HLS 13RS-1032 ORIGINAL
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Regular Session, 2013
HOUSE BILL NO. 716
BY REPRESENTATIVE RICHARD
TAX/SALES & USE: Decreases the state sales and use tax rate and repeals exclusions and
exemptions from state sales and use tax
AN ACT1
To amend and reenact R.S.47:301, 301.1(B), (D), and (E), 302(A), (B), (C)(1), and (D),2
321(A) through (C), 302.1(A), 305(A)(1), (3), and (4)(a), (D)(1)(introductory3
paragraph), and (I) introductory paragraph), 305.1(A) and (B), 305.3, 305.6, 305.7,4
305.9, 305.13, 305.14(A)(1)(a) and (5), 305.16, 305.17, 305.19, 305.20(A),5
305.25(A) and (B), 305.41, 305.44(A)(introductory paragraph),6
305.45(A)(introductory paragraph), 305.46(A)(introductory paragraph), 305.49,7
305.50(A)(1), 305.51(A), 305.53(A), 305.57(A), 305.61(A), 305.65(A), 305.69(A),8
and 305.70 and to repeal R.S. 47:305(A)(2), (5), and (6), (D)(1)(f), (2)(a)(iv) and (v)9
and (b) and (3), 305.18, 305.26, 305.33, 305.36, 305.40, 305.42, 305.43, 305.54,10
305.56, 305.62, 305.63, 305.64, 305.66, 305.67, and 305.68, relative to state sales11
and use tax; to provide for the tax rate; to provide with respect to exemptions,12
exclusions, and other special tax treatment regarding taxes on tangible personal13
property and services; to provide for effectiveness; and to provide for related matters.14
Be it enacted by the Legislature of Louisiana:15
Section 1. R.S.47:301, 301.1(B), (D), and (E), 302(A), (B), (C)(1), and (D), 321(A)16
through (C), 302.1(A), 305(A)(1), (3), and (4)(a), (D)(1)(introductory paragraph), and (I)17
introductory paragraph), 305.1(A) and (B), 305.3, 305.6, 305.7, 305.9, 305.13,18
305.14(A)(1)(a) and (5), 305.16, 305.17, 305.19, 305.20(A), 305.25(A) and (B), 305.41,19
305.44(A)(introductory paragraph), 305.45(A)(introductory paragraph),20 HLS 13RS-1032 ORIGINAL
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305.46(A)(introductory paragraph), 305.49, 305.50(A)(1), 305.51(A), 305.53(A), 305.57(A),1
305.61(A), 305.65(A), 305.69(A), and 305.70 are hereby amended and reenacted to read as2
follows: 3
ยง301. Definitions4
As used in this Chapter the following words, terms, and phrases have the5
meaning ascribed to them in this Section, unless the context clearly indicates a6
different meaning:7
(1) "Business" includes any activity engaged in by any person or caused to8
be engaged in by him with the object of gain, benefit, or advantage, either direct or9
indirect. The term "business" shall not be construed to include the occasional and10
isolated sales by a person who does not hold himself out as engaged in business.11
(2) "Collector" shall mean and include (a) the secretary of the Department12
of Revenue for the state of Louisiana and includes his duly authorized assistants,13
when used in reference to a sales and use tax levied by the state, or (b) the individual14
or entity designated as collector of the appropriate single sales and use tax collection15
office, and his duly authorized assistants, of any political subdivision authorized16
under the constitution and laws of the state of Louisiana to levy and collect a sales17
and use tax, except a statewide political subdivision, when used in reference to a18
sales and use tax levied by such political subdivision.19
(3)(a) "Cost price" means the actual cost of the articles of tangible personal20
property without any deductions therefrom on account of the cost of materials used,21
labor, or service cost, except those service costs for installing the articles of tangible22
personal property if such cost is separately billed to the customer at the time of23
installation, transportation charges, or any other expenses whatsoever, or the24
reasonable market value of the tangible personal property at the time it becomes25
susceptible to the use tax, whichever is less.26
(b) In the case of tangible personal property which has acquired a tax situs27
in a taxing jurisdiction and is thereafter transported outside the taxing jurisdiction for28
repairs performed outside the taxing jurisdiction and is thereafter returned to the29 HLS 13RS-1032 ORIGINAL
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taxing jurisdiction, the cost price shall be deemed to be the actual cost of any parts1
and/or materials used in performing such repairs, if applicable labor charges are2
separately stated on the invoice. If the applicable labor charges are not separately3
stated on the invoice, it shall be presumed that the cost price is the total charge4
reflected on the invoice.5
(c) "Cost price" solely for purposes of sales and use tax imposed by a6
political subdivision shall not include the supplying and installation of board roads7
to oil field operators if the installation charges are separately billed to the customer8
at the time of installation.9
(d)(i) In Solely for purposes of sales and use tax imposed by a political10
subdivision, in the case of interchangeable components located in Louisiana, a11
taxpayer may elect to determine the cost price of such components as follows:12
(aa) The taxpayer shall send to the secretary political subdivision a written13
notice of the calendar month selected by the taxpayer as the first month for the14
determination of cost price under this Paragraph (the "First Month"). The taxpayer15
may select any month. The taxpayer shall send to the secretary political subdivision16
notice of an election to designate a First Month on the first day of the designated17
First Month, or ninety days from July 1, 1990, whichever is later.18
(bb) For the First Month and each month thereafter, cost price shall be based19
and use tax shall be paid only on one-sixtieth of the aggregate cost price of the20
interchangeable components deployed and earning revenue within Louisiana during21
the month, without regard to any credit or other consideration for Louisiana state,22
political subdivision, or school board use tax previously paid on such23
interchangeable components.24
(cc) Any election made under this Paragraph shall be irrevocable for a period25
of sixty consecutive months inclusive of the First Month. If at any time after the26
sixty-month period the taxpayer revokes its election, no credit or other consideration27
for use taxes paid pursuant thereto shall be applied to any use tax liability arising28
after such revocation.29 HLS 13RS-1032 ORIGINAL
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(ii)(aa) For purposes of this Paragraph, "interchangeable component" means1
a component that is used or stored for use in measurement-while-drilling instruments2
or systems manufactured or assembled by the taxpayer, which measurement-while-3
drilling instruments or systems collectively generate eighty percent or more of their4
annual revenue from their use outside of the state.5
(bb) "Measurement-while-drilling instruments or systems" means6
instruments or systems which measure information from a downhole location in a7
borehole, transmit the information to the surface during the process of drilling the8
borehole using a wireless technique, and receive and decode the information on the9
surface.10
(iii) The method for determining cost price of interchangeable components11
provided for in this Paragraph shall apply to any use taxes imposed by a local12
political subdivision or school board. For purposes of that application, the words13
"political subdivision" or "school board" as the case may be, shall be substituted for14
the words "Louisiana" or "State" in each instance where those words appear in this15
Paragraph and an appropriate official of the local political subdivision or school16
board shall be designated to receive the notices required by this Paragraph.17
(e) "Cost price" solely for purposes of sales and use taxes imposed by a18
political subdivision, shall not include any amount designated as a cash discount or19
a rebate by a vendor or manufacturer of any new vehicle subject to the motor vehicle20
license tax. For purposes of this Paragraph "rebate" means any amount offered by21
the vendor or manufacturer as a deduction from the listed retail price of the vehicle.22
(f) The Solely for purposes of sales and use taxes imposed by a political23
subdivision, the "cost price" of refinery gas shall be fifty-two cents per thousand24
cubic feet multiplied by a fraction the numerator of which shall be the posted price25
for a barrel of West Texas Intermediate Crude Oil on December first of the preceding26
calendar year and the denominator of which shall be twenty-nine dollars, and27
provided further that such cost price shall be the maximum value placed upon28 HLS 13RS-1032 ORIGINAL
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refinery gas by the state and by any political subdivision under any authority or grant1
of power to levy and collect use taxes.2
(g) "Cost price", for purposes of the use tax imposed by the state and its any3
political subdivisions subdivision, shall exclude any amount that a manufacturer pays4
directly to a dealer of the manufacturer's product for the purpose of reducing and that5
actually results in an equivalent reduction in the retail "cost price" of that product.6
This exclusion shall not apply to the value of the coupons that dealers accept from7
purchasers as part payment of the "sales price" and that are redeemable by the8
dealers through manufacturers or their agents. The value of such coupons is deemed9
to be part of the "cost price" of the product purchased through the use of the coupons.10
(h)(i) For purposes of a publishing business which distributes its news11
publications at no cost to readers and pays unrelated third parties to print such news12
publications, the term "cost price" shall mean only the lesser of the following costs:13
(aa) The printing cost paid to unrelated third parties to print such news14
publications, less any itemized freight charges for shipping the news publications15
from the printer to the publishing business and any itemized charges for paper and16
ink.17
(bb) Payments to a dealer or distributor as consideration for distribution of18
the news publications.19
(ii) The definition of "cost price" provided for in this Subparagraph shall be20
applicable to taxes levied by all tax authorities in the state.21
(i)(i) For purposes of the imposition of the use tax levied by the state and any22
political subdivision whose boundaries are coterminous with those of the state, the23
cost price of machinery and equipment used by a manufacturer in a plant facility24
predominately and directly in the actual manufacturing for agricultural purposes or25
the actual manufacturing process of an item of tangible personal property, which is26
for ultimate sale to another and not for internal use, at one or more fixed locations27
within Louisiana, shall be reduced as follows: 28 HLS 13RS-1032 ORIGINAL
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(aa) For the period ending on June 30, 2005, the cost price shall be reduced1
by five percent.2
(bb) For the period beginning July 1, 2005, and ending on June 30, 2006, the3
cost price shall be reduced by nineteen percent.4
(cc) For the period beginning July 1, 2006, and ending on June 30, 2007, the5
cost price shall be reduced by thirty-five percent.6
(dd) For the period beginning July 1, 2007, and ending on June 30, 2008, the7
cost price shall be reduced by fifty-four percent.8
(ee) For the period beginning July 1, 2008, and ending on June 30, 2009, the9
cost price shall be reduced by sixty-eight percent.10
(ff) For all periods beginning on or after July 1, 2009, the cost price shall be11
reduced by one hundred percent.12
(ii) For purposes of this Subparagraph, the following definitions shall apply:13
(aa) "Machinery and equipment" means tangible personal property or other14
property that is eligible for depreciation for federal income tax purposes and that is15
used as an integral part in the manufacturing of tangible personal property for sale.16
"Machinery and equipment" shall also mean tangible personal property or other17
property that is eligible for depreciation for federal income tax purposes and that is18
used as an integral part of the production, processing, and storing of food and fiber19
or of timber.20
(I) Machinery and equipment, for purposes of this Subparagraph, also21
includes but is not limited to the following:22
(aaa) Computers and software that are an integral part of the machinery and23
equipment used directly in the manufacturing process.24
(bbb) Machinery and equipment necessary to control pollution at a plant25
facility where pollution is produced by the manufacturing operation.26
(ccc) Machinery and equipment used to test or measure raw materials, the27
property undergoing manufacturing or the finished product, when such test or28
measurement is a necessary part of the manufacturing process.29 HLS 13RS-1032 ORIGINAL
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(ddd) Machinery and equipment used by an industrial manufacturing plant1
to generate electric power for self consumption or cogeneration.2
(eee) Machinery and equipment used primarily to produce a news3
publication whether it is ultimately sold at retail or for resale or at no cost. Such4
machinery and equipment shall include but not be limited to all machinery and5
equipment used primarily in composing, creating, and other prepress operations,6
electronic transmission of pages from prepress to press, pressroom operations, and7
mailroom operations and assembly activities. The term "news publication" shall8
mean any publication issued daily or regularly at average intervals not exceeding9
three months, which contains reports of varied character, such as political, social,10
cultural, sports, moral, religious, or subjects of general public interest, and11
advertising supplements and any other printed matter ultimately distributed with or12
a part of such publications.13
(II) Machinery and equipment, for purposes of this Subparagraph, does not14
include any of the following:15
(aaa) A building and its structural components, unless the building or16
structural component is so closely related to the machinery and equipment that it17
houses or supports that the building or structural component can be expected to be18
replaced when the machinery and equipment are replaced.19
(bbb) Heating, ventilation, and air-conditioning systems, unless their20
installation is necessary to meet the requirements of the manufacturing process, even21
though the system may provide incidental comfort to employees or serve, to an22
insubstantial degree, nonproduction activities.23
(ccc) Tangible personal property used to transport raw materials or24
manufactured goods prior to the beginning of the manufacturing process or after the25
manufacturing process is complete.26
(ddd) Tangible personal property used to store raw materials or27
manufactured goods prior to the beginning of the manufacturing process or after the28
manufacturing process is complete.29 HLS 13RS-1032 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-1032 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 as of 2002, of a product of tangible personal property takes12
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-1032 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-1032 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-1032 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 Solely for purposes of sales and use taxes imposed by a political12
subdivision, the term "dealer" shall not include lessors of railroad rolling stock used13
either for freight or passenger purposes. However, the term "dealer" shall include14
lessees, other than a railway company or railroad corporation, of such property and15
such lessees shall be responsible for the collection and payment of all state and local16
sales and use taxes.17
(l) Every person who engages in regular or systematic solicitation of a18
consumer market in the taxing jurisdiction by the distribution of catalogs, periodicals,19
advertising fliers, or other advertising, or by means of print, radio or television media,20
by mail, telegraphy, telephone, computer data base, cable, optic, microwave, or other21
communication system.22
(5) "Gross sales" means the sum total of all retail sales of tangible personal23
property, without any deduction whatsoever of any kind or character except as24
provided in this Chapter.25
(6)(a) "Hotel" means and includes any establishment engaged in the business26
of furnishing sleeping rooms, cottages, or cabins to transient guests, where such27
establishment consists of six or more sleeping rooms, cottages, or cabins at a single28
business location.29 HLS 13RS-1032 ORIGINAL
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(b) For purposes of the sales and use taxes of all tax authorities in this state1
a political subdivision, the term "hotel" as defined herein shall not include camp and2
retreat facilities owned and operated by nonprofit organizations exempt from federal3
income tax under Section 501(a) of the Internal Revenue Code as an organization4
described in Section 501(c)(3) of the Internal Revenue Code provided that the net5
revenue derived from the organizations's property is devoted wholly to the nonprofit6
organization's purposes. However, for purposes of this Paragraph, the term "hotel"7
shall include camp and retreat facilities which shall sell rooms or other8
accommodations to transient guests who are not attending a function of such nonprofit9
organization that owns and operates the camp and retreat facilities or a function of10
another nonprofit organization exempt from federal income tax under Section 501(a)11
of the Internal Revenue Code as an organization described in Section 501(c)(3) of the12
Internal Revenue Code. It is the intention of the legislature to tax the furnishing of13
rooms to 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-1032 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 Solely for purposes of sales and use taxes imposed by a political10
subdivision the term "lease or rental", as herein defined shall not mean or include a11
lease or rental of property to be used in performance of a contract with the United12
States Department of the Navy for construction or overhaul of U.S. Naval vessels.13
(d) The Solely for purposes of sales and use taxes imposed by a political14
subdivision the term "lease or rental", as herein defined, shall not mean the lease or15
rental of airplanes or airplane equipment by a commuter airline domiciled in16
Louisiana.17
(e) For purposes of state and political subdivision sales and use tax the term18
"lease or rental", as herein defined, shall not mean the lease or rental of items,19
including but not limited to supplies and equipment, which are reasonably necessary20
for the operation of free hospitals.21
(f) For purposes of state and political subdivision sales and use tax, Solely for22
purposes of sales and use tax imposed by a political subdivision, the term "lease or23
rental" shall not mean the lease or rental of educational materials or equipment used24
for classroom instruction by approved parochial and private elementary and secondary25
schools which comply with the court order from the Dodd Brumfield decision and26
Section 501(c)(3) of the Internal Revenue Code, limited to books, workbooks,27
computers, computer software, films, videos, and audio tapes.28 HLS 13RS-1032 ORIGINAL
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(g) For purposes of state and political subdivision sales and use tax, Solely1
for purposes of sales and use tax imposed by a political subdivision, the term "lease2
or rental" shall not mean the lease or rental of tangible personal property to Boys State3
of Louisiana, Inc. and Girls State of Louisiana, Inc. which is used by such4
organizations for their educational and public service programs for youth.5
(h) For purposes of state and political subdivision sales and use tax, Solely6
for purposes of sales and use taxes imposed by a political subdivision, the term "lease7
or rental" shall not mean or include the lease or rental of motor vehicles by licensed8
motor vehicle dealers, as defined in R.S. 32:1252(14), or vehicle manufacturers, as9
