HLS 161ES-246 ENGROSSED
2016 First Extraordinary Session
HOUSE BILL NO. 104
BY REPRESENTATIVE STOKES
TAX/SALES-USE, STATE: Provides for the tax base for the state sales and use tax (Items
#9 and 36)
1 AN ACT
2To amend and reenact R.S. 47:301(3), (4)(k), (6), (7), (8), (10), (13), (14), (16), (18), and
3 (28)(a), 302(A), (B), and (C), and 305, to enact R.S. 47:305.72 and 315.6, and to
4 repeal R.S. 4:168 and 227, R.S. 40:582.1 through 582.7, R.S. 47:301.1(D), 305.6,
5 305.7, 305.8, 305.11, 305.13, 305.16, 305.17, 305.18, 305.19, 305.20, 305.25,
6 305.26, 305.28, 305.33, 305.37, 305.40, 305.41, 305.42, 305.43, 305.44, 305.45,
7 305.49, 305.50(E)(1), 305.51, 305.52, 305.53, 305.54, 305.57, 305.58, 305.59,
8 305.60, 305.61, 305.62, 305.63, 305.64, 305.65, 305.66, 305.67, 305.68, 305.69,
9 305.70, 305.71, 306(A)(2), 306.1, 306.2, 315.1, 315.2, 315.3, 315.5, and 6001,
10 relative to state sales and use tax; to provide for the definitions necessary for
11 administration and imposition of the tax; to provide rates of tax; to provide for
12 effectiveness; and to provide for related matters.
13Be it enacted by the Legislature of Louisiana:
14 Section 1. R.S. 47:301(3), (4)(k), (6), (7), (8), (10), (13), (14), (16), (18), and (28)(a),
15302(A), (B), and (C), and 305 are hereby amended and reenacted and R.S. 47:305.72 and
16315.6 are hereby enacted to read as follows:
17 ยง301. Definitions
18 As used in this Chapter the following words, terms, and phrases have the
19 meaning ascribed to them in this Section, unless the context clearly indicates a
20 different meaning:
21 * * *
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1 (3)(a) "Cost price" means the actual cost of the articles of tangible personal
2 property without any deductions therefrom on account of the cost of materials used,
3 labor, or service cost, except those service costs for installing the articles of tangible
4 personal property if such cost is separately billed to the customer at the time of
5 installation, transportation charges, or any other expenses whatsoever, or the
6 reasonable market value of the tangible personal property at the time it becomes
7 susceptible to the use tax, whichever is less.
8 (b) In the case of tangible personal property which has acquired a tax situs
9 in a taxing jurisdiction and is thereafter transported outside the taxing jurisdiction for
10 repairs performed outside the taxing jurisdiction and is thereafter returned to the
11 taxing jurisdiction, the cost price shall be deemed to be the actual cost of any parts
12 and/or materials used in performing such repairs, if applicable labor charges are
13 separately stated on the invoice. If the applicable labor charges are not separately
14 stated on the invoice, it shall be presumed that the cost price is the total charge
15 reflected on the invoice.
16 (c) [RESERVED] "Cost price" shall not include the supplying and
17 installation of board roads to oil field operators if the installation charges are
18 separately billed to the customer at the time of installation.
19 (d)(i) In the case of interchangeable components located in Louisiana, a
20 taxpayer may elect to determine the cost price of such components as follows:
21 (aa) The taxpayer shall send to the secretary written notice of the calendar
22 month selected by the taxpayer as the first month for the determination of cost price
23 under this Paragraph (the "First Month"). The taxpayer may select any month. The
24 taxpayer shall send to the secretary notice of an election to designate a First Month
25 on the first day of the designated First Month, or ninety days from July 1, 1990,
26 whichever is later.
27 (bb) For the First Month and each month thereafter, cost price shall be based
28 and use tax shall be paid only on one-sixtieth of the aggregate cost price of the
29 interchangeable components deployed and earning revenue within Louisiana during
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1 the month, without regard to any credit or other consideration for Louisiana state,
2 political subdivision, or school board use tax previously paid on such
3 interchangeable components.
4 (cc) Any election made under this Paragraph shall be irrevocable for a period
5 of sixty consecutive months inclusive of the First Month. If at any time after the
6 sixty-month period the taxpayer revokes its election, no credit or other consideration
7 for use taxes paid pursuant thereto shall be applied to any use tax liability arising
8 after such revocation.
9 (ii)(aa) For purposes of this Paragraph, "interchangeable component" means
10 a component that is used or stored for use in measurement-while-drilling instruments
11 or systems manufactured or assembled by the taxpayer, which measurement-while-
12 drilling instruments or systems collectively generate eighty percent or more of their
13 annual revenue from their use outside of the state.
14 (bb) "Measurement-while-drilling instruments or systems" means
15 instruments or systems which measure information from a downhole location in a
16 borehole, transmit the information to the surface during the process of drilling the
17 borehole using a wireless technique, and receive and decode the information on the
18 surface.
19 (iii) The method for determining cost price of interchangeable components
20 provided for in this Paragraph shall apply to any use taxes imposed by a local
21 political subdivision or school board. For purposes of that application, the words
22 "political subdivision" or "school board" as the case may be, shall be substituted for
23 the words "Louisiana" or "State" in each instance where those words appear in this
24 Paragraph and an appropriate official of the local political subdivision or school
25 board shall be designated to receive the notices required by this Paragraph.
26 (e) "Cost price" shall not include any amount designated as a cash discount
27 or a rebate by a vendor or manufacturer of any new vehicle subject to the motor
28 vehicle license tax. For purposes of this Paragraph "rebate" means any amount
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1 offered by the vendor or manufacturer as a deduction from the listed retail price of
2 the vehicle.
3 (f) The "cost price" of refinery gas shall be fifty-two cents per thousand
4 cubic feet multiplied by a fraction the numerator of which shall be the posted price
5 for a barrel of West Texas Intermediate Crude Oil on December first of the preceding
6 calendar year and the denominator of which shall be twenty-nine dollars, and
7 provided further that such cost price shall be the maximum value placed upon
8 refinery gas by the state and by any political subdivision under any authority or grant
9 of power to levy and collect use taxes.
10 (g) [RESERVED] "Cost price", for purposes of the use tax imposed by the
11 state and its political subdivisions, shall exclude any amount that a manufacturer
12 pays directly to a dealer of the manufacturer's product for the purpose of reducing
13 and that actually results in an equivalent reduction in the retail "cost price" of that
14 product. This exclusion shall not apply to the value of the coupons that dealers
15 accept from purchasers as part payment of the "sales price" and that are redeemable
16 by the dealers through manufacturers or their agents. The value of such coupons is
17 deemed to be part of the "cost price" of the product purchased through the use of the
18 coupons.
19 (h) [RESERVED] For purposes of a publishing business which distributes its
20 news publications at no cost to readers and pays unrelated third parties to print such
21 news publications, the term "cost price" shall mean only the lesser of the following
22 costs:
23 (aa) The printing cost paid to unrelated third parties to print such news
24 publications, less any itemized freight charges for shipping the news publications
25 from the printer to the publishing business and any itemized charges for paper and
26 ink.
27 (bb) Payments to a dealer or distributor as consideration for distribution of
28 the news publications.
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1 (ii) The definition of "cost price" provided for in this Subparagraph shall be
2 applicable to taxes levied by all tax authorities in the state.
3 (i)(i) For purposes of the imposition of the use tax levied by the state and any
4 political subdivision whose boundaries are coterminous with those of the state, the
5 cost price of machinery and equipment used by a manufacturer in a plant facility
6 predominately and directly in the actual manufacturing for agricultural purposes or
7 the actual manufacturing process of an item of tangible personal property, which is
8 for ultimate sale to another and not for internal use, at one or more fixed locations
9 within Louisiana, shall be reduced through March 30, 2016, after which time the
10 provisions of this Item shall become null, void, and of no effect, as follows:
11 (aa) For the period ending on June 30, 2005, the cost price shall be reduced
12 by five percent.
13 (bb) For the period beginning July 1, 2005, and ending on June 30, 2006, the
14 cost price shall be reduced by nineteen percent.
15 (cc) For the period beginning July 1, 2006, and ending on June 30, 2007, the
16 cost price shall be reduced by thirty-five percent.
17 (dd) For the period beginning July 1, 2007, and ending on June 30, 2008, the
18 cost price shall be reduced by fifty-four percent.
19 (ee) For the period beginning July 1, 2008, and ending on June 30, 2009, the
20 cost price shall be reduced by sixty-eight percent.
21 (ff) For all periods beginning on or after July 1, 2009, the cost price shall be
22 reduced by one hundred percent.
23 (ii) For purposes of this Subparagraph, the following definitions shall apply:
24 (aa) "Machinery and equipment" means tangible personal property or other
25 property that is eligible for depreciation for federal income tax purposes and that is
26 used as an integral part in the manufacturing of tangible personal property for sale.
27 "Machinery and equipment" shall also mean tangible personal property or other
28 property that is eligible for depreciation for federal income tax purposes and that is
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1 used as an integral part of the production, processing, and storing of food and fiber
2 or of timber.
3 (I) Machinery and equipment, for purposes of this Subparagraph, also
4 includes but is not limited to the following:
5 (aaa) Computers and software that are an integral part of the machinery and
6 equipment used directly in the manufacturing process.
7 (bbb) Machinery and equipment necessary to control pollution at a plant
8 facility where pollution is produced by the manufacturing operation.
9 (ccc) Machinery and equipment used to test or measure raw materials, the
10 property undergoing manufacturing or the finished product, when such test or
11 measurement is a necessary part of the manufacturing process.
12 (ddd) Machinery and equipment used by an industrial manufacturing plant
13 to generate electric power for self consumption or cogeneration.
14 (eee) Machinery and equipment used primarily to produce a news
15 publication whether it is ultimately sold at retail or for resale or at no cost. Such
16 machinery and equipment shall include but not be limited to all machinery and
17 equipment used primarily in composing, creating, and other prepress operations,
18 electronic transmission of pages from prepress to press, pressroom operations, and
19 mailroom operations and assembly activities. The term "news publication" shall
20 mean any publication issued daily or regularly at average intervals not exceeding
21 three months, which contains reports of varied character, such as political, social,
22 cultural, sports, moral, religious, or subjects of general public interest, and
23 advertising supplements and any other printed matter ultimately distributed with or
24 a part of such publications.
25 (II) Machinery and equipment, for purposes of this Subparagraph, does not
26 include any of the following:
27 (aaa) A building and its structural components, unless the building or
28 structural component is so closely related to the machinery and equipment that it
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1 houses or supports that the building or structural component can be expected to be
2 replaced when the machinery and equipment are replaced.
3 (bbb) Heating, ventilation, and air-conditioning systems, unless their
4 installation is necessary to meet the requirements of the manufacturing process, even
5 though the system may provide incidental comfort to employees or serve, to an
6 insubstantial degree, nonproduction activities.
7 (ccc) Tangible personal property used to transport raw materials or
8 manufactured goods prior to the beginning of the manufacturing process or after the
9 manufacturing process is complete.
10 (ddd) Tangible personal property used to store raw materials or
11 manufactured goods prior to the beginning of the manufacturing process or after the
12 manufacturing process is complete.
13 (bb) "Manufacturer" means:
14 (I) A person whose principal activity is manufacturing, as defined in this
15 Subparagraph, and who is assigned by the Louisiana Workforce Commission a North
16 American Industrial Classification System code within the agricultural, forestry,
17 fishing, and hunting Sector 11, the manufacturing Sectors 31-33, the information
18 Sector 511110 as they existed in 2002, or industry code 423930 as a recyclable
19 material merchant wholesaler engaged in manufacturing activities, which must
20 include shredding facilities, as determined by the secretary of the Department of
21 Revenue.
22 (II) A person whose principal activity is manufacturing and who is not
23 required to register with the Louisiana Workforce Commission for purposes of
24 unemployment insurance, but who would be assigned a North American Industrial
25 Classification System code within the agricultural, forestry, fishing, and hunting
26 Sector 11, the manufacturing Sectors 31-33, the information Sector 511110 as they
27 existed in 2002, as determined by the Louisiana Department of Revenue from federal
28 income tax data, if he were required to register with the Louisiana Workforce
29 Commission for purposes of unemployment insurance.
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1 (cc) "Manufacturing" means putting raw materials through a series of steps
2 that brings about a change in their composition or physical nature in order to make
3 a new and different item of tangible personal property that will be sold to another.
