, the9
state sales and use tax on the cost price shall be reduced by seventy-five percent.10
(dd) For all periods beginning on and after July 1, 2013, the state sales and11
use tax on the cost price shall be reduced by one hundred percent.12
(ii) For purposes of this Subparagraph, "manufacturer" means a person whose13
principal activity is manufacturing and who is assigned an industry group designation14
by the United States Census of 3211 through 3222 or 113310 pursuant to the North15
American Industry Classification System of 2007.16
(4) "Dealer" includes every person who manufactures or produces tangible17
personal property for sale at retail, for use, or consumption, or distribution, or for18
storage to be used or consumed in a taxing jurisdiction. "Dealer" is further defined to19
mean:20
(a) Every person who imports, or causes to be imported, tangible personal21
property from any other state, foreign country, or other taxing jurisdiction for sale at22
retail, for use, or consumption, or distribution, or for storage to be used or consumed23
in a taxing jurisdiction.24
(b) Every person who sells at retail, or who offers for sale at retail, or who has25
in his possession for sale at retail, or for use, or consumption, or distribution, or26
storage to be used or consumed in the taxing jurisdiction, tangible personal property27
as defined herein.28 HLS 13RS-1302 ORIGINAL
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(c) Any person who has sold at retail, or used, or consumed, or distributed,1
or stored for use or consumption in the taxing jurisdiction, tangible personal property2
and who cannot prove that the tax levied by this Chapter has been paid on the sale at3
retail, the use, the consumption, the distribution, or the storage of said tangible4
personal property.5
(d)(i) Any person who leases or rents tangible personal property for a6
consideration, permitting the use or possession of the said property without7
transferring title thereto.8
(ii) However, a person who leases or rents tangible personal property to9
customers who provide information to such person that they will use the property only10
offshore beyond the territorial limits of the state shall not be included in the term11
"dealer" for purposes of the collection of the rental or lease tax of the state, statewide12
political subdivisions, and other political subdivisions on such lease or rental13
contracts. For purposes of this Item, "use" means the operational or functional use14
of the property and not other uses related to its possession such as transportation,15
maintenance, and repair. It is the intention of this Item that the customers of such16
persons shall remit any tax due on the lease or rental of such property directly to the17
state and local taxing bodies to whom they are due.18
(e) Any person who is the lessee or rentee of tangible personal property and19
who pays to the owner of such property a consideration for the use or possession of20
such property without acquiring title thereto.21
(f) Any person, who sells or furnishes any of the services subject to tax under22
this Chapter.23
(g) Any person, as used in this act, who purchases or receives any of the24
services subject to tax under this Chapter.25
(h) Any person engaging in business in the taxing jurisdiction. "Engaging in26
business in the taxing jurisdiction" means and includes any of the following methods27
of transacting business: maintaining directly, indirectly, or through a subsidiary, an28
office, distribution house, sales house, warehouse, or other place of business or by29 HLS 13RS-1302 ORIGINAL
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having an agent, salesman, or solicitor operating within the taxing jurisdiction under1
the authority of the seller or its subsidiary irrespective of whether such place of2
business, agent, salesman, or solicitor is located in such taxing jurisdiction3
permanently or temporarily or whether such seller or subsidiary is qualified to do4
business in such taxing jurisdiction, or any person who makes deliveries of tangible5
personal property into the taxing jurisdiction other than by a common or contract6
carrier.7
(i) Any person who sells at retail any tangible personal property to a vending8
machine operator for resale through coin-operated vending machines.9
(j) Any person who makes deliveries of tangible personal property into the10
taxing jurisdiction in a vehicle owned or operated by said person.11
(k) The term "dealer" shall not include lessors of railroad rolling stock used12
either for freight or passenger purposes. However, the term "dealer" shall include13
lessees, other than a railway company or railroad corporation, of such property and14
such lessees shall be responsible for the collection and payment of all state and local15
sales and use taxes.16
(l) Every person who engages in regular or systematic solicitation of a17
consumer market in the taxing jurisdiction by the distribution of catalogs, periodicals,18
advertising fliers, or other advertising, or by means of print, radio or television media,19
by mail, telegraphy, telephone, computer data base, cable, optic, microwave, or other20
communication system.21
(5) "Gross sales" means the sum total of all retail sales of tangible personal22
property, without any deduction whatsoever of any kind or character except as23
provided in this Chapter.24
(6)(a) "Hotel" means and includes any establishment engaged in the business25
of furnishing sleeping rooms, cottages, or cabins to transient guests, where such26
establishment consists of six or more sleeping rooms, cottages, or cabins at a single27
business location.28 HLS 13RS-1302 ORIGINAL
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(b) For purposes of the sales and use taxes of all tax authorities in this state,1
the term "hotel" as defined herein shall not include camp and retreat facilities owned2
and operated by nonprofit organizations exempt from federal income tax under3
Section 501(a) of the Internal Revenue Code as an organization described in Section4
501(c)(3) of the Internal Revenue Code provided that the net revenue derived from5
the organizations's property is devoted wholly to the nonprofit organization's6
purposes. However, for purposes of this Paragraph, the term "hotel" shall include7
camp and retreat facilities which shall sell rooms or other accommodations to8
transient guests who are not attending a function of such nonprofit organization that9
owns and operates the camp and retreat facilities or a function of another nonprofit10
organization exempt from federal income tax under Section 501(a) of the Internal11
Revenue Code as an organization described in Section 501(c)(3) of the Internal12
Revenue Code. It is the intention of the legislature to tax the furnishing of rooms to13
those who merely purchase lodging at such facilities.14
(c) For Solely for purposes of the sales and use taxes of all tax authorities in15
this state imposed by a political subdivision, the term "hotel", as defined herein, shall16
not include a temporary lodging facility which is operated by a nonprofit organization17
described in Section 501(c)(3) of the Internal Revenue Code, provided that the facility18
is devoted exclusively to the temporary housing, for periods no longer than thirty19
days' duration, of homeless transient persons whom the organization determines to be20
financially incapable of engaging lodging at a facility defined by Subparagraph (a)21
of this Paragraph, and further provided that the lodging charge to such persons is no22
greater than twenty dollars per day.23
(7)(a) "Lease or rental" means the leasing or renting of tangible personal24
property and the possession or use thereof by the lessee or renter, for a consideration,25
without transfer of the title of such property. For the purpose of the leasing or renting26
of automobiles, "lease" means the leasing of automobiles and the possession or use27
thereof by the lessee, for a consideration, without the transfer of the title of such28
property for a one hundred eighty-day period or more. "Rental" means the renting of29 HLS 13RS-1302 ORIGINAL
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automobiles and the possession or use thereof by the renter, for a consideration,1
without the transfer of the title of such property for a period less than one hundred2
eighty days.3
(b) The Solely for purposes of sales and use taxes imposed by a political4
subdivision the term "lease or rental", however, as herein defined, shall not mean or5
include the lease or rental made for the purposes of re-lease or re-rental of casing6
tools and pipe, drill pipe, tubing, compressors, tanks, pumps, power units, other7
drilling or related equipment used in connection with the operating, drilling,8
completion, or reworking of oil, gas, sulphur, or other mineral wells.9
(c) The term "lease or rental", as herein defined shall not mean or include a10
lease or rental of property to be used in performance of a contract with the United11
States Department of the Navy for construction or overhaul of U.S. Naval vessels.12
(d) The Solely for purposes of sales and use taxes imposed by a political13
subdivision the term "lease or rental", as herein defined, shall not mean the lease or14
rental of airplanes or airplane equipment by a commuter airline domiciled in15
Louisiana.16
(e) For purposes of state and political subdivision sales and use tax the The17
term "lease or rental", as herein defined, shall not mean the lease or rental of items,18
including but not limited to supplies and equipment, which are reasonably necessary19
for the operation of free hospitals.20
(f) For purposes of state and political subdivision sales and use tax, Solely for21
purposes of sales and use tax imposed by a political subdivision, the term "lease or22
rental" shall not mean the lease or rental of educational materials or equipment used23
for classroom instruction by approved parochial and private elementary and secondary24
schools which comply with the court order from the Dodd Brumfield decision and25
Section 501(c)(3) of the Internal Revenue Code, limited to books, workbooks,26
computers, computer software, films, videos, and audio tapes.27
(g) For purposes of state and political subdivision sales and use tax, Solely28
for purposes of sales and use tax imposed by a political subdivision, the term "lease29 HLS 13RS-1302 ORIGINAL
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or rental" shall not mean the lease or rental of tangible personal property to Boys State1
of Louisiana, Inc. and Girls State of Louisiana, Inc. which is used by such2
organizations for their educational and public service programs for youth.3
(h) For purposes of state and political subdivision sales and use tax, Solely4
for purposes of sales and use taxes imposed by a political subdivision, the term "lease5
or rental" shall not mean or include the lease or rental of motor vehicles by licensed6
motor vehicle dealers, as defined in R.S. 32:1252(14), or vehicle manufacturers, as7
defined in R.S. 32:1252(11), for their use in furnishing such leased or rented motor8
vehicles to their customers in performance of their obligations under warranty9
agreements associated with the purchase of a motor vehicle or when the applicable10
warranty has lapsed and the leased or rented motor vehicle is provided to the customer11
at no charge.12
(i) For Solely for purposes of sales and use taxes levied and imposed by local13
governmental subdivisions, school boards, and other political subdivisions whose14
boundaries are not coterminous with those of the state a political subdivision, "lease15
or rental" by a person shall not mean or include the lease or rental of tangible personal16
property if such lease or rental is made under the provisions of Medicare.17
(j) Solely for purposes of the sales and use tax levied by the state or any18
political subdivision whose boundaries are coterminous with those of the state Solely19
for purposes of sales and use taxes imposed by a political subdivision, the term "lease20
or rental" shall not include the lease or rental in this state of manufacturing machinery21
and equipment used or consumed in this state to manufacture, produce, or extract22
unblended biodiesel.23
(k)(i) For Solely for purposes of any sales, use, or lease tax levied by the state24
or imposed by any political subdivision of the state, the term "lease or rental" shall25
not include the lease or rental of a crane and related equipment with an operator.26
(ii) Notwithstanding the provisions of Item (i) of this Subparagraph, cranes27
leased or rented with an operator are subject to the provisions of the sales and use tax28
law upon first use in Louisiana.29 HLS 13RS-1302 ORIGINAL
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(l)(i) For purposes of the sales and use tax levied by all tax authorities in this1
state, the The term "lease or rental" shall not apply to leases or rentals of pallets which2
are used in packaging products produced by a manufacturer.3
(ii) For purposes of this Subparagraph, the term "manufacturer" shall mean4
a person whose primary activity is manufacturing and who is assigned by the5
Louisiana Workforce Commission a North American Industrial Classification System6
code within the manufacturing sectors Sectors 31-33 as they existed in 2002.7
(8)(a) "Person", except as provided in Subparagraph (c), includes any8
individual, firm, copartnership, joint adventure, association, corporation, estate, trust,9
business trust, receiver, syndicate, this state, any parish, city and parish, municipality,10
district or other political subdivision thereof or any board, agency, instrumentality,11
or other group or combination acting as a unit, and the plural as well as the singular12
number.13
(b) Solely for purposes of the payment of state sales or use tax on the lease14
or rental or the purchase of tangible personal property or services, "person" shall not15
include a regionally accredited independent institution of higher education which is16
a member of the Louisiana Association of Independent Colleges and Universities, if17
such lease or rental or purchase is directly related to the educational mission of such18
institution. However, the term "person" shall include such institution for purposes of19
the payment of tax on sales by such institution if the sales are not otherwise exempt.20
(c)(i) For purposes of the payment of the state sales and use tax and the sales21
and use tax levied by any political subdivision, The term "person" shall not include22
this state, any parish, city and parish, municipality, district, or other political23
subdivision thereof, or any agency, board, commission, or instrumentality of this state24
or its political subdivisions.25
(ii) Upon request by any political subdivision for an exemption identification26
number, the Department of Revenue shall issue such number. The secretary may27
promulgate rules and regulations in accordance with the Administrative Procedure28
Act to carry out the provisions of this Item.29 HLS 13RS-1302 ORIGINAL
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(d)(c)(i) For purposes of the payment of the state sales and use tax and the1
sales and use tax levied by any political subdivision, the term "person" shall not2
include a church or synagogue that is recognized by the United States Internal3
Revenue Service as entitled to exemption under Section 501(c)(3) of the United States4
Internal Revenue Code.5
(ii) The secretary of the Department of Revenue shall promulgate rules and6
regulations defining the terms "church" and "synagogue" for purposes of this7
exclusion. The definitions shall be consistent with the criteria established by the U.S.8
Internal Revenue Service in identifying organizations that qualify for church status9
for federal income tax purposes.10
(iii) No church or synagogue shall claim exemption or exclusion from the11
state sales and use tax or the sales and use tax levied by any political subdivision12
before having obtained a certificate of authorization from the secretary of the13
Department of Revenue. The secretary shall develop applications for such14
certificates. The certificates shall be issued without charge to the institutions that15
qualify.16
(iv)(iii) The exclusion from the sales and use tax authorized by this17
Subparagraph shall apply only to purchases of bibles, song books, or literature used18
for religious instruction classes.19
(e)(d)(i) For purposes of the payment of the state sales and use tax and the20
sales and use tax levied by any political subdivision, the term "person" shall not21
include the Society of the Little Sisters of the Poor.22
(ii) The secretary of the Department of Revenue shall promulgate rules and23
regulations for purposes of this exclusion. The definitions shall be consistent with the24
criteria established by the U.S. Internal Revenue Service in identifying tax-exempt25
status for federal income tax purposes.26
(iii) No member of the Society of the Little Sisters of the Poor shall claim27
exemption or exclusion from the state sales and use tax or the sales and use tax levied28
by any political subdivision before having obtained a certificate of authorization from29 HLS 13RS-1302 ORIGINAL
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the secretary of the Department of Revenue. The secretary shall develop applications1
for such certificates. The certificates shall be issued without charge to the entities2
which qualify.3
(f)(e)(i) For purposes of the payment of sales and use tax levied by this state4
and any political subdivision whose boundaries are coterminous with those of the5
state, the term "person" shall not include a nonprofit entity which sells donated goods6
and spends seventy-five percent or more of its revenues on directly employing or7
training for employment persons with disabilities or workplace disadvantages.8
(ii) The secretary shall promulgate rules and regulations for the use of9
exclusion certificates for purposes of implementation of this Subparagraph. Each10
nonprofit entity electing to utilize the exclusion provided for in this Subparagraph11
shall apply for an exclusion certificate annually. Any exclusion certificate granted by12
the Department of Revenue shall be effective for a one-year period.13
(iii) The secretary shall provide forms for nonprofit entities to request an14
exclusion certificate.15
(9) "Purchaser" means and includes any person who acquires or receives any16
tangible personal property, or the privilege of using any tangible personal property,17
or receives any services pursuant to a transaction subject to tax under this Chapter.18
(10)(a)(i) Solely for the purposes of the imposition of the state sales and use19
tax, "retail sale" or "sale at retail" means a sale to a consumer or to any other person20
for any purpose other than for resale as tangible personal property, or for the lease of21
automobiles in an arm's length transaction, and shall mean and include all such22
transactions as the secretary, upon investigation, finds to be in lieu of sales; provided23
that sales for resale or for lease of automobiles in an arm's length transaction must be24
made in strict compliance with the rules and regulations. Any dealer making a sale for25
resale or for the lease of automobiles, which is not in strict compliance with the rules26
and regulations, shall himself be liable for and pay the tax.27
(ii) Solely for purposes of the imposition of the sales and use tax levied28
imposed by a political subdivision or school board, "retail sale" or "sale at retail" shall29 HLS 13RS-1302 ORIGINAL
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mean a sale to a consumer or to any other person for any purpose other than for resale1
in the form of tangible personal property, or resale of those services defined in2
Paragraph (14) of this Section provided the retail sale of the service is subject to sales3
tax in this state, and shall mean and include all such transactions as the collector, upon4
investigation, finds to be in lieu of sales; provided that sales for resale be made in5
strict compliance with the rules and regulations. Any dealer making a sale for resale,6
which is not in strict compliance with the rules and regulations shall himself be liable7
for and pay the tax. A local collector shall accept a resale certificate issued by the8
Department of Revenue, provided the taxpayer includes the parish of its principal9
place of business and local sales tax account number on the state certificate.10
However, in the case of an intra-parish transaction from dealer to dealer, the collector11
may require that the local exemption certificate be used in lieu of the state certificate.12
The department shall accommodate the inclusion of such information on its resale13
certificate for such purposes.14
(iii) "Retail sale" or "sale at retail" for purposes of sales and use taxes15
imposed by the state on transactions involving the sale for rental of automobiles16
which take place on or after January 1, 1991, and by political subdivisions on such17
transactions on or after July 1, 1996, and state sales and use taxes imposed on18
transactions involving the lease or rental of tangible personal property other than19
automobiles which take place on or after July 1, 1991, means a sale to a consumer or20