defined in R.S. 32:1252(11), for their use in furnishing such leased or rented motor10
vehicles to their customers in performance of their obligations under warranty11
agreements associated with the purchase of a motor vehicle or when the applicable12
warranty has lapsed and the leased or rented motor vehicle is provided to the customer13
at no charge.14
(i) For Solely for purposes of sales and use taxes levied and imposed by local15
governmental subdivisions, school boards, and other political subdivisions whose16
boundaries are not coterminous with those of the state a political subdivision, "lease17
or rental" by a person shall not mean or include the lease or rental of tangible personal18
property if such lease or rental is made under the provisions of Medicare.19
(j) Solely for purposes of the sales and use tax levied by the state or any20
political subdivision whose boundaries are coterminous with those of the state Solely21
for purposes of sales and use taxes imposed by a political subdivision, the term "lease22
or rental" shall not include the lease or rental in this state of manufacturing machinery23
and equipment used or consumed in this state to manufacture, produce, or extract24
unblended biodiesel.25
(k)(i) For Solely for purposes of any sales, use, or lease tax levied by the state26
or imposed by any political subdivision of the state, the term "lease or rental" shall27
not include the lease or rental of a crane and related equipment with an operator.28 HLS 13RS-1032 ORIGINAL
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(ii) Notwithstanding the provisions of Item (i) of this Subparagraph, cranes1
leased or rented with an operator are subject to the provisions of the sales and use tax2
law upon first use in Louisiana.3
(l)(i) For purposes of the sales and use tax levied by all tax authorities in this4
state a political subdivision, the term "lease or rental" shall not apply to leases or5
rentals of pallets which are used in packaging products produced by a manufacturer.6
(ii) For purposes of this Subparagraph, the term "manufacturer" shall mean7
a person whose primary activity is manufacturing and who is assigned by the8
Louisiana Workforce Commission a North American Industrial Classification System9
code within the manufacturing sectors 31-33 as they existed in 2002.10
(8)(a) "Person", except as provided in Subparagraph (c), includes any11
individual, firm, copartnership, joint adventure, association, corporation, estate, trust,12
business trust, receiver, syndicate, this state, any parish, city and parish, municipality,13
district or other political subdivision thereof or any board, agency, instrumentality,14
or other group or combination acting as a unit, and the plural as well as the singular15
number.16
(b) Solely for purposes of the payment of state sales or use tax on the lease17
or rental or the purchase of tangible personal property or services, "person" shall not18
include a regionally accredited independent institution of higher education which is19
a member of the Louisiana Association of Independent Colleges and Universities, if20
such lease or rental or purchase is directly related to the educational mission of such21
institution. However, the term "person" shall include such institution for purposes of22
the payment of tax on sales by such institution if the sales are not otherwise exempt.23
(c)(i) For purposes of the payment of the state sales and use tax and the sales24
and use tax levied by any political subdivision, The term "person" shall not include25
this state, any parish, city and parish, municipality, district, or other political26
subdivision thereof, or any agency, board, commission, or instrumentality of this state27
or its political subdivisions.28 HLS 13RS-1032 ORIGINAL
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(ii) Upon request by any political subdivision for an exemption identification1
number, the Department of Revenue shall issue such number. The secretary may2
promulgate rules and regulations in accordance with the Administrative Procedure3
Act to carry out the provisions of this Item.4
(d)(c)(i) For purposes of the payment of the state sales and use tax and the5
sales and use tax levied by any political subdivision, the term "person" shall not6
include a church or synagogue that is recognized by the United States Internal7
Revenue Service as entitled to exemption under Section 501(c)(3) of the United States8
Internal Revenue Code.9
(ii) The secretary of the Department of Revenue shall promulgate rules and10
regulations defining the terms "church" and "synagogue" for purposes of this11
exclusion. The definitions shall be consistent with the criteria established by the U.S.12
Internal Revenue Service in identifying organizations that qualify for church status13
for federal income tax purposes.14
(iii) No church or synagogue shall claim exemption or exclusion from the15
state sales and use tax or the sales and use tax levied by any political subdivision16
before having obtained a certificate of authorization from the secretary of the17
Department of Revenue. The secretary shall develop applications for such18
certificates. The certificates shall be issued without charge to the institutions that19
qualify.20
(iv)(iii) The exclusion from the sales and use tax authorized by this21
Subparagraph shall apply only to purchases of bibles, song books, or literature used22
for religious instruction classes.23
(e)(i) For purposes of the payment of the state sales and use tax and the sales24
and use tax levied by any political subdivision, the term "person" shall not include the25
Society of the Little Sisters of the Poor.26
(ii) The secretary of the Department of Revenue shall promulgate rules and27
regulations for purposes of this exclusion. The definitions shall be consistent with the28 HLS 13RS-1032 ORIGINAL
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criteria established by the U.S. Internal Revenue Service in identifying tax-exempt1
status for federal income tax purposes.2
(iii) No member of the Society of the Little Sisters of the Poor shall claim3
exemption or exclusion from the state sales and use tax or the sales and use tax levied4
by any political subdivision before having obtained a certificate of authorization from5
the secretary of the Department of Revenue. The secretary shall develop applications6
for such certificates. The certificates shall be issued without charge to the entities7
which qualify.8
(f)(i) For purposes of the payment of sales and use tax levied by this state and9
any political subdivision whose boundaries are coterminous with those of the state,10
the term "person" shall not include a nonprofit entity which sells donated goods and11
spends seventy-five percent or more of its revenues on directly employing or training12
for employment persons with disabilities or workplace disadvantages.13
(ii) The secretary shall promulgate rules and regulations for the use of14
exclusion certificates for purposes of implementation of this Subparagraph. Each15
nonprofit entity electing to utilize the exclusion provided for in this Subparagraph16
shall apply for an exclusion certificate annually. Any exclusion certificate granted by17
the Department of Revenue shall be effective for a one-year period.18
(iii) The secretary shall provide forms for nonprofit entities to request an19
exclusion certificate.20
(9) "Purchaser" means and includes any person who acquires or receives any21
tangible personal property, or the privilege of using any tangible personal property,22
or receives any services pursuant to a transaction subject to tax under this Chapter.23
(10)(a)(i) Solely for the purposes of the imposition of the state sales and use24
tax, "retail sale" or "sale at retail" means a sale to a consumer or to any other person25
for any purpose other than for resale as tangible personal property, or for the lease of26
automobiles in an arm's length transaction, and shall mean and include all such27
transactions as the secretary, upon investigation, finds to be in lieu of sales; provided28
that sales for resale or for lease of automobiles in an arm's length transaction must be29 HLS 13RS-1032 ORIGINAL
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made in strict compliance with the rules and regulations. Any dealer making a sale for1
resale or for the lease of automobiles, which is not in strict compliance with the rules2
and regulations, shall himself be liable for and pay the tax.3
(ii) Solely for purposes of the imposition of the sales and use tax levied4
imposed by a political subdivision or school board, "retail sale" or "sale at retail" shall5
mean a sale to a consumer or to any other person for any purpose other than for resale6
in the form of tangible personal property, or resale of those services defined in7
Paragraph (14) of this Section provided the retail sale of the service is subject to sales8
tax in this state, and shall mean and include all such transactions as the collector, upon9
investigation, finds to be in lieu of sales; provided that sales for resale be made in10
strict compliance with the rules and regulations. Any dealer making a sale for resale,11
which is not in strict compliance with the rules and regulations shall himself be liable12
for and pay the tax. A local collector shall accept a resale certificate issued by the13
Department of Revenue, provided the taxpayer includes the parish of its principal14
place of business and local sales tax account number on the state certificate.15
However, in the case of an intra-parish transaction from dealer to dealer, the collector16
may require that the local exemption certificate be used in lieu of the state certificate.17
The department shall accommodate the inclusion of such information on its resale18
certificate for such purposes.19
(iii) "Retail sale" or "sale at retail" for purposes of sales and use taxes20
imposed by the state on transactions involving the sale for rental of automobiles21
which take place on or after January 1, 1991, and by political subdivisions on such22
transactions on or after July 1, 1996, and state sales and use taxes imposed on23
transactions involving the lease or rental of tangible personal property other than24
automobiles which take place on or after July 1, 1991, means a sale to a consumer or25
to any other person for any purpose other than for resale as tangible personal property,26
or for lease or rental in an arm's length transaction in the form of tangible personal27
property, and shall mean and include all such transactions as the secretary, upon28
investigation, finds to be in lieu of sales; provided that sales for resale or for lease or29 HLS 13RS-1032 ORIGINAL
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rental in an arm's length transaction must be made in strict compliance with the rules1
and regulations. Any dealer making a sale for resale or for lease or rental, which is2
not in strict compliance with the rules and regulations, shall himself be liable for and3
pay the tax. For purposes of the imposition of the tax imposed by any political4
subdivision of the state, for the period beginning on July 1, 1999, and ending on June5
30, 2000, the term "retail sale" or "sale at retail" shall not include one-fourth of the6
sales price of any tangible personal property which is sold in order to be leased or7
rented in an arm's length transaction in the form of tangible personal property. For8
purposes of the imposition of the tax imposed by any political subdivision of the state,9
for the period beginning on July 1, 2000, and ending on June 30, 2001, the term "retail10
sale" or "sale at retail" shall not include one-half of the sales price of any tangible11
personal property which is sold in order to be leased or rented in an arm's length12
transaction in the form of tangible personal property. For purposes of the imposition13
of the tax imposed by any political subdivision of the state, for the period beginning14
on July 1, 2001, and ending on June 30, 2002, the term "retail sale" or "sale at retail"15
shall not include three-fourths of the sales price of any tangible personal property16
which is sold in order to be leased or rented in an arm's length transaction in the form17
of tangible personal property. Beginning July 1, 2002, for the purposes of imposition18
of the tax levied by any For purposes of sales and use taxes imposed by a political19
subdivision of the state, the term "retail sale" or "sale at retail" shall not include the20
sale of any tangible personal property which is sold in order to be leased or rented in21
an arm's length transaction in the form of tangible personal property.22
(iv) "Retail sale" or "sale at retail", for purposes of sales and use taxes23
imposed by the state on transactions involving the sale for rental of automobiles24
which take place prior to January 1, 1991, and by political subdivisions on such25
transactions prior to July 1, 1996, and imposed on transactions involving the lease or26
rental of tangible personal property other than autos which take place prior to July 1,27
1991, and for purposes of local sales and use taxes levied by political subdivisions28
except for transactions involving the sale for rental of automobiles on or after July 1,29 HLS 13RS-1032 ORIGINAL
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1996, means a sale to a consumer or to any other person for any purpose other than1
for resale in the form of tangible personal property, and shall mean and include all2
such transactions as the secretary, upon investigation, finds to be in lieu of sales;3
provided that sales for resale must be made in strict compliance with the rules and4
regulations. Any dealer making a sale for resale, which is not in strict compliance5
with the rules and regulations, shall himself be liable for and pay the tax. However,6
contrary provisions of law notwithstanding, any political subdivision may, by7
ordinance, adopt the definition of "retail sale" or "sale at retail" provided in Item (iii)8
of this Subparagraph for purposes of the imposition of its sales and use tax.9
(vi) Solely for purposes of the payment of state sales and use tax, until10
January 1, 2007, the term "sale at retail" shall not include purchases made in11
connection with the filming or production of a motion picture by a motion picture12
production company which has been relieved from the payment of state sales and use13
tax under the provisions of Chapter 12 of Subtitle II of this Title, also known as the14
"Louisiana Motion Picture Incentive Act". This exclusion shall be retroactively15
revoked if it is determined that a motion picture production company that has been16
relieved from payment of state sales and use tax under Chapter 12 failed to meet the17
conditions of such relief.18
(b)(i) Solely for purposes of the sales and use tax levied by the state, the sale19
of tangible personal property to a dealer who purchases said property for resale20
through coin-operated vending machines shall be considered a "sale at retail", subject21
to such tax. The subsequent resale of the property by the dealer through22
coin-operated vending machines shall not be considered a "sale at retail".23
(ii) Solely for purposes of the sales and use tax levied imposed by a political24
subdivisions subdivision, the term "sale at retail" shall include the sale of tangible25
personal property by a dealer through coin-operated vending machines.26
(c)(i)(aa)The (i) Solely for purposes of sales and use taxes imposed by a27
political subdivision of the state, the term "sale at retail" does not include sale of28 HLS 13RS-1032 ORIGINAL
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materials for further processing into articles of tangible personal property for sale at1
retail.2
(bb) Solely for purposes of the sales and use tax levied by the state, natural3
gas when used in the production of iron in the process known as the "direct reduced4
iron process" is not a catalyst and is recognized by the legislature to be a material for5
further processing into an article of tangible personal property for sale at retail.6
(ii)(aa) Solely for purposes of the sales and use tax levied by the state, the7
term "sale at retail" does not include sales of electricity for chlor-alkali manufacturing8
processes.9
(bb) (ii) The term "sale at retail" does not include an isolated or occasional10
sale of tangible personal property by a person not engaged in such business.11
(d) The Solely for purposes of sales and use taxes imposed by a political12
subdivision of the state, the term "sale at retail" does not include the sale of any13
human tissue transplants, which shall be defined to include all human organs, bone,14
skin, cornea, blood, or blood products transplanted from one individual into another15
recipient individual.16
(e) The Solely for purposes of sales and use taxes imposed by a political17
subdivision of the state, the term "sale at retail" does not include the sale of raw18
agricultural commodities, including but not limited to feed, seed, and fertilizer, to be19
utilized in preparing, finishing, manufacturing, or producing crops or animals for20
market. The Department of Agriculture and Forestry shall develop and promulgate21
guidelines to determine who meets this definition. Any person meeting such22
guidelines shall receive a certificate from the Department of Agriculture and Forestry23
indicating that such person is eligible to purchase such items without paying tax24
thereon. The guidelines promulgated pursuant to this Paragraph shall not become25
effective prior to January 1, 1995.26
(f) Notwithstanding any other law to the contrary, solely for purposes of the27
imposition of the sales and use tax of any a political subdivision, the sale of a vehicle28 HLS 13RS-1032 ORIGINAL
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subject to the Vehicle Registration License Tax Law (R.S. 47:451 et seq.) shall be1
deemed to be a "retail sale" or a "sale at retail":2
(i) In the political subdivision of the principal residence of the purchaser if3
the vehicle is purchased for private use, or4
(ii) In the political subdivision of the principal location of the business if the5
vehicle is purchased for commercial use, unless the vehicle purchased for commercial6
use is assigned, garaged, and used outside of such political subdivision, in which case7
the sale shall be deemed a "retail sale" or a "sale at retail" in the political subdivision8
where the vehicle is assigned, garaged, and used.9
(g) The Solely for purposes of sales and use taxes imposed by a political10
subdivision of the state, the term "retail sale" does not include a sale of corporeal11
movable property which is intended for future sale to the United States government12
or its agencies, when title to such property is transferred to the United States13
government or its agencies prior to the incorporation of that property into a final14
product.15
(h) The Solely for purposes of sales and use taxes imposed by a political16
subdivision of the state, the term "sale at retail" does not include the sale of food17
items by youth serving organizations chartered by congress.18
(i) The Solely for purposes of sales and use tax imposed by a political19
subdivision, the term "sale at retail" does not include the purchase of a new school bus20
or a used school bus which is less than five years old by an independent operator,21
when such bus is to be used exclusively in a public school system. This exclusion22
shall apply to all sales and use taxes levied by any local political subdivision.23
(j) The Solely for purposes of sales and use taxes imposed by a political24
subdivision of the state, the term "sale at retail" does not include the sale of tangible25
personal property to food banks, as defined in R.S. 9:2799.26
(k) The Solely for purposes of sales and use tax imposed by a political27
subdivision, the term "sale at retail" shall not include the sale of airplanes or airplane28
equipment or parts to a commuter airline domiciled in Louisiana.29 HLS 13RS-1032 ORIGINAL
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(l) Solely for purposes of the state sales and use tax, the term "sale at retail"1