4 Manufacturing begins at the point at which raw materials reach the first machine or
5 piece of equipment involved in changing the form of the material and ends at the
6 point at which manufacturing has altered the material to its completed form. Placing
7 materials into containers, packages, or wrapping in which they are sold to the
8 ultimate consumer is part of this manufacturing process. Manufacturing, for
9 purposes of this Subparagraph, does not include any of the following:
10 (I) Repackaging or redistributing.
11 (II) The cooking or preparing of food products by a retailer in the regular
12 course of retail trade.
13 (III) The storage of tangible personal property.
14 (IV) The delivery of tangible personal property to or from the plant.
15 (V) The delivery of tangible personal property to or from storage within the
16 plant.
17 (VI) Actions such as sorting, packaging, or shrink wrapping the final
18 material for ease of transporting and shipping.
19 (dd) "Manufacturing for agricultural purposes" means the production,
20 processing, and storing of food and fiber and the production, processing, and storing
21 of timber.
22 (ee) "Plant facility" means a facility, at one or more locations, in which
23 manufacturing, referred to in Sectors 11 and 31-33 of the North American Industrial
24 Classification system as of 2002, of a product of tangible personal property takes
25 place.
26 (ff) "Used directly" means used in the actual process of manufacturing or
27 manufacturing for agricultural purposes.
28 (iii) No person shall be entitled to purchase, use, lease, or rent machinery or
29 equipment as defined herein without payment of the tax imposed by R.S. 47:302,
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1 321, and 331 before receiving a certificate of exclusion from the secretary of the
2 Department of Revenue certifying that he is a manufacturer as defined herein.
3 (iv) The secretary of the Department of Revenue is hereby authorized to
4 adopt rules and regulations in order to administer the exclusion provided for in this
5 Subparagraph.
6 (j) [RESERVED] For the purpose of the sales and use taxes imposed by the
7 state or any political subdivision whose boundaries are coterminous with those of the
8 state, the "cost price" of electric power or energy, or natural gas for the period
9 beginning July 1, 2007 and thereafter, purchased or used by paper or wood products
10 manufacturing facilities shall not include any of such cost.
11 (k) [RESERVED] For purposes of the imposition of the sales and use tax
12 levied by the state or any political subdivision whose boundaries are coterminous
13 with those of the state, the tax on the cost price of tangible property consumed in the
14 manufacturing process, such as fuses, belts, felts, wires, conveyor belts, lubricants,
15 and motor oils and the tax on the cost price of repairs and maintenance of
16 manufacturing machinery and equipment shall be reduced as follows:
17 (aa) For the period beginning July 1, 2010, and ending on June 30, 2011, the
18 state sales and use tax on the cost price shall be reduced by twenty-five percent.
19 (bb) For the period beginning July 1, 2011, and ending June 30, 2012, the
20 state sales and use tax on the cost price shall be reduced by fifty percent.
21 (cc) For the period beginning July 1, 2012, and ending June 30, 2013, the
22 state sales and use tax on the cost price shall be reduced by seventy-five percent.
23 (dd) For all periods beginning on and after July 1, 2013, the state sales and
24 use tax on the cost price shall be reduced by one hundred percent.
25 (ii) For purposes of this Subparagraph, "manufacturer" means a person
26 whose principal activity is manufacturing and who is assigned an industry group
27 designation by the United States Census of 3211 through 3222 or 113310 pursuant
28 to the North American Industry Classification System of 2007.
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1 (4) "Dealer" includes every person who manufactures or produces tangible
2 personal property for sale at retail, for use, or consumption, or distribution, or for
3 storage to be used or consumed in a taxing jurisdiction. "Dealer" is further defined
4 to mean:
5 * * *
6 (k) [RESERVED] (The term "dealer" shall not include lessors of railroad
7 rolling stock used either for freight or passenger purposes. However, the term
8 "dealer" shall include lessees, other than a railway company or railroad corporation,
9 of such property and such lessees shall be responsible for the collection and payment
10 of all state and local sales and use taxes.
11 * * *
12 (6)(a) "Hotel" means and includes any establishment engaged in the business
13 of furnishing sleeping rooms, cottages, or cabins to transient guests, where such
14 establishment consists of six or more sleeping rooms, cottages, or cabins at a single
15 business location.
16 (b) For purposes of the sales and use taxes of all tax authorities in this state,
17 the term "hotel" as defined herein shall not include camp and retreat facilities owned
18 and operated by nonprofit organizations exempt from federal income tax under
19 Section 501(a) of the Internal Revenue Code as an organization described in Section
20 501(c)(3) of the Internal Revenue Code provided that the net revenue derived from
21 the organizations's property is devoted wholly to the nonprofit organization's
22 purposes. However, for purposes of this Paragraph, the term "hotel" shall include
23 camp and retreat facilities which shall sell rooms or other accommodations to
24 transient guests who are not attending a function of such nonprofit organization that
25 owns and operates the camp and retreat facilities or a function of another nonprofit
26 organization exempt from federal income tax under Section 501(a) of the Internal
27 Revenue Code as an organization described in Section 501(c)(3) of the Internal
28 Revenue Code. It is the intention of the legislature to tax the furnishing of rooms to
29 those who merely purchase lodging at such facilities.
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1 (c) For purposes of the sales and use taxes of all tax authorities in this state,
2 the term "hotel", as defined herein, shall not include a temporary lodging facility
3 which is operated by a nonprofit organization described in Section 501(c)(3) of the
4 Internal Revenue Code, provided that the facility is devoted exclusively to the
5 temporary housing, for periods no longer than thirty days' duration, of homeless
6 transient persons whom the organization determines to be financially incapable of
7 engaging lodging at a facility defined by Subparagraph (a) of this Paragraph, and
8 further provided that the lodging charge to such persons is no greater than twenty
9 dollars per day.
10 (7)(a) "Lease or rental" means the leasing or renting of tangible personal
11 property and the possession or use thereof by the lessee or renter, for a consideration,
12 without transfer of the title of such property. For the purpose of the leasing or
13 renting of automobiles, "lease" means the leasing of automobiles and the possession
14 or use thereof by the lessee, for a consideration, without the transfer of the title of
15 such property for a one hundred eighty-day period or more. "Rental" means the
16 renting of automobiles and the possession or use thereof by the renter, for a
17 consideration, without the transfer of the title of such property for a period less than
18 one hundred eighty days.
19 (b) The term "lease or rental", however, as herein defined, shall not mean or
20 include the lease or rental made for the purposes of re-lease or re-rental of casing
21 tools and pipe, drill pipe, tubing, compressors, tanks, pumps, power units, other
22 drilling or related equipment used in connection with the operating, drilling,
23 completion, or reworking of oil, gas, sulphur, or other mineral wells.
24 (c) [RESERVED] The term "lease or rental", as herein defined shall not
25 mean or include a lease or rental of property to be used in performance of a contract
26 with the United States Department of the Navy for construction or overhaul of U.S.
27 Naval vessels.
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1 (d) The term "lease or rental", as herein defined, shall not mean the lease or
2 rental of airplanes or airplane equipment by a commuter airline domiciled in
3 Louisiana.
4 (e) For purposes of state and political subdivision sales and use tax, the term
5 "lease or rental", as herein defined, shall not mean the lease or rental of items,
6 including but not limited to supplies and equipment, which are reasonably necessary
7 for the operation of free hospitals.
8 (f) For purposes of "lease or rental" shall not mean the lease or rental of
9 educational materials or equipment used for classroom instruction by approved
10 nonprofit parochial and private elementary and secondary schools which comply
11 with the court order from the Dodd Brumfield decision and Section 501(c)(3) of the
12 Internal Revenue Code, limited to books, workbooks, computers, computer software,
13 films, videos, and audio tapes.
14 (g) [RESERVED] For purposes of state and political subdivision sales and
15 use tax, "lease or rental" shall not mean the lease or rental of tangible personal
16 property to Boys State of Louisiana, Inc. and Girls State of Louisiana, Inc. which is
17 used by such organizations for their educational and public service programs for
18 youth.
19 (h) For purposes of state and political subdivision sales and use tax, the term
20 "lease or rental" shall not mean or include the lease or rental of motor vehicles by
21 licensed motor vehicle dealers, as defined in R.S. 32:1252(14), or vehicle
22 manufacturers, as defined in R.S. 32:1252(11), for their use in furnishing such leased
23 or rented motor vehicles to their customers in performance of their obligations under
24 warranty agreements associated with the purchase of a motor vehicle or when the
25 applicable warranty has lapsed and the leased or rented motor vehicle is provided to
26 the customer at no charge.
27 (i) For purposes of sales and use taxes levied and imposed by local
28 governmental subdivisions, school boards, and other political subdivisions whose
29 boundaries are not coterminous with those of the state, "lease or rental" by a person
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1 shall not mean or include the lease or rental of tangible personal property if such
2 lease or rental is made under the provisions of Medicare.
3 (j) Solely for purposes of the sales and use tax levied by the state or any
4 political subdivision whose boundaries are coterminous with those of the state,
5 through March 30, 2016, the term "lease or rental" shall not include the lease or
6 rental in this state of manufacturing machinery and equipment used or consumed in
7 this state to manufacture, produce, or extract unblended biodiesel.
8 (k) [RESERVED] For purposes of any sales, use, or lease tax levied by the
9 state or any political subdivision of the state, the term "lease or rental" shall not
10 include the lease or rental of a crane and related equipment with an operator.
11 (ii) Notwithstanding the provisions of Item (i) of this Subparagraph, cranes
12 leased or rented with an operator are subject to the provisions of the sales and use tax
13 law upon first use in Louisiana.
14 (l) [RESERVED] For purposes of the sales and use tax levied by all tax
15 authorities in this state, the term "lease or rental" shall not apply to leases or rentals
16 of pallets which are used in packaging products produced by a manufacturer.
17 (ii) For purposes of this Subparagraph, the term "manufacturer" shall mean
18 a person whose primary activity is manufacturing and who is assigned by the
19 Louisiana Workforce Commission a North American Industrial Classification
20 System code within the manufacturing sectors 31-33 as they existed in 2002.
21 (8)(a) "Person", except as provided in Subparagraph (c), includes any
22 individual, firm, copartnership, joint adventure, association, corporation, estate, trust,
23 business trust, receiver, syndicate, this state, any parish, city and parish,
24 municipality, district or other political subdivision thereof or any board, agency,
25 instrumentality, or other group or combination acting as a unit, and the plural as well
26 as the singular number.
27 (b) [RESERVED] Solely for purposes of the payment of state sales or use tax
28 on the lease or rental or the purchase of tangible personal property or services,
29 "person" shall not include a regionally accredited independent institution of higher
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1 education which is a member of the Louisiana Association of Independent Colleges
2 and Universities, if such lease or rental or purchase is directly related to the
3 educational mission of such institution. However, the term "person" shall include
4 such institution for purposes of the payment of tax on sales by such institution if the
5 sales are not otherwise exempt.
6 (c)(i) For purposes of the payment of the state sales and use tax and the sales
7 and use tax levied by any political subdivision, "person" shall not include this state,
8 any parish, city and parish, municipality, district, or other political subdivision
9 thereof, or any agency, board, commission, or instrumentality of this state or its
10 political subdivisions.
11 (ii) Upon request by any political subdivision for an exemption identification
12 number, the Department of Revenue shall issue such number. The secretary may
13 promulgate rules and regulations in accordance with the Administrative Procedure
14 Act to carry out the provisions of this Item.
15 (d)(i) For purposes of the payment of the state sales and use tax and the sales
16 and use tax levied by any political subdivision, the term "person" shall not include
17 a church or synagogue that is recognized by the United States Internal Revenue
18 Service as entitled to exemption under Section 501(c)(3) of the United States Internal
19 Revenue Code.
20 (ii) The secretary of the Department of Revenue shall promulgate rules and
21 regulations defining the terms "church" and "synagogue" for purposes of this
22 exclusion. The definitions shall be consistent with the criteria established by the
23 U.S. Internal Revenue Service in identifying organizations that qualify for church
24 status for federal income tax purposes.