to any other person for any purpose other than for resale as tangible personal property,21
or for lease or rental in an arm's length transaction in the form of tangible personal22
property, and shall mean and include all such transactions as the secretary, upon23
investigation, finds to be in lieu of sales; provided that sales for resale or for lease or24
rental in an arm's length transaction must be made in strict compliance with the rules25
and regulations. Any dealer making a sale for resale or for lease or rental, which is26
not in strict compliance with the rules and regulations, shall himself be liable for and27
pay the tax. For purposes of the imposition of the tax imposed by any political28
subdivision of the state, for the period beginning on July 1, 1999, and ending on June29 HLS 13RS-1302 ORIGINAL
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30, 2000, the term "retail sale" or "sale at retail" shall not include one-fourth of the1
sales price of any tangible personal property which is sold in order to be leased or2
rented in an arm's length transaction in the form of tangible personal property. For3
purposes of the imposition of the tax imposed by any political subdivision of the state,4
for the period beginning on July 1, 2000, and ending on June 30, 2001, the term "retail5
sale" or "sale at retail" shall not include one-half of the sales price of any tangible6
personal property which is sold in order to be leased or rented in an arm's length7
transaction in the form of tangible personal property. For purposes of the imposition8
of the tax imposed by any political subdivision of the state, for the period beginning9
on July 1, 2001, and ending on June 30, 2002, the term "retail sale" or "sale at retail"10
shall not include three-fourths of the sales price of any tangible personal property11
which is sold in order to be leased or rented in an arm's length transaction in the form12
of tangible personal property. Beginning July 1, 2002, for the purposes of imposition13
of the tax levied by any For purposes of sales and use taxes imposed by a political14
subdivision of the state, the term "retail sale" or "sale at retail" shall not include the15
sale of any tangible personal property which is sold in order to be leased or rented in16
an arm's length transaction in the form of tangible personal property.17
(iv) "Retail sale" or "sale at retail", for purposes of sales and use taxes18
imposed by the state on transactions involving the sale for rental of automobiles19
which take place prior to January 1, 1991, and by political subdivisions on such20
transactions prior to July 1, 1996, and imposed on transactions involving the lease or21
rental of tangible personal property other than autos which take place prior to July 1,22
1991, and for purposes of local sales and use taxes levied by political subdivisions23
except for transactions involving the sale for rental of automobiles on or after July 1,24
1996, means a sale to a consumer or to any other person for any purpose other than25
for resale in the form of tangible personal property, and shall mean and include all26
such transactions as the secretary, upon investigation, finds to be in lieu of sales;27
provided that sales for resale must be made in strict compliance with the rules and28
regulations. Any dealer making a sale for resale, which is not in strict compliance29 HLS 13RS-1302 ORIGINAL
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with the rules and regulations, shall himself be liable for and pay the tax. However,1
contrary provisions of law notwithstanding, any political subdivision may, by2
ordinance, adopt the definition of "retail sale" or "sale at retail" provided in Item (iii)3
of this Subparagraph for purposes of the imposition of its sales and use tax.4
(v) A "retail sale" or "sale at retail" of a sale of a service as set forth in5
Chapter 2-F of Subtitle II of this Title includes the sale for resale of a sale of a6
service. The provisions of this Section do not apply to sales of services as defined in7
R.S. 47:301(a)(14).8
(vi) Solely for purposes of the payment of state sales and use tax, until9
January 1, 2007, the term "sale at retail" shall not include purchases made in10
connection with the filming or production of a motion picture by a motion picture11
production company which has been relieved from the payment of state sales and use12
tax under the provisions of Chapter 12 of Subtitle II of this Title, also known as the13
"Louisiana Motion Picture Incentive Act". This exclusion shall be retroactively14
revoked if it is determined that a motion picture production company that has been15
relieved from payment of state sales and use tax under Chapter 12 failed to meet the16
conditions of such relief.17
(b)(i) Solely for purposes of the sales and use tax levied by the state, the sale18
of tangible personal property to a dealer who purchases said property for resale19
through coin-operated vending machines shall be considered a "sale at retail", subject20
to such tax. The subsequent resale of the property by the dealer through21
coin-operated vending machines shall not be considered a "sale at retail".22
(ii) Solely for purposes of the sales and use tax levied imposed by a political23
subdivisions subdivision, the term "sale at retail" shall include the sale of tangible24
personal property by a dealer through coin-operated vending machines.25
(c)(i)(aa) The term "sale at retail" does not include sale of materials for26
further processing into articles of tangible personal property for sale at retail.27
(bb) Solely for purposes of the sales and use tax levied by the state, natural28
gas when used in the production of iron in the process known as the "direct reduced29 HLS 13RS-1302 ORIGINAL
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iron process" is not a catalyst and is recognized by the legislature to be a material for1
further processing into an article of tangible personal property for sale at retail.2
(ii)(aa) Solely for purposes of the sales and use tax levied by the state, the3
term "sale at retail" does not include sales of electricity for chlor-alkali manufacturing4
processes.5
(bb) The term "sale at retail" does not include an isolated or occasional sale6
of tangible personal property by a person not engaged in such business.7
(d) The term "sale at retail" does not include the sale of any human tissue8
transplants, which shall be defined to include all human organs, bone, skin, cornea,9
blood, or blood products transplanted from one individual into another recipient10
individual.11
(e) The term "sale at retail" does not include the sale of raw agricultural12
commodities, including but not limited to feed, seed, and fertilizer, to be utilized in13
preparing, finishing, manufacturing, or producing crops or animals for market. The14
Department of Agriculture and Forestry shall develop and promulgate guidelines to15
determine who meets this definition. Any person meeting such guidelines shall16
receive a certificate from the Department of Agriculture and Forestry indicating that17
such person is eligible to purchase such items without paying tax thereon. The18
guidelines promulgated pursuant to this Paragraph shall not become effective prior19
to January 1, 1995.20
(f) Notwithstanding any other law to the contrary, solely for purposes of the21
imposition of the sales and use tax of any a political subdivision, the sale of a vehicle22
subject to the Vehicle Registration License Tax Law (R.S. 47:451 et seq.) shall be23
deemed to be a "retail sale" or a "sale at retail":24
(i) In the political subdivision of the principal residence of the purchaser if25
the vehicle is purchased for private use, or26
(ii) In the political subdivision of the principal location of the business if the27
vehicle is purchased for commercial use, unless the vehicle purchased for commercial28
use is assigned, garaged, and used outside of such political subdivision, in which case29 HLS 13RS-1302 ORIGINAL
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the sale shall be deemed a "retail sale" or a "sale at retail" in the political subdivision1
where the vehicle is assigned, garaged, and used.2
(g) The term "retail sale" does not include a sale of corporeal movable3
property which is intended for future sale to the United States government or its4
agencies, when title to such property is transferred to the United States government5
or its agencies prior to the incorporation of that property into a final product.6
(h) The term "sale at retail" does not include the sale of food items by youth7
serving organizations chartered by congress.8
(i) The Solely for purposes of sales and use tax imposed by a political9
subdivision, the term "sale at retail" does not include the purchase of a new school bus10
or a used school bus which is less than five years old by an independent operator,11
when such bus is to be used exclusively in a public school system. This exclusion12
shall apply to all sales and use taxes levied by any local political subdivision.13
(j) The term "sale at retail" does not include the sale of tangible personal14
property to food banks, as defined in R.S. 9:2799.15
(k) The Solely for purposes of sales and use tax imposed by a political16
subdivision, the term "sale at retail" shall not include the sale of airplanes or airplane17
equipment or parts to a commuter airline domiciled in Louisiana.18
(l) Solely for purposes of the state sales and use tax, the term "sale at retail"19
shall not include the sale of a pollution control device or system. Pollution control20
device or system The term "pollution control device or system" shall mean any21
tangible personal property approved by the Department of Revenue and the22
Department of Environmental Quality and sold or leased and used or intended for the23
purpose of eliminating, preventing, treating, or reducing the volume or toxicity or24
potential hazards of industrial pollution of air, water, groundwater, noise, solid waste,25
or hazardous waste in the state of Louisiana. For the purposes of any sales and use26
tax levied by a political subdivision, the term "sale at retail" shall include the sale of27
a pollution control device or system. In order to qualify, the pollution control device28
or system must demonstrate either: a net decrease in the volume or toxicity or29 HLS 13RS-1302 ORIGINAL
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potential hazards of pollution as a result of the installation of the device or system;1
or that installation is necessary to comply with federal or state environmental laws or2
regulations.3
(m) The Solely for purposes of sales and use taxes imposed by a political4
subdivision, the term "sale at retail" shall not include the sales of Louisiana5
manufactured or assembled passenger aircraft with a capacity in excess of fifty6
persons, if, after all transportation, including transportation by the purchaser, has been7
completed, the aircraft is ultimately received by the purchaser outside of Louisiana.8
(n) For purposes of sales and use taxes imposed or levied by the state or any9
political subdivision thereof, the term "sale at retail" shall not include the sales of10
pelletized paper waste when purchased for use as combustible fuel by an electric11
utility or in an industrial manufacturing, processing, compounding, reuse, or12
production process, including the generation of electricity or process steam, at a fixed13
location in this state. However, such sale shall not be excluded unless the purchaser14
has signed a certificate stating that the fuel purchased is for the exclusive use15
designated herein. For purposes of this Subparagraph, "pelletized paper waste" means16
pellets produced from discarded waste paper that has been diverted or removed from17
solid waste which is not marketable for recycling and which is wetted, extruded,18
shredded, or formulated into compact pellets of various sizes for use as a19
supplemental fuel in a permitted boiler.20
(o) For the purposes of sales and use taxes imposed or levied by the state or21
any local governmental subdivision or school board, the The term "sale at retail" shall22
not include the sale or purchase of equipment used in fire fighting by bona fide23
volunteer and public fire departments.24
(p) For purposes of state and political subdivision sales and use tax, the term25
"sale at retail" shall not include the sale of items, including but not limited to supplies26
and equipment, or the sale of services as provided in this Section, which are27
reasonably necessary for the operation of free hospitals.28 HLS 13RS-1302 ORIGINAL
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(q) For purposes of state and political subdivision sales and use tax Solely for1
purposes of sales and use taxes imposed by a political subdivision, the term "sale at2
retail" shall not include:3
(i) The sale of tangible personal property by approved parochial and private4
elementary and secondary schools which comply with the court order from the Dodd5
Brumfield decision and Section 501(c)(3) of the Internal Revenue Code, or students,6
administrators, or teachers, or other employees of the school, if the money from such7
sales, less reasonable and necessary expenses associated with the sale, is used solely8
and exclusively to support the school or its program or curricula. This exclusion shall9
not be construed to allow tax-free sales to students or their families by promoters or10
regular commercial dealers through the use of schools, school faculty, or school11
facilities.12
(ii) The sale to approved parochial and private elementary and secondary13
schools which comply with the court order from the Dodd Brumfield decision and14
Section 501(c)(3) of the Internal Revenue Code of educational materials or equipment15
used for classroom instruction limited to books, workbooks, computers, computer16
software, films, videos, and audio tapes.17
(r) For purposes of state and political subdivision sales and use tax Solely for18
purposes of sales and use taxes imposed by a political subdivision, the term "sale at19
retail" shall not include the sale of tangible personal property to Boys State of20
Louisiana, Inc. and Girls State of Louisiana, Inc. which is used by such organizations21
for their educational and public service programs for youth.22
(s) The term "sale at retail" or "retail sale", for purposes of sales and use taxes23
imposed by the state or any political subdivision or other taxing entity, shall not24
include any charge, fee, money, or other consideration received, given, or paid for the25
performance of funeral directing services. For purposes of this Subparagraph,26
"funeral directing services" means the operation of a funeral home, or by way of27
illustration and not limitation, any service whatsoever connected with the28
management of funerals, or the supervision of hearses or funeral cars, the cleaning or29 HLS 13RS-1302 ORIGINAL
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dressing of dead human bodies for burial, and the performance or supervision of any1
service or act connected with the management of funerals from time of death until the2
body or bodies are delivered to the cemetery, crematorium, or other agent for the3
purpose of disposition. However, such services shall not mean or include the sale,4
lease, rental, or use of any tangible personal property as those terms are defined in this5
Section.6
(t) For Solely for purposes of sales and use taxes levied imposed by the state7
or any a political subdivision of the state, the term "sale at retail" shall not include the8
transfer of title to or possession of telephone directories by an advertising company9
that is not affiliated with a provider of telephone services if the telephone directories10
will be distributed free of charge to the recipients of the telephone directories.11
(u) For purposes of sales and use taxes levied and imposed by local12
governmental subdivisions, school boards, and other political subdivisions whose13
boundaries are not coterminous with those of the state, "sale at retail" by a person14
shall not mean or include the sale of tangible personal property if such sale is made15
under the provisions of Medicare.16
(v) For purposes of the imposition Solely for purposes of sales and use taxes17
imposed or levied by all taxing authorities in the state by a political subdivision, in18
the case of the sale or other disposition by a dealer of any cellular, PCS, or wireless19
telephone, or any electronic accessories that are physically connected with such20
telephones and personal communication devices used in connection with the sale or21
use of mobile telecommunications services, the term "retail sale" or "sale at retail"22
shall mean and include the sale or any other disposition of such cellular, PCS, or23
wireless telephone, any electronic accessories that are physically connected with such24
telephones and personal communication devices by the dealer to the purchaser, but25
shall not mean or include the withdrawal, use, distribution, consumption, storage,26
donation, or any other disposition of any such cellular, PCS, or wireless telephone,27
any electronic accessories that are physically connected with such telephones, and28
personal communication devices by the dealer.29 HLS 13RS-1302 ORIGINAL
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(w) For purposes of the imposition of sales and use taxes imposed or levied1
by any political subdivision of the state, in the case of the sale or other disposition by2
a dealer of any cellular telephone, PCS telephone, wireless telephone, or other3
wireless personal communication device that is used in connection with the sale or4
use of mobile telecommunications services, or any electronic accessory that is5
physically connected with any such telephone or personal communication device, the6
term "retail sale" or "sale at retail" shall mean and include the sale or any other7
disposition of any such telephone, other personal communication device, or electronic8
accessory.9
(x) For purposes of the sales and use tax imposed by the state or any political10
subdivision whose boundaries are coterminous with those of the state, the terms11
"retail sale" or "sale at retail" shall not include the following:12
(i) The sale or purchase by a person of any fuel or gas, including but not13
limited to butane and propane.14
(ii) Beginning July 1, 2008, the sale or purchase by any person of butane and15
propane.16
(y)(i) Solely for the purposes of sales and use taxes levied by the state or any17
imposed by a political subdivision whose boundaries are coterminous with those of18
the state, the term "sale at retail" shall not include the sale of manufacturing19
machinery and equipment used or consumed in this state to manufacture, produce, or20
extract unblended biodiesel.21
(ii) As used in this Subparagraph, the following words and phrases have the22
meaning ascribed to them:23
(aa) "Manufacturing machinery and equipment" means tangible property used24
or consumed, or held for use or consumption, as an integral part of a biodiesel25
manufacturing, production, or extraction facility, process, or item of equipment.26
Property shall be considered to be an integral part of such biodiesel manufacturing,27
production, or extraction facility, process, or item of equipment only if such property28
is used or consumed directly in the manufacturing, production, or extraction process29 HLS 13RS-1302 ORIGINAL
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or is part of, physically attached to, or otherwise directly associated with such1
property. Property, the installation of which is reasonably necessary for the proper2
installation, operation, maintenance of property which directly results in such3
manufacturing, production, or extraction shall be considered as directly associated4
with such property.5
(bb) "Unblended biodiesel" means a fuel comprised of mono-alkyl esters of6
long chain fatty acids derived from vegetable oils or animal fats, designated B100,7
and meeting the requirements of the definition provided for in D 6751 of the8
American Society of Testing and Materials (ATDM D 6751), before such fuel is9
blended with a petroleum-based diesel fuel.10
(z) Solely for the purposes of sales and use taxes levied by the state or any11
political subdivision whose boundaries are coterminous with those of the state, the12
term "sale at retail" shall not include the sale of any alternative substance when such13
alternative substance is used as a fuel by a manufacturer. "Alternative substance"14
means any substance other than oil and natural gas and any product of oil and natural15
gas. "Alternative substance" shall include petroleum coke, landfill gas, reclaimed or16
waste oil, unblended biodiesel, or tire-derived fuel, but not coal, lignite, refinery gas,17
nuclear fuel, or electricity. "Manufacturer" means a person whose principal activity18
is manufacturing and who is assigned by the Louisiana Workforce Commission a19
North American Industrial Classification System code with the agricultural, forestry,20
fishing, and hunting Sector 11 or the manufacturing Sectors 31-33 as they existed in21
2002.22
(aa) (i) For purposes of sales and use taxes imposed or levied by the state or23
any political subdivision of the state, the term "sale at retail" shall not include the sale24