shall not include the sale of a pollution control device or system. Pollution control2
device or system The term "pollution control device or system" shall mean any3
tangible personal property approved by the Department of Revenue and the4
Department of Environmental Quality and sold or leased and used or intended for the5
purpose of eliminating, preventing, treating, or reducing the volume or toxicity or6
potential hazards of industrial pollution of air, water, groundwater, noise, solid waste,7
or hazardous waste in the state of Louisiana. For the purposes of any sales and use8
tax levied by a political subdivision, the term "sale at retail" shall include the sale of9
a pollution control device or system. In order to qualify, the pollution control device10
or system must demonstrate either: a net decrease in the volume or toxicity or11
potential hazards of pollution as a result of the installation of the device or system;12
or that installation is necessary to comply with federal or state environmental laws or13
regulations.14
(m) The Solely for purposes of sales and use taxes imposed by a political15
subdivision, the term "sale at retail" shall not include the sales of Louisiana16
manufactured or assembled passenger aircraft with a capacity in excess of fifty17
persons, if, after all transportation, including transportation by the purchaser, has been18
completed, the aircraft is ultimately received by the purchaser outside of Louisiana.19
(n) For purposes of sales and use taxes imposed or levied by the state or any20
political subdivision thereof, the term "sale at retail" shall not include the sales of21
pelletized paper waste when purchased for use as combustible fuel by an electric22
utility or in an industrial manufacturing, processing, compounding, reuse, or23
production process, including the generation of electricity or process steam, at a fixed24
location in this state. However, such sale shall not be excluded unless the purchaser25
has signed a certificate stating that the fuel purchased is for the exclusive use26
designated herein. For purposes of this Subparagraph, "pelletized paper waste" means27
pellets produced from discarded waste paper that has been diverted or removed from28
solid waste which is not marketable for recycling and which is wetted, extruded,29 HLS 13RS-1032 ORIGINAL
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shredded, or formulated into compact pellets of various sizes for use as a1
supplemental fuel in a permitted boiler.2
(o) For the purposes of sales and use taxes imposed or levied by the state or3
any local governmental subdivision or school board, the The term "sale at retail" shall4
not include the sale or purchase of equipment used in fire fighting by bona fide5
volunteer and public fire departments.6
(p) For purposes of state and political subdivision sales and use tax, the term7
"sale at retail" shall not include the sale of items, including but not limited to supplies8
and equipment, or the sale of services as provided in this Section, which are9
reasonably necessary for the operation of free hospitals.10
(q) For purposes of state and political subdivision sales and use tax Solely for11
purposes of sales and use taxes imposed by a political subdivision, the term "sale at12
retail" shall not include:13
(i) The sale of tangible personal property by approved parochial and private14
elementary and secondary schools which comply with the court order from the Dodd15
Brumfield decision and Section 501(c)(3) of the Internal Revenue Code, or students,16
administrators, or teachers, or other employees of the school, if the money from such17
sales, less reasonable and necessary expenses associated with the sale, is used solely18
and exclusively to support the school or its program or curricula. This exclusion shall19
not be construed to allow tax-free sales to students or their families by promoters or20
regular commercial dealers through the use of schools, school faculty, or school21
facilities.22
(ii) The sale to approved parochial and private elementary and secondary23
schools which comply with the court order from the Dodd Brumfield decision and24
Section 501(c)(3) of the Internal Revenue Code of educational materials or equipment25
used for classroom instruction limited to books, workbooks, computers, computer26
software, films, videos, and audio tapes.27
(r) For purposes of state and political subdivision sales and use tax Solely for28
purposes of sales and use taxes imposed by a political subdivision, the term "sale at29 HLS 13RS-1032 ORIGINAL
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retail" shall not include the sale of tangible personal property to Boys State of1
Louisiana, Inc. and Girls State of Louisiana, Inc. which is used by such organizations2
for their educational and public service programs for youth.3
(s) The term "sale at retail" or "retail sale", for purposes of sales and use taxes4
imposed by the state or any political subdivision or other taxing entity, shall not5
include any charge, fee, money, or other consideration received, given, or paid for the6
performance of funeral directing services. For purposes of this Subparagraph,7
"funeral directing services" means the operation of a funeral home, or by way of8
illustration and not limitation, any service whatsoever connected with the9
management of funerals, or the supervision of hearses or funeral cars, the cleaning or10
dressing of dead human bodies for burial, and the performance or supervision of any11
service or act connected with the management of funerals from time of death until the12
body or bodies are delivered to the cemetery, crematorium, or other agent for the13
purpose of disposition. However, such services shall not mean or include the sale,14
lease, rental, or use of any tangible personal property as those terms are defined in this15
Section.16
(t) For Solely for purposes of sales and use taxes levied imposed by the state17
or any a political subdivision of the state, the term "sale at retail" shall not include the18
transfer of title to or possession of telephone directories by an advertising company19
that is not affiliated with a provider of telephone services if the telephone directories20
will be distributed free of charge to the recipients of the telephone directories.21
(u) For purposes of sales and use taxes levied and imposed by local22
governmental subdivisions, school boards, and other political subdivisions whose23
boundaries are not coterminous with those of the state, "sale at retail" by a person24
shall not mean or include the sale of tangible personal property if such sale is made25
under the provisions of Medicare.26
(v) For purposes of the imposition Solely for purposes of sales and use taxes27
imposed or levied by all taxing authorities in the state by a political subdivision, in28
the case of the sale or other disposition by a dealer of any cellular, PCS, or wireless29 HLS 13RS-1032 ORIGINAL
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telephone, or any electronic accessories that are physically connected with such1
telephones and personal communication devices used in connection with the sale or2
use of mobile telecommunications services, the term "retail sale" or "sale at retail"3
shall mean and include the sale or any other disposition of such cellular, PCS, or4
wireless telephone, any electronic accessories that are physically connected with such5
telephones and personal communication devices by the dealer to the purchaser, but6
shall not mean or include the withdrawal, use, distribution, consumption, storage,7
donation, or any other disposition of any such cellular, PCS, or wireless telephone,8
any electronic accessories that are physically connected with such telephones, and9
personal communication devices by the dealer.10
(w) For purposes of the imposition of sales and use taxes imposed or levied11
by any political subdivision of the state, in the case of the sale or other disposition by12
a dealer of any cellular telephone, PCS telephone, wireless telephone, or other13
wireless personal communication device that is used in connection with the sale or14
use of mobile telecommunications services, or any electronic accessory that is15
physically connected with any such telephone or personal communication device, the16
term "retail sale" or "sale at retail" shall mean and include the sale or any other17
disposition of any such telephone, other personal communication device, or electronic18
accessory.19
(x) For purposes of the sales and use tax imposed by the state or any political20
subdivision whose boundaries are coterminous with those of the state, the terms21
"retail sale" or "sale at retail" shall not include the following:22
(i) The sale or purchase by a person of any fuel or gas, including but not23
limited to butane and propane.24
(ii) Beginning July 1, 2008, the sale or purchase by any person of butane and25
propane.26
(y)(i) Solely for the purposes of sales and use taxes levied by the state or any27
imposed by a political subdivision whose boundaries are coterminous with those of28
the state, the term "sale at retail" shall not include the sale of manufacturing29 HLS 13RS-1032 ORIGINAL
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machinery and equipment used or consumed in this state to manufacture, produce, or1
extract unblended biodiesel.2
(ii) As used in this Subparagraph, the following words and phrases have the3
meaning ascribed to them:4
(aa) "Manufacturing machinery and equipment" means tangible property used5
or consumed, or held for use or consumption, as an integral part of a biodiesel6
manufacturing, production, or extraction facility, process, or item of equipment.7
Property shall be considered to be an integral part of such biodiesel manufacturing,8
production, or extraction facility, process, or item of equipment only if such property9
is used or consumed directly in the manufacturing, production, or extraction process10
or is part of, physically attached to, or otherwise directly associated with such11
property. Property, the installation of which is reasonably necessary for the proper12
installation, operation, maintenance of property which directly results in such13
manufacturing, production, or extraction shall be considered as directly associated14
with such property.15
(bb) "Unblended biodiesel" means a fuel comprised of mono-alkyl esters of16
long chain fatty acids derived from vegetable oils or animal fats, designated B100,17
and meeting the requirements of the definition provided for in D 6751 of the18
American Society of Testing and Materials (ATDM D 6751), before such fuel is19
blended with a petroleum-based diesel fuel.20
(z) Solely for the purposes of sales and use taxes levied by the state or any21
political subdivision whose boundaries are coterminous with those of the state, the22
term "sale at retail" shall not include the sale of any alternative substance when such23
alternative substance is used as a fuel by a manufacturer. "Alternative substance"24
means any substance other than oil and natural gas and any product of oil and natural25
gas. "Alternative substance" shall include petroleum coke, landfill gas, reclaimed or26
waste oil, unblended biodiesel, or tire-derived fuel, but not coal, lignite, refinery gas,27
nuclear fuel, or electricity. "Manufacturer" means a person whose principal activity28
is manufacturing and who is assigned by the Louisiana Workforce Commission a29 HLS 13RS-1032 ORIGINAL
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North American Industrial Classification System code with the agricultural, forestry,1
fishing, and hunting Sector 11 or the manufacturing Sectors 31-33 as they existed in2
2002.3
(aa) (i) For purposes of sales and use taxes imposed or levied by the state or4
any political subdivision of the state, the term "sale at retail" shall not include the sale5
of toys to a non-profit organization exempt from federal taxation pursuant to Section6
501(c)(3) of the Internal Revenue Code if the sole purpose of the purchasing7
organization is to donate toys to minors and the toys are, in fact, donated.8
(ii) The exclusion provided in this Subparagraph shall not apply if the9
donation is intended to ultimately yield a profit to a promoter of the organization or10
to any individual contracted to provide services or equipment, or both, to the11
organization.12
(iii) A certificate of exclusion shall be obtained from the secretary or the tax13
collector of the political subdivision, under such regulations as he shall prescribe, in14
order for nonprofit organizations to qualify for the exclusion provided for in this15
Subparagraph.16
(bb) For purposes of sales and use taxes imposed or levied by the state, the17
terms "retail sale" and "sale at retail" shall not include sales of natural gas to be held,18
used, or consumed in providing natural gas storage services or operating natural gas19
storage facilities.20
(cc) For (aa) Solely for purposes of the sales and use tax imposed by the21
state or any a political subdivision of the state, the terms "retail sale" or "sale at retail"22
shall not mean or include the purchase of textbooks and course-related software by23
a private postsecondary academic degree-granting institution, accredited by a national24
or regional commission that is recognized by the United States Department of25
Education and is licensed by the Board of Regents, which institution has its main26
location within this state and offers only online instruction, when all of the following27
apply:28 HLS 13RS-1032 ORIGINAL
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(i) The textbooks and course-related software are physically outside of this1
state when purchased from a vendor outside of this state and then imported into this2
state.3
(ii) The first student use of the textbooks and course-related software occurs4
outside of this state.5
(iii) The textbooks and course-related software are provided to the student6
free of charge.7
(dd) For purposes of sales and use taxes imposed or levied by the state, the8
terms "retail sale" or "sale at retail" shall not include the purchase of food items for9
school lunch or breakfast programs by nonpublic elementary or secondary schools10
which participate in the National School Lunch and School Breakfast programs or the11
purchase of food items by nonprofit corporations which serve students in nonpublic12
elementary or secondary schools and which participate in the National School Lunch13
and School Breakfast programs.14
(ee)(i) Solely for the purposes of the imposition of the state sales and use tax,15
the term "retail sale" and "sale at retail" shall not include the sale of any storm shutter16
device.17
(ii) As used in this Subparagraph, "storm shutter device" means materials and18
products manufactured, rated, and marketed specifically for the purpose of preventing19
window damage from storms.20
(iii) The secretary of the Department of Revenue, in consultation with the21
Department of Insurance, shall promulgate such rules and regulations in accordance22
with the Administrative Procedure Act as may be necessary to carry out the23
provisions of this Subparagraph.24
(ff) (bb) For purposes of sales taxes imposed by the state or any political25
subdivision of the state, the term "retail sale" or "sale at retail" shall not include sales26
of tangible personal property by the Military Department, state of Louisiana, which27
occur on an installation or other property owned or operated by the Military28
Department.29 HLS 13RS-1032 ORIGINAL
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(gg) (cc) For purposes of sales and use tax imposed by the state or any1
political subdivision of the state, the term "sale at retail" shall not include the sale of2
anthropogenic carbon dioxide for use in a qualified tertiary recovery project approved3
by the assistant secretary of the office of conservation of the Department of Natural4
Resources pursuant to R.S. 47:633.4.5
(hh) (dd) For purposes of sales and use tax imposed by the state, any political6
subdivision whose boundaries are coterminous with those of the state, or any other7
political subdivision, the term "sale at retail" shall not include the sale of tangible8
personal property at an event providing Louisiana heritage, culture, crafts, art, food,9
and music which is sponsored by a domestic nonprofit organization that is exempt10
from tax under Section 501(c)(3) of the Internal Revenue Code. The provisions of11
this Subparagraph shall apply only to an event which transpires over a minimum of12
seven but not more than twelve days and has a five-year annual average attendance13
of at least three hundred thousand over the duration of the event. For purposes of14
determining the five-year annual average attendance, the calculation shall include the15
total annual attendance for each of the five most recent years. The provisions of this16
Subparagraph shall apply only to sales by the sponsor of the event.17
(11) "Retailer" means and includes every person engaged in the business of18
making sales at retail or for distribution, or use or consumption, or storage to be used19
or consumed in this state.20
(12) "Sale" means any transfer of title or possession, or both, exchange,21
barter, conditional or otherwise, in any manner or by any means whatsoever, of22
tangible personal property, for a consideration, and includes the fabrication of23
tangible personal property for consumers who furnish, either directly or indirectly, the24
materials used in fabrication work, and the furnishing, preparing or serving, for a25
consideration, of any tangible personal property, consumed on the premises of the26
person furnishing, preparing or serving such tangible personal property. A transaction27
whereby the possession of property is transferred but the seller retains title as security28
for the payment of the price shall be deemed a sale.29 HLS 13RS-1032 ORIGINAL
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(13)(a) "Sales price" means the total amount for which tangible personal1
property is sold, less the market value of any article traded in including any services,2
except services for financing, that are a part of the sale valued in money, whether paid3
in money or otherwise, and includes the cost of materials used, labor or service costs,4
except costs for financing which shall not exceed the legal interest rate and a service5
charge not to exceed six percent of the amount financed, and losses; provided that6
cash discounts allowed and taken on sales shall not be included, nor shall the sales7
price include the amount charged for labor or services rendered in installing, applying,8
remodeling, or repairing property sold.9
(b) The Solely for purposes of sales and use taxes imposed by a political10
subdivision, the term "sales price" shall not include any amount designated as a cash11
discount or a rebate by the vendor or manufacturer of any new vehicle subject to the12
motor vehicle license tax. For purposes of this Paragraph "rebate" means any amount13
offered by a vendor or manufacturer as a deduction from the listed retail price of the14
vehicle.15
(c) Solely for purposes of sales and use taxes imposed by a political16
subdivision, "Sales price" shall not include the first fifty thousand dollars of the sale17
price of new farm equipment used in poultry production.18
(d) Notwithstanding any other provision of law to the contrary, for purposes19
of state and political subdivision sales and use tax, the "sales price" of refinery gas,20
except for feedstock, not ultimately consumed as an energy source by the person who21
owns the facility in which the refinery gas is created as provided for in Subparagraph22
(18)(d) of this Section, but sold to another person, whether at retail or wholesale, shall23
be fifty-two cents per thousand cubic feet multiplied by a fraction the numerator of24
which shall be the posted price for a barrel of West Texas Intermediate Crude Oil on25
December first of the preceding calendar year and the denominator of which shall be26
twenty-nine dollars, and provided further that such sales price shall be the maximum27