25 (iii) No church or synagogue shall claim exemption or exclusion from the
26 state sales and use tax or the sales and use tax levied by any political subdivision
27 before having obtained a certificate of authorization from the secretary of the
28 Department of Revenue. The secretary shall develop applications for such
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1 certificates. The certificates shall be issued without charge to the institutions that
2 qualify.
3 (iv) The exclusion from the sales and use tax authorized by this
4 Subparagraph shall apply only to purchases of bibles, song books, or literature used
5 for religious instruction classes.
6 (e)(i) For purposes of the payment of the state sales and use tax and the sales
7 and use tax levied by any political subdivision, the term "person" shall not include
8 the Society of the Little Sisters of the Poor.
9 (ii) The secretary of the Department of Revenue shall promulgate rules and
10 regulations for purposes of this exclusion. The definitions shall be consistent with
11 the criteria established by the U.S. Internal Revenue Service in identifying tax-
12 exempt status for federal income tax purposes.
13 (iii) No member of the Society of the Little Sisters of the Poor shall claim
14 exemption or exclusion from the state sales and use tax or the sales and use tax
15 levied by any political subdivision before having obtained a certificate of
16 authorization from the secretary of the Department of Revenue. The secretary shall
17 develop applications for such certificates. The certificates shall be issued without
18 charge to the entities which qualify.
19 (f) [RESERVED] (i) For purposes of the payment of sales and use tax levied
20 by this state and any political subdivision whose boundaries are coterminous with
21 those of the state, the term "person" shall not include a nonprofit entity which sells
22 donated goods and spends seventy-five percent or more of its revenues on directly
23 employing or training for employment persons with disabilities or workplace
24 disadvantages.
25 (ii) The secretary shall promulgate rules and regulations for the use of
26 exclusion certificates for purposes of implementation of this Subparagraph. Each
27 nonprofit entity electing to utilize the exclusion provided for in this Subparagraph
28 shall apply for an exclusion certificate annually. Any exclusion certificate granted
29 by the Department of Revenue shall be effective for a one-year period.
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1 (iii) The secretary shall provide forms for nonprofit entities to request an
2 exclusion certificate.
3 * * *
4 (10)(a)(i) Solely for the purposes of the imposition of the state sales and use
5 tax, "retail sale" or "sale at retail" means a sale to a consumer or to any other person
6 for any purpose other than for resale as tangible personal property, or for the lease
7 of automobiles in an arm's length transaction, and shall mean and include all such
8 transactions as the secretary, upon investigation, finds to be in lieu of sales; provided
9 that sales for resale or for lease of automobiles in an arm's length transaction must
10 be made in strict compliance with the rules and regulations. Any dealer making a
11 sale for resale or for the lease of automobiles, which is not in strict compliance with
12 the rules and regulations, shall himself be liable for and pay the tax.
13 (ii) Solely for purposes of the imposition of the sales and use tax levied by
14 a political subdivision or school board, "retail sale" or "sale at retail" shall mean a
15 sale to a consumer or to any other person for any purpose other than for resale in the
16 form of tangible personal property, or resale of those services defined in Paragraph
17 (14) of this Section provided the retail sale of the service is subject to sales tax in this
18 state, and shall mean and include all such transactions as the collector, upon
19 investigation, finds to be in lieu of sales; provided that sales for resale be made in
20 strict compliance with the rules and regulations. Any dealer making a sale for resale,
21 which is not in strict compliance with the rules and regulations shall himself be liable
22 for and pay the tax. A local collector shall accept a resale certificate issued by the
23 Department of Revenue, provided the taxpayer includes the parish of its principal
24 place of business and local sales tax account number on the state certificate.
25 However, in the case of an intra-parish transaction from dealer to dealer, the
26 collector may require that the local exemption certificate be used in lieu of the state
27 certificate. The department shall accommodate the inclusion of such information on
28 its resale certificate for such purposes.
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1 (iii) "Retail sale" or "sale at retail" for purposes of sales and use taxes
2 imposed by the state tax on transactions involving the sale for rental of automobiles
3 which take place on or after January 1, 1991, and by political subdivisions on such
4 transactions on or after July 1, 1996, and state sales and use taxes imposed tax on
5 transactions involving the lease or rental of tangible personal property other than
6 automobiles which take place on or after July 1, 1991, means a sale to a consumer
7 or to any other person for any purpose other than for resale as tangible personal
8 property, or for lease or rental in an arm's length transaction in the form of tangible
9 personal property, and shall mean and include all such transactions as the secretary,
10 upon investigation, finds to be in lieu of sales; provided that sales for resale or for
11 lease or rental in an arm's length transaction must be made in strict compliance with
12 the rules and regulations. Any dealer making a sale for resale or for lease or rental,
13 which is not in strict compliance with the rules and regulations, shall himself be
14 liable for and pay the tax. For purposes of the imposition of the tax imposed by any
15 political subdivision of the state, for the period beginning on July 1, 1999, and
16 ending on June 30, 2000, the term "retail sale" or "sale at retail" shall not include
17 one-fourth of the sales price of any tangible personal property which is sold in order
18 to be leased or rented in an arm's length transaction in the form of tangible personal
19 property. For purposes of the imposition of the tax imposed by any political
20 subdivision of the state, for the period beginning on July 1, 2000, and ending on June
21 30, 2001, the term "retail sale" or "sale at retail" shall not include one-half of the
22 sales price of any tangible personal property which is sold in order to be leased or
23 rented in an arm's length transaction in the form of tangible personal property. For
24 purposes of the imposition of the tax imposed by any political subdivision of the
25 state, for the period beginning on July 1, 2001, and ending on June 30, 2002, the
26 term "retail sale" or "sale at retail" shall not include three-fourths of the sales price
27 of any tangible personal property which is sold in order to be leased or rented in an
28 arm's length transaction in the form of tangible personal property. Beginning July
29 1, 2002, for the purposes of imposition of the tax levied by any political subdivision
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1 of the state, the term "retail sale" or "sale at retail" shall not include the sale of any
2 tangible personal property which is sold in order to be leased or rented in an arm's
3 length transaction in the form of tangible personal property.
4 (iv) "Retail sale" or "sale at retail", for purposes of sales and use taxes
5 imposed by the state on transactions involving the sale for rental of automobiles
6 which take place prior to January 1, 1991, and by political subdivisions on such
7 transactions prior to July 1, 1996, and imposed on transactions involving the lease
8 or rental of tangible personal property other than autos which take place prior to July
9 1, 1991, and for purposes of local sales and use taxes levied by political subdivisions
10 except for transactions involving the sale for rental of automobiles on or after July
11 1, 1996, means a sale to a consumer or to any other person for any purpose other
12 than for resale in the form of tangible personal property, and shall mean and include
13 all such transactions as the secretary, upon investigation, finds to be in lieu of sales;
14 provided that sales for resale must be made in strict compliance with the rules and
15 regulations. Any dealer making a sale for resale, which is not in strict compliance
16 with the rules and regulations, shall himself be liable for and pay the tax. However,
17 contrary provisions of law notwithstanding, any political subdivision may, by
18 ordinance, adopt the definition of "retail sale" or "sale at retail" provided in Item (iii)
19 of this Subparagraph for purposes of the imposition of its sales and use tax.
20 (v) Became null and void on June 30, 2006.
21 (vi) Solely for purposes of the payment of state sales and use tax, until
22 January 1, 2007, the term "sale at retail" shall not include purchases made in
23 connection with the filming or production of a motion picture by a motion picture
24 production company which has been relieved from the payment of state sales and use
25 tax under the provisions of Chapter 12 of Subtitle II of this Title, also known as the
26 "Louisiana Motion Picture Incentive Act". This exclusion shall be retroactively
27 revoked if it is determined that a motion picture production company that has been
28 relieved from payment of state sales and use tax under Chapter 12 failed to meet the
29 conditions of such relief.
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1 (b) [RESERVED] Solely for purposes of the sales and use tax levied by the
2 state, the sale of tangible personal property to a dealer who purchases said property
3 for resale through coin-operated vending machines shall be considered a "sale at
4 retail", subject to such tax. The subsequent resale of the property by the dealer
5 through coin-operated vending machines shall not be considered a "sale at retail".
6 (ii) Solely for purposes of the sales and use tax levied by political
7 subdivisions, the term "sale at retail" shall include the sale of tangible personal
8 property by a dealer through coin-operated vending machines.
9 (c)(i)(aa) The term "sale at retail" does not include sale of materials for
10 further processing into articles of tangible personal property for sale at retail.
11 (bb) Solely for purposes of the sales and use tax levied by the state under
12 R.S. 47:331, natural gas when used in the production of iron in the process known
13 as the "direct reduced iron process" is not a catalyst and is recognized by the
14 legislature to be a material for further processing into an article of tangible personal
15 property for sale at retail.
16 (ii)(aa) Solely for purposes of the sales and use tax levied by the state , the
17 term "sale at retail" does not include sales of electricity for chlor-alkali
18 manufacturing processes.
19 (bb) The term "sale at retail" does not include an isolated or occasional sale
20 of tangible personal property by a person not engaged in such business.
21 (d) The term "sale at retail" does not include the sale of any human tissue
22 transplants, which shall be defined to include all human organs, bone, skin, cornea,
23 blood, or blood products transplanted from one individual into another recipient
24 individual.
25 (e) The term "sale at retail" does not include the sale of raw agricultural
26 commodities, including but not limited to feed, seed, and fertilizer, to be utilized in
27 preparing, finishing, manufacturing, or producing crops or animals for market. The
28 Department of Agriculture and Forestry may develop and promulgate guidelines to
29 determine who meets this definition. Any person meeting such guidelines shall
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1 receive a certificate from the Department of Agriculture and Forestry indicating that
2 such person is eligible to purchase such items without paying tax thereon.
3 (f) Notwithstanding any other law to the contrary, for purposes of the
4 imposition of the sales and use tax of any political subdivision, the sale of a vehicle
5 subject to the Vehicle Registration License Tax Law (R.S. 47:451 et seq.) shall be
6 deemed to be a "retail sale" or a "sale at retail":
7 (i) In the political subdivision of the principal residence of the purchaser if
8 the vehicle is purchased for private use, or
9 (ii) In the political subdivision of the principal location of the business if the
10 vehicle is purchased for commercial use, unless the vehicle purchased for
11 commercial use is assigned, garaged, and used outside of such political subdivision,
12 in which case the sale shall be deemed a "retail sale" or a "sale at retail" in the
13 political subdivision where the vehicle is assigned, garaged, and used.
14 (g) The term "retail sale" does not include a sale of corporeal movable
15 property which is intended for future sale to the United States government or its
16 agencies, when title to such property is transferred to the United States government
17 or its agencies prior to the incorporation of that property into a final product.
18 (h) The term "sale at retail" does not include the sale of food items by youth
19 serving organizations chartered by congress.
20 (i) [RESERVED] The term "sale at retail" does not include the purchase of
21 a new school bus or a used school bus which is less than five years old by an
22 independent operator, when such bus is to be used exclusively in a public school
23 system. This exclusion shall apply to all sales and use taxes levied by any local
24 political subdivision.
25 (j) [RESERVED] The term "sale at retail" does not include the sale of
26 tangible personal property to food banks, as defined in R.S. 9:2799.
27 (k) The term "sale at retail" shall not include the sale of airplanes or airplane
28 equipment or parts to a commuter airline domiciled in Louisiana.
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1 (l) [RESERVED] Solely for purposes of the state sales and use tax, the term
2 "sale at retail" shall not include the sale of a pollution control device or system.