of toys to a non-profit nonprofit organization exempt from federal taxation pursuant25
to Section 501(c)(3) of the Internal Revenue Code if the sole purpose of the26
purchasing organization is to donate toys to minors and the toys are, in fact, donated.27
(ii) The exclusion provided in this Subparagraph shall not apply if the28
donation is intended to ultimately yield a profit to a promoter of the organization or29 HLS 13RS-1302 ORIGINAL
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to any individual contracted to provide services or equipment, or both, to the1
organization.2
(iii) A certificate of exclusion shall be obtained from the secretary or the tax3
collector of the political subdivision, under such regulations as he shall prescribe, in4
order for nonprofit organizations to qualify for the exclusion provided for in this5
Subparagraph.6
(bb) For purposes of sales and use taxes imposed or levied by the state, the7
terms "retail sale" and "sale at retail" shall not include sales of natural gas to be held,8
used, or consumed in providing natural gas storage services or operating natural gas9
storage facilities.10
(cc) For (aa) Solely for purposes of the sales and use tax imposed by the11
state or any a political subdivision of the state, the terms "retail sale" or "sale at retail"12
shall not mean or include the purchase of textbooks and course-related software by13
a private postsecondary academic degree-granting institution, accredited by a national14
or regional commission that is recognized by the United States Department of15
Education and is licensed by the Board of Regents, which institution has its main16
location within this state and offers only online instruction, when all of the following17
apply:18
(i) The textbooks and course-related software are physically outside of this19
state when purchased from a vendor outside of this state and then imported into this20
state.21
(ii) The first student use of the textbooks and course-related software occurs22
outside of this state.23
(iii) The textbooks and course-related software are provided to the student24
free of charge.25
(dd) (bb) For purposes of sales and use taxes imposed or levied by the state,26
the terms "retail sale" or "sale at retail" shall not include the purchase of food items27
for school lunch or breakfast programs by nonpublic elementary or secondary schools28
which participate in the National School Lunch and School Breakfast programs or the29 HLS 13RS-1302 ORIGINAL
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purchase of food items by nonprofit corporations which serve students in nonpublic1
elementary or secondary schools and which participate in the National School Lunch2
and School Breakfast programs.3
(ee)(i) Solely for the purposes of the imposition of the state sales and use tax,4
the term "retail sale" and "sale at retail" shall not include the sale of any storm shutter5
device.6
(ii) As used in this Subparagraph, "storm shutter device" means materials and7
products manufactured, rated, and marketed specifically for the purpose of preventing8
window damage from storms.9
(iii) The secretary of the Department of Revenue, in consultation with the10
Department of Insurance, shall promulgate such rules and regulations in accordance11
with the Administrative Procedure Act as may be necessary to carry out the12
provisions of this Subparagraph.13
(ff) (cc) For purposes of sales taxes imposed by the state or any political14
subdivision of the state, the term "retail sale" or "sale at retail" shall not include sales15
of tangible personal property by the Military Department, state of Louisiana, which16
occur on an installation or other property owned or operated by the Military17
Department.18
(gg) (dd) For purposes of sales and use tax imposed by the state or any19
political subdivision of the state, the term "sale at retail" shall not include the sale of20
anthropogenic carbon dioxide for use in a qualified tertiary recovery project approved21
by the assistant secretary of the office of conservation of the Department of Natural22
Resources pursuant to R.S. 47:633.4.23
(hh) (ee) For purposes of sales and use tax imposed by the state, any political24
subdivision whose boundaries are coterminous with those of the state, or any other25
political subdivision, the term "sale at retail" shall not include the sale of tangible26
personal property at an event providing Louisiana heritage, culture, crafts, art, food,27
and music which is sponsored by a domestic nonprofit organization that is exempt28
from tax under Section 501(c)(3) of the Internal Revenue Code. The provisions of29 HLS 13RS-1302 ORIGINAL
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this Subparagraph shall apply only to an event which transpires over a minimum of1
seven but not more than twelve days and has a five-year annual average attendance2
of at least three hundred thousand over the duration of the event. For purposes of3
determining the five-year annual average attendance, the calculation shall include the4
total annual attendance for each of the five most recent years. The provisions of this5
Subparagraph shall apply only to sales by the sponsor of the event.6
(11) "Retailer" means and includes every person engaged in the business of7
making sales at retail or for distribution, or use or consumption, or storage to be used8
or consumed in this state.9
(12) "Sale" means any transfer of title or possession, or both, exchange,10
barter, conditional or otherwise, in any manner or by any means whatsoever, of11
tangible personal property, for a consideration, and includes the fabrication of12
tangible personal property for consumers who furnish, either directly or indirectly, the13
materials used in fabrication work, and the furnishing, preparing or serving, for a14
consideration, of any tangible personal property, consumed on the premises of the15
person furnishing, preparing, or serving such tangible personal property. A16
transaction whereby the possession of property is transferred but the seller retains title17
as security for the payment of the price shall be deemed a sale.18
(13)(a) "Sales price" means the total amount for which tangible personal19
property is sold, less the market value of any article traded in including any services,20
except services for financing, that are a part of the sale valued in money, whether paid21
in money or otherwise, and includes the cost of materials used, labor or service costs,22
except costs for financing which shall not exceed the legal interest rate and a service23
charge not to exceed six percent of the amount financed, and losses; provided that24
cash discounts allowed and taken on sales shall not be included, nor shall the sales25
price include the amount charged for labor or services rendered in installing, applying,26
remodeling, or repairing property sold.27
(b) The term "sales price" shall not include any amount designated as a cash28
discount or a rebate by the vendor or manufacturer of any new vehicle subject to the29 HLS 13RS-1302 ORIGINAL
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motor vehicle license tax. For purposes of this Paragraph "rebate" means any amount1
offered by a vendor or manufacturer as a deduction from the listed retail price of the2
vehicle.3
(c) "Sales price" shall not include the first fifty thousand dollars of the sale4
price of new farm equipment used in poultry production.5
(d) Notwithstanding any other provision of law to the contrary, for purposes6
of state and political subdivision sales and use tax, the "sales price" of refinery gas,7
except for feedstock, not ultimately consumed as an energy source by the person who8
owns the facility in which the refinery gas is created as provided for in Subparagraph9
(18)(d) of this Section, but sold to another person, whether at retail or wholesale, shall10
be fifty-two cents per thousand cubic feet multiplied by a fraction the numerator of11
which shall be the posted price for a barrel of West Texas Intermediate Crude Oil on12
December first of the preceding calendar year and the denominator of which shall be13
twenty-nine dollars, and provided further that such sales price shall be the maximum14
value placed upon refinery gas by the state and by any political subdivision under any15
authority or grant of power to levy and collect sales or use taxes, and such sale shall16
be taxable.17
(e) The term "sales price", for purposes of the sales tax imposed by the state18
and its political subdivisions, shall exclude any amount that a manufacturer pays19
directly to a dealer of the manufacturer's product for the purpose of reducing and that20
actually results in an equivalent reduction in the retail "sales price" of that product.21
This exclusion shall not apply to the value of the manufacturer's coupons that dealers22
accept from purchasers as part payment of the "sales price" and that are redeemable23
by the dealers through manufacturers or their agents. The value of such coupons is24
deemed to be part of the "sales price" of the product purchased through the use of the25
coupons.26
(f) The term "sales price" shall exclude any charge, fee, money, or other27
consideration received, given, or paid for the performance of funeral directing28
services as defined in Subparagraph (10)(s) of this Section.29 HLS 13RS-1302 ORIGINAL
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(g) For purposes of the imposition of Solely for purposes of sales and use1
taxes imposed or levied by all taxing authorities in the state by a political2
subdivision, in the case of the retail sale by a dealer of any cellular, PCS, or wireless3
telephone, any electronic accessories that are physically connected with such4
telephones and personal communications devices used in connection with the sale or5
use of mobile telecommunications services, as defined in R.S. 47:301(10)(v), the term6
"sales price" shall mean and include only the amount of money, if any, actually7
received by the dealer from the purchaser for each such cellular, PCS, or wireless8
telephone and any electronic accessories that are physically connected with such9
telephones and personal communication devices, but shall not include (i) any amount10
received by the dealer from the purchaser for providing mobile telecommunications11
services, or (ii) any commissions, fees, rebates, or other amounts received by the12
dealer from any source other than the purchaser as a result of or in connection with13
the sale of the cellular, PCS, or wireless telephone, any electronic accessories that are14
physically connected with such telephones and personal communication devices.15
(h) For the purpose of the imposition of sales and use tax imposed or levied16
by all taxing authorities in the state of any cellular, PCS, or wireless telephone used17
in connection with the sale or use of mobile telecommunications services, as defined18
in R.S. 47:301(10)(v), after January 1, 2002, the term "sales price" shall mean and19
include the greater of (i) the amount of money actually received by the dealer from20
the purchaser for each such telephone, or (ii) twenty-five percent of the cost of such21
telephone to the dealer, but shall not include any amount received by the dealer from22
the purchaser for providing mobile telecommunications services or any commissions,23
fees, rebates, or other amounts received by the dealer from any source other than the24
purchaser as a result of or in connection with the sale of the telephone.25
(i)(i) For purposes of a publishing business which distributes its news26
publications at no cost to readers and pays unrelated third parties to print such news27
publications, the term "sales price" shall mean only the lesser of the following costs:28 HLS 13RS-1302 ORIGINAL
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(aa) The printing cost paid to unrelated third parties to print such news1
publications, less any itemized freight charges for shipping the news publications2
from the printer to the publishing business and any itemized charges for paper and3
ink.4
(bb) Payments to a dealer or distributor as consideration for distribution of the5
news publications.6
(ii) The definition of "sales price" provided for in this Subparagraph shall be7
applicable to taxes levied by all tax authorities in the state.8
(j) For the purpose of the imposition of sales and use tax imposed or levied9
by any political subdivision of the state, in the case of any retail sale or sale at retail,10
of any cellular telephone, PCS telephone, or wireless telephone used in connection11
with the sale or use of mobile telecommunications services, as defined in R.S.12
47:301(10)(w), or any electronic accessory that is physically connected with any such13
telephone or personal communication device, the term "sales price" shall mean and14
include the greater of (i) the amount of money, if any, actually received by the dealer15
from the purchaser at the time of the retail sale or sale at retail by the dealer to the16
purchaser for each such telephone, personal communication device, or electronic17
accessory, or (ii) twenty-five percent of the cost of such telephone to the dealer, but18
shall not include any amount received by the dealer from the purchaser for providing19
mobile telecommunications services or any commissions, fees, rebates, activation20
charges, or other amounts received by the dealer from any source other than the21
purchaser as a result of or in connection with the sale of the telephone.22
(k)(i) For purposes of the imposition of the sales tax levied by the state and23
any political subdivision whose boundaries are coterminous with those of the state,24
the sales price of machinery and equipment purchased by a manufacturer for use in25
a plant facility predominately and directly in the actual manufacturing for agricultural26
purposes or the actual manufacturing process of an item of tangible personal property,27
which is for ultimate sale to another and not for internal use, at one or more fixed28
locations within Louisiana shall be reduced as follows zero:29 HLS 13RS-1302 ORIGINAL
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(aa) For the period ending on June 30, 2005, the sales price shall be reduced1
by five percent.2
(bb) For the period beginning July 1, 2005, and ending on June 30, 2006, the3
sales price shall be reduced by nineteen percent.4
(cc) For the period beginning July 1, 2006, and ending on June 30, 2007, the5
sales price shall be reduced by thirty-five percent.6
(dd) For the period beginning July 1, 2007, and ending on June 30, 2008, the7
sales price shall be reduced by fifty-four percent.8
(ee) For the period beginning July 1, 2008, and ending on June 30, 2009, the9
sales price shall be reduced by sixty-eight percent.10
(ff) For all periods beginning on or after July 1, 2009, the sales price shall be11
reduced by one hundred percent.12
(ii) For purposes of this Subparagraph, "machinery and equipment",13
"manufacturer", "manufacturing", "manufacturing for agricultural purposes","plant14
facility", and "used directly" shall have the same meaning as defined in R.S.15
47:301(3)(i)(ii).16
(iii) No person shall be entitled to purchase, use, lease, or rent machinery or17
equipment as defined herein without payment of the tax imposed by R.S. 47:302, 321,18
and 331 before receiving a certificate of exclusion from the secretary of the19
Department of Revenue certifying that he is a manufacturer as defined herein.20
(iv) The secretary of the Department of Revenue is hereby authorized to adopt21
rules and regulations in order to administer the exclusion provided for in this22
Subparagraph.23
(l)(i) For purposes of the payment of the state sales and use tax and the sales24
and use tax levied by any Solely for purposes of sales and use taxes imposed by a25
political subdivision, the term "sales price" shall not include the price of specialty26
items sold to members for fund-raising fundraising purposes by nonprofit carnival27
organizations domiciled within Louisiana and participating in a parade sponsored by28
a carnival organization.29 HLS 13RS-1302 ORIGINAL
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(ii) The secretary of the Department of Revenue shall promulgate rules and1
regulations for purposes of this exclusion.2
(iii) No nonprofit carnival organization domiciled within Louisiana and3
participating in a parade sponsored by a carnival organization shall claim exemption4
or exclusion from the state sales and use tax or the sales and use tax levied by any5
political subdivision before having obtained a certificate of authorization. from the6
secretary of the Department of Revenue. The secretary shall develop applications for7
such certificates. The certificates shall be issued without charge to the entities which8
qualify.9
(m) For purposes of the sales and use tax imposed by the state or any political10
subdivision whose boundaries are coterminous with those of the state, the "sales11
price" of electric power or energy, or natural gas for the period beginning July 1,12
2007, and thereafter, sold for use by paper or wood products manufacturing facilities13
shall not include any of such price.14
(14) "Sales of services" means and includes the following:15
(a) The furnishing of sleeping rooms, cottages, or cabins by hotels.16
(b)(i) The sale of admissions to places of amusement, to athletic17
entertainment other than that of schools, colleges, and universities, and recreational18
events, and the furnishing, for dues, fees, or other consideration of the privilege of19
access to clubs or the privilege of having access to or the use of amusement,20
entertainment, athletic, or recreational facilities; but the term "sales of services" shall21
not include membership fees or dues of nonprofit, civic organizations, including by22
way of illustration and not of limitation the Young Men's Christian Association, the23
Catholic Youth Organization, and the Young Women's Christian Association.24
(ii) Places Solely for purposes of sales and use taxes imposed by a political25
subdivision, places of amusement shall not include "museums", which are hereby26
defined as public or private nonprofit institutions which are organized on a permanent27
basis for essentially educational or aesthetic purposes and which use professional staff28
to do all of the following:29 HLS 13RS-1302 ORIGINAL
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(aa) Own or use tangible objects, whether animate or inanimate.1
(bb) Care for those objects.2
(cc) Exhibit them to the public on a regular basis.3
(iii) Museums include but are not limited to the following institutions:4
(aa) Museums relating to art, history, including historic buildings, natural5
history, science, and technology.6
(bb) Aquariums and zoological parks.7
(cc) Botanical gardens and arboretums.8
(dd) Nature centers.9
(ee) Planetariums.10
(iv) For purposes of the sales and use taxes of all tax authorities in the state,11
the term "places of amusement" as used herein shall not include camp and retreat12
facilities owned and operated by nonprofit organizations exempt from federal income13
tax under Section 501(a) of the Internal Revenue Code as an organization described14
in Section 501(c)(3) of the Internal Revenue Code provided that the net revenue15
derived from the organization's property is devoted wholly to the nonprofit16
organization's purposes.17
(c) The furnishing of storage or parking privileges by auto hotels and parking18
lots.19
(d) The furnishing of printing or overprinting, lithographic, multilith, blue20
printing, photostating, or other similar services of reproducing written or graphic21
matter.22
(e) The furnishing of laundry, cleaning, pressing and dyeing services,23
including by way of extension and not of limitation, the cleaning and renovation of24
clothing, furs, furniture, carpets and rugs, and the furnishing of storage space for25
clothing, furs, and rugs.26
(f) The furnishing of cold storage space, except that space which is furnished27
pursuant to a bailment arrangement, and the furnishing of the service of preparing28 HLS 13RS-1302 ORIGINAL
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tangible personal property for cold storage where such service is incidental to the1
operation of storage facilities.2
(g)(i)(aa) The furnishing of repairs to tangible personal property, including3
but not restricted to the repair and servicing of automobiles and other vehicles,4
electrical and mechanical appliances and equipment, watches, jewelry, refrigerators,5
radios, shoes, and office appliances and equipment.6
(bb) For purposes of the sales and use tax levied by the state and by tax7
authorities in East Feliciana Parish, charges for the furnishing of repairs to tangible8
personal property may be excluded from sales of services, as defined in this9
Subparagraph, when the repaired property is delivered to the customer in another state10
either by common carrier or the repair dealer's own vehicle, however, as to aircraft,11
delivery may be by the best available means. This exclusion shall not apply to sales12
and use taxes levied by any other parish, municipality, or school board. However, any13
other parish, municipality, or school board may apply the exclusion as defined in this14
Subparagraph to sales or use taxes levied by any such parish, municipality, or school15
