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.
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 ยง4 of Act No. 386 of the
1990 R.S.)