value placed upon refinery gas by the state and by any political subdivision under any28 HLS 13RS-1032 ORIGINAL
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authority or grant of power to levy and collect sales or use taxes, and such sale shall1
be taxable.2
(e) The term "sales price", for purposes of the sales tax imposed by the state3
and its political subdivisions, shall exclude any amount that a manufacturer pays4
directly to a dealer of the manufacturer's product for the purpose of reducing and that5
actually results in an equivalent reduction in the retail "sales price" of that product.6
This exclusion shall not apply to the value of the manufacturer's coupons that dealers7
accept from purchasers as part payment of the "sales price" and that are redeemable8
by the dealers through manufacturers or their agents. The value of such coupons is9
deemed to be part of the "sales price" of the product purchased through the use of the10
coupons.11
(f) The term "sales price" shall exclude any charge, fee, money, or other12
consideration received, given, or paid for the performance of funeral directing13
services as defined in Subparagraph (10)(s) of this Section.14
(g) For purposes of the imposition of Solely for purposes of sales and use15
taxes imposed or levied by all taxing authorities in the state by a political16
subdivision, in the case of the retail sale by a dealer of any cellular, PCS, or wireless17
telephone, any electronic accessories that are physically connected with such18
telephones and personal communications devices used in connection with the sale or19
use of mobile telecommunications services, as defined in R.S. 47:301(10)(v), the term20
"sales price" shall mean and include only the amount of money, if any, actually21
received by the dealer from the purchaser for each such cellular, PCS, or wireless22
telephone and any electronic accessories that are physically connected with such23
telephones and personal communication devices, but shall not include (i) any amount24
received by the dealer from the purchaser for providing mobile telecommunications25
services, or (ii) any commissions, fees, rebates, or other amounts received by the26
dealer from any source other than the purchaser as a result of or in connection with27
the sale of the cellular, PCS, or wireless telephone, any electronic accessories that are28
physically connected with such telephones and personal communication devices.29 HLS 13RS-1032 ORIGINAL
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(h) For the purpose of the imposition of sales and use tax imposed or levied1
by all taxing authorities in the state of any cellular, PCS, or wireless telephone used2
in connection with the sale or use of mobile telecommunications services, as defined3
in R.S. 47:301(10)(v), after January 1, 2002, the term "sales price" shall mean and4
include the greater of (i) the amount of money actually received by the dealer from5
the purchaser for each such telephone, or (ii) twenty-five percent of the cost of such6
telephone to the dealer, but shall not include any amount received by the dealer from7
the purchaser for providing mobile telecommunications services or any commissions,8
fees, rebates, or other amounts received by the dealer from any source other than the9
purchaser as a result of or in connection with the sale of the telephone.10
(i)(i) For Solely for purposes of sales and use taxes imposed by a political11
subdivision, for purposes of a publishing business which distributes its news12
publications at no cost to readers and pays unrelated third parties to print such news13
publications, the term "sales price" shall mean only the lesser of the following costs:14
(aa) The printing cost paid to unrelated third parties to print such news15
publications, less any itemized freight charges for shipping the news publications16
from the printer to the publishing business and any itemized charges for paper and17
ink.18
(bb) Payments to a dealer or distributor as consideration for distribution of the19
news publications.20
(ii) The definition of "sales price" provided for in this Subparagraph shall be21
applicable to taxes levied by all tax authorities in the state.22
(j) For the purpose of the imposition of sales and use tax imposed or levied23
by any political subdivision of the state, in the case of any retail sale or sale at retail,24
of any cellular telephone, PCS telephone, or wireless telephone used in connection25
with the sale or use of mobile telecommunications services, as defined in R.S.26
47:301(10)(w), or any electronic accessory that is physically connected with any such27
telephone or personal communication device, the term "sales price" shall mean and28
include the greater of (i) the amount of money, if any, actually received by the dealer29 HLS 13RS-1032 ORIGINAL
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from the purchaser at the time of the retail sale or sale at retail by the dealer to the1
purchaser for each such telephone, personal communication device, or electronic2
accessory, or (ii) twenty-five percent of the cost of such telephone to the dealer, but3
shall not include any amount received by the dealer from the purchaser for providing4
mobile telecommunications services or any commissions, fees, rebates, activation5
charges, or other amounts received by the dealer from any source other than the6
purchaser as a result of or in connection with the sale of the telephone.7
(k)(i) For purposes of the imposition of the sales tax levied by the state and8
any political subdivision whose boundaries are coterminous with those of the state,9
the sales price of machinery and equipment purchased by a manufacturer for use in10
a plant facility predominately and directly in the actual manufacturing for agricultural11
purposes or the actual manufacturing process of an item of tangible personal property,12
which is for ultimate sale to another and not for internal use, at one or more fixed13
locations within Louisiana shall be reduced as follows: 14
(aa) For the period ending on June 30, 2005, the sales price shall be reduced15
by five percent.16
(bb) For the period beginning July 1, 2005, and ending on June 30, 2006, the17
sales price shall be reduced by nineteen percent.18
(cc) For the period beginning July 1, 2006, and ending on June 30, 2007, the19
sales price shall be reduced by thirty-five percent.20
(dd) For the period beginning July 1, 2007, and ending on June 30, 2008, the21
sales price shall be reduced by fifty-four percent.22
(ee) For the period beginning July 1, 2008, and ending on June 30, 2009, the23
sales price shall be reduced by sixty-eight percent.24
(ff) For all periods beginning on or after July 1, 2009, the sales price shall be25
reduced by one hundred percent.26
(ii) For purposes of this Subparagraph, "machinery and equipment",27
"manufacturer", "manufacturing", "manufacturing for agricultural purposes","plant28 HLS 13RS-1032 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
(iii) 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
(iv) 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
(l)(i) For purposes of the payment of the state sales and use tax and the sales10
and use tax levied by any (k)(i) Solely for purposes of sales and use taxes imposed11
by a political subdivision, the term "sales price" shall not include the price of12
specialty items sold to members for fund-raising purposes by nonprofit carnival13
organizations domiciled within Louisiana and participating in a parade sponsored by14
a carnival organization.15
(ii) The secretary of the Department of Revenue shall promulgate rules and16
regulations for purposes of this exclusion.17
(iii) No nonprofit carnival organization domiciled within Louisiana and18
participating in a parade sponsored by a carnival organization shall claim exemption19
or exclusion from the state sales and use tax or the sales and use tax levied by any20
political subdivision before having obtained a certificate of authorization. from the21
secretary of the Department of Revenue. The secretary shall develop applications for22
such certificates. The certificates shall be issued without charge to the entities which23
qualify.24
(m) (l) For purposes of the sales and use tax imposed by the state or any25
political subdivision whose boundaries are coterminous with those of the state, the26
"sales price" of electric power or energy, or natural gas for the period beginning July27
1, 2007, and thereafter, sold for use by paper or wood products manufacturing28
facilities shall not include any of such price.29 HLS 13RS-1032 ORIGINAL
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(14) "Sales of services" means and includes the following:1
(a) The furnishing of sleeping rooms, cottages or cabins by hotels.2
(b)(i) The Solely for purposes of sales and use taxes imposed by a political3
subdivision, the sale of admissions to places of amusement, to athletic entertainment4
other than that of schools, colleges, and universities, and recreational events, and the5
furnishing, for dues, fees, or other consideration of the privilege of access to clubs or6
the privilege of having access to or the use of amusement, entertainment, athletic, or7
recreational facilities; but the term "sales of services" shall not include membership8
fees or dues of nonprofit, civic organizations, including by way of illustration and not9
of limitation the Young Men's Christian Association, the Catholic Youth10
Organization, and the Young Women's Christian Association.11
(ii) Places Solely for purposes of sales and use taxes imposed by a political12
subdivision, places of amusement shall not include "museums", which are hereby13
defined as public or private nonprofit institutions which are organized on a permanent14
basis for essentially educational or aesthetic purposes and which use professional staff15
to do all of the following:16
(aa) Own or use tangible objects, whether animate or inanimate.17
(bb) Care for those objects.18
(cc) Exhibit them to the public on a regular basis.19
(iii) Museums include but are not limited to the following institutions:20
(aa) Museums relating to art, history, including historic buildings, natural21
history, science, and technology.22
(bb) Aquariums and zoological parks.23
(cc) Botanical gardens and arboretums.24
(dd) Nature centers.25
(ee) Planetariums.26
(iv) For purposes of the sales and use taxes of all tax authorities in the state27
a political subdivision, the term "places of amusement" as used herein shall not28
include camp and retreat facilities owned and operated by nonprofit organizations29 HLS 13RS-1032 ORIGINAL
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exempt from federal income tax under Section 501(a) of the Internal Revenue Code1
as an organization described in Section 501(c)(3) of the Internal Revenue Code2
provided that the net revenue derived from the organization's property is devoted3
wholly to the nonprofit organization's purposes.4
(c) The furnishing of storage or parking privileges by auto hotels and parking5
lots.6
(d) The furnishing of printing or overprinting, lithographic, multilith, blue7
printing, photostating or other similar services of reproducing written or graphic8
matter.9
(e) The furnishing of laundry, cleaning, pressing and dyeing services,10
including by way of extension and not of limitation, the cleaning and renovation of11
clothing, furs, furniture, carpets and rugs, and the furnishing of storage space for12
clothing, furs and rugs.13
(f) The furnishing of cold storage space, except that space which is furnished14
pursuant to a bailment arrangement, and the furnishing of the service of preparing15
tangible personal property for cold storage where such service is incidental to the16
operation of storage facilities.17
(g)(i)(aa) The furnishing of repairs to tangible personal property, including18
but not restricted to the repair and servicing of automobiles and other vehicles,19
electrical and mechanical appliances and equipment, watches, jewelry, refrigerators,20
radios, shoes, and office appliances and equipment.21
(bb) For purposes of the sales and use tax levied by the state and by tax22
authorities in East Feliciana Parish, charges for the furnishing of repairs to tangible23
personal property may be excluded from sales of services, as defined in this24
Subparagraph, when the repaired property is delivered to the customer in another state25
either by common carrier or the repair dealer's own vehicle, however, as to aircraft,26
delivery may be by the best available means. This exclusion shall not apply to sales27
and use taxes levied by any other parish, municipality or school board. However, any28
other parish, municipality or school board may apply the exclusion as defined in this29 HLS 13RS-1032 ORIGINAL
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Subparagraph to sales or use taxes levied by any such parish, municipality, or school1
board. Offshore areas shall not be considered another state for the purpose of this2
Subparagraph.3
(ii) For the purposes of this Subparagraph, tangible personal property shall4
include machinery, appliances, and equipment which have been declared immovable5
by declaration under the provisions of Article 467 of the Louisiana Civil Code, and6
things which have been separated from land, buildings, or other constructions7
permanently attached to the ground or their component parts as defined in Article 4668
of the Civil Code.9
(iii)(aa) For purposes of the sales and use taxes imposed by the state or any10
of its political subdivisions, sale of services shall not include the labor, or sale of11
materials, services, and supplies, used for the repairing, renovating, or converting of12
any drilling rig, or machinery and equipment which are component parts thereof,13
which is used exclusively for the exploration or development of minerals outside the14
territorial limits of the state in Outer Continental Shelf waters.15
(bb) For the purposes of this Subitem, "drilling rig" means any unit or16
structure, along with its component parts, which is used primarily for drilling,17
workover, intervention or remediation of wells used for exploration or development18
of minerals and "component parts" means any machinery or equipment necessary for19
a drilling rig to perform its exclusive function of exploration or development of20
minerals.21
(h) The Solely for purposes of sales and use taxes imposed by a political22
subdivision, the term "sale of service" shall not include an action performed pursuant23
to a contract with the United States Department of the Navy for construction or24
overhaul of U.S. Naval vessels.25
(i) Solely for purposes of the sales and use tax levied by the state, the26
furnishing of telecommunications services for compensation, in accordance with the27
provisions of R.S. 47:301.1. Local political subdivisions are prohibited from levying28
a sales and use tax on telecommunications services not in effect on July 1, 1990,29 HLS 13RS-1032 ORIGINAL
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provided, however, that the provisions of this Subparagraph shall not be construed to1
prohibit the levy or collection of any franchise, excise, gross receipts, or similar tax2
or assessment by any political subdivision of the state as defined in Article VI,3
Section 44(2) of the Constitution of Louisiana.4
(j) Notwithstanding any provision of law to the contrary, for purposes of sales5
or use taxation by the state or any local political subdivision, the term "sales of6
services" shall not mean or include any funeral directing services as defined in7
Subparagraph (10)(s) of this Section. Subject to approval by the House Committee on8
Ways and Means and the Senate Committee on Revenue and Fiscal Affairs, the state9
Department of Revenue shall devise a formula for the calculation of the tax.10
(k) For Solely for purposes of sales and use tax imposed by the state, any11
a political subdivision whose boundaries are coterminous with those of the state, or12
any other political subdivision, the term "sales of services" shall not mean or include13
admission charges for, outside gate admissions to, or parking fees associated with an14
event providing Louisiana heritage, culture, crafts, art, food, and music which is15
sponsored by a domestic nonprofit organization that is exempt from tax under Section16
501(c)(3) of the Internal Revenue Code. The provisions of this Subparagraph shall17
apply only to an event which transpires over a minimum of seven but not more than18
twelve days and has a five-year annual average attendance of at least three hundred19
thousand over the duration of the event. For purposes of determining the five-year20
annual average attendance, the calculation shall include the total annual attendance21
for each of the five most recent years. The provisions of this Subparagraph shall22
apply only to admission charges for, outside gate admissions to, or parking fees23
associated with an event when the charges and fees are payable to or for the benefit24
of the sponsor of the event.25
(15) "Storage" means and includes any keeping or retention in the taxing26
jurisdiction of tangible personal property for use or consumption within the taxing27
jurisdiction or for any purpose other than for sale at retail in the regular course of28
business.29 HLS 13RS-1032 ORIGINAL
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(16)(a) "Tangible personal property" means and includes personal property1
which may be seen, weighed, measured, felt or touched, or is in any other manner2
perceptible to the senses.3
(b) The term "tangible personal property" shall not include:4
(i) Stocks, bonds, notes, or other obligations or securities.5
(ii) Gold, Solely for purposes of sales and use taxes imposed by a political6
subdivision, gold, silver, or numismatic coins, or platinum, gold, or silver bullion7
having a total value of one thousand dollars or more.8
(iii) Proprietary Solely for purposes of sales and use taxes imposed by a9
political subdivision, proprietary geophysical survey information or geophysical data10
analysis furnished under a restricted use agreement even though transferred in the11
form of tangible personal property.12
(c) The Solely for purposes of sales and use tax imposed by a political13
subdivision, the term "tangible personal property" shall not include the repair of a14
vehicle by a licensed motor vehicle dealer which is performed subsequent to the lapse15
of the applicable warranty on that vehicle and at no charge to the owner of the16
vehicle. For the purpose of assessing a sales and use tax on this transaction, no17
valuation shall be assigned to the services performed or the parts used in the repair.18
(d)(i) Notwithstanding any provision of law to the contrary and solely for19
purposes of state sales and use tax, any sale of a prepaid calling service or prepaid20
wireless calling service, or both, shall be deemed to be the sale of tangible personal21
property.22
(ii) Prepaid calling services and prepaid wireless calling services shall be23
subject to the tax imposed by this Chapter if the sale takes place in this state. If the24
customer physically purchases a prepaid calling service or prepaid wireless calling25
service at the vendor's place of business, the sale is deemed to take place at the26
vendor's place of business. If the customer does not physically purchase the service27
at the vendor's place of business, the sale of a prepaid calling service or prepaid28 HLS 13RS-1032 ORIGINAL
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wireless calling service is deemed to take place at the first of the following locations1
that applies to the sale:2
(aa) The customer's shipping address, if the sale involves a shipment.3
(bb) The customer's billing address.4
(cc) Any other address of the customer that is known by the vendor.5
(dd) The address of the vendor or, alternatively in the case of a prepaid6
wireless calling service, the location associated with the mobile telephone number.7
(e) The Solely for purposes of sales and use taxes imposed by a political8