board. Offshore areas shall not be considered another state for the purpose of this16
Subparagraph.17
(ii) For the purposes of this Subparagraph, tangible personal property shall18
include machinery, appliances, and equipment which have been declared immovable19
by declaration under the provisions of Article 467 of the Louisiana Civil Code, and20
things which have been separated from land, buildings, or other constructions21
permanently attached to the ground or their component parts as defined in Article 46622
of the Civil Code.23
(iii)(aa) For purposes of the sales and use taxes imposed by the state or any24
of its political subdivisions, sale of services shall not include the labor, or sale of25
materials, services, and supplies, used for the repairing, renovating, or converting of26
any drilling rig, or machinery and equipment which are component parts thereof,27
which is used exclusively for the exploration or development of minerals outside the28
territorial limits of the state in Outer Continental Shelf waters.29 HLS 13RS-1302 ORIGINAL
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(bb) For the purposes of this Subitem, "drilling rig" means any unit or1
structure, along with its component parts, which is used primarily for drilling,2
workover, intervention, or remediation of wells used for exploration or development3
of minerals and "component parts" means any machinery or equipment necessary for4
a drilling rig to perform its exclusive function of exploration or development of5
minerals.6
(h) The term "sale of service" shall not include an action performed pursuant7
to a contract with the United States Department of the Navy for construction or8
overhaul of U.S. Naval vessels.9
(i) Solely for purposes of the sales and use tax levied by the state, the10
furnishing of telecommunications services for compensation, in accordance with the11
provisions of R.S. 47:301.1. Local political subdivisions are prohibited from levying12
a sales and use tax on telecommunications services not in effect on July 1, 1990,13
provided, however, that the provisions of this Subparagraph shall not be construed to14
prohibit the levy or collection of any franchise, excise, gross receipts, or similar tax15
or assessment by any political subdivision of the state as defined in Article VI,16
Section 44(2) of the Constitution of Louisiana.17
(j) Notwithstanding any provision of law to the contrary, for purposes of sales18
or use taxation by the state or any local political subdivision, the term "sales of19
services" shall not mean or include any funeral directing services as defined in20
Subparagraph (10)(s) of this Section. Subject to approval by the House Committee on21
Ways and Means and the Senate Committee on Revenue and Fiscal Affairs, the state22
Department of Revenue shall devise a formula for the calculation of the tax.23
(k) For Solely for purposes of sales and use tax imposed by the state, any24
a political subdivision whose boundaries are coterminous with those of the state, or25
any other political subdivision, the term "sales of services" shall not mean or include26
admission charges for, outside gate admissions to, or parking fees associated with an27
event providing Louisiana heritage, culture, crafts, art, food, and music which is28
sponsored by a domestic nonprofit organization that is exempt from tax under Section29 HLS 13RS-1302 ORIGINAL
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501(c)(3) of the Internal Revenue Code. The provisions of this Subparagraph shall1
apply only to an event which transpires over a minimum of seven but not more than2
twelve days and has a five-year annual average attendance of at least three hundred3
thousand over the duration of the event. For purposes of determining the five-year4
annual average attendance, the calculation shall include the total annual attendance5
for each of the five most recent years. The provisions of this Subparagraph shall6
apply only to admission charges for, outside gate admissions to, or parking fees7
associated with an event when the charges and fees are payable to or for the benefit8
of the sponsor of the event.9
(15) "Storage" means and includes any keeping or retention in the taxing10
jurisdiction of tangible personal property for use or consumption within the taxing11
jurisdiction or for any purpose other than for sale at retail in the regular course of12
business.13
(16)(a) "Tangible personal property" means and includes personal property14
which may be seen, weighed, measured, felt or touched, or is in any other manner15
perceptible to the senses.16
(b) The term "tangible personal property" shall not include:17
(i) Stocks, bonds, notes, or other obligations or securities.18
(ii) Gold, Solely for purposes of sales and use taxes imposed by a political19
subdivision, gold, silver, or numismatic coins, or platinum, gold, or silver bullion20
having a total value of one thousand dollars or more.21
(iii) Proprietary geophysical survey information or geophysical data analysis22
furnished under a restricted use agreement even though transferred in the form of23
tangible personal property.24
(c) The Solely for purposes of sales and use tax imposed by a political25
subdivision, the term "tangible personal property" shall not include the repair of a26
vehicle by a licensed motor vehicle dealer which is performed subsequent to the lapse27
of the applicable warranty on that vehicle and at no charge to the owner of the28 HLS 13RS-1302 ORIGINAL
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vehicle. For the purpose of assessing a sales and use tax on this transaction, no1
valuation shall be assigned to the services performed or the parts used in the repair.2
(d)(i) Notwithstanding any provision of law to the contrary and solely for3
purposes of state sales and use tax, any sale of a prepaid calling service or prepaid4
wireless calling service, or both, shall be deemed to be the sale of tangible personal5
property.6
(ii) Prepaid calling services and prepaid wireless calling services shall be7
subject to the tax imposed by this Chapter if the sale takes place in this state. If the8
customer physically purchases a prepaid calling service or prepaid wireless calling9
service at the vendor's place of business, the sale is deemed to take place at the10
vendor's place of business. If the customer does not physically purchase the service11
at the vendor's place of business, the sale of a prepaid calling service or prepaid12
wireless calling service is deemed to take place at the first of the following locations13
that applies to the sale:14
(aa) The customer's shipping address, if the sale involves a shipment.15
(bb) The customer's billing address.16
(cc) Any other address of the customer that is known by the vendor.17
(dd) The address of the vendor or, alternatively in the case of a prepaid18
wireless calling service, the location associated with the mobile telephone number.19
(e) The term "tangible personal property" shall not include work products20
which are written on paper, stored on magnetic or optical media, or transmitted by21
electronic device, when such work products are created in the normal course of22
business by any person licensed or regulated by the provisions of Title 37 of the23
Louisiana Revised Statutes of 1950, unless such work products are duplicated without24
modification for sale to multiple purchasers. This exclusion shall not apply to work25
products which consist of the creation, modification, updating, or licensing of26
computer software.27
(f) The term "tangible personal property" shall not include pharmaceuticals28
administered to livestock used for agricultural purposes, except as otherwise provided29 HLS 13RS-1302 ORIGINAL
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in this Subparagraph. Only pharmaceuticals not included in the term "tangible1
personal property" shall be registered with the Louisiana Department of Agriculture2
and Forestry. Legend drugs administered to livestock used for agricultural purposes3
are not required to be registered, but such legend drugs that are not registered shall4
be "tangible personal property".5
(g)(i) Notwithstanding the provisions of R.S. 9:1149.1 et seq., except as6
otherwise provided in this Subparagraph, the term "tangible personal property" shall7
not include factory built homes.8
(ii) For purposes of this Subparagraph, "factory built home" means a9
residential structure which is built in a factory in one or more sections and has a10
chassis or integrated wheel delivery system, which is either:11
(aa) A structure built to federal construction standards as defined in Section12
5402 of Title 42 of the United States Code.13
(bb) A residential structure built to the Louisiana State Uniform Construction14
Code.15
(cc) A manufactured home, modular home, mobile home, or residential16
mobile home with or without a permanent foundation, which includes plumbing,17
heating, and electrical systems.18
(iii) "Factory built home" shall not include any self-propelled recreational19
vehicle or travel trailer.20
(iv) The Solely for purposes of sales and use taxes imposed by a political21
subdivision, the term "tangible personal property" as applied to sales and use taxes22
levied by the state or any other taxing authority in the state shall include a new23
factory built home, for the initial sale from a dealer to a consumer, but only to the24
extent that forty-six percent of the retail sales price shall be so considered as "tangible25
personal property". Thereafter, each subsequent resale of a factory built home shall26
not be considered as "tangible personal property".27
(v) The sales and use taxes due on these transactions shall be paid to the28
Louisiana Department of Public Safety and Corrections, office of motor vehicles, by29 HLS 13RS-1302 ORIGINAL
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the twentieth day of the month following the month of delivery of the factory built1
home to the consumer, along with any other information requested by the office of2
motor vehicles.3
(h)(i) Solely for purposes of the imposition of the sales and use tax levied by4
the state or any political subdivision whose boundaries are coterminous with those of5
the state, for the period beginning July 1, 2002, and ending on June 30, 2003, the term6
"tangible personal property" shall not include one-quarter of the cost price of custom7
computer software.8
(ii) Solely for purposes of the imposition of the sales and use tax levied by the9
state or any political subdivision whose boundaries are coterminous with those of the10
state, for the period beginning July 1, 2003, and ending on June 30, 2004, the term11
"tangible personal property" shall not include one-half of the cost price of custom12
computer software.13
(iii) Solely for purposes of the imposition of the sales and use tax levied by14
the state or any political subdivision whose boundaries are coterminous with those of15
the state, for the period beginning July 1, 2004, and ending on June 30, 2005, the term16
"tangible personal property" shall not include three-quarters of the cost price of17
custom computer software.18
(iv) Solely for purposes of the imposition of the sales and use tax levied by19
the state or any political subdivision whose boundaries are coterminous with those of20
the state, for all taxable periods beginning on or after July 1, 2005, and ending on21
December 31, 2013, the term "tangible personal property" shall not include custom22
computer software.23
(i) Solely for purposes of the imposition of the state sales and use tax, the24
term "tangible personal property" shall not include digital television conversion25
equipment and digital radio conversion equipment as defined in this Section.26
(i) "Digital television conversion equipment" shall include the following:27
(aa) DTV transmitter and RF system.28
(bb) Transmission line.29 HLS 13RS-1302 ORIGINAL
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(cc) DTV antenna.1
(dd) Tower.2
(ee) Existing tower structural upgrade.3
(ff) Advanced TV receiver (STL receiver).4
(gg) Decoder (digital to analog converter for NTSC).5
(hh) DTV transmission system test and monitoring.6
(ii) Digital video/audio master control switcher.7
(jj) Analog to digital conversion.8
(kk) High definition up-converters.9
(ll) High definition bypass switcher.10
(mm) Down converters for standard definition.11
(nn) Advanced TV transmitter (STL transmitter).12
(oo) Advanced TV signal encoder.13
(pp) DTV transmission monitoring.14
(qq) High definition digital video switcher and DVE.15
(rr) High definition studio cameras.16
(ss) High definition graphics/graphic generator.17
(tt) High definition video monitoring.18
(uu) Conversion gear.19
(vv) High definition recorder/players, including tape, disk, etc.20
(ww) High definition video/audio signal router.21
(xx) High definition video/audio media server.22
(yy) MPEG or HDTV digital receivers for program content.23
(zz) High definition recorder/players, including tape, disk, etc.24
(aaa) High definition video/audio media server and workstations.25
(bbb) Digital EAS encoder/decoder.26
(ccc) High definition camcorder, including tape, disk, etc.27
(ddd) Advanced TV transmitters, including microwave.28
(ii) "Digital radio conversion equipment" shall include the following:29 HLS 13RS-1302 ORIGINAL
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(aa) IBOC transmitter.1
(bb) IBOC main channel and IBOC combiner.2
(cc) IBOC compatible antenna.3
(dd) Tower.4
(ee) IBOC coaxial bypass switcher.5
(ff) Digital STL.6
(gg) STL heliax transmission line.7
(hh) STL antenna.8
(ii) Digital console.9
(jj) EAS insertion.10
(kk) AES EBU conversion equipment.11
(ll) IBOL transmission testing and monitoring equipment.12
(mm) Digital processor.13
(iii) The exclusion from state sales and use tax authorized by this14
Subparagraph shall only apply to the first purchase of each enumerated item by an15
individual taxpayer who holds a Federal Communications Commission license issued16
pursuant to 47 CFR Part 73. Individual taxpayers operating under several broadcaster17
licenses shall be allowed one purchase of each enumerated item per license. Each18
subsequent purchase of any of the enumerated items by the same taxpayer or license19
holder shall be subject to sales and use tax.20
(v) Any eligible taxpayer who has purchased any item enumerated in Item (i)21
or (ii) of this Subparagraph subsequent to January 1, 1999, but prior to the effective22
date of this Act, shall be entitled to a credit against the state sales and use tax due in23
any year for an amount equal to state sales and use tax paid on the purchase of the24
item.25
(vi) Local taxing authorities are hereby authorized to provide an exemption26
from any local sales and use tax liability to any taxpayers holding a Federal27
Communications Commission license issued pursuant to 47 CFR Part 73 which has28
purchased any of the equipment listed in Item (i) or (ii) of this Subparagraph. Local29 HLS 13RS-1302 ORIGINAL
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taxing authorities are further authorized to provide a credit against any tax liability1
for the amount of local sales tax paid by taxpayers holding Federal Communications2
Commission licenses issued pursuant to 47 CFR Part 73 on any equipment listed in3
Item (i) or (ii) of the Subparagraph purchased subsequent to January 1, 1999, but prior4
to June 25, 2002.5
(vii) No exclusion from state sales and use tax as authorized in this6
Subsection shall be allowed after the Federal Communications Commission has7
issued an order mandating license holders, issued pursuant to 47 CFR Part 73, to8
discontinue broadcasting their analog signal.9
(viii) The Department of Revenue shall adopt rules and regulations necessary10
for the implementation of this Act no later than August 1, 2002.11
(j) (i) The term "tangible personal property", for purposes of the payment of12
sales and use taxes levied by all tax authorities in the state, shall not include materials13
used directly in the collection, separation, treatment, testing, and storage of blood by14
nonprofit blood banks and nonprofit blood collection centers.15
(k) (j) The term "tangible personal property" for purposes of the sales and use16
taxes imposed by all tax authorities in this state shall not include apheresis kits and17
leuko reduction filters used by nonprofit blood banks and nonprofit blood collection18
centers.19
(l) (k) For purposes of the sales and use tax imposed by the state of Louisiana,20
by a political subdivision whose boundaries are coterminous with those of the state,21
or by all political subdivisions of the state and without regard to the nature of the22
ownership of the ground, tangible personal property shall not include other23
constructions permanently attached to the ground which shall be treated as immovable24
property.25
(m) (l)(i) Notwithstanding any other provision of law to the contrary, for26
purposes of the sales and use tax levied by the state or any political subdivision whose27
boundaries are coterminous with those of the state, the term "tangible personal28
property" shall not include machinery and equipment used by a motor vehicle29 HLS 13RS-1302 ORIGINAL
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manufacturer with a North American Industry Classification System (NAICS) Code1
beginning with 3361, or by a glass container manufacturer with a NAICS Code of2
327213. This exclusion shall be subject to the definitions and requirements of Item3
(3)(i)(ii) of this Section.4
(ii) A political subdivision may provide for a sales and use tax exemption for5
the sales, cost, or lease or rental price of manufacturing machinery and equipment as6
provided for in this Section, either effective upon adoption or enactment or phased in7
over a period of time, or effective for a certain period of time or duration, all as set8
forth in the instrument, resolution, vote, or other affirmative action providing the9
exemption.10
(iii) Notwithstanding any other provision of this Section, tooling in a11
compression mold process shall be considered manufacturing machinery and12
equipment for purposes of this Section.13
(n) (m)(i) For purposes of the imposition of the sales and use tax levied by the14
state, the term "tangible personal property" shall not include machinery and15
equipment purchased by the owner of a radio station located within the state that is16
licensed by the Federal Communications Commission for radio broadcasting, if the17
owner is either of the following:18
(aa) An individual domiciled in the state who owns a business with19
substantially all of its assets located in the state and substantially all of its payroll paid20
in the state.21
(bb) A business entity with substantially all of its assets located in the state22
and substantially all of its payroll paid in the state; provided that the business entity23
is not owned or controlled or is otherwise an affiliate of a multi-state business entity24
and is not owned or controlled by an individual who is not domiciled in the state.25
(ii) "Radio broadcasting" means the sound transmission made via26
electromagnetic waves for direct sound reception by the general public.27
(o) (n) (i) For purposes of the imposition of the sales and use tax levied by28
the state and any political subdivision whose boundaries are coterminous with those29 HLS 13RS-1302 ORIGINAL
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of the state, the term "tangible personal property" shall not include machinery and1
equipment as defined in and subject to the requirements of R.S. 47:301(3)(i)(ii) which2
is purchased by a utility regulated by the Public Service Commission or the council3
of the City of New Orleans. For the purposes of this Paragraph, the term "utility"4
shall mean a person regulated by the Public Service Commission or the council of the5
City of New Orleans who is assigned a North American Industrial Classification6
System Code 22111, Electric Power Generation, as it existed in 2002. Such utility7
shall also be considered a "manufacturer" for purposes of R.S. 47:301(3)(i)(ii).8
(ii) For purposes of this Subparagraph, a political subdivision whose9
boundaries are not coterminous with those of the state may provide for a sales and use10
tax exclusion for machinery and equipment as defined in and subject to the11
requirements of R.S. 47:301(3)(i)(ii) which is purchased by a utility regulated by the12
Public Service Commission or the council of the city of New Orleans.13
(p) (o) For purposes of sales and use taxes imposed by the state or any of its14
political subdivisions, the term "tangible personal property" shall not include15
newspapers.16
(q) (p) For purposes of sales and use taxes imposed by the state, any statewide17
taxing authority, or any political subdivision, the term "tangible personal property"18
shall not include any property that would have been considered immovable property19
prior to the enactment on July 1, 2008, of Act No. 632 of the 2008 Regular Session20
of the Legislature.21
(q) For purposes of sales and use tax imposed by the state, the term "tangible22
personal property" includes digital goods.23
(i) "Digital goods" means sounds, images, data, facts, or information, or any24
combination thereof, transferred electronically.25
(ii) "Digital goods" also includes the following sales to consumers of digital26
