SLS 14RS-558 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2014
SENATE BILL NO. 508
BY SENATOR HEITMEIER
TAX/SALES. Changes the exemptions from local sales tax for Medicare-related
transactions. (7/1/14)
AN ACT1
To amend and reenact R.S. 47:301(7)(i) and (10)(u), 315.3, and 337.9(F), and to enact R.S.2
47:301(18)(q), relative to the sales and use tax of political subdivisions; to provide3
for certain exemptions of and refunds for transactions ultimately related to Medicare4
patients; and to provide for related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 47:301(7)(i) and (10)(u), 315.3, and 337.9(F) are hereby amended7
and reenacted and R.S. 47:301(18)(q) is hereby enacted to read as follows: 8
§301. Definitions9
As used in this Chapter the following words, terms, and phrases have the10
meaning ascribed to them in this Section, unless the context clearly indicates a11
different meaning:12
(7) * * *13
(i) For purposes of sales and use taxes levied and imposed by local14
governmental subdivisions, school boards, and other political subdivisions whose15
boundaries are not coterminous with those of the state, "lease or rental" by a person16
shall not mean or include the lease or rental of tangible personal property if such17 SB NO. 508
SLS 14RS-558 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
lease or rental is made under the provisions of Medicare to either of the following:1
(i) A Medicare patient in the medical treatment of his disease under the2
supervision of a licensed physician.3
(ii) A medical service provider such as a physician, clinic, dialysis facility,4
surgical center, or other health care facility, and the tangible personal property5
is ultimately used by a Medicare patient, or administered to him by a physician,6
nurse, or other health care personnel, in the medical treatment of disease under7
the supervision of a licensed physician.8
* * *9
(10) * * *10
(u) For purposes of sales and use taxes levied and imposed by local11
governmental subdivisions, school boards, and other political subdivisions whose12
boundaries are not coterminous with those of the state, "sale at retail" by a person13
shall not mean or include the sale of tangible personal property if such sale is made14
under the provisions of Medicare to either of the following:15
(i) A Medicare patient in the medical treatment of his disease under the16
supervision of a licensed physician.17
(ii) A medical service provider such as a physician, clinic, dialysis facility,18
surgical center, or other health care facility, and the tangible personal property19
is ultimately used by a Medicare patient, or administered to him by a physician,20
nurse, or other health care personnel, in the medical treatment of disease under21
the supervision of a licensed physician.22
* * *23
(18) * * *24
(q) Solely for purposes of sales and use taxes levied and imposed by local25
governmental subdivisions, school boards, and other political subdivisions26
whose boundaries are not coterminous with those of the state, the term "use"27
shall not include the purchase, the use, the consumption, the distribution, the28
storage for use or consumption, or the exercise of any right or power over29 SB NO. 508
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
tangible personal property by either of the following:1
(i) A Medicare patient in the medical treatment of his disease under the2
supervision of a licensed physician.3
(ii) A medical service provider such as a physician, clinic, dialysis facility,4
surgical center, or other health care facility, and the tangible personal property5
is ultimately used by a Medicare patient, or administered to him by a physician,6
nurse, or other health care personnel, in the medical treatment of disease under7
the supervision of a licensed physician.8
. * * *9
§315.3. Sales tax refund; sales and rentals covered by Medicare10
A.(1) Any person who has paid sales and use taxes, levied by the state and11
any other taxing authorities in the state, upon the sale, purchase, use, lease, or rental12
of tangible personal property when such sale, lease, or rental is paid by or under the13
provisions of Medicare, shall be entitled to reimbursement of the amount of tax paid14
on such property transaction when such sale, purchase, use, lease, or rental is of15
tangible personal property by either of the following:16
(a) A Medicare patient in the medical treatment of his disease under the17
supervision of a licensed physician.18
(b) A medical service provider such as a physician, clinic, dialysis facility,19
surgical center, or other health care facility, and the tangible personal property20
is ultimately used by a Medicare patient, or administered to him by a physician,21
nurse, or other health care personnel, in the medical treatment of disease under22
the supervision of a licensed physician.23
(2) Upon receipt of a signed statement of such person as to the amount of24
taxes paid under the provisions of this Chapter on such tangible personal property25
and upon proof of payment by or under the provisions of Medicare, the secretary and26
the appropriate taxing authorities shall make a refund to such person in the amount27
to which he is entitled.28
* * *29 SB NO. 508
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
§337.9. Exemptions applicable to local tax in Chapters 2, 2-A, and 2-B; other1
exemptions applicable2
* * *3
F. Notwithstanding any provision of law to the contrary, prescription drugs4
purchased by a Medicare patient in the medical treatment of his disease through5
or pursuant to a Medicare Part B and D plan and prescription drugs purchased by6
a medical service provider such as a physician, clinic, dialysis facility, surgical7
center, or other health care facility, and the tangible personal property is8
ultimately administered to a Medicare Part B patient by a physician, nurse, or9
other health care personnel in the medical treatment of disease under the10
supervision of a licensed physician shall be exempt from the sales and use taxes11
imposed by any local governmental subdivision, school board, or other political12
subdivision whose boundaries are not coterminous with the state.13
* * *14
Section 2. This Act shall become effective on July 1, 2014.15
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Riley Boudreaux.
DIGEST
Heitmeier (SB 508)
Present law grants exemptions from and refunds of local sales tax for sales, leases, and
rentals of property "made under the provisions of Medicare" and for prescription drugs
purchased "through or pursuant to a Medicare Part B and D plan".
Proposed law grants such exemptions and refunds when the sale, purchase, use, lease, or
rental is by either of the following:
(1)A Medicare patient in the medical treatment of his disease under the supervision of
a licensed physician.
(2)A "medical service provider" such as a physician, clinic, dialysis facility, surgical
center, or other health care facility, and the property or prescription drugs are
ultimately (a) used by a Medicare patient, or (b) administered to him by a physician,
nurse, or other health care personnel, in the medical treatment of disease under the
supervision of a licensed physician.
Effective July 1, 2014.
(Amends R.S. 47:301(7)(i) and (10)(u), 315.3, and 337.9(F); adds R.S. 47:301(18)(q))