subdivision, the term "tangible personal property" shall not include work products9
which are written on paper, stored on magnetic or optical media, or transmitted by10
electronic device, when such work products are created in the normal course of11
business by any person licensed or regulated by the provisions of Title 37 of the12
Louisiana Revised Statutes of 1950, unless such work products are duplicated without13
modification for sale to multiple purchasers. This exclusion shall not apply to work14
products which consist of the creation, modification, updating, or licensing of15
computer software.16
(f) The Solely for purposes of sales and use taxes imposed by a political17
subdivision, the term "tangible personal property" shall not include pharmaceuticals18
administered to livestock used for agricultural purposes, except as otherwise provided19
in this Subparagraph. Only pharmaceuticals not included in the term "tangible20
personal property" shall be registered with the Louisiana Department of Agriculture21
and Forestry. Legend drugs administered to livestock used for agricultural purposes22
are not required to be registered, but such legend drugs that are not registered shall23
be "tangible personal property".24
(g)(i) Notwithstanding Solely for purposes of sales and use taxes imposed by25
a political subdivision, notwithstanding the provisions of R.S. 9:1149.1 et seq., except26
as otherwise provided in this Subparagraph, the term "tangible personal property"27
shall not include factory built homes.28 HLS 13RS-1032 ORIGINAL
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(ii) For purposes of this Subparagraph, "factory built home" means a1
residential structure which is built in a factory in one or more sections and has a2
chassis or integrated wheel delivery system, which is either:3
(aa) A structure built to federal construction standards as defined in Section4
5402 of Title 42 of the United States Code.5
(bb) A residential structure built to the Louisiana State Uniform Construction6
Code.7
(cc) A manufactured home, modular home, mobile home, or residential8
mobile home with or without a permanent foundation, which includes plumbing,9
heating, and electrical systems.10
(iii) "Factory built home" shall not include any self-propelled recreational11
vehicle or travel trailer.12
(iv) The "tangible personal property" as applied to sales and use taxes levied13
by the state or any other taxing authority in the state shall include a new factory built14
home, for the initial sale from a dealer to a consumer, but only . Solely for purposes15
of sales and use taxes imposed by a political subdivision, a factory built home shall16
only be considered tangible personal property to the extent that forty-six percent of17
the retail sales price shall be so considered as "tangible personal property".18
Thereafter, each subsequent resale of a factory built home shall not be considered as19
"tangible personal property".20
(v) The sales and use taxes due on these transactions shall be paid to the21
Louisiana Department of Public Safety and Corrections, office of motor vehicles, by22
the twentieth day of the month following the month of delivery of the factory built23
home to the consumer, along with any other information requested by the office of24
motor vehicles.25
(h)(i) Solely for purposes of the imposition of the sales and use tax levied by26
the state or any political subdivision whose boundaries are coterminous with those of27
the state, for the period beginning July 1, 2002, and ending on June 30, 2003, the term28 HLS 13RS-1032 ORIGINAL
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"tangible personal property" shall not include one-quarter of the cost price of custom1
computer software.2
(ii) Solely for purposes of the imposition of the sales and use tax levied by the3
state or any political subdivision whose boundaries are coterminous with those of the4
state, for the period beginning July 1, 2003, and ending on June 30, 2004, the term5
"tangible personal property" shall not include one-half of the cost price of custom6
computer software.7
(iii) Solely for purposes of the imposition of the sales and use tax levied by8
the state or any political subdivision whose boundaries are coterminous with those of9
the state, for the period beginning July 1, 2004, and ending on June 30, 2005, the term10
"tangible personal property" shall not include three-quarters of the cost price of11
custom computer software.12
(iv) Solely for purposes of the imposition of the sales and use tax levied by13
the state or any political subdivision whose boundaries are coterminous with those of14
the state, for all taxable periods beginning on or after July 1, 2005, and ending on15
December 31, 2013, the term "tangible personal property" shall not include custom16
computer software.17
(i) Solely for purposes of the imposition of the state sales and use tax, the18
term "tangible personal property" shall not include digital television conversion19
equipment and digital radio conversion equipment as defined in this Section.20
(i) "Digital television conversion equipment" shall include the following:21
(aa) DTV transmitter and RF system.22
(bb) Transmission line.23
(cc) DTV antenna.24
(dd) Tower.25
(ee) Existing tower structural upgrade.26
(ff) Advanced TV receiver (STL receiver).27
(gg) Decoder (digital to analog converter for NTSC).28
(hh) DTV transmission system test and monitoring.29 HLS 13RS-1032 ORIGINAL
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(ii) Digital video/audio master control switcher.1
(jj) Analog to digital conversion.2
(kk) High definition up-converters.3
(ll) High definition bypass switcher.4
(mm) Down converters for standard definition.5
(nn) Advanced TV transmitter (STL transmitter).6
(oo) Advanced TV signal encoder.7
(pp) DTV transmission monitoring.8
(qq) High definition digital video switcher and DVE.9
(rr) High definition studio cameras.10
(ss) High definition graphics/graphic generator.11
(tt) High definition video monitoring.12
(uu) Conversion gear.13
(vv) High definition recorder/players, including tape, disk, etc.14
(ww) High definition video/audio signal router.15
(xx) High definition video/audio media server.16
(yy) MPEG or HDTV digital receivers for program content.17
(zz) High definition recorder/players, including tape, disk, etc.18
(aaa) High definition video/audio media server and workstations.19
(bbb) Digital EAS encoder/decoder.20
(ccc) High definition camcorder, including tape, disk, etc.21
(ddd) Advanced TV transmitters, including microwave.22
(ii) "Digital radio conversion equipment" shall include the following:23
(aa) IBOC transmitter.24
(bb) IBOC main channel and IBOC combiner.25
(cc) IBOC compatible antenna.26
(dd) Tower.27
(ee) IBOC coaxial bypass switcher.28
(ff) Digital STL.29 HLS 13RS-1032 ORIGINAL
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(gg) STL heliax transmission line.1
(hh) STL antenna.2
(ii) Digital console.3
(jj) EAS insertion.4
(kk) AES EBU conversion equipment.5
(ll) IBOL transmission testing and monitoring equipment.6
(mm) Digital processor.7
(iii) The exclusion from state sales and use tax authorized by this8
Subparagraph shall only apply to the first purchase of each enumerated item by an9
individual taxpayer who holds a Federal Communications Commission license issued10
pursuant to 47 CFR Part 73. Individual taxpayers operating under several broadcaster11
licenses shall be allowed one purchase of each enumerated item per license. Each12
subsequent purchase of any of the enumerated items by the same taxpayer or license13
holder shall be subject to sales and use tax.14
(v) Any eligible taxpayer who has purchased any item enumerated in Item (i)15
or (ii) of this Subparagraph subsequent to January 1, 1999, but prior to the effective16
date of this Act, shall be entitled to a credit against the state sales and use tax due in17
any year for an amount equal to state sales and use tax paid on the purchase of the18
item.19
(vi) Local taxing authorities are hereby authorized to provide an exemption20
from any local sales and use tax liability to any taxpayers holding a Federal21
Communications Commission license issued pursuant to 47 CFR Part 73 which has22
purchased any of the equipment listed in Item (i) or (ii) of this Subparagraph. Local23
taxing authorities are further authorized to provide a credit against any tax liability24
for the amount of local sales tax paid by taxpayers holding Federal Communications25
Commission licenses issued pursuant to 47 CFR Part 73 on any equipment listed in26
Item (i) or (ii) of the Subparagraph purchased subsequent to January 1, 1999, but prior27
to June 25, 2002.28 HLS 13RS-1032 ORIGINAL
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(vii) No exclusion from state sales and use tax as authorized in this1
Subsection shall be allowed after the Federal Communications Commission has2
issued an order mandating license holders, issued pursuant to 47 CFR Part 73, to3
discontinue broadcasting their analog signal.4
(viii) The Department of Revenue shall adopt rules and regulations necessary5
for the implementation of this Act no later than August 1, 2002.6
(j) (i) The Solely for purposes of sales and use taxes imposed by a political7
subdivision, the term "tangible personal property", for purposes of the payment of8
sales and use taxes levied by all tax authorities in the state, shall not include materials9
used directly in the collection, separation, treatment, testing, and storage of blood by10
nonprofit blood banks and nonprofit blood collection centers.11
(k) The (j) Solely for purposes of sales and use taxes imposed by a political12
subdivision, the term "tangible personal property" for purposes of the sales and use13
taxes imposed by all tax authorities in this state shall not include apheresis kits and14
leuko reduction filters used by nonprofit blood banks and nonprofit blood collection15
centers.16
(l) (k) For purposes of the sales and use tax imposed by the state of Louisiana,17
by a political subdivision whose boundaries are coterminous with those of the state,18
or by all political subdivisions of the state and without regard to the nature of the19
ownership of the ground, tangible personal property shall not include other20
constructions permanently attached to the ground which shall be treated as immovable21
property.22
(m) (l)(i) Notwithstanding any other provision of law to the contrary, for23
purposes of the sales and use tax levied by the state or any political subdivision whose24
boundaries are coterminous with those of the state a political subdivision, the term25
"tangible personal property" shall not include machinery and equipment used by a26
motor vehicle manufacturer with a North American Industry Classification System27
(NAICS) Code beginning with 3361, or by a glass container manufacturer with a28 HLS 13RS-1032 ORIGINAL
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NAICS Code of 327213. This exclusion shall be subject to the definitions and1
requirements of Item (3)(i)(ii) of this Section.2
(ii) A political subdivision may provide for a sales and use tax exemption for3
the sales, cost, or lease or rental price of manufacturing machinery and equipment as4
provided for in this Section, either effective upon adoption or enactment or phased in5
over a period of time, or effective for a certain period of time or duration, all as set6
forth in the instrument, resolution, vote, or other affirmative action providing the7
exemption.8
(iii) Notwithstanding any other provision of this Section, tooling in a9
compression mold process shall be considered manufacturing machinery and10
equipment for purposes of this Section.11
(n) (i) For purposes of the imposition of the sales and use tax levied by the12
state, the term "tangible personal property" shall not include machinery and13
equipment purchased by the owner of a radio station located within the state that is14
licensed by the Federal Communications Commission for radio broadcasting, if the15
owner is either of the following:16
(aa) An individual domiciled in the state who owns a business with17
substantially all of its assets located in the state and substantially all of its payroll paid18
in the state.19
(bb) A business entity with substantially all of its assets located in the state20
and substantially all of its payroll paid in the state; provided that the business entity21
is not owned or controlled or is otherwise an affiliate of a multi-state business entity22
and is not owned or controlled by an individual who is not domiciled in the state.23
(ii) "Radio broadcasting" means the sound transmission made via24
electromagnetic waves for direct sound reception by the general public.25
(o) (i) For purposes of the imposition of the sales and use tax levied by the26
state and any political subdivision whose boundaries are coterminous with those of27
the state, the term "tangible personal property" shall not include machinery and28
equipment as defined in and subject to the requirements of R.S. 47:301(3)(i)(ii) which29 HLS 13RS-1032 ORIGINAL
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is purchased by a utility regulated by the Public Service Commission or the council1
of the City of New Orleans. For the purposes of this Paragraph, the term "utility"2
shall mean a person regulated by the Public Service Commission or the council of the3
City of New Orleans who is assigned a North American Industrial Classification4
System Code 22111, Electric Power Generation, as it existed in 2002. Such utility5
shall also be considered a "manufacturer" for purposes of R.S. 47:301(3)(i)(ii).6
(ii) For purposes of this Subparagraph, a A political subdivision whose7
boundaries are not coterminous with those of the state may provide for a sales and use8
tax exclusion for machinery and equipment as defined in and subject to the9
requirements of R.S. 47:301(3)(i)(ii) which is purchased by a utility regulated by the10
Public Service Commission or the council of the city of New Orleans.11
(p) (o) For purposes of sales and use taxes imposed by the state or any of its12
any political subdivisions, the term "tangible personal property" shall not include13
newspapers.14
(q) (p) For purposes of sales and use taxes imposed by the state, any statewide15
taxing authority, or any political subdivision, the term "tangible personal property"16
shall not include any property that would have been considered immovable property17
prior to the enactment on July 1, 2008, of Act No. 632 of the 2008 Regular Session18
of the Legislature.19
(17) "Off-road vehicle" is any vehicle manufactured for off road use which20
is issued a manufacturer's statement of origin that cannot be issued a registration21
certificate and license to operate on the public roads of this state because at the time22
of manufacture the vehicle does not meet the safety requirements prescribed by R.S.23
32:1301 through R.S. 32:1310. This includes vehicles that are issued a title only by24
the Vehicle Registration Bureau, Department of Public Safety and Corrections, such25
as all terrain vehicles and recreational and sport vehicles, but it does not include off26
road vehicles used for farm purposes, farm equipment, or heavy construction27
equipment.28 HLS 13RS-1032 ORIGINAL
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(18)(a)(i) Solely for purposes of the imposition of the state sales and use tax,1
"use" means and includes the exercise of any right or power over tangible personal2
property incident to the ownership thereof, except that it shall not include the sale at3
retail of that property in the regular course of business or the donation to a school in4
the state which meets the definition provided in R.S. 17:236 or to a public or5
recognized independent institution of higher education in the state of property6
previously purchased for resale in the regular course of a business. The term "use"7
shall not include the purchase, the importation, the consumption, the distribution, or8
the storage of automobiles to be leased in an arm's length transaction, nor shall the9
term "use" include the donation of food items to a food bank as defined in R.S.10
9:2799(B).11
(ii) For purposes of the imposition of the sales and use tax levied by a12
political subdivision or school board, "use" shall mean and include the exercise of any13
right or power over tangible personal property incident to the ownership thereof,14
except that it shall not include the sale at retail of that property in the regular course15
of business or the donation to a school in the state which meets the definition16
provided in R.S. 17:236 or to a public or recognized independent institution of higher17
education in the state of property previously purchased for resale in the regular course18
of a business. The term "use" shall not include the donation of food items to a food19
bank as defined in R.S. 9:2799(B).20
(iii) The term "use", for purposes of sales and use taxes imposed by the state21
on the use for rental of automobiles which take place on or after January 1, 1991, and22
by political subdivisions on such use on or after July 1, 1996, and state sales and use23
taxes imposed on the use for lease or rental of tangible personal property other than24
automobiles which take place on or after July 1, 1991, shall not include the purchase,25
the importation, the consumption, the distribution, or the storage of tangible personal26
property to be leased or rented in an arm's length transaction as tangible personal27
property. For purposes of the imposition of the tax levied by any political subdivision28
of the state, for the period beginning July 1, 1999, and ending on June 30, 2000, the29 HLS 13RS-1032 ORIGINAL
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term "use" shall not include one-fourth of the cost price of any tangible personal1
property which is purchased, imported, consumed, distributed, or stored and which2
is to be leased or rented in an arm's length transaction in the form of tangible personal3
property. For purposes of the imposition of the tax levied by any political subdivision4
of the state, for the period beginning July 1, 2000, and ending on June 30, 2001, the5
term "use" shall not include one-half of the cost price of any tangible personal6
property which is purchased, imported, consumed, distributed, or stored and which7
is to be leased or rented in an arm's length transaction in the form of tangible personal8
property. For purposes of the imposition of the tax levied by any political subdivision9
of the state, for the period beginning July 1, 2001, and ending on June 30, 2002, the10
term "use" shall not include three-fourths of the cost price of any tangible personal11
property which is purchased, imported, consumed, distributed, or stored and which12
is to be leased or rented in an arm's length transaction in the form of tangible personal13
property. Beginning July 1, 2002, for purposes of the imposition of the tax levied by14
any political subdivision of the state, the term "use" shall not include the purchase,15
the importation, the consumption, the distribution, or the storage of any tangible16
personal property which is to be leased or rented in an arm's length transaction in the17
form of tangible personal property.18
(iv) The term "use", for purposes of sales and use taxes imposed by the state19
on the use for rental automobiles which take place prior to January 1, 1991, and by20
political subdivisions on such use prior to July 1, 1996, and imposed on the use for21
lease or rental of tangible personal property other than automobiles which take place22
prior to July 1, 1991, and for purposes of local sales and use taxes levied by political23
subdivisions, except for any use for rental automobiles on or after July 1, 1996, shall24
include the purchase, the importation, the consumption, the distribution, or the storage25
of tangible personal property to be leased or rented in an arm's length transaction as26
tangible personal property.27
(b) Notwithstanding any other law to the contrary, for purposes of the28
imposition of the sales and use tax of any political subdivision, the use of a vehicle29 HLS 13RS-1032 ORIGINAL