goods, digital codes, and digital automated services; sales in which the seller has27
granted the purchaser the right of permanent use; sales in which the seller has granted28
the purchaser a right of use that is less than permanent; sales in which the purchaser29 HLS 13RS-1302 ORIGINAL
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is not obligated to make continued payment as a condition of sale; and sales in which1
the purchaser is obligated to make continued payment as a condition of the sale.2
(iii) A retail sale of digital goods, digital codes, or digital automated services3
includes any services provided by the seller exclusively in connection with the digital4
goods, digital codes, or digital automated services, whether or not a separate charge5
is made for such services.6
(17) "Off-road vehicle" is any vehicle manufactured for off road use which7
is issued a manufacturer's statement of origin that cannot be issued a registration8
certificate and license to operate on the public roads of this state because at the time9
of manufacture the vehicle does not meet the safety requirements prescribed by R.S.10
32:1301 through R.S. 32:1310. This includes vehicles that are issued a title only by11
the Vehicle Registration Bureau, Department of Public Safety and Corrections, such12
as all terrain vehicles and recreational and sport vehicles, but it does not include off13
road vehicles used for farm purposes, farm equipment, or heavy construction14
equipment.15
(18)(a)(i) Solely for purposes of the imposition of the state sales and use tax,16
"use" means and includes the exercise of any right or power over tangible personal17
property incident to the ownership thereof, except that it shall not include the sale at18
retail of that property in the regular course of business or the donation to a school in19
the state which meets the definition provided in R.S. 17:236 or to a public or20
recognized independent institution of higher education in the state of property21
previously purchased for resale in the regular course of a business. The term "use"22
shall not include the purchase, the importation, the consumption, the distribution, or23
the storage of automobiles to be leased in an arm's length transaction, nor shall the24
term "use" include the donation of food items to a food bank as defined in R.S.25
9:2799(B).26
(ii) For purposes of the imposition of the sales and use tax levied by a27
political subdivision or school board, "use" shall mean and include the exercise of any28
right or power over tangible personal property incident to the ownership thereof,29 HLS 13RS-1302 ORIGINAL
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except that it shall not include the sale at retail of that property in the regular course1
of business or the donation to a school in the state which meets the definition2
provided in R.S. 17:236 or to a public or recognized independent institution of higher3
education in the state of property previously purchased for resale in the regular course4
of a business. The term "use" shall not include the donation of food items to a food5
bank as defined in R.S. 9:2799(B).6
(iii) The term "use", for purposes of sales and use taxes imposed by the state7
on the use for rental of automobiles which take place on or after January 1, 1991, and8
by political subdivisions on such use on or after July 1, 1996, and state sales and use9
taxes imposed on the use for lease or rental of tangible personal property other than10
automobiles which take place on or after July 1, 1991, shall not include the purchase,11
the importation, the consumption, the distribution, or the storage of tangible personal12
property to be leased or rented in an arm's length transaction as tangible personal13
property. For purposes of the imposition of the tax levied by any political subdivision14
of the state, for the period beginning July 1, 1999, and ending on June 30, 2000, the15
term "use" shall not include one-fourth of the cost price of any tangible personal16
property which is purchased, imported, consumed, distributed, or stored and which17
is to be leased or rented in an arm's length transaction in the form of tangible personal18
property. For purposes of the imposition of the tax levied by any political subdivision19
of the state, for the period beginning July 1, 2000, and ending on June 30, 2001, the20
term "use" shall not include one-half of the cost price of any tangible personal21
property which is purchased, imported, consumed, distributed, or stored and which22
is to be leased or rented in an arm's length transaction in the form of tangible personal23
property. For purposes of the imposition of the tax levied by any political subdivision24
of the state, for the period beginning July 1, 2001, and ending on June 30, 2002, the25
term "use" shall not include three-fourths of the cost price of any tangible personal26
property which is purchased, imported, consumed, distributed, or stored and which27
is to be leased or rented in an arm's length transaction in the form of tangible personal28
property. Beginning July 1, 2002, for purposes of the imposition of the tax levied by29 HLS 13RS-1302 ORIGINAL
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any political subdivision of the state, the term "use" shall not include the purchase,1
the importation, the consumption, the distribution, or the storage of any tangible2
personal property which is to be leased or rented in an arm's length transaction in the3
form of tangible personal property.4
(iv) The term "use", for purposes of sales and use taxes imposed by the state5
on the use for rental automobiles which take place prior to January 1, 1991, and by6
political subdivisions on such use prior to July 1, 1996, and imposed on the use for7
lease or rental of tangible personal property other than automobiles which take place8
prior to July 1, 1991, and for purposes of local sales and use taxes levied by political9
subdivisions, except for any use for rental automobiles on or after July 1, 1996, shall10
include the purchase, the importation, the consumption, the distribution, or the storage11
of tangible personal property to be leased or rented in an arm's length transaction as12
tangible personal property.13
(b) Notwithstanding any other law to the contrary, for purposes of the14
imposition of the sales and use tax of any political subdivision, the use of a vehicle15
subject to the Vehicle Registration License Tax Law (R.S. 47:451 et seq.) shall be16
deemed to be a "use":17
(i) In the political subdivision of the principal residence of the purchaser if18
the vehicle is purchased for private use, or19
(ii) In the political subdivision of the principal location of the business if the20
vehicle is purchased for commercial use, unless the vehicle purchased for commercial21
use is assigned, garaged, and used outside of such political subdivision, in which case22
the use shall be deemed a use in the political subdivision where the vehicle is23
assigned, garaged, and used.24
(c) For purposes of state and political subdivision sales and use tax, "use"25
shall not include the exercise of any right or power by a free hospital over items,26
including but not limited to supplies and equipment, which are reasonably necessary27
for the operation of the free hospital.28 HLS 13RS-1302 ORIGINAL
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(d)(i) Notwithstanding any other provision of law to the contrary, and except1
as provided in Item (iii) of this Subparagraph, for purposes of state and sales and use2
taxes imposed by a political subdivision sales and use tax, "use" means and includes3
the exercise of any right or power over tangible personal property incident to the4
ownership thereof, except that it shall not include the further processing of tangible5
personal property into articles of tangible personal property for sale.6
(ii) Except as provided in Item (iii) of this Subparagraph for refinery gas, for7
purposes of state and sales and use taxes imposed by a political subdivision use tax,8
"use" shall not include the storage, consumption, or the exercise of any other right of9
ownership over tangible personal property which is created or derived as a residue or10
byproduct of such processing. Such residue or byproduct shall include but shall not11
be limited to catalyst cracker coke derived from crude oil, wood chips, bark, and12
liquor derived from the processing of sawlogs or pulpwood timber, or bagasse derived13
from sugarcane.14
(iii) Notwithstanding any other provision of law to the contrary, and15
notwithstanding the provisions of this Subparagraph, "use" shall include the exercise16
of any right of ownership over the consumption, the distribution, and the storage for17
use or consumption in this state of refinery gas, except the sale to another person,18
whether at retail or wholesale, only if the refinery gas is ultimately consumed as an19
energy source by the person who owns the facility in which it is created and is not20
sold. Notwithstanding any other law to the contrary, the use of refinery gas shall be21
taxed at the cost price value provided in Subparagraph (3)(f) of this Section. If22
refinery gas, except for feedstock, is sold to another person, whether at retail, or23
wholesale, such sale shall be taxable and the sales price value shall be as provided for24
in Subparagraph (13)(d) of this Section. The provisions of this Item shall not apply25
to feedstocks.26
(e) For Solely for purposes of state and sales and use taxes imposed by27
a political subdivision sales and use tax, "use" shall not include the purchase of or the28
exercise of any right or power over:29 HLS 13RS-1302 ORIGINAL
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(i) Tangible personal property sold by approved parochial and private1
elementary and secondary schools which comply with the court order from the Dodd2
Brumfield decision and Section 501(c)(3) of the Internal Revenue Code, or students,3
administrators, or teachers, or other employees of the school, if the money from such4
sales, less reasonable and necessary expenses associated with the sale, is used solely5
and exclusively to support the school or its program or curricula.6
(ii) Educational materials or equipment used for classroom instruction by7
approved parochial and private elementary and secondary schools which comply with8
the court order from the Dodd Brumfield decision and Section 501(c)(3) of the9
Internal Revenue Code, limited to books, workbooks, computers, computer software,10
films, videos, and audio tapes.11
(f) For Solely for purposes of state and sales and use taxes imposed by12
a political subdivision sales and use tax, "use" shall not include the purchase of or the13
exercise of any right or power over tangible personal property used by Boys State of14
Louisiana, Inc. and Girls State of Louisiana, Inc. for their educational and public15
service programs for youth.16
(g) Notwithstanding any provision of law to the contrary, for purposes of17
sales or use taxation by the state or any local political subdivision, the term "use" shall18
not mean or include any funeral directing services as defined in Subparagraph (10)(s)19
of this Section.20
(h) For Solely for purposes of sales and use taxes levied by the state or any21
imposed by a political subdivision of the state, the term "use" shall not include the22
exercise of any right of ownership in or the distribution of telephone directories23
acquired by an advertising company that is not affiliated with a provider of telephone24
services if the telephone directories will be distributed free of charge to the recipients25
of the telephone directories.26
(i) For Solely for purposes of the imposition of sales and use taxes imposed27
or levied by all taxing authorities in the state by a political subdivision, in the case of28
the sale or any other disposition by a dealer of any cellular, PCS, or wireless29 HLS 13RS-1302 ORIGINAL
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telephone, any electronic accessories that are physically connected with such1
telephones and personal communications devices used in connection with the sale or2
use of mobile telecommunications services, as defined in R.S. 47:301(10)(v), the term3
"use" shall not include the withdrawal, use, distribution, consumption, storage,4
donation, or any other disposition of any such cellular, PCS, or wireless telephone,5
any electronic accessories that are physically connected with such telephones and6
personal communications devices by the dealer.7
(j) For purposes of the imposition of sales and use taxes imposed or levied by8
any a political subdivision of the state, in the case of the sale or any other disposition9
by a dealer of any cellular telephone, PCS telephone, wireless telephone, or other10
wireless personal communication device that is used in connection with the sale or11
use of mobile telecommunications services, as defined in R.S. 47:301(10)(w), or any12
electronic accessory that is physically connected with any such telephone or personal13
communications device, the term "use" shall not include the withdrawal, use,14
distribution, consumption, storage, donation, or any other disposition of any such15
telephone or electronic accessory by the dealer.16
(k) Solely for purposes of the sales and use tax levied by the state or any17
imposed by a political subdivision whose boundaries are coterminous with those of18
the state, the term "use" shall not include the purchase, the use, the consumption, the19
distribution, the storage for use or consumption, or the exercise of any right or power20
over manufacturing machinery and equipment used or consumed in this state to21
manufacture, produce or extract unblended biodiesel.22
(l) Solely for the purposes of sales and use taxes levied by the state or any23
imposed by a political subdivision whose boundaries are coterminous with those of24
the state, the term "use" shall not include the use, the consumption, the distribution,25
the storage for use or consumption in this state, or the exercise of any right or power26
over an alternative substance as that term is defined in Subparagraph (10)(z) of this27
Section when such alternative substance is used as a fuel by a manufacturer.28
"Manufacturer" means a person whose principal activity is manufacturing and who29 HLS 13RS-1302 ORIGINAL
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is assigned by the Louisiana Workforce Commission a North American Industrial1
Classification System code with the agricultural, forestry, fishing, and hunting Sector2
11 or the manufacturing Sectors 31-33 as they existed in 2002.3
(m)(i) For the Solely for purposes of sales and use taxes imposed or levied by4
the state or any by a political subdivision of the state, the term "use" shall not include5
the purchase of or the exercise of any right or power over toys by a non-profit6
nonprofit organization exempt from federal taxation pursuant to Section 501(c)(3) of7
the Internal Revenue Code if the sole purpose of the purchasing organization is to8
donate toys to minors and the toys are, in fact, donated.9
(ii) The exclusion provided for in this Subparagraph shall be subject to the10
same conditions as are provided for in Items (10)(aa)(ii) and (iii) of this Section.11
(n) For Solely for purposes of sales and use tax imposed by the state or any12
a political subdivision of the state, the term "use" shall not mean or include the13
purchase, importation, storage, distribution, or exportation of, or exercise of any right14
or power over, textbooks and course-related software by a private postsecondary15
academic degree-granting institution, accredited by a national or regional commission16
that is recognized by the United States Department of Education and is licensed by17
the Board of Regents, which institution has its main location within this state and18
offers only online instruction, when all of the following apply:19
(i) The textbooks and course-related software are physically outside of this20
state when purchased from a vendor outside of this state and then imported into this21
state.22
(ii) The first student use of the textbooks and course-related software occurs23
outside of this state.24
(iii) The textbooks and course-related software are provided to the student25
free of charge.26
(o) Solely for purposes of the imposition of the state sales and use tax, the27
term "use" shall not include the purchase or use of any storm shutter device as defined28
and provided for in Subparagraph (10)(ee) of this Section.29 HLS 13RS-1302 ORIGINAL
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(p) For Solely for purposes of sales and use tax imposed by the state or any1
a political subdivision of the state, the term "use" shall not mean or include the2
purchase, importation, storage, distribution, or exercise of any right or power over3
anthropogenic carbon dioxide used in a qualified tertiary recovery project approved4
by the assistant secretary of the office of conservation of the Department of Natural5
Resources pursuant to R.S. 47:633.4.6
(19) "Use tax" includes the use, the consumption, the distribution, and the7
storage as herein defined. No use tax shall be due to or collected by:8
(a) The state on tangible personal property used, consumed, distributed, or9
stored for use or consumption in the state if the sale of such property would have been10
exempted or excluded from sales tax at the time such property became subject to the11
taxing jurisdiction of the state.12
(b) Any political subdivision on tangible personal property used, consumed,13
distributed, or stored for use or consumption in such political subdivision if the sale14
of such property would have been exempted or excluded from sales tax at the time15
such property became subject to the taxing jurisdiction of the political subdivision.16
(20) "Drugs" includes all pharmaceuticals and medical devices which are17
prescribed for use in the treatment of any medical disease.18
(21) "Free hospital" means a hospital that does not charge any patients for19
health care provided by the hospital.20
(22) The term "computer software" means a set of statements, data, or21
instructions to be used directly or indirectly in a computer in order to bring about a22
certain result in any form in which those statements, data, or instructions may be23
embodied, transmitted, or fixed, by any method now known or hereafter developed,24
regardless of whether the statements, data, or instructions are capable of being25
perceived by or communicated to humans. Computer software includes all types of26
software including operational, applicational, utilities, compilers, and all other forms.27
(23)(a) The term "custom computer software" means computer software28
prepared, created, adapted, or modified to the special order of a particular purchaser,29 HLS 13RS-1302 ORIGINAL
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licensee, or user; or to meet the specific needs or requirements of a particular1
purchaser, licensee, or user, regardless of the means by or through which such2
computer software is furnished, delivered, or transmitted, and regardless of whether3
such software incorporates or consists of preexisting routines, utilities, or other4
computer software components.5
(b) In order to be considered "custom computer software", the computer6
software must require preparation, creation, adaption, or modification by the vendor7
in order to be used in a specific work environment or to perform a specific function8
for the user.9
(c) Updates, upgrades, and new versions of custom computer software shall10
be considered custom computer software, provided such upgrades, updates, and new11
versions meet the definition of custom computer software contained in this Chapter.12
(24) The term "news publication" shall mean any printed periodical that:13
(a) Appears at regular intervals.14
(b) Contains reports of a varied character, such as political, social, cultural,15
sports, moral, religious, or other subjects of general public interest.16
(c) Contains not more than seventy-five percent advertising.17
(d) Is not owned or published as an auxiliary to another nonpublishing18
business, organization, or entity.19
(25) "Taxing authority" shall mean and include both the state and a statewide20
political subdivision and any political subdivision of the state authorized under the21
Constitution or laws of the state of Louisiana to levy and collect a sales and use tax,22
unless the context indicates otherwise. For purposes of the Uniform Local Sales Tax23
Code provided for in Chapter 2D of this Subtitle, "taxing authority" shall mean any24
political subdivision of the state authorized under the Constitution or laws of the state25
of Louisiana to levy and collect a sales and use tax, except a statewide political26
subdivision.27
(26) "Taxing jurisdiction" shall mean the area within the physical boundaries28
of the taxing authority.29 HLS 13RS-1302 ORIGINAL
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(27) "Tax", "sales and use tax", and "sales tax" shall mean the sales and use1
tax imposed by the state pursuant to the provisions of this Chapter and Chapter 2-A2
and 2-B of this Subtitle and the tax imposed by political subdivisions under the3
constitution or laws of this state authorizing the imposition of a sales and use tax.4
