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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. 579
BY SENATOR JOHN SMITH
TAX/LOCAL. Provides for local sales and use taxation of certain materials used in certain
paving-related activities. (7/1/14)
AN ACT1
To enact R.S. 47:337.12(D), relative to local sales and use taxation; to provide for the2
taxation of certain materials used in certain paving-related activities; and to provide3
for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 47:337.12(D) is hereby enacted to read as follows:6
ยง337.12. Prohibition on levy or collection of tax on property or services performed7
outside territorial limits; prohibition regarding property stored for use8
outside the political subdivision9
* * *10
D.(1)(a) No taxing authority shall levy or collect a sales tax on the sale at11
retail of asphalt, Portland cement, or of any tangible personal property of the12
type which is to be used or consumed, or which is to be further processed into13
tangible personal property of such type used or consumed, in paving or14
surfacing activities, including resurfacing activities, which are related to15
immovable property if, in advance of the purchase, the purchaser provides the16
selling dealer with an affidavit reciting both of the following:17 SB NO. 579
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(a) That the purchaser is engaged in paving or surfacing activities,1
including resurfacing activities, which are related to immovable property.2
(b) That the purchaser will promptly notify the selling dealer when the3
purchaser has ceased being engaged in such activities if, and when, such4
cessation occurs.5
(2)(a) No taxing authority shall levy or collect a use tax on the use,6
consumption, distribution, or storage for use or consumption of asphalt,7
Portland cement, or other tangible personal property of the type used or8
consumed, or which is further processed into tangible personal property of the9
type used or consumed, in paving or surfacing activities, including resurfacing10
activities, which are related to immovable property other than a taxing11
authority in the taxing jurisdiction in which the property, whether in its original12
or further processed form, is actually used or consumed in paving or surfacing13
activities, including resurfacing activities, which are related to immovable14
property.15
(b) However, if any such asphalt, Portland cement, or other tangible16
personal property is used or consumed in a manner inconsistent with its17
ultimate use or consumption in a paving or surfacing activity, including18
resurfacing activity, which is related to immovable property, such property19
shall be subject to use taxation in the taxing jurisdiction in which the20
inconsistent use by the final owner or user of the property occurs, unless such21
property is otherwise exempt or excluded from taxation.22
(3) When a selling dealer has received from a purchaser the affidavit23
provided for in Paragraph (1) of this Subsection, the dealer shall be relieved24
from liability for the collection of sales or use tax on property of the type25
described in such Paragraph which is sold to such purchaser.26
Section 2. This Act shall become effective on July 1, 2014.27 SB NO. 579
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Riley Boudreaux.
DIGEST
John Smith (SB 579)
Proposed law prohibits local sales tax authorities from levying a tax on a sale of the
following which are to be used or consumed in paving or surfacing activities, including
resurfacing activities, which are related to immovable property, if the affidavit below is
provided to the seller in advance of the purchase:
(1) Asphalt.
(2)Portland cement.
(3) Any tangible personal property of such type.
(4)Any tangible personal property which is to be further processed into tangible
personal property of the type used or consumed in such activities.
In order to be exempt from tax on such sale, the purchaser must provide to the selling dealer
an affidavit reciting both of the following:
(1)That the purchaser is engaged in paving or surfacing activities, including resurfacing
activities, which are related to immovable property.
(2)That the purchaser will promptly notify the selling dealer when the purchaser has
ceased being engaged in such activities if, and when, such cessation occurs.
A selling dealer who has received the affidavit is relieved from liability for the collection of
sales or use tax on property.
Proposed law prohibits any local sales tax authority from levying a tax on the use of such
property except the tax authority in the taxing jurisdiction in which the property, whether in
its original or further processed form, is actually used or consumed in paving or surfacing
activities, including resurfacing activities, which are related to immovable property.
However, if any such property is used or consumed in a manner inconsistent with its ultimate
use or consumption in such activities it is subject to use taxation in the taxing jurisdiction
in which the inconsistent use occurs unless otherwise exempt or excluded from taxation.
Effective July 1, 2014.
(Adds R.S. 47:337.12(D))