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subject to the Vehicle Registration License Tax Law (R.S. 47:451 et seq.) shall be1
deemed to be a "use":2
(i) In the political subdivision of the principal residence of the purchaser if3
the vehicle is purchased for private use, or4
(ii) In the political subdivision of the principal location of the business if the5
vehicle is purchased for commercial use, unless the vehicle purchased for commercial6
use is assigned, garaged, and used outside of such political subdivision, in which case7
the use shall be deemed a use in the political subdivision where the vehicle is8
assigned, garaged, and used.9
(c) For purposes of state and political subdivision sales and use tax, "use"10
shall not include the exercise of any right or power by a free hospital over items,11
including but not limited to supplies and equipment, which are reasonably necessary12
for the operation of the free hospital.13
(d)(i) Notwithstanding any other provision of law to the contrary, and except14
as provided in Item (iii) of this Subparagraph, for purposes of state and sales and use15
taxes imposed by a political subdivision sales and use tax, "use" means and includes16
the exercise of any right or power over tangible personal property incident to the17
ownership thereof, except that it shall not include the further processing of tangible18
personal property into articles of tangible personal property for sale.19
(ii) Except as provided in Item (iii) of this Subparagraph for refinery gas, for20
purposes of state and sales and use taxes imposed by a political subdivision use tax,21
"use" shall not include the storage, consumption, or the exercise of any other right of22
ownership over tangible personal property which is created or derived as a residue or23
byproduct of such processing. Such residue or byproduct shall include but shall not24
be limited to catalyst cracker coke derived from crude oil, wood chips, bark, and25
liquor derived from the processing of sawlogs or pulpwood timber, or bagasse derived26
from sugarcane.27
(iii) Notwithstanding any other provision of law to the contrary, and28
notwithstanding the provisions of this Subparagraph, "use" shall include the exercise29 HLS 13RS-1032 ORIGINAL
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of any right of ownership over the consumption, the distribution, and the storage for1
use or consumption in this state of refinery gas, except the sale to another person,2
whether at retail or wholesale, only if the refinery gas is ultimately consumed as an3
energy source by the person who owns the facility in which it is created and is not4
sold. Notwithstanding any other law to the contrary, the use of refinery gas shall be5
taxed at the cost price value provided in Subparagraph (3)(f) of this Section. If6
refinery gas, except for feedstock, is sold to another person, whether at retail, or7
wholesale, such sale shall be taxable and the sales price value shall be as provided for8
in Subparagraph (13)(d) of this Section. The provisions of this Item shall not apply9
to feedstocks.10
(e) For Solely for purposes of state and sales and use taxes imposed by11
a political subdivision sales and use tax, "use" shall not include the purchase of or the12
exercise of any right or power over:13
(i) Tangible personal property sold by approved parochial and private14
elementary and secondary schools which comply with the court order from the Dodd15
Brumfield decision and Section 501(c)(3) of the Internal Revenue Code, or students,16
administrators, or teachers, or other employees of the school, if the money from such17
sales, less reasonable and necessary expenses associated with the sale, is used solely18
and exclusively to support the school or its program or curricula.19
(ii) Educational materials or equipment used for classroom instruction by20
approved parochial and private elementary and secondary schools which comply with21
the court order from the Dodd Brumfield decision and Section 501(c)(3) of the22
Internal Revenue Code, limited to books, workbooks, computers, computer software,23
films, videos, and audio tapes.24
(f) For Solely for purposes of state and sales and use taxes imposed by25
a political subdivision sales and use tax, "use" shall not include the purchase of or the26
exercise of any right or power over tangible personal property used by Boys State of27
Louisiana, Inc. and Girls State of Louisiana, Inc. for their educational and public28
service programs for youth.29 HLS 13RS-1032 ORIGINAL
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(g) Notwithstanding any provision of law to the contrary, for purposes of1
sales or use taxation by the state or any local political subdivision, the term "use" shall2
not mean or include any funeral directing services as defined in Subparagraph (10)(s)3
of this Section.4
(h) For Solely for purposes of sales and use taxes levied by the state or any5
imposed by a political subdivision of the state, the term "use" shall not include the6
exercise of any right of ownership in or the distribution of telephone directories7
acquired by an advertising company that is not affiliated with a provider of telephone8
services if the telephone directories will be distributed free of charge to the recipients9
of the telephone directories.10
(i) For Solely for purposes of the imposition of sales and use taxes imposed11
or levied by all taxing authorities in the state by a political subdivision, in the case of12
the sale or any other disposition by a dealer of any cellular, PCS, or wireless13
telephone, any electronic accessories that are physically connected with such14
telephones and personal communications devices used in connection with the sale or15
use of mobile telecommunications services, as defined in R.S. 47:301(10)(v), the term16
"use" shall not include the withdrawal, use, distribution, consumption, storage,17
donation, or any other disposition of any such cellular, PCS, or wireless telephone,18
any electronic accessories that are physically connected with such telephones and19
personal communications devices by the dealer.20
(j) For purposes of the imposition of sales and use taxes imposed or levied by21
any a political subdivision of the state, in the case of the sale or any other disposition22
by a dealer of any cellular telephone, PCS telephone, wireless telephone, or other23
wireless personal communication device that is used in connection with the sale or24
use of mobile telecommunications services, as defined in R.S. 47:301(10)(w), or any25
electronic accessory that is physically connected with any such telephone or personal26
communications device, the term "use" shall not include the withdrawal, use,27
distribution, consumption, storage, donation, or any other disposition of any such28
telephone or electronic accessory by the dealer.29 HLS 13RS-1032 ORIGINAL
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(k) Solely for purposes of the sales and use tax levied by the state or any1
imposed by a political subdivision whose boundaries are coterminous with those of2
the state, the term "use" shall not include the purchase, the use, the consumption, the3
distribution, the storage for use or consumption, or the exercise of any right or power4
over manufacturing machinery and equipment used or consumed in this state to5
manufacture, produce or extract unblended biodiesel.6
(l) Solely for the purposes of sales and use taxes levied by the state or any7
imposed by a political subdivision whose boundaries are coterminous with those of8
the state, the term "use" shall not include the use, the consumption, the distribution,9
the storage for use or consumption in this state, or the exercise of any right or power10
over an alternative substance as that term is defined in Subparagraph (10)(z) of this11
Section when such alternative substance is used as a fuel by a manufacturer.12
"Manufacturer" means a person whose principal activity is manufacturing and who13
is assigned by the Louisiana Workforce Commission a North American Industrial14
Classification System code with the agricultural, forestry, fishing, and hunting Sector15
11 or the manufacturing Sectors 31-33 as they existed in 2002.16
(m)(i) For the Solely for purposes of sales and use taxes imposed or levied by17
the state or any by a political subdivision of the state, the term "use" shall not include18
the purchase of or the exercise of any right or power over toys by a non-profit19
organization exempt from federal taxation pursuant to Section 501(c)(3) of the20
Internal Revenue Code if the sole purpose of the purchasing organization is to donate21
toys to minors and the toys are, in fact, donated.22
(ii) The exclusion provided for in this Subparagraph shall be subject to the23
same conditions as are provided for in Items (10)(aa)(ii) and (iii) of this Section.24
(n) For Solely for purposes of sales and use tax imposed by the state or any25
a political subdivision of the state, the term "use" shall not mean or include the26
purchase, importation, storage, distribution, or exportation of, or exercise of any right27
or power over, textbooks and course-related software by a private postsecondary28
academic degree-granting institution, accredited by a national or regional commission29 HLS 13RS-1032 ORIGINAL
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that is recognized by the United States Department of Education and is licensed by1
the Board of Regents, which institution has its main location within this state and2
offers only online instruction, when all of the following apply:3
(i) The textbooks and course-related software are physically outside of this4
state when purchased from a vendor outside of this state and then imported into this5
state.6
(ii) The first student use of the textbooks and course-related software occurs7
outside of this state.8
(iii) The textbooks and course-related software are provided to the student9
free of charge.10
(o) Solely for purposes of the imposition of the state sales and use tax, the11
term "use" shall not include the purchase or use of any storm shutter device as defined12
and provided for in Subparagraph (10)(ee) of this Section.13
(p) For Solely for purposes of sales and use tax imposed by the state or any14
a political subdivision of the state, the term "use" shall not mean or include the15
purchase, importation, storage, distribution or exercise of any right or power over16
anthropogenic carbon dioxide used in a qualified tertiary recovery project approved17
by the assistant secretary of the office of conservation of the Department of Natural18
Resources pursuant to R.S. 47:633.4.19
(19) "Use tax" includes the use, the consumption, the distribution, and the20
storage as herein defined. No use tax shall be due to or collected by:21
(a) The state on tangible personal property used, consumed, distributed, or22
stored for use or consumption in the state if the sale of such property would have been23
exempted or excluded from sales tax at the time such property became subject to the24
taxing jurisdiction of the state.25
(b) Any political subdivision on tangible personal property used, consumed,26
distributed, or stored for use or consumption in such political subdivision if the sale27
of such property would have been exempted or excluded from sales tax at the time28
such property became subject to the taxing jurisdiction of the political subdivision.29 HLS 13RS-1032 ORIGINAL
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(20) "Drugs" includes all pharmaceuticals and medical devices which are1
prescribed for use in the treatment of any medical disease.2
(21) "Free hospital" means a hospital that does not charge any patients for3
health care provided by the hospital.4
(22) The term "computer software" means a set of statements, data, or5
instructions to be used directly or indirectly in a computer in order to bring about a6
certain result in any form in which those statements, data, or instructions may be7
embodied, transmitted, or fixed, by any method now known or hereafter developed,8
regardless of whether the statements, data, or instructions are capable of being9
perceived by or communicated to humans. Computer software includes all types of10
software including operational, applicational, utilities, compilers, and all other forms.11
(23)(a) The term "custom computer software" means computer software12
prepared, created, adapted, or modified to the special order of a particular purchaser,13
licensee, or user; or to meet the specific needs or requirements of a particular14
purchaser, licensee, or user, regardless of the means by or through which such15
computer software is furnished, delivered, or transmitted, and regardless of whether16
such software incorporates or consists of preexisting routines, utilities, or other17
computer software components.18
(b) In order to be considered "custom computer software", the computer19
software must require preparation, creation, adaption, or modification by the vendor20
in order to be used in a specific work environment or to perform a specific function21
for the user.22
(c) Updates, upgrades, and new versions of custom computer software shall23
be considered custom computer software, provided such upgrades, updates, and new24
versions meet the definition of custom computer software contained in this Chapter.25
(24) The term "news publication" shall mean any printed periodical that:26
(a) Appears at regular intervals.27
(b) Contains reports of a varied character, such as political, social, cultural,28
sports, moral, religious, or other subjects of general public interest.29 HLS 13RS-1032 ORIGINAL
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(c) Contains not more than seventy-five percent advertising.1
(d) Is not owned or published as an auxiliary to another nonpublishing2
business, organization, or entity.3
(25) "Taxing authority" shall mean and include both the state and a statewide4
political subdivision and any political subdivision of the state authorized under the5
Constitution or laws of the state of Louisiana to levy and collect a sales and use tax,6
unless the context indicates otherwise. For purposes of the Uniform Local Sales Tax7
Code provided for in Chapter 2D of this Subtitle, "taxing authority" shall mean any8
political subdivision of the state authorized under the Constitution or laws of the state9
of Louisiana to levy and collect a sales and use tax, except a statewide political10
subdivision.11
(26) "Taxing jurisdiction" shall mean the area within the physical boundaries12
of the taxing authority.13
(27) "Tax", "sales and use tax", and "sales tax" shall mean the sales and use14
tax imposed by the state pursuant to the provisions of this Chapter and Chapter 2-A15
and 2-B of this Subtitle and the tax imposed by political subdivisions under the16
constitution or laws of this state authorizing the imposition of a sales and use tax.17
(28)(a) For purposes of the imposition of the lease or rental tax levied by the18
state and any political subdivision whose boundaries are coterminous with those of19
the state, the "gross proceeds", "monthly lease or rental price paid", and "monthly20
lease or rental price contracted or agreed to be paid" for machinery and equipment21
used by a manufacturer in a plant facility predominately and directly in the actual22
manufacturing for agricultural purposes or the actual manufacturing process of an23
item of tangible personal property, including, but not limited to rubber tired farm24
tractors, cane harvesters, cane loaders, cotton pickers, combines, haybalers,25
attachments and sprayers, clippers, cultivators, discs, plows, and spreaders, which is26
for ultimate sale to another and not for internal use, at one or more fixed locations27
within Louisiana shall be reduced as follows:28
(i) For the period ending on June 30, 2005, by five percent.29 HLS 13RS-1032 ORIGINAL
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(ii) For the period beginning July 1, 2005, and ending on June 30, 2006, by1
nineteen percent.2
(iii) For the period beginning July 1, 2006, and ending on June 30, 2007, by3
thirty-five percent.4
(iv) For the period beginning July 1, 2007, and ending on June 30, 2008, by5
fifty-four percent.6
(v) For the period beginning July 1, 2008, and ending on June 30, 2009, by7
sixty-eight percent.8
(vi) For all periods beginning on or after July 1, 2009, the sales price shall9
be reduced by one hundred percent.10
(b) For purposes of this Paragraph, "machinery and equipment",11
"manufacturer", "manufacturing", "manufacturing for agricultural purposes","plant12
facility", and "used directly" shall have the same meaning as defined in R.S.13
47:301(3)(i)(ii).14
(c) No person shall be entitled to purchase, use, lease, or rent machinery or15
equipment as defined herein without payment of the tax imposed by R.S. 47:302, 321,16
and 331 before receiving a certificate of exclusion from the secretary of the17
Department of Revenue certifying that he is a manufacturer as defined herein.18
(d) The secretary of the Department of Revenue is hereby authorized to adopt19
rules and regulations in order to administer the exclusion provided for in this20
Subparagraph.21
(e) The manufacturer's exemption certificate granted by the Department of22
Revenue shall serve as a substitute for the sales tax exemption for certain farm23
equipment.24
(29) (28) With respect to the furnishing of telecommunications and ancillary25
services, as used in this Chapter the following words, terms, and phrases have the26
meaning ascribed to them in this Paragraph, unless the context clearly indicates a27
different meaning:28 HLS 13RS-1032 ORIGINAL
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(a) "Air-to-Ground Radiotelephone service" means a radio service, as that1
term is defined in 47 C.F.R. 22.99, in which common carriers are authorized to offer2
and provide radio telecommunications service for hire to subscribers in aircraft.3
(b) "Ancillary service" means a service that is associated with or incidental4
to the provision of one or more telecommunications services, including but not5
limited to conference bridging services, detailed telecommunications billing services,6
directory assistance services, vertical services, and voice mail services.7
(c) "Call-by-call basis" means any method of charging for8
telecommunications services where the price is measured by individual calls.9
(d) "Call center" means one or more locations that utilize telecommunications10
services in one or more of the following activities: customer services, soliciting sales,11
reactivating dormant accounts, conducting surveys or research, fundraising, collection12
of receivables, receiving reservations, receiving orders, or taking orders.13
(e) "Communications channel" means a physical or virtual path of14
communications over which signals are transmitted between or among customer15
channel termination points.16
(f) "Conference bridging service" means a service that links two or more17
participants of an audio or video conference call and may include the provision of a18
telephone number. "Conference bridging service" does not include any19
telecommunications services used to reach the conference bridge.20
(g) "Customer" means the person or entity that contracts with the seller of21
telecommunications services. If the end user of the telecommunications service is not22
the contracting party, the end user of the telecommunications service is the customer23
of the telecommunications service, but only for the purpose of sourcing sales of24
telecommunications services under R.S. 47:301.1(A). "Customer" does not include25
a reseller of telecommunications service or for mobile telecommunications service of26
a serving carrier under an agreement to serve the customer outside the home service27
provider's licensed service area.28 HLS 13RS-1032 ORIGINAL
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(h) "Customer channel termination point" means, in the context of a private1
communications service, the location where the customer either inputs or receives2
communications.3
(i) "Detailed telecommunications billing service" means a service of4