(28)(a) For purposes of the imposition of the lease or rental tax levied by the5
state and any political subdivision whose boundaries are coterminous with those of6
the state, the "gross proceeds", "monthly lease or rental price paid", and "monthly7
lease or rental price contracted or agreed to be paid" for machinery and equipment8
used by a manufacturer in a plant facility predominately and directly in the actual9
manufacturing for agricultural purposes or the actual manufacturing process of an10
item of tangible personal property, including but not limited to rubber tired farm11
tractors, cane harvesters, cane loaders, cotton pickers, combines, haybalers,12
attachments and sprayers, clippers, cultivators, discs, plows, and spreaders, which is13
for ultimate sale to another and not for internal use, at one or more fixed locations14
within Louisiana shall be reduced as follows:15
(i) For the period ending on June 30, 2005, by five percent.16
(ii) For the period beginning July 1, 2005, and ending on June 30, 2006, by17
nineteen percent.18
(iii) For the period beginning July 1, 2006, and ending on June 30, 2007, by19
thirty-five percent.20
(iv) (i) For the period beginning July 1, 2007, and ending on June 30, 2008,21
by fifty-four percent.22
(v) (ii) For the period beginning July 1, 2008, and ending on June 30, 2009,23
by sixty-eight percent.24
(vi) (iii) For all periods beginning on or after July 1, 2009, the sales price25
shall be reduced by one hundred percent.26
(b) For purposes of this Paragraph, "machinery and equipment",27
"manufacturer", "manufacturing", "manufacturing for agricultural purposes","plant28 HLS 13RS-1302 ORIGINAL
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facility", and "used directly" shall have the same meaning as defined in R.S.1
47:301(3)(i)(ii).2
(c) No person shall be entitled to purchase, use, lease, or rent machinery or3
equipment as defined herein without payment of the tax imposed by R.S. 47:302, 321,4
and 331 before receiving a certificate of exclusion from the secretary of the5
Department of Revenue certifying that he is a manufacturer as defined herein.6
(d) The secretary of the Department of Revenue is hereby authorized to adopt7
rules and regulations in order to administer the exclusion provided for in this8
Subparagraph.9
(e) The manufacturer's exemption certificate granted by the Department of10
Revenue shall serve as a substitute for the sales tax exemption for certain farm11
equipment.12
(29) With respect to the furnishing of telecommunications and ancillary13
services, as used in this Chapter the following words, terms, and phrases have the14
meaning ascribed to them in this Paragraph, unless the context clearly indicates a15
different meaning:16
(a) "Air-to-Ground Radiotelephone service" means a radio service, as that17
term is defined in 47 C.F.R. 22.99, in which common carriers are authorized to offer18
and provide radio telecommunications service for hire to subscribers in aircraft.19
(b) "Ancillary service" means a service that is associated with or incidental20
to the provision of one or more telecommunications services, including but not21
limited to conference bridging services, detailed telecommunications billing services,22
directory assistance services, vertical services, and voice mail services.23
(c) "Call-by-call basis" means any method of charging for24
telecommunications services where the price is measured by individual calls.25
(d) "Call center" means one or more locations that utilize telecommunications26
services in one or more of the following activities: customer services, soliciting sales,27
reactivating dormant accounts, conducting surveys or research, fundraising, collection28
of receivables, receiving reservations, receiving orders, or taking orders.29 HLS 13RS-1302 ORIGINAL
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(e) "Communications channel" means a physical or virtual path of1
communications over which signals are transmitted between or among customer2
channel termination points.3
(f) "Conference bridging service" means a service that links two or more4
participants of an audio or video conference call and may include the provision of a5
telephone number. "Conference bridging service" does not include any6
telecommunications services used to reach the conference bridge.7
(g) "Customer" means the person or entity that contracts with the seller of8
telecommunications services. If the end user of the telecommunications service is not9
the contracting party, the end user of the telecommunications service is the customer10
of the telecommunications service, but only for the purpose of sourcing sales of11
telecommunications services under R.S. 47:301.1(A). "Customer" does not include12
a reseller of telecommunications service or for mobile telecommunications service of13
a serving carrier under an agreement to serve the customer outside the home service14
provider's licensed service area.15
(h) "Customer channel termination point" means, in the context of a private16
communications service, the location where the customer either inputs or receives17
communications.18
(i) "Detailed telecommunications billing service" means a service of19
separately stating information pertaining to individual calls on a customer's billing20
statement.21
(j) "Directory assistance" means a service of providing telephone number or22
address information, or both.23
(k) "End user" means the person who utilizes the telecommunications service.24
In the case of an entity, "end user" means the individual who utilizes the service on25
behalf of the entity.26
(l) "Home service provider" has the same meaning given to such term in27
Section 124(5) of the Mobile Telecommunications Sourcing Act, P.L. 106-252, 428
U.S.C. 124(5).29 HLS 13RS-1302 ORIGINAL
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(m) "International telecommunications service" means a telecommunications1
service that originates or terminates in the United States and terminates or originates2
outside the United States, respectively. The United States includes each of the fifty3
United States, the District of Columbia, and each United States territory, or4
possession.5
(n) "Interstate telecommunications service" means a telecommunications6
service that originates in one U.S. state, territory, or possession, and terminates in a7
different U.S. state, territory, or possession.8
(o) "Intrastate telecommunications service" means a telecommunications9
service that originates in one U.S. state, territory or possession, and terminates in the10
same U.S. state, territory, or possession.11
(p) "Mobile telecommunications service" has the same meaning given to such12
term in Section 124(7) of the Mobile Telecommunications Sourcing Act, P.L. 106-13
252, 4 U.S.C. 124(7).14
(q) "Mobile wireless service" means a telecommunications service, regardless15
of the technology used, whereby the origination or termination points, or both, of the16
transmission, conveyance or routing are not fixed, including but not limited to17
telecommunications services that are provided by a commercial mobile radio service18
provider.19
(r) "Place of primary use" means the street address representative of where20
the customer's use of the telecommunications service primarily occurs, which must21
be the residential street address or the primary business street address of the customer.22
In the case of mobile telecommunications services, the place of primary use must be23
within the licensed service area of the home service provider.24
(s) "Postpaid calling service" means a telecommunications service obtained25
by making a payment on a call-by-call basis either through the use of a credit card or26
payment mechanism such as a bank card, travel card, credit card, or debit card, or by27
charge made to a telephone number which is not associated with the origination or28
termination of the telecommunications service. A postpaid calling service includes29 HLS 13RS-1302 ORIGINAL
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a telecommunications service, except a prepaid wireless calling service, that would1
be a prepaid calling service, except that the right provided is not exclusively to access2
telecommunications services.3
(t) "Prepaid calling service" means the right to access exclusively4
telecommunications services, which must be paid for in advance and which enables5
the origination of calls using an access number or authorization code, whether6
manually or electronically dialed, and that is sold in predetermined units or dollars of7
which the number declines with use in a known amount.8
(u) "Prepaid wireless calling service" means a telecommunications service9
that provides the right to utilize mobile wireless service as well as non-10
telecommunications services, including the download of digital products delivered11
electronically, content, and ancillary services, which must be paid for in advance and12
which is sold in predetermined units or dollars of which the number declines with use13
in a known amount.14
(v) "Private communication service" means a telecommunications service that15
entitles the customer to exclusive or priority use of a communications channel or16
group of channels between or among termination points, regardless of the manner in17
which such channel or channels are connected, and includes switching capacity,18
extension lines, stations, and any other associated services that are provided in19
connection with the use of such channel or channels.20
(w) "Service address" means:21
(i) The location of the telecommunications equipment to which a customer's22
call is charged and from which the call originates or terminates, regardless of where23
the call is billed or paid.24
(ii) If the location in Item (i) of this Subparagraph is not known, "service25
address" means the origination point of the signal of the telecommunications service26
first identified by either the seller's telecommunications system or, in information27
received by the seller from its service provider, where the system used to transport28
such signals is not that of the seller.29 HLS 13RS-1302 ORIGINAL
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(iii) If the location in both Items (i) and (ii) of this Subparagraph are not1
known, "service address" means the location of the customer's place of primary use.2
(x) "Telecommunications service" means the electronic transmission,3
conveyance, or routing of voice, data, audio, video, or any other information or4
signals to a point, or between or among points. "Telecommunications service"5
includes such transmission, conveyance, or routing in which computer processing6
applications are used to act on the form, code, or protocol of the content for purposes7
of transmission, conveyance, or routing without regard to whether such service is8
referred to as voice over Internet protocol service or is classified by the Federal9
Communications Commission as an enhanced or value-added service.10
"Telecommunications service" does not include any of the following:11
(i) Data processing or information services which allow data to be generated,12
acquired, stored, processed, or retrieved and delivered by an electronic transmission13
to a purchaser where such purchaser's primary purpose for the underlying transaction14
is the processed data or information.15
(ii) Installation or maintenance of wiring or equipment on a customer's16
premises.17
(iii) Tangible personal property.18
(iv) Advertising, including but not limited to directory advertising.19
(v) Billing and collection services provided to third parties.20
(vi) Internet access service.21
(vii) Radio and television audio and video programming services, regardless22
of the medium, including the furnishing of transmission, conveyance, and routing of23
such services by the programming service provider. Radio and television audio and24
video programming services shall include but not be limited to cable service as25
defined in 47 U.S.C. 522(6) and audio and video programming services delivered by26
commercial mobile radio service providers, as defined in 47 C.F.R. 20.3.27
(viii) Ancillary services.28 HLS 13RS-1302 ORIGINAL
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(ix) Digital products delivered electronically, including but not limited to1
software, music, video, reading materials, or ring tones.2
(x) Prepaid calling service and prepaid wireless calling service.3
(y) "Vertical service" means a service that is offered in connection with one4
or more telecommunications services which offers advanced calling features that5
allow customers to identify callers and to manage multiple calls and call connections.6
(z) "Voice mail service" means a service that enables the customer to store,7
send, or receive recorded messages services. The term "voice mail service" does not8
include any telecommunications or vertical services that the customer may be9
required to have in order to utilize the voice mail service.10
§301.1. Telecommunications and ancillary services11
A. The sales and use tax levied by this Chapter shall apply to the sales price12
of telecommunications services in accordance with the following sourcing rules:13
* * *14
B.(1) The sales price of telecommunications services shall include, whether15
or not separately stated, charges for any of the following:16
(a) The connection, movement, change, or termination of telecommunications17
services.18
(b) Conference bridging services and vertical services if the customer's place19
of primary use is located in this state.20
(2) The sales price of telecommunications services shall not include charges21
for any of the following:22
(a) The furnishing of any telecommunications service for resale, including23
access and other interconnection charges paid by providers of telecommunications24
services and charges for the use of intercompany facilities pursuant to shared network25
facility arrangements, provided that any dealer making a sale of telecommunications26
services for resale shall obtain a certificate from the purchaser of such services27
certifying that such services are purchased for the purpose of resale, the form of the28 HLS 13RS-1302 ORIGINAL
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certification to be determined by rules and regulations to be promulgated by the1
secretary.2
(b) Ancillary services, except those specified in Paragraph (1) of this3
Subsection, if the nontaxable ancillary service charges are stated separately from the4
charges for telecommunications services.5
(c) Any excise, franchise, or similar tax or like fee or assessment levied by6
the United States, by the state of Louisiana, or by any political subdivision as defined7
in Article VI, Section 44(2) of the Constitution of Louisiana, upon the purchase, sale,8
use, or consumption of any telecommunications service, which tax, fee, or assessment9
is collected by the seller from the purchaser.10
(d) Telecommunications services paid for by inserting coins in coin-operated11
telephones available to the public.12
(e) (b) Telecommunications services or transactions defined in this Paragraph13
among entities classified as members of an affiliated group as provided by 26 U.S.C.14
1504, provided, however, that these provisions shall not apply to any sale of tangible15
personal property.16
(f) (c) Any other property or services that are not telecommunications17
services if stated separately from the charges for telecommunications services.18
* * *19
D.(1) Notwithstanding any provision of law to the contrary, with respect to20
sales of interstate telecommunications services to any person for use in the operation21
of one or more call centers, the tax imposed by this Chapter shall not exceed twenty-22
five thousand dollars per calendar year.23
(2) The limitation set forth in this Subsection shall apply only to holders of24
a direct payment number issued by the department pursuant to R.S. 47:303.1. In order25
to obtain such direct payment number, the applicant must establish that he satisfies26
the criteria set forth in this Subsection. The provisions of R.S. 47:303.1(B) shall not27
apply to any application for a direct payment number under this Subsection.28 HLS 13RS-1302 ORIGINAL
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(3) The department shall not issue any refunds of taxes paid prior to receiving1
a direct payment number.2
(4) All entities wholly owned by the same person or entity shall be considered3
a single person.4
E. D. To prevent actual multistate taxation of an interstate5
telecommunications service subject to the tax imposed by this Chapter, any taxpayer,6
upon proof that such taxpayer has paid a tax in another state on such service, shall be7
allowed a credit against the tax imposed by this Chapter to the extent of the amount8
of such tax paid in such other state.9
§302. Imposition of tax10
* * *11
D. Notwithstanding any other provision of law to the contrary, no sales or use12
tax of any taxing authority shall be levied on any advertising service rendered by an13
advertising business, including but not limited to advertising agencies, design firms,14
and print and broadcast media, or any member, agent, or employee thereof, to any15
client whether or not such service also involves a transfer to the client of tangible16
personal property. However, a transfer of mass-produced advertising items by an17
advertising business which manufactures the items itself to a client for the client's use,18
which transfer involves the furnishing of minimal services other than manufacturing19
services by the advertising business shall be a taxable sale or use of tangible personal20
property; provided that in no event shall tax be levied on charges for creative services21
which are separately invoiced. The provisions of this Section shall not apply to sales22
and use taxes imposed by the state of Louisiana.23
* * *24
§303. Collection25
* * *26
E. Collection of tax on off-road vehicles. (1) The vehicle commissioner shall27
not issue a title or a certificate of registration on any off-road vehicle purchased in this28
state or brought into this state from another state until satisfactory proof has been29 HLS 13RS-1302 ORIGINAL
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presented to him that all sales taxes required by law have been paid. However, as1
provided for in R.S. 47:305.56, an out-of-state purchaser of an off-road vehicle shall2
be exempt from the payment of state sales and use taxes. The purchaser of an off-road3
vehicle from a seller who is not registered with the Department of Public Safety and4
Corrections shall pay the sales tax at the time the vehicle is titled the same as is5
required for the registration and licensing of other vehicles under the provisions of6
Subsection B of this Section.7
* * *8
F. Collection of tax on membership in health and physical fitness clubs. The9
sales tax due under the provisions of this Chapter on contracts for membership in a10
health and physical fitness club shall be assessed and shall be due and payable on a11
monthly basis computed on the amount paid each month less any actual or imputed12
interest or collection fees or unpaid reserve amounts not received by the health and13
fitness club, provided that no sales or use tax of the state or any of its political14
subdivisions not collected by such clubs shall be due or payable on amounts collected15
on such contracts prior to the effective date of the Act originally enacting this16
Subsection. Solely for state sales and use tax purposes, there shall be no deduction17
for any actual or imputed interest, collection fees, or unpaid reserve amounts not18
received by the health and fitness club.19
* * *20
§304. Treatment of tax by dealer21
A. The tax levied in this Chapter shall be collected by the dealer from the22
purchaser or consumer, except as provided for the collection of tax on motor vehicles23
in R.S. 47:303 and the collection of tax on property leased or rented for use offshore24
in R.S. 47:301(4)(d)(ii). The dealer shall collect the sales tax on off-road vehicles and25
remit them directly to the Department of Public Safety and Corrections upon26
application for certificate of title and registration as required for the registration and27
licensing of other vehicles under the provisions of Subsection B of this Section. The28
dealer shall collect the sales taxes on off-road vehicles from out-of-state residents29 HLS 13RS-1302 ORIGINAL
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who purchase off-road vehicles in this state and remit the sales taxes due directly to1
the Department of Revenue. , unless the requirements of the sales and use tax2
exemption provided for in R.S. 47:305.56 are met.3
* * *4
§305. Exclusions and exemptions from the tax5
A.(1) The gross proceeds derived from the sale in this state of livestock,6
poultry, and other farm products direct from the farm are exempted from the tax7
levied by taxing authorities, provided that such sales are made directly by the8
producers. When sales of livestock, poultry, and other farm products are made to9
consumers by any person other than the producer, they are not exempted from the tax10
imposed by taxing authorities.11
(2) The gross proceeds derived from the sale in this state of livestock at public12
sales sponsored by breeders' or registry associations or livestock auction markets are13