3 Pollution control device or system shall mean any tangible personal property
4 approved by the Department of Revenue and the Department of Environmental
5 Quality and sold or leased and used or intended for the purpose of eliminating,
6 preventing, treating, or reducing the volume or toxicity or potential hazards of
7 industrial pollution of air, water, groundwater, noise, solid waste, or hazardous waste
8 in the state of Louisiana. For the purposes of any sales and use tax levied by a
9 political subdivision, the term "sale at retail" shall include the sale of a pollution
10 control device or system. In order to qualify, the pollution control device or system
11 must demonstrate either: a net decrease in the volume or toxicity or potential hazards
12 of pollution as a result of the installation of the device or system; or that installation
13 is necessary to comply with federal or state environmental laws or regulations.
14 (m) For purposes of sales and use taxes imposed or levied by the state or any
15 political subdivision, the term "sale at retail" shall not include the sales of Louisiana-
16 manufactured or Louisiana-assembled passenger aircraft with a maximum capacity
17 of eight persons, if, after all transportation, including transportation by the purchaser,
18 has been completed, the aircraft is ultimately received by the purchaser outside of
19 Louisiana. The place at which the aircraft is ultimately received shall be considered
20 as the place at which the aircraft is stored after all transportation has been completed.
21 (n) For purposes of sales and use taxes imposed or levied by the state or any
22 political subdivision thereof, the term "sale at retail" shall not include the sales of
23 pelletized paper waste when purchased for use as combustible fuel by an electric
24 utility or in an industrial manufacturing, processing, compounding, reuse, or
25 production process, including the generation of electricity or process steam, at a
26 fixed location in this state. However, such sale shall not be excluded unless the
27 purchaser has signed a certificate stating that the fuel purchased is for the exclusive
28 use designated herein. For purposes of this Subparagraph, "pelletized paper waste"
29 means pellets produced from discarded waste paper that has been diverted or
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1 removed from solid waste which is not marketable for recycling and which is wetted,
2 extruded, shredded, or formulated into compact pellets of various sizes for use as a
3 supplemental fuel in a permitted boiler.
4 (o) For the purposes of sales and use taxes imposed or levied by the state or
5 any local governmental subdivision or school board, the term "sale at retail" shall not
6 include the sale or purchase of equipment used in fire fighting by bona fide volunteer
7 and public fire departments.
8 (p) For purposes of state and political subdivision sales and use tax, the term
9 "sale at retail" shall not include the sale of items, including but not limited to
10 supplies and equipment, or the sale of services as provided in this Section, which are
11 reasonably necessary for the operation of free hospitals.
12 (q) For purposes of state and political subdivision sales and use tax, the term
13 "sale at retail" shall not include:
14 (i) The sale of tangible personal property by approved nonprofit parochial
15 and private elementary and secondary schools which comply with the court order
16 from the Dodd Brumfield decision and Section 501(c)(3) of the Internal Revenue
17 Code, or students, administrators, or teachers, or other employees of the school, if
18 the money from such sales, less reasonable and necessary expenses associated with
19 the sale, is used solely and exclusively to support the school or its program or
20 curricula. This exclusion shall not be construed to allow tax-free sales to students
21 or their families by promoters or regular commercial dealers through the use of
22 schools, school faculty, or school facilities.
23 (ii) The sale to approved parochial and private elementary and secondary
24 schools which comply with the court order from the Dodd Brumfield decision and
25 Section 501(c)(3) of the Internal Revenue Code of educational materials or
26 equipment used for classroom instruction limited to books, workbooks, computers,
27 computer software, films, videos, and audio tapes.
28 (r) [RESERVED] For purposes of state and political subdivision sales and
29 use tax, the term "sale at retail" shall not include the sale of tangible personal
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1 property to Boys State of Louisiana, Inc. and Girls State of Louisiana, Inc. which is
2 used by such organizations for their educational and public service programs for
3 youth.
4 (s) [RESERVED] The term "sale at retail" or "retail sale", for purposes of
5 sales and use taxes imposed by the state or any political subdivision or other taxing
6 entity, shall not include any charge, fee, money, or other consideration received,
7 given, or paid for the performance of funeral directing services. For purposes of this
8 Subparagraph, "funeral directing services" means the operation of a funeral home,
9 or by way of illustration and not limitation, any service whatsoever connected with
10 the management of funerals, or the supervision of hearses or funeral cars, the
11 cleaning or dressing of dead human bodies for burial, and the performance or
12 supervision of any service or act connected with the management of funerals from
13 time of death until the body or bodies are delivered to the cemetery, crematorium,
14 or other agent for the purpose of disposition. However, such services shall not mean
15 or include the sale, lease, rental, or use of any tangible personal property as those
16 terms are defined in this Section.
17 (t) [RESERVED] For purposes of sales and use taxes levied by the state or
18 any political subdivision of the state, the term "sale at retail" shall not include the
19 transfer of title to or possession of telephone directories by an advertising company
20 that is not affiliated with a provider of telephone services if the telephone directories
21 will be distributed free of charge to the recipients of the telephone directories.
22 (u) [RESERVED] For purposes of sales and use taxes levied and imposed by
23 local governmental subdivisions, school boards, and other political subdivisions
24 whose boundaries are not coterminous with those of the state, "sale at retail" by a
25 person shall not mean or include the sale of tangible personal property if such sale
26 is made under the provisions of Medicare.
27 (v) For purposes of the imposition of sales and use taxes imposed or levied
28 by all taxing authorities in the state, in the case of the sale or other disposition by a
29 dealer of any cellular, PCS, or wireless telephone, or any electronic accessories that
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1 are physically connected with such telephones and personal communication devices
2 used in connection with the sale or use of mobile telecommunications services, the
3 term "retail sale" or "sale at retail" shall mean and include the sale or any other
4 disposition of such cellular, PCS, or wireless telephone, any electronic accessories
5 that are physically connected with such telephones and personal communication
6 devices by the dealer to the purchaser, but shall not mean or include the withdrawal,
7 use, distribution, consumption, storage, donation, or any other disposition of any
8 such cellular, PCS, or wireless telephone, any electronic accessories that are
9 physically connected with such telephones, and personal communication devices by
10 the dealer.
11 (w) For purposes of the imposition of sales and use taxes imposed or levied
12 by any political subdivision of the state, in the case of the sale or other disposition
13 by a dealer of any cellular telephone, PCS telephone, wireless telephone, or other
14 wireless personal communication device that is used in connection with the sale or
15 use of mobile telecommunications services, or any electronic accessory that is
16 physically connected with any such telephone or personal communication device, the
17 term "retail sale" or "sale at retail" shall mean and include the sale or any other
18 disposition of any such telephone, other personal communication device, or
19 electronic accessory.
20 (x) For purposes of the sales and use tax imposed by the state or any political
21 subdivision whose boundaries are coterminous with those of the state, the terms
22 "retail sale" or "sale at retail" shall not include the following:
23 (i) The sale or purchase by a person consumer of any fuel or gas, including
24 but not limited to butane and propane for residential use by that consumer.
25 (ii) Beginning July 1, 2008, the sale or purchase by any person of butane and
26 propane.
27 (y)(i) Solely for the purposes of sales and use taxes levied by the state or any
28 political subdivision whose boundaries are coterminous with those of the state, the
29 term "sale at retail" shall not include the sale of manufacturing machinery and
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1 equipment used or consumed in this state to manufacture, produce, or extract
2 unblended biodiesel through March 30, 2016.
3 (ii) As used in this Subparagraph, the following words and phrases have the
4 meaning ascribed to them:
5 (aa) "Manufacturing machinery and equipment" means tangible property
6 used or consumed, or held for use or consumption, as an integral part of a biodiesel
7 manufacturing, production, or extraction facility, process, or item of equipment.
8 Property shall be considered to be an integral part of such biodiesel manufacturing,
9 production, or extraction facility, process, or item of equipment only if such property
10 is used or consumed directly in the manufacturing, production, or extraction process
11 or is part of, physically attached to, or otherwise directly associated with such
12 property. Property, the installation of which is reasonably necessary for the proper
13 installation, operation, maintenance of property which directly results in such
14 manufacturing, production, or extraction shall be considered as directly associated
15 with such property.
16 (bb) "Unblended biodiesel" means a fuel comprised of mono-alkyl esters of
17 long chain fatty acids derived from vegetable oils or animal fats, designated B100,
18 and meeting the requirements of the definition provided for in D 6751 of the
19 American Society of Testing and Materials (ATDM D 6751), before such fuel is
20 blended with a petroleum-based diesel fuel.
21 (z) [RESERVED] Solely for the purposes of sales and use taxes levied by the
22 state under R.S. 47:302 and 331 or any political subdivision whose boundaries are
23 coterminous with those of the state, the term "sale at retail" shall not include the sale
24 of any alternative substance when such alternative substance is used as a fuel by a
25 manufacturer. "Alternative substance" means any substance other than oil and
26 natural gas and any product of oil and natural gas. "Alternative substance" shall
27 include petroleum coke, landfill gas, reclaimed or waste oil, unblended biodiesel, or
28 tire-derived fuel, but not coal, lignite, refinery gas, nuclear fuel, or electricity.
29 "Manufacturer" means a person whose principal activity is manufacturing and who
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1 is assigned by the Louisiana Workforce Commission a North American Industrial
2 Classification System code with the agricultural, forestry, fishing, and hunting Sector
3 11 or the manufacturing Sectors 31-33 as they existed in 2002.
4 (aa) [RESERVED] For purposes of sales and use taxes imposed or levied by
5 the state or any political subdivision of the state, the term "sale at retail" shall not
6 include the sale of toys to a non-profit organization exempt from federal taxation
7 pursuant to Section 501(c)(3) of the Internal Revenue Code if the sole purpose of the
8 purchasing organization is to donate toys to minors and the toys are, in fact, donated.
9 (ii) The exclusion provided in this Subparagraph shall not apply if the
10 donation is intended to ultimately yield a profit to a promoter of the organization or
11 to any individual contracted to provide services or equipment, or both, to the
12 organization.
13 (iii) A certificate of exclusion shall be obtained from the secretary or the tax
14 collector of the political subdivision, under such regulations as he shall prescribe, in
15 order for nonprofit organizations to qualify for the exclusion provided for in this
16 Subparagraph.
17 (bb) [RESERVED] For purposes of sales and use taxes imposed or levied by
18 the state, the terms "retail sale" and "sale at retail" shall not include sales of natural
19 gas to be held, used, or consumed in providing natural gas storage services or
20 operating natural gas storage facilities.
21 (cc) For purposes of the sales and use tax imposed by the state or any
22 political subdivision of the state, the terms "retail sale" or "sale at retail" shall not
23 mean or include the purchase of textbooks and course-related software by a nonprofit
24 private postsecondary academic degree-granting institution, accredited by a national
25 or regional commission that is recognized by the United States Department of
26 Education and is licensed by the Board of Regents, which institution has its main
27 location within this state and offers only online instruction, when all of the following
28 apply:
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1 (i) The textbooks and course-related software are physically outside of this
2 state when purchased from a vendor outside of this state and then imported into this
3 state.
4 (ii) The first student use of the textbooks and course-related software occurs
5 outside of this state.
6 (iii) The textbooks and course-related software are provided to the student
7 free of charge.
8 (dd) [RESERVED] For purposes of sales and use taxes imposed or levied by
9 the state, the terms "retail sale" or "sale at retail" shall not include the purchase of
10 food items for school lunch or breakfast programs by nonpublic elementary or
11 secondary schools which participate in the National School Lunch and School
12 Breakfast programs or the purchase of food items by nonprofit corporations which
13 serve students in nonpublic elementary or secondary schools and which participate
14 in the National School Lunch and School Breakfast programs.
15 (ee) [RESERVED] Solely for the purposes of the imposition of the state sales
16 and use tax, the term "retail sale" and "sale at retail" shall not include the sale of any
17 storm shutter device.
18 (ii) As used in this Subparagraph, "storm shutter device" means materials
19 and products manufactured, rated, and marketed specifically for the purpose of
20 preventing window damage from storms.
21 (iii) The secretary of the Department of Revenue, in consultation with the
22 Department of Insurance, shall promulgate such rules and regulations in accordance
23 with the Administrative Procedure Act as may be necessary to carry out the
24 provisions of this Subparagraph.