separately stating information pertaining to individual calls on a customer's billing5
statement.6
(j) "Directory assistance" means a service of providing telephone number or7
address information, or both.8
(k) "End user" means the person who utilizes the telecommunications service.9
In the case of an entity, "end user" means the individual who utilizes the service on10
behalf of the entity.11
(l) "Home service provider" has the same meaning given to such term in12
Section 124(5) of the Mobile Telecommunications Sourcing Act, P.L. 106-252, 413
U.S.C. 124(5).14
(m) "International telecommunications service" means a telecommunications15
service that originates or terminates in the United States and terminates or originates16
outside the United States, respectively. The United States includes each of the fifty17
United States, the District of Columbia, and each United States territory, or18
possession.19
(n) "Interstate telecommunications service" means a telecommunications20
service that originates in one U.S. state, territory, or possession, and terminates in a21
different U.S. state, territory, or possession.22
(o) "Intrastate telecommunications service" means a telecommunications23
service that originates in one U.S. state, territory or possession, and terminates in the24
same U.S. state, territory, or possession.25
(p) "Mobile telecommunications service" has the same meaning given to such26
term in Section 124(7) of the Mobile Telecommunications Sourcing Act, P.L. 106-27
252, 4 U.S.C. 124(7).28 HLS 13RS-1032 ORIGINAL
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(q) "Mobile wireless service" means a telecommunications service, regardless1
of the technology used, whereby the origination or termination points, or both, of the2
transmission, conveyance or routing are not fixed, including but not limited to3
telecommunications services that are provided by a commercial mobile radio service4
provider.5
(r) "Place of primary use" means the street address representative of where6
the customer's use of the telecommunications service primarily occurs, which must7
be the residential street address or the primary business street address of the customer.8
In the case of mobile telecommunications services, the place of primary use must be9
within the licensed service area of the home service provider.10
(s) "Postpaid calling service" means a telecommunications service obtained11
by making a payment on a call-by-call basis either through the use of a credit card or12
payment mechanism such as a bank card, travel card, credit card, or debit card, or by13
charge made to a telephone number which is not associated with the origination or14
termination of the telecommunications service. A postpaid calling service includes15
a telecommunications service, except a prepaid wireless calling service, that would16
be a prepaid calling service, except that the right provided is not exclusively to access17
telecommunications services.18
(t) "Prepaid calling service" means the right to access exclusively19
telecommunications services, which must be paid for in advance and which enables20
the origination of calls using an access number or authorization code, whether21
manually or electronically dialed, and that is sold in predetermined units or dollars of22
which the number declines with use in a known amount.23
(u) "Prepaid wireless calling service" means a telecommunications service24
that provides the right to utilize mobile wireless service as well as non-25
telecommunications services, including the download of digital products delivered26
electronically, content, and ancillary services, which must be paid for in advance and27
which is sold in predetermined units or dollars of which the number declines with use28
in a known amount.29 HLS 13RS-1032 ORIGINAL
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(v) "Private communication service" means a telecommunications service that1
entitles the customer to exclusive or priority use of a communications channel or2
group of channels between or among termination points, regardless of the manner in3
which such channel or channels are connected, and includes switching capacity,4
extension lines, stations, and any other associated services that are provided in5
connection with the use of such channel or channels.6
(w) "Service address" means:7
(i) The location of the telecommunications equipment to which a customer's8
call is charged and from which the call originates or terminates, regardless of where9
the call is billed or paid.10
(ii) If the location in Item (i) of this Subparagraph is not known, "service11
address" means the origination point of the signal of the telecommunications service12
first identified by either the seller's telecommunications system or, in information13
received by the seller from its service provider, where the system used to transport14
such signals is not that of the seller.15
(iii) If the location in both Items (i) and (ii) of this Subparagraph are not16
known, "service address" means the location of the customer's place of primary use.17
(x) "Telecommunications service" means the electronic transmission,18
conveyance, or routing of voice, data, audio, video, or any other information or19
signals to a point, or between or among points. "Telecommunications service"20
includes such transmission, conveyance, or routing in which computer processing21
applications are used to act on the form, code, or protocol of the content for purposes22
of transmission, conveyance, or routing without regard to whether such service is23
referred to as voice over Internet protocol service or is classified by the Federal24
Communications Commission as an enhanced or value-added service.25
"Telecommunications service" does not include any of the following:26
(i) Data processing or information services which allow data to be generated,27
acquired, stored, processed, or retrieved and delivered by an electronic transmission28 HLS 13RS-1032 ORIGINAL
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to a purchaser where such purchaser's primary purpose for the underlying transaction1
is the processed data or information.2
(ii) Installation or maintenance of wiring or equipment on a customer's3
premises.4
(iii) Tangible personal property.5
(iv) Advertising, including but not limited to directory advertising.6
(v) Billing and collection services provided to third parties.7
(vi) Internet access service.8
(vii) Radio and television audio and video programming services, regardless9
of the medium, including the furnishing of transmission, conveyance, and routing of10
such services by the programming service provider. Radio and television audio and11
video programming services shall include but not be limited to cable service as12
defined in 47 U.S.C. 522(6) and audio and video programming services delivered by13
commercial mobile radio service providers, as defined in 47 C.F.R. 20.3.14
(viii) Ancillary services.15
(ix) Digital products delivered electronically, including but not limited to16
software, music, video, reading materials, or ring tones.17
(x) Prepaid calling service and prepaid wireless calling service.18
(y) "Vertical service" means a service that is offered in connection with one19
or more telecommunications services which offers advanced calling features that20
allow customers to identify callers and to manage multiple calls and call connections.21
(z) "Voice mail service" means a service that enables the customer to store,22
send, or receive recorded messages services. The term "voice mail service" does not23
include any telecommunications or vertical services that the customer may be24
required to have in order to utilize the voice mail service.25
ยง301.1. Telecommunications and ancillary services26
A. The sales and use tax levied by this Chapter shall apply to the sales price27
of telecommunications services in accordance with the following sourcing rules:28
* * *29 HLS 13RS-1032 ORIGINAL
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B.(1) The sales price of telecommunications services shall include, whether1
or not separately stated, charges for any of the following:2
(a) The connection, movement, change, or termination of telecommunications3
services.4
(b) Conference bridging services and vertical services if the customer's place5
of primary use is located in this state.6
(2) The sales price of telecommunications services shall not include charges7
for any of the following:8
(a) The furnishing of any telecommunications service for resale, including9
access and other interconnection charges paid by providers of telecommunications10
services and charges for the use of intercompany facilities pursuant to shared network11
facility arrangements, provided that any dealer making a sale of telecommunications12
services for resale shall obtain a certificate from the purchaser of such services13
certifying that such services are purchased for the purpose of resale, the form of the14
certification to be determined by rules and regulations to be promulgated by the15
secretary.16
(b) Ancillary services, except those specified in Paragraph (1) of this17
Subsection, if the nontaxable ancillary service charges are stated separately from the18
charges for telecommunications services.19
(c) Any excise, franchise, or similar tax or like fee or assessment levied by20
the United States, by the state of Louisiana, or by any political subdivision as defined21
in Article VI, Section 44(2) of the Constitution of Louisiana, upon the purchase, sale,22
use, or consumption of any telecommunications service, which tax, fee, or assessment23
is collected by the seller from the purchaser.24
(d) Telecommunications services paid for by inserting coins in coin-operated25
telephones available to the public.26
(e) (b) Telecommunications services or transactions defined in this Paragraph27
among entities classified as members of an affiliated group as provided by 26 U.S.C.28 HLS 13RS-1032 ORIGINAL
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1504, provided, however, that these provisions shall not apply to any sale of tangible1
personal property.2
(f) (c) Any other property or services that are not telecommunications3
services if stated separately from the charges for telecommunications services.4
* * *5
D.(1) Notwithstanding any provision of law to the contrary, with respect to6
sales of interstate telecommunications services to any person for use in the operation7
of one or more call centers, the tax imposed by this Chapter shall not exceed twenty-8
five thousand dollars per calendar year.9
(2) The limitation set forth in this Subsection shall apply only to holders of10
a direct payment number issued by the department pursuant to R.S. 47:303.1. In order11
to obtain such direct payment number, the applicant must establish that he satisfies12
the criteria set forth in this Subsection. The provisions of R.S. 47:303.1(B) shall not13
apply to any application for a direct payment number under this Subsection.14
(3) The department shall not issue any refunds of taxes paid prior to receiving15
a direct payment number.16
(4) All entities wholly owned by the same person or entity shall be considered17
a single person.18
E. D. To prevent actual multistate taxation of an interstate19
telecommunications service subject to the tax imposed by this Chapter, any taxpayer,20
upon proof that such taxpayer has paid a tax in another state on such service, shall be21
allowed a credit against the tax imposed by this Chapter to the extent of the amount22
of such tax paid in such other state.23
* * *24
ยง302. Imposition of tax25
A. There is hereby levied a tax upon the sale at retail, the use, the26
consumption, the distribution, and the storage for use or consumption in this state, of27
each item or article of tangible personal property, as defined herein, the levy of said28
tax to be as follows:29 HLS 13RS-1032 ORIGINAL
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(1) At the rate of two per centum (2%) one percent (1%) of the sales price of1
each item or article of tangible personal property when sold at retail in this state; the2
tax to be computed on gross sales for the purpose of remitting the amount of tax due3
the state, and to include each and every retail sale.4
(2) At the rate of two per centum (2%) one percent (1%) of the cost price of5
each item or article of tangible personal property when the same is not sold but is6
used, consumed, distributed, or stored for use or consumption in this state; provided7
there shall be no duplication of the tax.8
B. There is hereby levied a tax upon the lease or rental within this state of9
each item or article of tangible personal property, as defined herein; the levy of said10
tax to be as follows:11
(1) At the rate of two per centum (2%) one percent (1%) of the gross proceeds12
derived from the lease or rental of tangible personal property, as defined herein,13
where the lease or rental of such property is an established business, or part of an14
established business, or the same is incidental or germane to the said business.15
(2) At the rate of two per centum (2%) one percent (1%) of the monthly lease16
or rental price paid by lessee or rentee, or contracted or agreed to be paid by lessee17
or rentee to the owner of the tangible personal property.18
C.(1) There is hereby levied a tax upon all sales of services, as herein defined,19
in this state, at the rate of two one percent of the amounts paid or charged for such20
services.21
* * *22
D. Notwithstanding any other provision of law to the contrary, solely for23
purposes of sales and use taxes imposed by a political subdivision, no sales or use tax24
of any taxing authority shall be levied on any advertising service rendered by an25
advertising business, including but not limited to advertising agencies, design firms,26
and print and broadcast media, or any member, agent, or employee thereof, to any27
client whether or not such service also involves a transfer to the client of tangible28
personal property. However, a transfer of mass-produced advertising items by an29 HLS 13RS-1032 ORIGINAL
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advertising business which manufactures the items itself to a client for the client's use,1
which transfer involves the furnishing of minimal services other than manufacturing2
services by the advertising business shall be a taxable sale or use of tangible personal3
property; provided that in no event shall tax be levied on charges for creative services4
which are separately invoiced. 5
* * *6
ยง321. Imposition of tax7
A. In addition to the tax levied by R.S. 47:302(A) and 331(A) and collected8
under the provisions of Chapter 2 of Subtitle II of this Title, there is hereby levied an9
additional tax upon the sale at retail, the use, the consumption, the distribution, and10
the storage for use or consumption in this state of each item or article of tangible11
personal property, as defined in Chapter 2 of Subtitle II of this Title. The levy of said12
tax shall be as follows:13
(1) At the rate of eighty-eight one hundredths of one percent of the sales price14
of each item or article of tangible personal property when sold at retail in this state15
except for prepaid calling service and prepaid wireless calling service, the tax to be16
computed on gross sales for the purpose of remitting the amount of tax to the state,17
and to include each and every retail sale.18
(2) At the rate of eighty-eight one hundredths of one percent of the cost price19
of each item or article of tangible personal property except for prepaid calling service20
and prepaid wireless calling service when the same is not sold but is used, consumed,21
distributed, or stored for use or consumption in this state, provided that there shall be22
no duplication of the tax.23
B. In addition to the tax levied by R.S. 47:302(B) and 331(B) and collected24
under the provisions of Chapter 2 of Subtitle II of Title 47 of the Louisiana Revised25
Statutes of 1950, there is hereby levied a tax upon the lease or rental within this state26
of each item or article of tangible personal property, as defined by said Chapter 2 of27
Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950; the levy of said tax28
to be as follows:29 HLS 13RS-1032 ORIGINAL
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(1) At the rate of eighty-eight one hundredths of one percent of the gross1
proceeds derived from the lease or rental of tangible personal property, as defined in2
Chapter 2 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950, where3
the lease or rental of such property is in an established business, or part of an4
established business, or the same is incidental or germane to the business.5
(2) At the rate of eighty-eight one hundredths of one percent of the monthly6
lease or rental price paid by a lessee or rentee, or contracted or agreed to be paid by7
a lessee or rentee to the owner of the tangible personal property.8
C. In addition to the tax levied on sales of services by R.S. 47:302(C) and9
331(C) and collected under the provisions of Chapter 2 of Subtitle II of this Title,10
there is hereby levied a tax upon all sales of services, as defined by said Chapter 2 of11
Subtitle II of this Title, in this state, at the rate of eighty-eight one hundredths of one12
percent of the amounts paid or charged for such services; however, the tax levied by13
this Section shall not apply to the furnishing of telecommunications services for14
compensation as provided in R.S. 47:301(14)(i).15
* * *16
ยง302.1. Exemptions from lease or rental tax, helicopters 17
A. Whenever a helicopter used in the exploration for or the extraction or18
production of oil, gas, and other minerals or for providing services to those engaged19
in such extraction, production, or exploration is acquired or used through a transaction20
entitled lease, rental, lease-purchase, or any similar name which for purposes other21
than sales taxation might be considered a conditional sale contract or a transaction in22
lieu of sale, such acquisition or use shall be deemed to be a sale for state and local23
sales tax purposes. 24
* * *25
ยง305. Exclusions and exemptions from the tax26
A.(1) The gross proceeds derived from the sale in this state of livestock,27
poultry, and other farm products direct from the farm are exempted from the tax28
levied by local taxing authorities, provided that such sales are made directly by the29 HLS 13RS-1032 ORIGINAL
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producers. When sales of livestock, poultry, and other farm products are made to1
consumers by any person other than the producer, they are not exempted from the tax2
imposed by taxing authorities.3
* * *4
(3) Every agricultural commodity sold by any person, other than a producer,5
to any other person who purchases not for direct consumption but for the purpose of6
acquiring raw product for use or for sale in the process of preparing, finishing, or7
manufacturing such agricultural commodity for the ultimate retail consumer trade,8
shall be exempted from any and all provisions of the sales and use tax imposed by a9
local taxing authority, including payment of the tax applicable to the sale, storage,10
use, transfer, or any other utilization of or handling thereof, except when such11
agricultural commodity is actually sold as a marketable or finished product to the12
ultimate consumer, and in no case shall more than one tax be exacted. For the13
purposes of this Section, "agricultural commodity" means horticultural, viticultural,14
poultry, farm and range products, and livestock and livestock products.15
(4)(a) The purchase of feed and feed additives for the purpose of sustaining16
animals which are held primarily for commercial, business, or agricultural use shall17
be exempted from the taxes levied by local taxing authorities.18
(b) For purposes of this Subsection:19
(i) "Commercial use" means the purchasing, producing, or maintaining of20
animals, including breeding stock, for resale;21
(ii) "Business use" means the keeping and maintaining of animals which are22
used in performing services in conjunction with a business enterprise, such as sentry23