exempted from the sales and use tax levied by the state only. When public sales of14
livestock are made to consumers by any person other than through a public sale15
sponsored by a breeders' or registry association or a livestock auction market, they are16
not exempted from the sales and use tax imposed by the state. This Section shall be17
construed as exempting race horses entered in races and claimed at any racing meet18
held in Louisiana, whether the horse claimed was owned by the original breeder or19
not.20
(3) Every agricultural commodity sold by any person, other than a producer,21
to any other person who purchases not for direct consumption but for the purpose of22
acquiring raw product for use or for sale in the process of preparing, finishing, or23
manufacturing such agricultural commodity for the ultimate retail consumer trade,24
shall be exempted from any and all provisions of the sales and use tax imposed by a25
taxing authority, including payment of the tax applicable to the sale, storage, use,26
transfer, or any other utilization of or handling thereof, except when such agricultural27
commodity is actually sold as a marketable or finished product to the ultimate28
consumer, and in no case shall more than one tax be exacted. For the purposes of this29 HLS 13RS-1302 ORIGINAL
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Section, "agricultural commodity" means horticultural, viticultural, poultry, farm and1
range products, and livestock and livestock products.2
(4)(a) The purchase of feed and feed additives for the purpose of sustaining3
animals which are held primarily for commercial, business, or agricultural use shall4
be exempted from the taxes levied by taxing authorities.5
(b) For purposes of this Subsection:6
(i) "Commercial use" means the purchasing, producing, or maintaining of7
animals, including breeding stock, for resale;8
(ii) "Business use" means the keeping and maintaining of animals which are9
used in performing services in conjunction with a business enterprise, such as sentry10
dogs and rental horses;11
(iii) "Agricultural use" means the maintaining of work animals and beasts of12
burden which are utilized in the activity of producing crops or animals for market, in13
the production of food for human consumption, in the production of animal hides or14
other animal products for market, or in the maintaining of breeding stock for the15
propagation of such agricultural use animals.16
(c) This exemption shall not apply to the purchase of feed or feed additives17
for animals kept primarily for personal, sporting, or other purposes, including but not18
limited to purchases for pets of any kind or hunting dogs.19
(5)(a) Solely for purposes of the sales and use tax levied by the state, such tax20
shall not apply to the sale or use of materials, supplies, equipment, fuel, and related21
items other than vessels used in the production or harvesting of crawfish. The person22
who purchases the exempt items shall claim the exemption by executing a certificate23
at the time of purchase. The Department of Revenue shall provide the certificates to24
retail merchants. Any merchant who in good faith, and after examination of the25
applicability of the certificate to that purchase with due care, neglects or fails to26
collect the tax herein provided, due to the presentation by the purchaser of a tax27
exemption certificate issued by the Department of Revenue, including those issued28
pursuant to R.S. 47:305.10, shall not be liable for the payment of the tax.29 HLS 13RS-1302 ORIGINAL
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(b) Solely for purposes of the sales and use tax levied by the state, such tax1
shall not apply to the sale or use of bait and feed used in the production or harvesting2
of crawfish. The person who purchases the exempt items shall claim the exemption3
by executing a certificate at the time of purchase. The Department of Revenue shall4
provide the certificates to retail merchants. Any merchant who in good faith, and5
after examination of the applicability of the certificate to that purchase with due care,6
neglects or fails to collect the tax herein provided, due to the presentation by the7
purchaser of a tax exemption certificate issued by the Department of Revenue,8
including those issued pursuant to R.S. 47:305.10, shall not be liable for the payment9
of the tax.10
(6)(5) Solely for purposes of the sales and use tax levied by the state, such tax11
shall not apply to the sale or use of materials, supplies, equipment, fuel, bait, and12
related items other than vessels used in the production or harvesting of catfish. The13
person who purchases the exempt items shall claim the exemption by executing a14
certificate at the time of purchase. The Department of Revenue shall provide the15
certificates to retail merchants. Any merchant who in good faith, and after16
examination of the applicability of the certificate to that purchase with due care,17
neglects or fails to collect the tax herein provided, due to the presentation by the18
purchaser of a tax exemption certificate issued by the Department of Revenue, shall19
not be liable for the payment of the tax.20
B. For purposes of the sales and use tax of all taxing authorities, the "use tax,"21
as defined herein, shall not apply to livestock and livestock products, to poultry and22
poultry products, to farm, range and agricultural products when produced by the23
farmer and used by him and members of his family.24
C. For purposes of the sales and use tax of all taxing authorities, where a part25
of the cost price of a motor vehicle is represented by a motor vehicle returned to the26
dealer's inventory, the use tax is payable on the total cost price less the wholesale27
value of the article returned.28 HLS 13RS-1302 ORIGINAL
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D.(1) The sale at retail, the use, the consumption, the distribution, and the1
storage to be used or consumed in the taxing jurisdiction of the following tangible2
personal property is hereby specifically exempted from the tax imposed by taxing3
authorities, except as otherwise provided in this Paragraph:4
(a) Gasoline.5
(b) Steam.6
(c) Water (not including mineral water or carbonated water or any water put7
in bottles, jugs, or containers, all of which are not exempted).8
(d) Electric power or energy and any materials or energy sources used to fuel9
the generation of electric power for resale or used by an industrial manufacturing10
plant for self-consumption or cogeneration.11
(e) Repealed by Acts 2007, No. 480, §2.12
(f)(e) Fertilizer and containers used for farm products when sold directly to13
the farmer.14
(g)(f) Natural gas.15
(h)(g) All energy sources when used for boiler fuel except refinery gas.16
(i) (h) Solely for purposes of sales and use tax imposed by a political17
subdivision. New trucks, new automobiles, new aircraft, and new boats, vessels, or18
other water craft withdrawn from stock by factory authorized new truck, new19
automobile, new aircraft dealers, and factory-authorized dealers of new boats, vessels,20
or other water craft, and used trucks and used automobiles withdrawn from stock by21
new or used motor vehicle dealers, which are withdrawn for use as demonstrators. 22
(j)(i) Solely for purposes of the state sales and use tax, drugs prescribed by23
a physician or dentist.24
(k) (j) Solely for purposes of the state sales and use tax, orthotic, including25
prescription eyeglasses and contact lenses, and prosthetic devices and wheelchairs and26
wheelchair lifts prescribed by physicians, optometrists, or licensed chiropractors for27
personal consumption or use.28 HLS 13RS-1302 ORIGINAL
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(l) (k) Solely for purposes of the state sales and use tax, the sale or purchase1
of any ostomy, ileostomy or colostomy device or any other appliance including2
catheters or any related item which is required as the result of any surgical procedure3
by which an artificial opening is created in the human body for the elimination of4
natural waste.5
(m)(l) Solely for purposes of the state sales and use tax, patient aids6
prescribed by a physician or a licensed chiropractor for home use.7
(n)(m) Solely for purposes of the state sales and use tax, food sold for8
preparation and consumption in the home including by way of extension and not of9
limitation bakery products.10
(o)(n) Solely for purposes of the state sales and use tax, dairy products.11
(p)(o) Solely for purposes of the state sales and use tax, soft drinks.12
(q)(p) Solely for purposes of the state sales and use tax, fresh fruits and13
vegetables.14
(r)(q) Solely for purposes of the state sales and use tax, package foods15
requiring further preparation by the purchaser.16
(s)(r) Solely for purposes of the state sales and use tax, any and all medical17
devices used exclusively by the patient in the medical treatment of various diseases18
or administered exclusively to the patient by a physician, nurse, or other health care19
professional or health care facility in the medical treatment of various diseases under20
the supervision of and prescribed by a licensed physician.21
(t)(s) Orthotic devices, prosthetic devices, prostheses and restorative materials22
utilized by or prescribed by dentists in connection with health care treatment or for23
personal consumption or use and any and all dental devices used exclusively by the24
patient or administered exclusively to the patient by a dentist or dental hygienist in25
connection with dental or health care treatment. Notwithstanding any other provision26
of law to the contrary, the exemptions from the state sales and use tax provided in this27
Subparagraph shall be applicable to any sales and use tax levied by any local28
governmental subdivision or school board.29 HLS 13RS-1302 ORIGINAL
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(u) Solely for purposes of the state sales and use tax, adaptive driving1
equipment and motor vehicle modifications prescribed for personal use by a2
physician, a licensed chiropractor, or a driver rehabilitation specialist licensed by the3
state.4
(2)(a) Sales of meals furnished as follows:5
(i) To the staff and students of educational institutions, including but not6
limited to kindergartens, if the meals are consumed on the premises where purchased,7
or if they are purchased in advance by students, faculty, or staff pursuant to a meal8
plan sponsored by the institution or organization or purchased in advance pursuant to9
any other payment arrangement sanctioned by the institution or organization and10
generally available to students, faculty, and staff of the institution or organization,11
regardless of where such meals are consumed.12
(ii) To the staff and patients of hospitals.13
(iii) To the staff, inmates, and patients of mental institutions.14
(iv) To the boarders of rooming houses.15
(v) Occasional meals furnished to the public in educational, religious, or16
medical organization facilities.17
(b) Except as provided for in Item (a)(i) of this Paragraph, the furnishing of18
such meals shall be exempt from the taxes imposed by this Chapter if the meals are19
consumed on the premises where purchased.20
(3) Food sales by restaurants, drive-ins, snack bars, candy and nut counters,21
private clubs, and sales made by an establishment not specifically exempted22
elsewhere who furnish facilities for the consumption of the food on the premises are23
not exempt from the taxes imposed by taxing authorities.24
(4)(a) The exemption for food, drugs, orthotic and prosthetic devices, and25
wheelchairs and wheelchair lifts prescribed by physicians or licensed chiropractors26
for personal consumption or use; for patient aids prescribed by a physician or licensed27
chiropractor for home use; and ostomy, ileostomy, or colostomy devices, or other28
appliances including catheters or related items required as the result of any surgical29 HLS 13RS-1302 ORIGINAL
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procedure by which an artificial opening is created in the human body for the1
elimination of natural waste applies only to sales taxes imposed by the state of2
Louisiana and does not apply to such taxes authorized and imposed by any school3
board, municipality, or other local taxing authority notwithstanding any other4
provisions of law to the contrary, and specifically, but not exclusively, R.S. 47:337.8.5
(b) However, sales taxes authorized and imposed by any taxing authority shall6
not apply to the procurement and administration of cancer and related chemotherapy7
prescription drugs used exclusively by the patient in his medical treatment when8
administered exclusively to the patient by a physician, nurse, or other health care9
professional in a physician's office where patients are not regularly kept as bed10
patients for twenty-four hours or more.11
(5)(a) However, sales taxes authorized and imposed by any school board,12
municipality, or other local taxing authority shall not apply to the sale of prescription13
drugs under the pharmaceutical vendor program for Title XIX of the Social Security14
Act as administered by the Department of Health and Hospitals of the state of15
Louisiana. Beginning January 1, 1999, such taxes shall not apply to the sale of such16
drugs under Title XXI of the Social Security Act as administered by such department.17
(b) The administration of prescription drugs used exclusively by the patient18
in the medical treatment of various diseases or injuries when administered exclusively19
to the patient by a physician, nurse, or other health care professional in a physician's20
office where patients are not regularly kept as bed patients for twenty-four hours or21
more shall be a professional service.22
(c) For the time after July 1, 1999, school boards, municipalities, and other23
local taxing authorities may by ordinance or resolution provide for the following:24
(i) An exemption for the sale of prescription drugs administered as provided25
for in Subparagraph (b) of this Paragraph, or an exemption for the procurement and26
administration of chemotherapy drugs used exclusively by the patient in his medical27
treatment if administered exclusively to the patient by a physician, nurse, or other28 HLS 13RS-1302 ORIGINAL
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health care professional in a physician's office where patients are not regularly kept1
as bed patients for twenty-four hours or more.2
(ii) An amnesty for any person who may have been responsible to impose,3
collect, and/or remit the tax previously imposed on the transactions provided for in4
Subparagraph (b) and (c) of this Paragraph prior to the time such exemption and/or5
amnesty is granted according to such reasonable terms and conditions as the6
respective school boards, municipalities, and other local taxing authorities may adopt.7
(6) The exemptions from the state sales and use tax provided in this8
Subsection in existence as of the effective date of Act 205 of 1978* shall be9
applicable to any sales and use tax levied by any local governmental subdivision or10
school board except as otherwise specifically provided in this Subsection. Without11
determining the validity of any exemptions placed in this Subsection subsequent to12
the effective date of Act 205 of 1978, all Acts after the 1991 Regular Session placing13
an exemption in this Subsection which is applicable to a political subdivision must,14
to be effective, specifically provide in the title and body of the bill that it is applicable15
to a political subdivision. The exemptions provided in R.S. 47:305(D)(1)(t) are16
hereby deemed to specifically comply with Act 205 of 1978.17
E D. It is not the intention of any taxing authority to levy a tax upon articles18
of tangible personal property imported into this state, or produced or manufactured19
in this state, for export; nor is it the intention of any taxing authority to levy a tax on20
bona fide interstate commerce; however, nothing herein shall prevent the collection21
of the taxes due on sales of tangible personal property into this state which are22
promoted through the use of catalogs and other means of sales promotion and for23
which federal legislation or federal jurisprudence enables the enforcement of the sales24
tax of a taxing authority upon the conduct of such business. It is, however, the25
intention of the taxing authorities to levy a tax on the sale at retail, the use, the26
consumption, the distribution, and the storage to be used or consumed in this state27
except for tangible personal property kept in inventory clearly marked for use outside28
of Louisiana, of tangible personal property after it has come to rest in this state and29 HLS 13RS-1302 ORIGINAL
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has become a part of the mass of property in this state. At such time as federal1
legislation or federal jurisprudence as to sales in interstate commerce promoted2
through the use of catalogs and other means of sales promotions enables the3
enforcement of this Chapter or any other law or local ordinance imposing a sales tax4
against vendors that have no other nexus with the taxing jurisdiction, the following5
provisions shall apply to such sales on which sales and use tax would not otherwise6
be collected.7
F E. The sales, use and lease taxes imposed by taxing authorities shall not8
apply to the amounts paid by radio and television broadcasters for the right to exhibit9
or broadcast copyrighted material and the use of film, video or audio tapes, records,10
or any other means supplied by licensors thereof in connection with such exhibition11
or broadcast and the sales and use tax shall not apply to licensors or distributors12
thereof.13
G F. The sales, use, and lease taxes imposed by taxing authorities shall not14
apply to the purchase or rental by private individuals of machines, parts therefor, and15
materials and supplies which a physician has prescribed for home renal dialysis.16
H. G. "Demonstrators" as used in Subsection DC of this Section for purposes17
of the sales and use tax levied by all taxing authorities shall mean all of the following:18
(1) New and used trucks and automobiles for which dealer inventory plates19
may be obtained pursuant to R.S. 47:473, and new aircraft titled in the dealer's name20
for use as demonstrators which are kept primarily on the dealer's premises during21
normal business hours and which are available for demonstration purposes. However,22
the occasional use of a demonstrator by authorized personnel of the dealer shall not23
disqualify such demonstrator from the exemption herein designated.24
(2) New boats, vessels, or other water craft, hereafter, "boats", which comply25
with all the following:26
(a) They are registered in a boat, vessel, or water craft dealer's name with the27
appropriate agency.28 HLS 13RS-1302 ORIGINAL
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(b) They are reported by the dealer to the department as demonstrators and1
are clearly identified as demonstrators in the manner required by the department.2
(c) They are used by those designated by such dealer for any activity which3
results in the advertisement, promotion of sales, or demonstration of the qualities of4
the boat for the purpose of increasing sales of such boats; provided that such use does5
not occur on more than six consecutive days and does not occur on more than twelve6
days in any calendar month. The dealer shall keep such logs or other records of such7
use as shall be required by the department.8
(d) They are ultimately sold at retail.9
I. H. The sales and use taxes imposed by the state of Louisiana or any of its10
political subdivisions shall not apply to the labor, or sale of materials, services, and11
supplies, used for repairing, renovating or converting of any drilling rig, or machinery12
and equipment which are component parts thereof, which is used exclusively for the13
exploration or development of minerals outside the territorial limits of the state in14
Outer Continental Shelf waters. For the purposes of this Subsection, "drilling rig"15
means any unit or structure, along with its component parts, which is used primarily16
for drilling, workover, intervention, or remediation of wells used for exploration or17
development of minerals. For purposes of this Subsection, "component parts" means18
any machinery or equipment necessary for a drilling rig to perform its exclusive19
function of exploration or development of minerals.20
* * *21
§305.6. Exclusions and exemptions; Little Theater tickets22
The sales tax imposed by local taxing authorities shall not apply to the sale of23
admission tickets by Little Theater organizations. The provisions of this Section shall24
not apply to sales and use taxes imposed by the state of Louisiana.25
§305.7. Exclusions and exemptions; tickets to musical performances of nonprofit26
musical organizations27
The sales tax imposed by local taxing authorities shall not apply to the sale of28
admission tickets by domestic nonprofit corporations or by any other domestic29 HLS 13RS-1302 ORIGINAL
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nonprofit organization known as a symphony organization or as a society or1
organization engaged in the presentation of musical performances. ; provided that this2
