The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Thomas L. Tyler.
DIGEST
Morrell (SB 144)
Proposed law provides for automatic renewals of sales tax exemption certificates for Direct Pay
Numbers (R.S. 47:303.1), Sales for Resale by "dealers" (of tangible personal property for resale,
R.S. 47:301(10)(a)(i), or sales of services for resale, R.S. 47:301(10)(a)(ii)), and Purchases of
Manufacturing Machinery and Equipment (R.S. 47:301(3)(i)(i), 47:301(13)(k)(i), and
47:301(28)(a)) for a period of up to 3 years. The Department of Revenue [DOR] must notify a
qualifying taxpayer of its determination as to whether the certificates will be automatically
renewed or whether the taxpayer is denied renewal and must reapply.
The exemption certificates must be renewed without having to reapply unless the department
determines that the taxpayer is no longer qualified for the exemption and the department may
suspend a taxpayer's exemption certificate if the taxpayer has become delinquent in its sales tax
payment or filing responsibilities.
Proposed law requires DOR to promulgate rules and regulations regarding its criteria for
determining a taxpayer's ability to renew a sales tax exemption certificate without reapplying.
Effective January 1, 2014.
(Adds R.S. 47:13)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs
to the original bill
1. Completely revises the bill, which required all tax exemptions once granted to be
renewed without the taxpayer having to reapply, provided the taxpayer remained
qualified to receive it. The DOR was required to promulgate regulations to
develop a form or other document to be mailed to each taxpayer to indicate the
taxpayer's continued qualification for the tax exemption.