25 (ff) For purposes of sales taxes imposed by the state or any political
26 subdivision of the state, the term "retail sale" or "sale at retail" shall not include sales
27 of tangible personal property by the Military Department, state of Louisiana, which
28 occur on an installation or other property owned or operated by the Military
29 Department.
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1 (gg) [RESERVED] For purposes of sales and use tax imposed by the or any
2 political subdivision of the state, the term "sale at retail" shall not include the sale of
3 anthropogenic carbon dioxide for use in a qualified tertiary recovery project
4 approved by the assistant secretary of the office of conservation of the Department
5 of Natural Resources pursuant to R.S. 47:633.4.
6 (hh) [RESERVED] For purposes of sales and use tax imposed by the state,
7 any political subdivision whose boundaries are coterminous with those of the state,
8 or any other political subdivision, the term "sale at retail" shall not include the sale
9 of tangible personal property at an event providing Louisiana heritage, culture, crafts,
10 art, food, and music which is sponsored by a domestic nonprofit organization that is
11 exempt from tax under Section 501(c)(3) of the Internal Revenue Code. The
12 provisions of this Subparagraph shall apply only to an event which transpires over
13 a minimum of seven but not more than twelve days and has a five-year annual
14 average attendance of at least three hundred thousand over the duration of the event.
15 For purposes of determining the five-year annual average attendance, the calculation
16 shall include the total annual attendance for each of the five most recent years. The
17 provisions of this Subparagraph shall apply only to sales by the sponsor of the event.
18 * * *
19 (13)(a) "Sales price" means the total amount for which tangible personal
20 property is sold, less the market value of any article traded in including any services,
21 except services for financing, that are a part of the sale valued in money, whether
22 paid in money or otherwise, and includes the cost of materials used, labor or service
23 costs, except costs for financing which shall not exceed the legal interest rate and a
24 service charge not to exceed six percent of the amount financed, and losses; provided
25 that cash discounts allowed and taken on sales shall not be included, nor shall the
26 sales price include the amount charged for labor or services rendered in installing,
27 applying, remodeling, or repairing property sold.
28 (b) The term "sales price" shall not include any amount designated as a cash
29 discount or a rebate by the vendor or manufacturer of any new vehicle subject to the
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1 motor vehicle license tax. For purposes of this Paragraph "rebate" means any
2 amount offered by a vendor or manufacturer as a deduction from the listed retail
3 price of the vehicle.
4 (c) "Sales price" shall not include the first fifty thousand dollars of the sale
5 price of new farm equipment used in poultry production through March 30, 2016.
6 (d) Notwithstanding any other provision of law to the contrary, for purposes
7 of state and political subdivision sales and use tax, the "sales price" of refinery gas,
8 except for feedstock, not ultimately consumed as an energy source by the person who
9 owns the facility in which the refinery gas is created as provided for in Subparagraph
10 (18)(d) of this Section, but sold to another person, whether at retail or wholesale,
11 shall be fifty-two cents per thousand cubic feet multiplied by a fraction the
12 numerator of which shall be the posted price for a barrel of West Texas Intermediate
13 Crude Oil on December first of the preceding calendar year and the denominator of
14 which shall be twenty-nine dollars, and provided further that such sales price shall
15 be the maximum value placed upon refinery gas by the state and by any political
16 subdivision under any authority or grant of power to levy and collect sales or use
17 taxes, and such sale shall be taxable.
18 (e) [RESERVED] The term "sales price", for purposes of the sales tax
19 imposed by the state and its political subdivisions, shall exclude any amount that a
20 manufacturer pays directly to a dealer of the manufacturer's product for the purpose
21 of reducing and that actually results in an equivalent reduction in the retail "sales
22 price" of that product. This exclusion shall not apply to the value of the
23 manufacturer's coupons that dealers accept from purchasers as part payment of the
24 "sales price" and that are redeemable by the dealers through manufacturers or their
25 agents. The value of such coupons is deemed to be part of the "sales price" of the
26 product purchased through the use of the coupons.
27 (f) [RESERVED] The term "sales price" shall exclude any charge, fee,
28 money, or other consideration received, given, or paid for the performance of funeral
29 directing services as defined in Subparagraph (10)(s) of this Section.
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1 (g) For purposes of the imposition of sales and use taxes imposed or levied
2 by all taxing authorities in the state, in the case of the retail sale by a dealer of any
3 cellular, PCS, or wireless telephone, any electronic accessories that are physically
4 connected with such telephones and personal communications devices used in
5 connection with the sale or use of mobile telecommunications services, as defined
6 in R.S. 47:301(10)(v), the term "sales price" shall mean and include only the amount
7 of money, if any, actually received by the dealer from the purchaser for each such
8 cellular, PCS, or wireless telephone and any electronic accessories that are physically
9 connected with such telephones and personal communication devices, but shall not
10 include (i) any amount received by the dealer from the purchaser for providing
11 mobile telecommunications services, or (ii) any commissions, fees, rebates, or other
12 amounts received by the dealer from any source other than the purchaser as a result
13 of or in connection with the sale of the cellular, PCS, or wireless telephone, any
14 electronic accessories that are physically connected with such telephones and
15 personal communication devices.
16 (h) For the purpose of the imposition of sales and use tax imposed or levied
17 by all taxing authorities in the state of any cellular, PCS, or wireless telephone used
18 in connection with the sale or use of mobile telecommunications services, as defined
19 in R.S. 47:301(10)(v), after January 1, 2002, the term "sales price" shall mean and
20 include the greater of (i) the amount of money actually received by the dealer from
21 the purchaser for each such telephone, or (ii) twenty-five percent of the cost of such
22 telephone to the dealer, but shall not include any amount received by the dealer from
23 the purchaser for providing mobile telecommunications services or any
24 commissions, fees, rebates, or other amounts received by the dealer from any source
25 other than the purchaser as a result of or in connection with the sale of the telephone.
26 (i) [RESERVED] For purposes of a publishing business which distributes its
27 news publications at no cost to readers and pays unrelated third parties to print such
28 news publications, the term "sales price" shall mean only the lesser of the following
29 costs:
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1 (aa) The printing cost paid to unrelated third parties to print such news
2 publications, less any itemized freight charges for shipping the news publications
3 from the printer to the publishing business and any itemized charges for paper and
4 ink.
5 (bb) Payments to a dealer or distributor as consideration for distribution of
6 the news publications.
7 (ii) The definition of "sales price" provided for in this Subparagraph shall be
8 applicable to taxes levied by all tax authorities in the state.
9 (j) [RESERVED] For the purpose of the imposition of sales and use tax
10 imposed or levied by any political subdivision of the state, in the case of any retail
11 sale or sale at retail, of any cellular telephone, PCS telephone, or wireless telephone
12 used in connection with the sale or use of mobile telecommunications services, as
13 defined in R.S. 47:301(10)(w), or any electronic accessory that is physically
14 connected with any such telephone or personal communication device, the term
15 "sales price" shall mean and include the greater of (i) the amount of money, if any,
16 actually received by the dealer from the purchaser at the time of the retail sale or sale
17 at retail by the dealer to the purchaser for each such telephone, personal
18 communication device, or electronic accessory, or (ii) twenty-five percent of the cost
19 of such telephone to the dealer, but shall not include any amount received by the
20 dealer from the purchaser for providing mobile telecommunications services or any
21 commissions, fees, rebates, activation charges, or other amounts received by the
22 dealer from any source other than the purchaser as a result of or in connection with
23 the sale of the telephone.
24 (k) [RESERVED] For purposes of the imposition of the sales tax levied by
25 the and any political subdivision whose boundaries are coterminous with those of the
26 state, the sales price of machinery and equipment purchased by a manufacturer for
27 use in a plant facility predominately and directly in the actual manufacturing for
28 agricultural purposes or the actual manufacturing process of an item of tangible
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1 personal property, which is for ultimate sale to another and not for internal use, at
2 one or more fixed locations within Louisiana shall be reduced as follows:
3 (aa) For the period ending on June 30, 2005, the sales price shall be reduced
4 by five percent.
5 (bb) For the period beginning July 1, 2005, and ending on June 30, 2006, the
6 sales price shall be reduced by nineteen percent.
7 (cc) For the period beginning July 1, 2006, and ending on June 30, 2007, the
8 sales price shall be reduced by thirty-five percent.
9 (dd) For the period beginning July 1, 2007, and ending on June 30, 2008, the
10 sales price shall be reduced by fifty-four percent.
11 (ee) For the period beginning July 1, 2008, and ending on June 30, 2009, the
12 sales price shall be reduced by sixty-eight percent.
13 (ff) For all periods beginning on or after July 1, 2009, the sales price shall
14 be reduced by one hundred percent.
15 (ii) For purposes of this Subparagraph, "machinery and equipment",
16 "manufacturer", "manufacturing", "manufacturing for agricultural purposes","plant
17 facility", and "used directly" shall have the same meaning as defined in R.S.
18 47:301(3)(i)(ii).
19 (iii) No person shall be entitled to purchase, use, lease, or rent machinery or
20 equipment as defined herein without payment of the tax imposed by R.S. 47:302 321,
21 and 331 before receiving a certificate of exclusion from the secretary of the
22 Department of Revenue certifying that he is a manufacturer as defined herein.
23 (iv) The secretary of the Department of Revenue is hereby authorized to
24 adopt rules and regulations in order to administer the exclusion provided for in this
25 Subparagraph.
26 (l)(i) For purposes of the payment of the state sales and use and the sales and
27 use tax levied by any political subdivision, the term "sales price" shall not include
28 the price of specialty items sold to members for fund-raising purposes by nonprofit
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1 carnival organizations domiciled within Louisiana and participating in a parade
2 sponsored by a carnival organization.
3 (ii) The secretary of the Department of Revenue shall promulgate rules and
4 regulations for purposes of this exclusion.
5 (iii) No nonprofit carnival organization domiciled within Louisiana and
6 participating in a parade sponsored by a carnival organization shall claim exemption
7 or exclusion from the state sales and use tax or the sales and use tax levied by any
8 political subdivision before having obtained a certificate of authorization from the
9 secretary of the Department of Revenue. The secretary shall develop applications
10 for such certificates. The certificates shall be issued without charge to the entities
11 which qualify.
12 (m) For purposes of the sales and use tax imposed by the state or any
13 political subdivision whose boundaries are coterminous with those of the state, the
14 "sales price" of electric power or energy, or natural gas for the period beginning July
15 1, 2007, and thereafter, sold for use by paper or wood products manufacturing
16 facilities shall not include any of such price.
17 (14) "Sales of services" means and includes the following:
18 (a) The furnishing of sleeping rooms, cottages or cabins by hotels.
19 (b)(i) The sale of admissions to places of amusement, to athletic
20 entertainment other than that of schools, colleges, and universities, and recreational
21 events, and the furnishing, for dues, fees, or other consideration of the privilege of
22 access to clubs or the privilege of having access to or the use of amusement,
23 entertainment, athletic, or recreational facilities; but the term "sales of services" shall
24 not include membership fees or dues of nonprofit, civic organizations, including by
25 way of illustration and not of limitation the Young Men's Christian Association, the
26 Catholic Youth Organization, and the Young Women's Christian Association.
27 Further, "sales of services" shall not include the sale of admissions to entertainment
28 events furnished by recognized domestic nonprofit charitable, educational and
29 religious organizations when the entire proceeds from such sales, except for
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1 necessary expenses connected with the entertainment events, are used for the
2 purposes for which the organizations furnishing the events were organized.
3 (ii) Places of amusement shall not include "museums", which are hereby
4 defined as public or private nonprofit institutions which are organized on a
5 permanent basis for essentially educational or aesthetic purposes and which use
6 professional staff to do all of the following:
7 (aa) Own or use tangible objects, whether animate or inanimate.
8 (bb) Care for those objects.
9 (cc) Exhibit them to the public on a regular basis.
10 (iii) Museums include but are not limited to the following institutions:
11 (aa) Museums relating to art, history, including historic buildings, natural
12 history, science, and technology.