dogs and rental horses;24
(iii) "Agricultural use" means the maintaining of work animals and beasts of25
burden which are utilized in the activity of producing crops or animals for market, in26
the production of food for human consumption, in the production of animal hides or27
other animal products for market, or in the maintaining of breeding stock for the28
propagation of such agricultural use animals.29 HLS 13RS-1032 ORIGINAL
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(c) This exemption shall not apply to the purchase of feed or feed additives1
for animals kept primarily for personal, sporting, or other purposes, including but not2
limited to purchases for pets of any kind or hunting dogs.3
* * *4
D.(1) The sale at retail, the use, the consumption, the distribution, and the5
storage to be used or consumed in the taxing jurisdiction of the following tangible6
personal property is hereby specifically exempted from the tax imposed by7
local taxing authorities, except as otherwise provided in this Paragraph:8
* * *9
I. The sales and use taxes imposed by the state of Louisiana or any of its any10
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
ยง305.1. Exclusions and exemptions; ships and ships' supplies21
A. The tax imposed by local taxing authorities shall not apply to sales of22
materials, equipment, and machinery which enter into and become component parts23
of ships, vessels, or barges, including commercial fishing vessels, drilling ships, or24
drilling barges, of fifty tons load displacement and over, built in Louisiana nor to the25
gross proceeds from the sale of such ships, vessels, or barges when sold by the builder26
thereof.27
B. The taxes imposed by local taxing authorities shall not apply to materials28
and supplies purchased by the owners or operators of ships, barges, or vessels,29 HLS 13RS-1032 ORIGINAL
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including drilling ships, operating exclusively in foreign or interstate coastwise1
commerce, where such materials and supplies are loaded upon any such ship, barge,2
or vessel for use or consumption in the maintenance and operation thereof; nor to3
repair services performed upon such ships, barges, or vessels operating exclusively4
in foreign or interstate coastwise commerce; nor to the materials and supplies used in5
such repairs where such materials and supplies enter into and become a component6
part of such ships, barges, or vessels; nor to laundry services performed for the7
owners or operators of such ships, barges, or vessels operating exclusively in foreign8
or interstate coastwise commerce, where the laundered articles are to be used in the9
course of the operation of such ships, barges, or vessels.10
* * *11
D. The exemption from the state sales tax provided in this Section shall be12
applicable to any sales tax levied by a local governmental subdivision or school13
board.14
* * *15
ยง305.3. Exclusions and exemptions; seeds used in planting of crops 16
The tax imposed by local taxing authorities shall not apply to the sale at retail17
of seeds for use in the planting of any kind of crops. The secretary shall promulgate18
rules and regulations designed to carry out the provisions of this Section, and any19
transaction not strictly in compliance with such rules and regulations shall lose the20
exemption herein provided.21
ยง305.6. 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.24
ยง305.7. Exclusions and exemptions; tickets to musical performances of nonprofit25
musical organizations26
The sales tax imposed by local taxing authorities shall not apply to the sale of27
admission tickets by domestic nonprofit corporations or by any other domestic28
nonprofit organization known as a symphony organization or as a society or29 HLS 13RS-1032 ORIGINAL
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organization engaged in the presentation of musical performances; provided that this1
Section shall not apply to performances given by out-of-state or nonresident2
symphony companies, nor shall this Section apply to any performance intended to3
yield a profit to the promoters thereof.4
* * *5
ยง305.9. Exclusions and exemptions; motion picture film rental 6
The sales and use taxes imposed by the State of Louisiana or any such taxes7
imposed by any parish or municipality within the state shall not apply to the amount8
paid by the operator of a motion picture theatre to a distributing agency for use of9
films of photoplay.10
* * *11
ยง305.13. Exclusions and exemptions; admissions to entertainments furnished by12
certain domestic nonprofit corporations 13
The sales tax imposed by local taxing authorities shall not apply to the sale of14
admissions to entertainment events furnished by recognized domestic nonprofit15
charitable, educational and religious organizations when the entire proceeds from16
such sales, except for necessary expenses connected with the entertainment events,17
are used for the purposes for which the organizations furnishing the events were18
organized.19
ยง305.14. Exclusions and exemptions; nonprofit organizations; nature of exemption;20
limitations; qualifications; newspapers; determination of tax exempt status21
A.(1)(a) The sales and use taxes imposed by local taxing authorities shall not22
apply to sales of tangible personal property at, or admission charges for, outside gate23
admissions to, or parking fees associated with, events sponsored by domestic, civic,24
educational, historical, charitable, fraternal, or religious organizations, which are25
nonprofit, when the entire proceeds, except for necessary expenses such as fees paid26
for guest speakers, chair and table rentals, and food and beverage utility related items27
connected therewith, are used for educational, charitable, religious, or historical28
restoration purposes, including the furtherance of the civic, educational, historical,29 HLS 13RS-1032 ORIGINAL
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charitable, fraternal, or religious purpose of the organization. In addition, newspapers1
published in this state by religious organizations shall also be exempt from such taxes,2
provided that the price paid for the newspaper or a subscription to the newspaper does3
not exceed the cost to publish such newspaper.4
* * *5
(5) Notwithstanding any other provision of law to the contrary, for purposes6
of state and political subdivision sales and use tax, "sales and use" shall not mean the7
purchase of tangible personal property or taxable services, by nonprofit literacy8
organizations in compliance with the court order from the Dodd Brumfield decision9
and Section 501(c)(3) of the Internal Revenue Code, limited to books, workbooks,10
computers, computer software, films, videos, and audio tapes.11
* * *12
ยง305.16. Exclusions and exemptions; cable television installation and repair 13
The sales and use taxes imposed by the state or by any political subdivision14
thereof shall not apply to necessary fees incurred in connection with the installation15
and service of cable television. Such exemption shall not apply to purchases made16
by any cable television system, but shall only apply to funds collected from the17
subscriber for regular service, installation and repairs. 18
ยง305.17. Exclusions and exemptions; income from coin-operated washing and drying19
machines in a commercial laundromat 20
State sales taxes imposed by R.S. 47:302 and R.S. 47:321, as well as any sales21
Sales taxes imposed by any parish, municipality, school board, or other political22
subdivision, within the state, shall not apply to or be imposed upon the income on23
receipts from any coin-operated washing or drying machine in a commercial24
laundromat. A commercial laundromat, for purposes of this Section, is defined to be25
any establishment engaged solely in the business of furnishing washing or drying26
laundry services by means of coin-operated machines. 27
* * *28 HLS 13RS-1032 ORIGINAL
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ยง305.19. Exclusions and exemptions; leased vessels used in the production of1
minerals2
The taxes imposed by local taxing authorities shall not apply to those vessels3
which are leased for use offshore beyond the territorial limits of this state for the4
production of oil, gas, sulphur, and other minerals or for the providing of services to5
those engaged in such production.6
ยง305.20. Exclusions and exemptions; Louisiana commercial fishermen7
A. A Louisiana resident, domiciled in Louisiana, who possesses such valid8
Louisiana commercial fishing license(s) as may be necessary for commercial fishing9
ventures, including but not limited to a vessel license issued pursuant to R.S. 56:304,10
and who is an owner of a vessel operated primarily for the conduct of commercial11
fishing as a trade or business and which the Louisiana Department of Wildlife and12
Fisheries determines will be predominantly and principally used for commercial13
fishing ventures and whose catch is for human consumption shall be exempt from14
state local sales, use, lease, and services taxes as set forth in Subsection C of this15
Section. Possession of a commercial fishing license issued by the Department of16
Wildlife and Fisheries shall not be used as the sole determination that a vessel will be17
used predominantly and principally for commercial fishing ventures. This exemption18
shall also apply to facilities which process the catch from owners of commercial19
fishing vessels for which this exemption is granted when such vessels are owned by,20
or leased or contracted exclusively to, the seafood processing facility.21
* * *22
ยง305.25. Exclusions and exemptions; farm equipment23
A. The tax imposed by R.S. 47:302(A), 321(A), and 331(A) a political24
subdivision with respect to the sale and use of farm equipment shall apply only to that25
portion of the sale price in excess of fifty thousand dollars for each item of farm26
equipment if the voters of the parish have elected to provide the exemption. The27
purchaser or his representative shall provide on any exemption certificate required for28
this exemption a certification that the purchaser is a farmer or is purchasing for an29 HLS 13RS-1032 ORIGINAL
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agricultural facility. The department collector shall hold the purchaser responsible1
for any taxes due. For the purpose of this Section, "farm equipment" includes the2
following:3
(1) Rubber tired farm tractors, cane harvesters, cane loaders, cotton pickers,4
combines, haybalers, and attachments and sprayers.5
(2) Clippers, cultivators, discs, plows, and spreaders.6
(3) Irrigation wells, drives, motors, and equipment.7
(4) Other farm implements and equipment used for agricultural purposes in8
the production of food and fiber.9
(5) On the farm facilities used to dry or store grain or any materials used to10
construct such on the farm facilities.11
B. This exemption applies only to sales and use taxes imposed by the state of12
Louisiana and does not apply to such taxes authorized and levied by any school board,13
municipality, or other local taxing authority, except that in the parish of West Carroll,14
the parish school board may exempt the equipment as provided in this Section from15
additional sales and use taxes after approval by a majority of the qualified electors of16
the The governing authority of a parish and the police jury may exempt the equipment17
as provided in this Section from all sales and use taxes which it is presently levying18
and collecting and shall exempt such equipment from any additional sales and use tax19
or taxes which it may hereafter levy and collect.20
* * *21
ยง305.41. Exclusions and exemptions; Ducks Unlimited; Bass Life22
The sales and use tax imposed by the state of Louisiana or any of its local23
governmental any political subdivisions or school boards shall not apply to either the24
sales of Ducks Unlimited or Bass Life or any of their chapters or any rental or25
purchase of property or services by Ducks Unlimited or Bass Life or any of their26
chapters.27
* * *28 HLS 13RS-1032 ORIGINAL
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ยง305.44. Exclusions and exemptions; raw materials used in printing process1
A. The sales and use taxes imposed by the state under R.S. 47:302, R.S.2
47:321, and R.S. 47:331 and by any political subdivision shall not apply to purchases3
and sales of the following, including all chemical supplies necessary to produce such4
items whether manufactured by a printer or purchased from a subcontractor: 5
* * *6
ยง305.45. Exclusions and exemptions; per diem or car hire on freight cars, piggy-back7
cars, and rolling stock 8
A. The sales, use, and lease tax imposed by the state of Louisiana a political9
subdivision under the provisions of R.S. 47:302(A) and (B), R.S. 47:321(A) and (B)10
and R.S. 47:331 shall not apply to:11
* * *12
ยง305.46. Exclusions and exemptions; purchases with United States Department of13
Agriculture Food Stamp Coupons and purchases made under the Women,14
Infants, and Children's Program 15
A. The sales and use taxes imposed by the state of Louisiana or any political16
subdivision shall not apply to the purchase of the following items: 17
* * *18
ยง305.49. Catalog distribution; exemption 19
Notwithstanding any provision of law to the contrary, no sales or use tax shall20
be imposed by the state or any political subdivision on the value of catalogs21
distributed, or intended for distribution in the state, without charge to the recipient.22
ยง305.50. Exemption; vehicles used in interstate commerce; rail rolling stock; railroad23
ties24
A.(1) The sales and use tax imposed by the state of Louisiana or any of its25
local political subdivisions shall not apply to trucks with a gross weight of twenty-six26
thousand pounds or more and to trailers if such trucks and trailers are used at least27
eighty percent of the time in interstate commerce and whose activities are subject to28
the jurisdiction of the United States Department of Transportation. The determination29 HLS 13RS-1032 ORIGINAL
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of whether a truck is used at least eighty percent of the time in interstate commerce1
shall be based solely on the actual mileage of such truck; however, no truck shall have2
more than twenty percent Louisiana intrastate miles.3
* * *4
ยง305.51. Exemption; utilities used by steelworks and blast furnaces5
A. The sales and use tax imposed by the state of Louisiana or any of its6
political subdivisions shall not apply to sales or purchases of utilities used by7
steelworks, blast furnaces, coke ovens, or rolling mills with more than one hundred8
twenty-five full-time employees, which are classified by the Louisiana Workforce9
Commission within Sector 331111 of the North American Industry Classification10
System as it existed in 2002. However, this exemption shall not apply to utilities used11
in and around the production of coke in oil refineries and the use of coke in oil12
refineries and other chemical processes.13
* * *14
ยง305.53. Exclusions and exemptions; sickle cell disease organizations15
A. The sale at retail, the rental or lease, the use, the consumption, the16
distribution, and the storage for use or consumption in this state of each item or article17
of tangible personal property, or any taxable service, by a nonprofit organization18
established prior to 1975 which conducts a comprehensive program on sickle cell19
disease which includes but is not limited to free education, free testing, free20
counseling, and free prescriptions, transportation, and food packages for sickle cell21
patients shall not be subject to the sales and use taxes levied by the state or by any22
other local tax authority.23
* * *24
ยง305.57. Exemptions; sale of art work25
A. The sales and use taxes imposed by the state of Louisiana or any of its26
political subdivisions shall not apply to the sale of original, one-of-a-kind works of27
art from an established location within the boundaries of a cultural product district.28
* * *29 HLS 13RS-1032 ORIGINAL
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ยง305.61. Exemption; certain water conservation equipment; Sparta Groundwater1
Conservation District2
A. The sales and use tax imposed by all local tax authorities in the state shall3
not apply to sales of water conservation equipment for use within the Sparta4
Groundwater Conservation District. Only persons defined as "users" under R.S.5
38:3087.133(7) shall be eligible for this exemption.6
* * *7
ยง305.65. Exemption; charitable residential construction, rehabilitation, and8
renovation; limitation9
A. The sales and use tax imposed by the state of Louisiana and all of its local10
tax authorities shall not apply to the sale of construction materials to Hands on New11
Orleans and Rebuilding Together New Orleans covenant partners located in this state12
when such materials are intended for use in either constructing, rehabilitating, or13
renovating residential dwellings in this state which were destroyed or damaged by14
Hurricane Katrina or Hurricane Rita.15
* * *16
ยง305.69. Exemption; motor vehicles for use by persons with orthopedic disabilities17
A. Effective from January 1, 2010, through June 30, 2013, the sales and use18
tax imposed by the state of Louisiana and its political subdivisions whose boundaries19
are coterminous with the state shall not apply to the purchase of a motor vehicle by20
an individual that has been or will be modified for operation by, or for the21
transportation of, a person who is permanently orthopedically disabled at the time of22
purchase, and which is primarily driven by or used for the transportation of such23
person. The modifications shall be made in accordance with a prescription issued for24
the person by a physician, a licensed chiropractor, or a driver rehabilitation specialist25
licensed by the state. For purposes of this Section, the term "motor vehicle" shall not26
include vehicles purchased for resale or lease, or vehicles used for non-personal,27 HLS 13RS-1032 ORIGINAL
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business, or commercial purposes, including ambulances, or travel trailers or other1
vehicles not designed to transport people.2
* * *3
ยง305.70. Exemption; "Make It Right Foundation"4
The sales and use tax imposed by the state of Louisiana or any political5
subdivision shall not apply to the sale of construction materials to the "Make It Right6
Foundation" when such materials are intended for use in constructing new residential7
dwellings in this state.8
Section 2. R.S. 47:305(A)(2), (5) and (6), (D)(1)(f), (2)(a)(iv) and (v) and (b) and (3),9
305.18, 305.26, 305.33, 305.36, 305.40, 305.42, 305.43, 305.54, 305.56, 305.62, 305.63,10
305.64, 305.66, 305.67, and 305.68 are hereby repealed in their entirety.11
Section 3. This Act shall become effective on January 1, 2014.12
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)]
Richard HB No. 716
Abstract: Reduces the state sales and use tax rate from 4% to 2.88% on the retail sale, use,
consumption, distribution, lease, rental, and storage or certain items of tangible
personal property and on certain services.
Present law provides for a state sales and use tax rate of 4%, and includes numerous
exemptions and exclusions from the tax.
Proposed law reduces the sales tax rate from 4% to 2.88% and repeals numerous exclusions
and exemptions.
Effective Jan. 1, 2014.
(Amends R.S.47:301, 301.1(B), (D), and (E), 302(A), (B), (C)(1), and (D), 321(A) through
(C), 302.1(A), 305(A)(1), (3), and (4)(a), (D)(1)(intro. para.) and (I) intro. para.), 305.1(A)
and (B), 305.3, 305.6, 305.7, 305.9, 305.13, 305.14(A)(1)(a) and (5), 305.16, 305.17, 305.19,
305.20(A), 305.25(A) and (B), 305.41, 305.44(A)(intro. para.), 305.45(A)(intro. para.),
305.46(A)(intro. para.), 305.49, 305.50(A)(1), 305.51(A), 305.53(A), 305.57(A), 305.61(A),
305.65(A), 305.69(A), and 305.70; Repeals R.S. 47:305(A)(2), (5), and (6), (D)(1)(f),
(2)(a)(iv) and (v) and (b) and (3), 305.18, 305.26, 305.33, 305.36, 305.40, 305.42, 305.43,
305.54, 305.56, 305.62, 305.63, 305.64, 305.66, 305.67, and 305.68)