Section This exemption shall not apply to performances given by out-of-state or3
nonresident symphony companies, nor shall this Section apply or to any performance4
intended to yield a profit to the promoters thereof. The provisions of this Section5
shall not apply to sales and use taxes imposed by the state of Louisiana.6
* * *7
§305.9. Exclusions and exemptions; motion picture film rental 8
The sales and use taxes imposed by the State of Louisiana or any such taxes9
imposed by any parish or municipality within the state shall not apply to the amount10
paid by the operator of a motion picture theater to a distributing agency for use of11
films of photoplay. The provisions of this Section shall not apply to sales and use12
taxes imposed by the state of Louisiana.13
* * *14
§305.11. Exclusions and exemptions; contracts prior to and within ninety days of tax15
levy 16
A. No new or additional sales or use tax shall be applicable to sales of17
materials or services involved in lump sum or unit price construction contracts18
entered into and reduced to writing prior to the effective date of the statute or19
ordinance levying same or to sales or services involved in such contracts entered into20
and reduced to writing within ninety days thereafter, if such contracts involve21
contractual obligations undertaken prior to such effective date and were computed and22
bid on the basis of sales taxes at the rates effective and existing prior to such effective23
date. 24
B. This section Section shall apply to sales and use taxes now or hereafter25
levied by the State of Louisiana or by any parish, municipality, or other political26
subdivision thereof, whether such levy is under authority of general or special laws27
of the state or under powers granted in local charters or under any other authority or28
grant of the power to levy and collect sales or use taxes.29 HLS 13RS-1302 ORIGINAL
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C. The provisions of this Section shall not apply to sales now or hereafter1
levied by the state of Louisiana.2
* * *3
§305.16. Exclusions and exemptions; cable television installation and repair 4
The sales and use taxes imposed by the state or by any political subdivision5
thereof shall not apply to necessary fees incurred in connection with the installation6
and service of cable television. Such exemption shall not apply to purchases made7
by any cable television system but shall only apply to funds collected from the8
subscriber for regular service, installation, and repairs. The provisions of this Section9
shall not apply to sales and use taxes imposed by the state of Louisiana.10
§305.17. Exclusions and exemptions; income from coin-operated washing and drying11
machines in a commercial laundromat12
State sales Sales taxes imposed by R.S. 47:302 and R.S. 47:321, as well as any13
sales taxes imposed by any parish, municipality, school board, or other political14
subdivision, within the state, shall not apply to or be imposed upon the income on15
receipts from any coin-operated washing or drying machine in a commercial16
laundromat. A commercial laundromat, for purposes of this Section, is defined to be17
any establishment engaged solely in the business of furnishing washing or drying18
laundry services by means of coin-operated machines. The provisions of this Section19
shall not apply to sales and use taxes imposed by the state of Louisiana.20
* * *21
§305.19. Exclusions and exemptions; leased vessels used in the production of22
minerals23
The taxes imposed by local taxing authorities shall not apply to those vessels24
which are leased for use offshore beyond the territorial limits of this state for the25
production of oil, gas, sulphur, and other minerals or for the providing of services to26
those engaged in such production. The provisions of this Section shall not apply to27
sales and use taxes imposed by the state of Louisiana.28 HLS 13RS-1302 ORIGINAL
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§305.20. Exclusions and exemptions; Louisiana commercial fishermen 1
A. A Louisiana resident, domiciled in Louisiana, who possesses such valid2
Louisiana commercial fishing license(s) as may be necessary for commercial fishing3
ventures, including but not limited to a vessel license issued pursuant to R.S. 56:304,4
and who is an owner of a vessel operated primarily for the conduct of commercial5
fishing as a trade or business and which the Louisiana Department of Wildlife and6
Fisheries determines will be predominantly and principally used for commercial7
fishing ventures and whose catch is for human consumption shall not be exempt from8
state sales, use, lease, and services taxes as set forth in Subsection C of this Section.9
Possession of a commercial fishing license issued by the Department of Wildlife and10
Fisheries shall not be used as the sole determination that a vessel will be used11
predominantly and principally for commercial fishing ventures. This exemption from12
state sale, use, lease, and services taxes shall also apply to facilities which process the13
catch from owners of commercial fishing vessels for which this exemption is granted14
when such vessels are owned by, or leased or contracted exclusively to, the seafood15
processing facility.16
* * *17
C. An owner who has obtained a certificate of exemption shall, with respect18
to the vessel identified in the certificate for the harvesting or production of fish and19
other aquatic life, including shrimp, oysters, and clams, and certain seafood20
processing facilities described in Subsection A, be exempt from the taxes described21
in Subsection A, as follows:22
(1) Taxes applied to the materials and supplies necessary for repairs to the23
vessel or facility if they are purchased by the owner and later become a component24
part of the vessel or facility.25
(2) Taxes applied to materials and supplies purchased by the owner of the26
vessel or facility where such materials and supplies are loaded upon the vessel or27
delivered to the facility for use or consumption in the maintenance and operation28
thereof for commercial fishing and processing ventures. For purposes of this29 HLS 13RS-1302 ORIGINAL
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Paragraph, it shall make no difference whether the vessel is engaged in interstate,1
foreign, or intrastate commerce.2
(3) Taxes applied to repair services performed upon the vessel or facility. For3
the purposes of this Paragraph, it shall make no difference whether the vessel is4
engaged in intrastate, interstate, or foreign commerce.5
(4) Taxes applied to the purchase of gasoline, diesel fuel, and lubricants for6
the vessel and to sources of energy and fuels for the facility.7
* * *8
§305.28. Exclusions and exemptions; gasohol 9
A. The sales or use taxes imposed by the state of Louisiana or any such taxes10
imposed by any parish or municipality or other local entity within the state shall not11
apply to the sale at retail, the use, the consumption, the distribution, and the storage,12
to be used or consumed in this state, of any motor fuel known as gasohol, containing13
a blend of at least ten percent alcohol, if the alcohol therein has been produced,14
fermented, and distilled in Louisiana from agricultural commodities. Alcohol to be15
used in gasohol must have been rendered unsuitable for human consumption at the16
time of its manufacture or immediately thereafter.17
B. Gasohol, in order to qualify for this exemption must have been dyed a18
color which shall be different and distinct from other gasolines. The secretary of the19
Department of Revenue shall designate the color used and supplied by the dealer in20
the manufacture of gasohol.21
C. The provisions of this Section shall not apply to sales and use taxes22
imposed by the state of Louisiana.23
* * *24
§305.41. Exclusions and exemptions; Ducks Unlimited; Bass Life25
The sales and use tax imposed by the state of Louisiana or any of its any local26
governmental subdivisions or school boards shall not apply to either the sales of27
Ducks Unlimited or Bass Life or any of their chapters or any rental or purchase of28
property or services by Ducks Unlimited or Bass Life or any of their chapters. The29 HLS 13RS-1302 ORIGINAL
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provisions of this Section shall not apply to sales and use taxes imposed by the state1
of Louisiana.2
* * *3
§305.43. Exclusions and exemptions; nonprofit organizations dedicated to the4
conservation of fish or migratory waterfowl; nature of exemption; limitations;5
qualifications6
A. The sales and use taxes imposed by R.S. 47:302, R.S. 47:321, and R.S.7
47:331 a political subdivision shall not apply to any sales made by a nonprofit8
organization dedicated exclusively to the conservation of fish or the migratory9
waterfowl of the North American Continent and to the preservation and conservation10
of wetland habitat of such waterfowl, when the entire proceeds, except for the11
necessary expenses connected therewith, are used in furtherance of the organization's12
exempt purpose. The exemption provided herein shall not apply to any event13
intended to yield a profit to the promoter or to any individual contracted to provide14
services or equipment, or both, for the event.15
B. Purchases by any organization qualifying hereunder shall be exempt from16
the payment of any sales or use taxes imposed by the state and its political17
subdivisions. The provisions of this Section shall not apply to sales and use taxes18
imposed by the state of Louisiana.19
* * *20
E. An exemption certificate must be obtained from the secretary of the21
Department of Revenue political subdivision, under such regulations as he shall22
prescribe, in order for a nonprofit organization to qualify for the exemption provided23
in this Section.24
§305.44. Exclusions and exemptions; raw materials used in printing process25
A. The sales and use taxes imposed by the state under R.S. 47:302, R.S.26
47:321, and R.S. 47:331 and by any political subdivision shall not apply to purchases27 HLS 13RS-1302 ORIGINAL
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and sales of the following, including all chemical supplies necessary to produce such1
items whether manufactured by a printer or purchased from a subcontractor: 2
* * *3
§305.49. Catalog distribution; exemption 4
Notwithstanding any provision of law to the contrary, no sales or use tax shall5
be imposed by the state or any political subdivision on the value of catalogs6
distributed, or intended for distribution in the state, without charge to the recipient.7
§305.50. Exemption; vehicles used in interstate commerce; rail rolling stock; railroad8
ties9
* * *10
F. The sales and use tax imposed by the state, its statewide taxing authorities,11
or any of its political subdivisions any political subdivision shall not apply to the12
"sales price" or "cost price" of railroad ties that a railroad purchases prior to long-term13
preservative treatment and installs into the railroad's track system outside the taxing14
jurisdiction of the respective taxing authority, whether it be the state, a statewide15
taxing authority, or a political subdivision.16
* * *17
§305.57. Exemptions; sale of art work18
A. The sales and use taxes imposed by the state of Louisiana or any of its19
political subdivisions any political subdivision shall not apply to the sale of original,20
one-of-a-kind works of art from an established location within the boundaries of a21
cultural product district. The provisions of this Section shall not apply to sales and22
use taxes imposed by the state of Louisiana.23
* * *24
§305.59. Exemption; charitable residential construction25
The sales and use tax imposed by the state of Louisiana and all of its tax local26
taxing authorities shall not apply to the sale of construction materials to Habitat for27
Humanity affiliates, Fuller Center for Housing covenant partners located in this state,28
or the Make it Right Foundation when such materials are intended for use in29 HLS 13RS-1302 ORIGINAL
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constructing new residential dwellings in this state. The provisions of this Section1
shall not apply to sales and use taxes imposed by the state of Louisiana.2
* * *3
§305.61. Exemption; certain water conservation equipment; Sparta Groundwater4
Conservation District5
A. The sales and use tax imposed by all tax local taxing authorities in the state6
shall not apply to sales of water conservation equipment for use within the Sparta7
Groundwater Conservation District. Only persons defined as "users" under R.S.8
38:3087.133(7) shall be eligible for this exemption.9
B. Any person seeking to qualify for this exemption must apply for an10
exemption certificate with the secretary of the Department of Revenue local taxing11
authority. Prior to application for an exemption certificate, the applicant must receive12
certification from the commissioner of conservation that the equipment qualifies as13
water conservation equipment. The certification by the commissioner of conservation14
shall be attached by the board to the application for the exemption certificate. In15
accordance with the powers defined in R.S. 38:3087.136, the board shall determine16
the types of equipment which qualify as water conservation equipment, provided that17
such equipment must reduce water consumption by at least twenty-five percent.18
§305.62. Exemption; Annual Louisiana Second Amendment Weekend Holiday19
* * *20
B.(1) Notwithstanding any other provisions of law to the contrary, the sales21
and use tax levied by the state of Louisiana and its political subdivisions shall not22
apply to the sales price or cost price of any consumer purchases of firearms,23
ammunition, and hunting supplies that occur each calendar year on the first24
consecutive Friday through Sunday of September. The provisions of this Section25
shall not apply to sales and use taxes imposed by the state of Louisiana.26
* * *27 HLS 13RS-1302 ORIGINAL
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§305.64. Exemption; qualifying radiation therapy treatment centers1
A.(1) The sales and use tax imposed by the state of Louisiana shall not apply2
to the amount paid by qualifying radiation therapy treatment centers for the purchase,3
lease, or repair of capital equipment and the purchase, lease, or repair of software4
used to operate capital equipment. Any political subdivision of this state, including5
parishes and municipalities, may elect to grant a sales and use tax exemption for the6
amount paid by qualifying radiation therapy treatment centers for the purchase, lease,7
or repair of capital equipment and the purchase, lease, or repair of software used to8
operate capital equipment. The provisions of this Section shall not apply to sales and9
use taxes imposed by the state of Louisiana.10
* * *11
B. An exemption certificate shall be obtained from the secretary of the12
Department of Revenue political subdivision in order for a radiation therapy center13
to qualify for the exemption provided for in this Section.14
C. The Department of Revenue shall promulgate rules and regulations in15
accordance with the Administrative Procedure Act as are necessary to implement the16
provisions of this Section.17
§305.65. Exemption; charitable residential construction, rehabilitation, and18
renovation; limitation19
A. The sales and use tax imposed by the state of Louisiana and all of its tax20
local taxing authorities shall not apply to the sale of construction materials to Hands21
on New Orleans and Rebuilding Together New Orleans covenant partners located in22
this state when such materials are intended for use in either constructing,23
rehabilitating, or renovating residential dwellings in this state which were destroyed24
or damaged by Hurricane Katrina or Hurricane Rita.25
B. No more than five hundred thousand dollars of state and local exemptions26
authorized pursuant to this Section shall be granted in any calendar year.27 HLS 13RS-1302 ORIGINAL
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C. The secretary of the Department of Revenue shall promulgate rules and1
regulations necessary to implement the provisions of this Section.2
* * *3
§305.68. Exemption; Fore!Kids Foundation4
The sales and use tax imposed by the state of Louisiana or any political5
subdivisions shall not apply to the purchase, use, or rental of materials, services,6
property, and supplies, by the Fore!Kids Foundation, whose primary purpose is to7
fund children's service organizations from monies raised from golfing events.8
* * *9
§305.70. Exemption; "Make It Right Foundation"10
The sales and use tax imposed by the state of Louisiana or any political11
subdivision shall not apply to the sale of construction materials to the "Make It Right12
Foundation" when such materials are intended for use in constructing new residential13
dwellings in this state.14
* * *15
§306. Returns and payment of tax; penalty for absorption16
A.17
* * *18
(3)(a) For the purpose of compensating the dealer in accounting for and19
remitting the tax levied by this Chapter, each dealer shall be allowed one and20
one-tenth percent of the amount of tax due and accounted for and remitted to the21
secretary in the form of a deduction in submitting his report and paying the amount22
due by him, provided the amount of any credit claimed for taxes already paid to a23
wholesaler shall not be deducted in computing the commission allowed the dealer24
hereunder. This compensation shall be allowed only if the payment of the dealer is25
timely paid and the return is timely filed.26
(b) The compensation permitted a dealer under the provisions of this27
Paragraph shall not exceed fifty dollars per calendar month. The aggregate state28
compensation available to a dealer who operates more than one business location29 HLS 13RS-1302 ORIGINAL
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within this state and who does not file a consolidated monthly tax report for all1
locations shall not exceed fifty dollars per month.2
(b) (c) Municipalities are hereby authorized to pay compensation to their sales3
tax dealers in any amounts designated by the governing body of the municipality.4
* * *5
§6001. Antique airplanes and certain other aircraft 6
A. No tax imposed by the state or by any parish, municipality, school board,7
or any political subdivision of the state shall be imposed on antique airplanes which8
are maintained by private collectors and not used for commercial purposes, and no9
personal property tax shall be imposed on any aircraft weighing less than six thousand10
pounds which is owned by a private individual and not used for commercial or profit11
making purposes. The exemption from local taxes contained in this Section is granted12
notwithstanding the provisions of R.S. 47:302, and such exemption shall apply to any13
sales and use tax levied by any local governmental subdivision or school board. 14
* * * 15
Section 4. R.S. 47:305.18, 305.20(C), 305.26, 305.33, 305.40, 305.42, 305.54,16
305.56, 305.58, 305.60, 305.64(C), 305.66, 315.2, 315.3, 315.5, 306.1, and Section 4 of Act17
No. 386 of the 1990 Regular Session of the Legislature are hereby repealed in their entirety.18
Section 5. This Act shall take effect and become operative on January 1, 2014, if and19
when the Acts which originated as House Bill Nos. ____ of this 2013 Regular Session of the20
Legislature are enacted and become effective. This Act shall become effective on January 1,21
2014.22
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)]
Stokes HB No. 714
Abstract: Provides for taxability of the sale, use, consumption, rental, distribution, and
storage of tangible personal property and the sale of services.
Present law imposes a 4% state tax upon the sale, use, consumption, rental, distribution, and
storage of certain tangible personal property and services. HLS 13RS-1302 ORIGINAL
HB NO. 714
Page 89 of 89
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Present law provides with respect to the tangible personal property and services subject to the
tax, including numerous exclusions and exemptions of certain property and services from
taxation.
Proposed law repeals certain exclusions and exemptions.
Proposed law provides for the taxability of digital goods and services.
Present law authorizes the retention of 1.1% of taxes collected by a dealer to be retained by
the dealer as compensation for collection and remittance of the tax to the state. This is
commonly referred to as vendors' compensation.
Proposed law changes present law by changing the rate of compensation from 1.1% to 1%,
and by limiting the amount of vendors' compensation permitted for each dealer to $50 per
month.
Effective Jan. 1, 2014, if and when House Bill Nos. ___ of this 2013 R.S. are enacted and
become effective.
(Amends R.S. 4:168 and 227, R.S. 32:707(A), R.S. 47:301, 301.1(B)(2), (D), and (E), 302(D),
303(E)(1) and (F), 304(A), 305, 305.6, 305.7, 305.9, 305.11, 305.16, 305.17, 305.19,
305.20(A), 305.28, 305.41, 305.43(A), (B), and (E), 305.44(A)(intro. para.), 305.49,
305.50(F), 305.57(A), 305.59, 305.61, 305.62(B)(1), 305.64(A)(1) and (B), 305.65, 305.68,
305.70, 306(A)(3), and 6001(A); Repeals R.S. 47:305.18, 305.20(C), 305.26, 305.33, 305.40,
305.42, 305.54, 305.56, 305.58, 305.60, 305.64(C), 305.66, 315.2, 315.3, 315.5, 306.1, and
§4 of Act No. 386 of the 1990 R.S.)