13 (bb) Aquariums and zoological parks.
14 (cc) Botanical gardens and arboretums.
15 (dd) Nature centers.
16 (ee) Planetariums.
17 (iv) For purposes of the sales and use taxes of all tax authorities in the state
18 , the term "places of amusement" as used herein shall not include camp and retreat
19 facilities owned and operated by nonprofit organizations exempt from federal income
20 tax under Section 501(a) of the Internal Revenue Code as an organization described
21 in Section 501(c)(3) of the Internal Revenue Code provided that the net revenue
22 derived from the organization's property is devoted wholly to the nonprofit
23 organization's purposes.
24 (c) The furnishing of storage or parking privileges by auto hotels and parking
25 lots.
26 (d) The furnishing of printing or overprinting, lithographic, multilith, blue
27 printing, photostating or other similar services of reproducing written or graphic
28 matter.
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1 (e) The furnishing of laundry, cleaning, pressing and dyeing services,
2 including by way of extension and not of limitation, the cleaning and renovation of
3 clothing, furs, furniture, carpets and rugs, and the furnishing of storage space for
4 clothing, furs, and rugs. The service shall be taxable at the location where the
5 laundered, cleaned, pressed, or dyed article is returned to the customer.
6 (f) The furnishing of cold storage space, except that space which is furnished
7 pursuant to a bailment arrangement, and the furnishing of the service of preparing
8 tangible personal property for cold storage where such service is incidental to the
9 operation of storage facilities.
10 (g)(i)(aa) The furnishing of repairs to tangible personal property, including
11 but not restricted to the repair and servicing of automobiles and other vehicles,
12 electrical and mechanical appliances and equipment, watches, jewelry, refrigerators,
13 radios, shoes, and office appliances and equipment.
14 (bb)(I) For purposes of the sales and use tax levied by the state and by tax
15 authorities in East Feliciana Parish, charges for the furnishing of repairs to tangible
16 personal property shall be excluded from sales of services, as defined in this
17 Subparagraph, when the repaired property is (1) delivered to a common carrier or to
18 the United States Post Office for transportation outside the state, or (2) delivered
19 outside the state by use of the repair dealer's own vehicle or by use of an independent
20 trucker. However, as to aircraft, delivery may be by the best available means. This
21 exclusion shall not apply to sales and use taxes levied by any other parish,
22 municipality or school board. However, any other parish, municipality or school
23 board may apply the exclusion as defined in this Subparagraph to sales or use taxes
24 levied by any such parish, municipality, or school board. Offshore areas shall not
25 be considered another state for the purpose of this Subparagraph.
26 (II) For purposes of the sales and use tax levied by the tax authorities in
27 Calcasieu Parish, charges for the furnishing of repairs to aircraft shall be excluded
28 from sales of services, as defined in this Subparagraph, provided that the repairs are
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1 performed at an airport with a runway that is at least ten thousand feet long, one
2 hundred sixty feet wide, and fourteen inches thick.
3 (ii) For the purposes of this Subparagraph, tangible personal property shall
4 include machinery, appliances, and equipment which have been declared immovable
5 by declaration under the provisions of Article 467 of the Louisiana Civil Code, and
6 things which have been separated from land, buildings, or other constructions
7 permanently attached to the ground or their component parts as defined in Article
8 466 of the Civil Code.
9 (iii)(aa) For purposes of the sales and use taxes imposed by the state or any
10 of its political subdivisions, sale of services shall not include the labor, or sale of
11 materials, services, and supplies, used for the repairing, renovating, or converting of
12 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 the
14 territorial limits of the state in Outer Continental Shelf waters.
15 (bb) For the purposes of this Subitem, "drilling rig" means any unit or
16 structure, along with its component parts, which is used primarily for drilling,
17 workover, intervention or remediation of wells used for exploration or development
18 of minerals and "component parts" means any machinery or equipment necessary for
19 a drilling rig to perform its exclusive function of exploration or development of
20 minerals.
21 (h) [RESERVED] The term "sale of service" shall not include an action
22 performed pursuant to a contract with the United States Department of the Navy for
23 construction or overhaul of U.S. Naval vessels.
24 (i) Solely for purposes of the sales and use tax levied by the state, the
25 furnishing of telecommunications services for compensation, in accordance with the
26 provisions of R.S. 47:301.1. Local political subdivisions are prohibited from levying
27 a sales and use tax on telecommunications services not in effect on July 1, 1990,
28 provided, however, that the provisions of this Subparagraph shall not be construed
29 to prohibit the levy or collection of any franchise, excise, gross receipts, or similar
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1 tax or assessment by any political subdivision of the state as defined in Article VI,
2 Section 44(2) of the Constitution of Louisiana.
3 (j) [RESERVED] Notwithstanding any provision of law to the contrary, for
4 purposes of sales or use taxation by the state or any local political subdivision, the
5 term "sales of services" shall not mean or include any funeral directing services as
6 defined in Subparagraph (10)(s) of this Section. Subject to approval by the House
7 Committee on Ways and Means and the Senate Committee on Revenue and Fiscal
8 Affairs, the state Department of Revenue shall devise a formula for the calculation
9 of the tax.
10 (k) [RESERVED] For purposes of sales and use tax imposed by the state, any
11 political subdivision whose boundaries are coterminous with those of the state, or
12 any other political subdivision, the term "sales of services" shall not mean or include
13 admission charges for, outside gate admissions to, or parking fees associated with
14 an event providing Louisiana heritage, culture, crafts, art, food, and music which is
15 sponsored by a domestic nonprofit organization that is exempt from tax under
16 Section 501(c)(3) of the Internal Revenue Code. The provisions of this
17 Subparagraph shall apply only to an event which transpires over a minimum of seven
18 but not more than twelve days and has a five-year annual average attendance of at
19 least three hundred thousand over the duration of the event. For purposes of
20 determining the five-year annual average attendance, the calculation shall include the
21 total annual attendance for each of the five most recent years. The provisions of this
22 Subparagraph shall apply only to admission charges for, outside gate admissions to,
23 or parking fees associated with an event when the charges and fees are payable to or
24 for the benefit of the sponsor of the event.
25 (15) "Storage" means and includes any keeping or retention in the taxing
26 jurisdiction of tangible personal property for use or consumption within the taxing
27 jurisdiction or for any purpose other than for sale at retail in the regular course of
28 business.
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1 (16)(a) "Tangible personal property" means and includes personal property
2 which may be seen, weighed, measured, felt or touched, or is in any other manner
3 perceptible to the senses.
4 (b) The term "tangible personal property" shall not include:
5 (i) Stocks, bonds, notes, or other obligations or securities.
6 (ii) Gold, silver, or numismatic coins, or platinum, gold, or silver bullion.
7 (iii) Proprietary geophysical survey information or geophysical data analysis
8 furnished under a restricted use agreement even though transferred in the form of
9 tangible personal property.
10 (c) The term "tangible personal property" shall not include the repair of a
11 vehicle by a licensed motor vehicle dealer which is performed subsequent to the
12 lapse of the applicable warranty on that vehicle and at no charge to the owner of the
13 vehicle. For the purpose of assessing a sales and use tax on this transaction, no
14 valuation shall be assigned to the services performed or the parts used in the repair.
15 (d)(i) Notwithstanding any provision of law to the contrary and solely for
16 purposes of state sales and use tax, any sale of a prepaid calling service or prepaid
17 wireless calling service, or both, shall be deemed to be the sale of tangible personal
18 property.
19 (ii) Prepaid calling services and prepaid wireless calling services shall be
20 subject to the tax imposed by this Chapter if the sale takes place in this state. If the
21 customer physically purchases a prepaid calling service or prepaid wireless calling
22 service at the vendor's place of business, the sale is deemed to take place at the
23 vendor's place of business. If the customer does not physically purchase the service
24 at the vendor's place of business, the sale of a prepaid calling service or prepaid
25 wireless calling service is deemed to take place at the first of the following locations
26 that applies to the sale:
27 (aa) The customer's shipping address, if the sale involves a shipment.
28 (bb) The customer's billing address.
29 (cc) Any other address of the customer that is known by the vendor.
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1 (dd) The address of the vendor or, alternatively in the case of a prepaid
2 wireless calling service, the location associated with the mobile telephone number.
3 (e) The term "tangible personal property" shall not include work products
4 which are written on paper, stored on magnetic or optical media, or transmitted by
5 electronic device, when such work products are created in the normal course of
6 business by any person licensed or regulated by the provisions of Title 37 of the
7 Louisiana Revised Statutes of 1950, unless such work products are duplicated
8 without modification for sale to multiple purchasers. This exclusion shall not apply
9 to work products which consist of the creation, modification, updating, or licensing
10 of computer software.
11 (f) [RESERVED] The term "tangible personal property" shall not include
12 pharmaceuticals administered to livestock used for agricultural purposes, except as
13 otherwise provided in this Subparagraph. Only pharmaceuticals not included in the
14 term "tangible personal property" shall be registered with the Louisiana Department
15 of Agriculture and Forestry. Legend drugs administered to livestock used for
16 agricultural purposes are not required to be registered, but such legend drugs that are
17 not registered shall be "tangible personal property".
18 (g)(i) Notwithstanding the provisions of R.S. 9:1149.1 et seq., except as
19 otherwise provided in this Subparagraph, the term "tangible personal property" shall
20 not include factory built homes.
21 (ii) For purposes of this Subparagraph, "factory built home" means a
22 residential structure which is built in a factory in one or more sections and has a
23 chassis or integrated wheel delivery system, which is either:
24 (aa) A structure built to federal construction standards as defined in Section
25 5402 of Title 42 of the United States Code.
26 (bb) A residential structure built to the Louisiana State Uniform Construction
27 Code.
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1 (cc) A manufactured home, modular home, mobile home, or residential
2 mobile home with or without a permanent foundation, which includes plumbing,
3 heating, and electrical systems.
4 (iii) "Factory built home" shall not include any self-propelled recreational
5 vehicle or travel trailer.
6 (iv) The term "tangible personal property" as applied to sales and use taxes
7 levied by the state or any other taxing authority in the state shall include a new
8 factory built home, for the initial sale from a dealer to a consumer, but only to the
9 extent that forty-six percent of the retail sales price shall be so considered as
10 "tangible personal property". Thereafter, each subsequent resale of a factory built
11 home shall not be considered as "tangible personal property".
12 (v) The sales and use taxes due on these transactions shall be paid to the
13 Louisiana Department of Public Safety and Corrections, office of motor vehicles, by
14 the twentieth day of the month following the month of delivery of the factory built
15 home to the consumer, along with any other information requested by the office of
16 motor vehicles.
17 (h) [RESERVED] Solely for purposes of the imposition of the sales and use
18 tax levied by the state or any political subdivision whose boundaries are coterminous
19 with those of the state, for the period beginning July 1, 2002, and ending on June 30,
20 2003, the term "tangible personal property" shall not include one-quarter of the cost
21 price of custom computer software.
22 (ii) Solely for purposes of the imposition of the sales and use tax levied by
23 the state or any political subdivision whose boundaries are coterminous with those
24 of the state, for the period beginning July 1, 2003, and ending on June 30, 2004, the
25 term "tangible personal property" shall not include one-half of the cost price of
26 custom computer software.
27 (iii) Solely for purposes of the imposition of the sales and use tax levied by
28 the state or any political subdivision whose boundaries are coterminous with those
29 of the state, for the period beginning July 1, 2004, and ending on June 30, 2005, the
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1 term "tangible personal property" shall not include three-quarters of the cost price
2 of custom computer software.
3 (iv) Solely for purposes of the imposition of the sales and use tax levied by
4 the state or any political subdivision whose boundaries are coterminous with those
5 of the state, for all taxable periods beginning on or after July 1, 2005, the term
6 "tangible personal property" shall not include custom computer software.
7 (i) [RESERVED] Solely for purposes of the imposition of the state sales and
8 use tax, the term "tangible personal property" shall not include digital television
9 conversion equipment and digital radio conversion equipment as defined in this
10 Section.
11 (i) "Digital television conversion equipment" shall include the following:
12 (aa) DTV transmitter and RF system.
13 (bb) Transmission line.
14 (cc) DTV antenna.
15 (dd) Tower.
16 (ee) Existing tower structural upgrade.
17 (ff) Advanced TV receiver (STL receiver).
18 (gg) Decoder (digital to analog converter for NTSC).
19 (hh) DTV transmission system test and monitoring.
20 (ii) Digital video/audio master control switcher.
21 (jj) Analog to digital conversion.
22 (kk) High definition up-converters.
23 (ll) High definition bypass switcher.
24 (mm) Down converters for standard definition.
25 (nn) Advanced TV transmitter (STL transmitter).
26 (oo) Advanced TV signal encoder.
27 (pp) DTV transmission monitoring.
28 (qq) High definition digital video switcher and DVE.
29 (rr) High definition studio cameras.
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1 (ss) High definition graphics/graphic generator.
2 (tt) High definition video monitoring.
3 (uu) Conversion gear.
4 (vv) High definition recorder/players, including tape, disk, etc.
5 (ww) High definition video/audio signal router.
6 (xx) High definition video/audio media server.
7 (yy) MPEG or HDTV digital receivers for program content.
8 (zz) High definition recorder/players, including tape, disk, etc.
9 (aaa) High definition video/audio media server and workstations.
10 (bbb) Digital EAS encoder/decoder.
11 (ccc) High definition camcorder, including tape, disk, etc.
12 (ddd) Advanced TV transmitters, including microwave.
13 (ii) "Digital radio conversion equipment" shall include the following:
14 (aa) IBOC transmitter.
15 (bb) IBOC main channel and IBOC combiner.
16 (cc) IBOC compatible antenna.
17 (dd) Tower.
18 (ee) IBOC coaxial bypass switcher.
19 (ff) Digital STL.
20 (gg) STL heliax transmission line.
21 (hh) STL antenna.
22 (ii) Digital console.
23 (jj) EAS insertion.
24 (kk) AES EBU conversion equipment.
25 (ll) IBOL transmission testing and monitoring equipment.
26 (mm) Digital processor.
27 (iii) The exclusion from state sales and use tax authorized by this
28 Subparagraph shall only apply to the first purchase of each enumerated item by an
29 individual taxpayer who holds a Federal Communications Commission license
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1 issued pursuant to 47 CFR Part 73. Individual taxpayers operating under several
2 broadcaster licenses shall be allowed one purchase of each enumerated item per
3 license. Each subsequent purchase of any of the enumerated items by the same
4 taxpayer or license holder shall be subject to sales and use tax.
5 (iv) Repealed by Acts 2005, No. 243, ยง1, eff. June 29, 2005.
6 (v) Any eligible taxpayer who has purchased any item enumerated in Item
7 (i) or (ii) of this Subparagraph subsequent to January 1, 1999, but prior to the
8 effective date of this Act, shall be entitled to a credit against the state sales and use
9 tax due in any year for an amount equal to state sales and use tax paid on the
10 purchase of the item.
11 (vi) Local taxing authorities are hereby authorized to provide an exemption
12 from any local sales and use tax liability to any taxpayers holding a Federal
13 Communications Commission license issued pursuant to 47 CFR Part 73 which has
14 purchased any of the equipment listed in Item (i) or (ii) of this Subparagraph. Local
15 taxing authorities are further authorized to provide a credit against any tax liability
16 for the amount of local sales tax paid by taxpayers holding Federal Communications
17 Commission licenses issued pursuant to 47 CFR Part 73 on any equipment listed in
18 Item (i) or (ii) of the Subparagraph purchased subsequent to January 1, 1999, but
19 prior to June 25, 2002.
20 (vii) No exclusion from state sales and use tax as authorized in this
21 Subsection shall be allowed after the Federal Communications Commission has
22 issued an order mandating license holders, issued pursuant to 47 CFR Part 73, to
23 discontinue broadcasting their analog signal.
24 (viii) The Department of Revenue shall adopt rules and regulations necessary
25 for the implementation of this Act no later than August 1, 2002.
26 (j) The term "tangible personal property", for purposes of the payment of
27 sales and use taxes levied by all tax authorities in the state, shall not include
28 materials used directly in the collection, separation, treatment, testing, and storage
29 of blood by nonprofit blood banks and nonprofit blood collection centers.
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1 (k) The term "tangible personal property" for purposes of the sales and use
2 taxes imposed by all tax authorities in this state shall not include apheresis kits and
3 leuko reduction filters used by nonprofit blood banks and nonprofit blood collection
4 centers.
5 (l) For purposes of the sales and use tax imposed by the state of Louisiana,
6 by a political subdivision whose boundaries are coterminous with those of the state,
7 or by all political subdivisions of the state and without regard to the nature of the
8 ownership of the ground, tangible personal property shall not include other
9 constructions permanently attached to the ground which shall be treated as
10 immovable property.
11 (m)(i) Notwithstanding any other provision of law to the contrary, for
12 purposes of the sales and use tax levied by the state or any political subdivision
13 whose boundaries are coterminous with those of the state, the term "tangible personal
14 property" shall not include machinery and equipment used by a motor vehicle
15 manufacturer with a North American Industry Classification System (NAICS) Code
16 beginning with 3361, or by a glass container manufacturer with a NAICS Code of
17 327213, through March 30, 2016. This exclusion shall be subject to the definitions
18 and requirements of Item (3)(i)(ii) of this Section.
19 (ii) A political subdivision may provide for a sales and use tax exemption for
20 the sales, cost, or lease or rental price of manufacturing machinery and equipment
21 as provided for in this Section, either effective upon adoption or enactment or phased
22 in over a period of time, or effective for a certain period of time or duration, all as
23 set forth in the instrument, resolution, vote, or other affirmative action providing the
24 exemption.
25 (iii) Notwithstanding any other provision of this Section, tooling in a
26 compression mold process shall be considered manufacturing machinery and
27 equipment for purposes of this Section.
28 (n)(i) For purposes of the imposition of the sales and use tax levied by the
29 state, the term "tangible personal property" shall not include machinery and
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1 equipment purchased by the owner of a radio station located within the state that is
2 licensed by the Federal Communications Commission for radio broadcasting,
3 through March 30, 2016, if the owner is either of the following:
4 (aa) An individual domiciled in the state who owns a business with
5 substantially all of its assets located in the state and substantially all of its payroll
6 paid in the state.
7 (bb) A business entity with substantially all of its assets located in the state
8 and substantially all of its payroll paid in the state; provided that the business entity
9 is not owned or controlled or is otherwise an affiliate of a multi-state business entity
10 and is not owned or controlled by an individual who is not domiciled in the state.
11 (ii) "Radio broadcasting" means the sound transmission made via
12 electromagnetic waves for direct sound reception by the general public.
13 (o)(i) For purposes of the imposition of the sales and use tax levied by the
14 state and any political subdivision whose boundaries are coterminous with those of
15 the state, through March 30, 2016, the term "tangible personal property" shall not
16 include machinery and equipment as defined in and subject to the requirements of
17 R.S. 47:301(3)(i)(ii) which is purchased by a utility regulated by the Public Service
18 Commission or the council of the City of New Orleans. For the purposes of this
19 Paragraph, the term "utility" shall mean a person regulated by the Public Service
20 Commission or the council of the City of New Orleans who is assigned a North
21 American Industrial Classification System Code 22111, Electric Power Generation,
22 as it existed in 2002. Such utility shall also be considered a "manufacturer" for
23 purposes of R.S. 47:301(3)(i)(ii).
24 (ii) For purposes of this Subparagraph, a political subdivision whose
25 boundaries are not coterminous with those of the state may provide for a sales and
26 use tax exclusion for machinery and equipment as defined in and subject to the
27 requirements of R.S. 47:301(3)(i)(ii) which is purchased by a utility regulated by the
28 Public Service Commission or the council of the city of New Orleans.
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1 (p) [RESERVED]For purposes of sales and use taxes imposed by the state
2 or any of its political subdivisions, the term "tangible personal property" shall not
3 include newspapers.
4 (q) [RESERVED] For purposes of sales and use taxes imposed by the state,
5 any statewide taxing authority, or any political subdivision, the term "tangible
6 personal property" shall not include any property that would have been considered
7 immovable property prior to the enactment on July 1, 2008, of Act No. 632 of the
8 2008 Regular Session of the Legislature.
9 * * *
10 (18)(a)(i) Solely for purposes of the imposition of the state sales and use tax,
11 "use" means and includes the exercise of any right or power over tangible personal
12 property incident to the ownership thereof, except that it shall not include the sale at
13 retail of that property in the regular course of business or the donation to a school in
14 the state which meets the definition provided in R.S. 17:236 or to a public or
15 recognized independent institution of higher education in the state of property
16 previously purchased for resale in the regular course of a business. The term "use"
17 shall not include the purchase, the importation, the consumption, the distribution, or
18 the storage of automobiles to be leased in an arm's length transaction, nor shall the
19 term "use" include the donation of food items to a food bank as defined in R.S.
20 9:2799(B).
21 (ii) For purposes of the imposition of the sales and use tax levied by a
22 political subdivision or school board, "use" shall mean and include the exercise of
23 any right or power over tangible personal property incident to the ownership thereof,
24 except that it shall not include the sale at retail of that property in the regular course
25 of business or the donation to a school in the state which meets the definition
26 provided in R.S. 17:236 or to a public or recognized independent institution of higher
27 education in the state of property previously purchased for resale in the regular
28 course of a business. The term "use" shall not include the donation of food items to
29 a food bank as defined in R.S. 9:2799(B).
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1 (iii) The term "use", for purposes of sales and use taxes imposed by the state
2 on the use for rental of automobiles which take place on or after January 1, 1991, and
3 by political subdivisions on such use on or after July 1, 1996, and state sales and use
4 taxes imposed on the use for lease or rental of tangible personal property other than
5 automobiles which take place on or after July 1, 1991, shall not include the purchase,
6 the importation, the consumption, the distribution, or the storage of tangible personal
7 property to be leased or rented in an arm's length transaction as tangible personal
8 property. For purposes of the imposition of the tax levied by any political
9 subdivision of the state, for the period beginning July 1, 1999, and ending on June
10 30, 2000, the term "use" shall not include one-fourth of the cost price of any tangible
11 personal property which is purchased, imported, consumed, distributed, or stored and
12 which is to be leased or rented in an arm's length transaction in the form of tangible
13 personal property. For purposes of the imposition of the tax levied by any political
14 subdivision of the state, for the period beginning July 1, 2000, and ending on June
15 30, 2001, the term "use" shall not include one-half of the cost price of any tangible
16 personal property which is purchased, imported, consumed, distributed, or stored and
17 which is to be leased or rented in an arm's length transaction in the form of tangible
18 personal property. For purposes of the imposition of the tax levied by any political
19 subdivision of the state, for the period beginning July 1, 2001, and ending on June
20 30, 2002, the term "use" shall not include three-fourths of the cost price of any
21 tangible personal property which is purchased, imported, consumed, distributed, or
22 stored and which is to be leased or rented in an arm's length transaction in the form
23 of tangible personal property. Beginning July 1, 2002, for purposes of the imposition
24 of the tax levied by any political subdivision of the state, the term "use" shall not
25 include the purchase, the importation, the consumption, the distribution, or the
26 storage of any tangible personal property which is to be leased or rented in an arm's
27 length transaction in the form of tangible personal property.
28 (iv) The term "use", for purposes of sales and use taxes imposed by the state
29 on the use for rental automobiles which take place prior to January 1, 1991, and by
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1 political subdivisions on such use prior to July 1, 1996, and imposed on the use for
2 lease or rental of tangible personal property other than automobiles which take place
3 prior to July 1, 1991, and for purposes of local sales and use taxes levied by political
4 subdivisions, except for any use for rental automobiles on or after July 1, 1996, shall
5 include the purchase, the importation, the consumption, the distribution, or the
6 storage of tangible personal property to be leased or rented in an arm's length
7 transaction as tangible personal property.
8 (b) Notwithstanding any other law to the contrary, for purposes of the
9 imposition of the sales and use tax of any political subdivision, the use of a vehicle
10 subject to the Vehicle Registration License Tax Law (R.S. 47:451 et seq.) shall be
11 deemed to be a "use":
12 (i) In the political subdivision of the principal residence of the purchaser if
13 the vehicle is purchased for private use, or
14 (ii) In the political subdivision of the principal location of the business if the
15 vehicle is purchased for commercial use, unless the vehicle purchased for
16 commercial use is assigned, garaged, and used outside of such political subdivision,
17 in which case the use shall be deemed a use in the political subdivision where the
18 vehicle is assigned, garaged, and used.
19 (c) For purposes of state and political subdivision sales and use tax, "use"
20 shall not include the exercise of any right or power by a free hospital over items,
21 including but not limited to supplies and equipment, which are reasonably necessary
22 for the operation of the free hospital.
23 (d)(i) Notwithstanding any other provision of law to the contrary, and except
24 as provided in Item (iii) of this Subparagraph, for purposes of state and political
25 subdivision sales and use tax, "use" means and includes the exercise of any right or
26 power over tangible personal property incident to the ownership thereof, except that
27 it shall not include the further processing of tangible personal property into articles
28 of tangible personal property for sale.
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1 (ii) Except as provided in Item (iii) of this Subparagraph for refinery gas, for
2 purposes of state and political subdivision use tax, "use" shall not include the
3 storage, consumption, or the exercise of any other right of ownership over tangible
4 personal property which is created or derived as a residue or byproduct of such
5 processing. Such residue or byproduct shall include but shall not be limited to
6 catalyst cracker coke derived from crude oil, wood chips, bark, and liquor derived
7 from the processing of sawlogs or pulpwood timber, or bagasse derived from
8 sugarcane.
9 (iii) Notwithstanding any other provision of law to the contrary, and
10 notwithstanding the provisions of this Subparagraph, "use" shall include the exercise
11 of any right of ownership over the consumption, the distribution, and the storage for
12 use or consumption in this state of refinery gas, except the sale to another person,
13 whether at retail or wholesale, only if the refinery gas is ultimately consumed as an
14 energy source by the person who owns the facility in which it is created and is not
15 sold. Notwithstanding any other law to the contrary, the use of refinery gas shall be
16 taxed at the cost price value provided in Subparagraph (3)(f) of this Section. If
17 refinery gas, except for feedstock, is sold to another person, whether at retail, or
18 wholesale, such sale shall be taxable and the sales price value shall be as provided
19 for in Subparagraph (13)(d) of this Section. The provisions of this Item shall not
20 apply to feedstocks.
21 (e) [RESERVED] For purposes of state and political subdivision sales and
22 use tax, "use" shall not include the purchase of or the exercise of any right or power
23 over:
24 (i) Tangible personal property sold by approved parochial and private
25 elementary and secondary schools which comply with the court order from the Dodd
26 Brumfield decision and Section 501(c)(3) of the Internal Revenue Code, or students,
27 administrators, or teachers, or other employees of the school, if the money from such
28 sales, less reasonable and necessary expenses associated with the sale, is used solely
29 and exclusively to support the school or its program or curricula.
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1 (ii) Educational materials or equipment used for classroom instruction by
2 approved parochial and private elementary and secondary schools which comply
3 with the court order from the Dodd Brumfield decision and Section 501(c)(3) of the
4 Internal Revenue Code, limited to books, workbooks, computers, computer software,
5 films, videos, and audio tapes.
6 (f) [RESERVED](f) For purposes of state and political subdivision sales and
7 use tax, "use" shall not include the purchase of or the exercise of any right or power
8 over tangible personal property used by Boys State of Louisiana, Inc. and Girls State
9 of Louisiana, Inc. for their educational and public service programs for youth.
10 (g) [RESERVED] Notwithstanding any provision of law to the contrary, for
11 purposes of sales or use taxation by the state or any local political subdivision, the
12 term "use" shall not mean or include any funeral directing services as defined in
13 Subparagraph (10)(s) of this Section.
14 (h) [RESERVED] For purposes of sales and use taxes levied by the state or
15 any political subdivision of the state, the term "use" shall not include the exercise of
16 any right of ownership in or the distribution of telephone directories acquired by an
17 advertising company that is not affiliated with a provider of telephone services if the
18 telephone directories will be distributed free of charge to the recipients of the
19 telephone directories.
20 (i) For purposes of the imposition of sales and use taxes imposed or levied
21 by all taxing authorities in the state, in the case of the sale or any other disposition
22 by a dealer of any cellular, PCS, or wireless telephone, any electronic accessories
23 that are physically connected with such telephones and personal communications
24 devices used in connection with the sale or use of mobile telecommunications
25 services, as defined in R.S. 47:301(10)(v), the term "use" shall not include the
26 withdrawal, use, distribution, consumption, storage, donation, or any other
27 disposition of any such cellular, PCS, or wireless telephone, any electronic
28 accessories that are physically connected with such telephones and personal
29 communications devices by the dealer.
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1 (j) For purposes of the imposition of sales and use taxes imposed or levied
2 by any political subdivision of the state, in the case of the sale or any other
3 disposition by a dealer of any cellular telephone, PCS telephone, wireless telephone,
4 or other wireless personal communication device that is used in connection with the
5 sale or use of mobile telecommunications services, as defined in R.S. 47:301(10)(w),
6 or any electronic accessory that is physically connected with any such telephone or
7 personal communications device, the term "use" shall not include the withdrawal,
8 use, distribution, consumption, storage, donation, or any other disposition of any
9 such telephone or electronic accessory by the dealer.
10 (k) Solely for purposes of the sales and use tax levied by the state or any
11 political subdivision whose boundaries are coterminous with those of the state, the
12 term "use" shall not include the purchase, the use, the consumption, the distribution,
13 the storage for use or consumption, or the exercise of any right or power over
14 manufacturing machinery and equipment used or consumed in this state to
15 manufacture, produce or extract unblended biodiesel.
16 (l) [RESERVED] Solely for the purposes of sales and use taxes levied by the
17 state or any political subdivision whose boundaries are coterminous with those of the
18 state, the term "use" shall not include the use, the consumption, the distribution, the
19 storage for use or consumption in this state, or the exercise of any right or power
20 over an alternative substance as that term is defined in Subparagraph (10)(z) of this
21 Section when such alternative substance is used as a fuel by a manufacturer.
22 "Manufacturer" means a person whose principal activity is manufacturing and who
23 is assigned by the Louisiana Workforce Commission a North American Industrial
24 Classification System code with the agricultural, forestry, fishing, and hunting Sector
25 11 or the manufacturing Sectors 31-33 as they existed in 2002.
26 (m) [RESERVED] For the purposes of sales and use taxes imposed or levied
27 by the state or any political subdivision of the state, the term "use" shall not include
28 the purchase of or the exercise of any right or power over toys by a non-profit
29 organization exempt from federal taxation pursuant to Section 501(c)(3) of the
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1 Internal Revenue Code if the sole purpose of the purchasing organization is to donate
2 toys to minors and the toys are, in fact, donated.
3 (ii) The exclusion provided for in this Subparagraph shall be subject to the
4 same conditions as are provided for in Items (10)(aa)(ii) and (iii) of this Section.
5 (n) For purposes of sales and use tax imposed by the state or any political
6 subdivision of the state, the term "use" shall not mean or include the purchase,
7 importation, storage, distribution, or exportation of, or exercise of any right or power
8 over, textbooks and course-related software by a private postsecondary academic
9 degree-granting institution, accredited by a national or regional commission that is
10 recognized by the United States Department of Education and is licensed by the
11 Board of Regents, which institution has its main location within this state and offers
12 only online instruction, when all of the following apply:
13 (i) The textbooks and course-related software are physically outside of this
14 state when purchased from a vendor outside of this state and then imported into this
15 state.
16 (ii) The first student use of the textbooks and course-related software occurs
17 outside of this state.
18 (iii) The textbooks and course-related software are provided to the student
19 free of charge.
20 (o) [RESERVED] Solely for purposes of the imposition of the state sales and
21 use tax, the term "use" shall not include the purchase or use of any storm shutter
22 device as defined and provided for in Subparagraph (10)(ee) of this Section.
23 (p) [RESERVED] For purposes of sales and use tax imposed by the state or
24 any political subdivision of the state, the term "use" shall not mean or include the
25 purchase, importation, storage, distribution or exercise of any right or power over
26 anthropogenic carbon dioxide used in a qualified tertiary recovery project approved
27 by the assistant secretary of the office of conservation of the Department of Natural
28 Resources pursuant to R.S. 47:633.4.
29 * * *
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1 (28)(a) For purposes of the imposition of the lease or rental tax levied by the
2 state and any political subdivision whose boundaries are coterminous with those of
3 the state, the "gross proceeds", "monthly lease or rental price paid", and "monthly
4 lease or rental price contracted or agreed to be paid" for machinery and equipment
5 used by a manufacturer in a plant facility predominately and directly in the actual
6 manufacturing for agricultural purposes or the actual manufacturing process of an
7 item of tangible personal property, including, but not limited to rubber tired farm
8 tractors, cane harvesters, cane loaders, cotton pickers, combines, haybalers,
9 attachments and sprayers, clippers, cultivators, discs, plows, and spreaders, which
10 is for ultimate sale to another and not for internal use, at one or more fixed locations
11 within Louisiana shall be reduced as follows through March 30, 2016:
12 (i) For the period ending on June 30, 2005, by five percent.
13 (ii) For the period beginning July 1, 2005, and ending on June 30, 2006, by
14 nineteen percent.
15 (iii) For the period beginning July 1, 2006, and ending on June 30, 2007, by
16 thirty-five percent.
17 (iv) For the period beginning July 1, 2007, and ending on June 30, 2008, by
18 fifty-four percent.
19 (v) For the period beginning July 1, 2008, and ending on June 30, 2009, by
20 sixty-eight percent.
21 (vi) For all periods beginning on or after July 1, 2009, the sales price shall
22 be reduced by one hundred percent.
23 (b) For purposes of this Paragraph, "machinery and equipment",
24 "manufacturer", "manufacturing", "manufacturing for agricultural purposes","plant
25 facility", and "used directly" shall have the same meaning as defined in R.S.
26 47:301(3)(i)(ii).
27 (c) No person shall be entitled to purchase, use, lease, or rent machinery or
28 equipment as defined herein without payment of the tax imposed by R.S. 47:302,
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1 321, and 331 before receiving a certificate of exclusion from the secretary of the
2 Department of Revenue certifying that he is a manufacturer as defined herein.
3 (d) The secretary of the Department of Revenue is hereby authorized to
4 adopt rules and regulations in order to administer the exclusion provided for in this
5 Subparagraph.
6 (e) The manufacturer's exemption certificate granted by the Department of
7 Revenue shall serve as a substitute for the sales tax exemption for certain farm
8 equipment.
9 * * *
10 ยง302. Imposition of tax
11 A. There is hereby levied a tax upon the sale at retail, the use, the
12 consumption, the distribution, and the storage for use or consumption in this state,
13 of each item or article of tangible personal property, as defined herein, the levy of
14 said tax to be as follows:
15 (1) At Until April 1, 2016, the rate of two per centum (2%) of the sales price
16 of each item or article of tangible personal property when sold at retail in this state;
17 the tax to be computed on gross sales for the purpose of remitting the amount of tax
18 due the state, and to include each and every retail sale. Beginning April 1, 2016, and
19 extending through June 30, 2021, the tax rate shall be two and one-half percent
20 (2.5%). Beginning July 1, 2021, the rate shall be one and one-half percent (1.5%).
21 (2) At Until April 1, 2016, the rate of two per centum (2%) of the cost price
22 of each item or article of tangible personal property when the same is not sold but
23 is used, consumed, distributed, or stored for use or consumption in this state;
24 provided there shall be no duplication of the tax. Beginning April 1, 2016, and
25 extending through June 30, 2021, the tax rate shall be two and one-half percent
26 (2.5%). Beginning July 1, 2021, the rate shall be one and one-half percent (1.5%).
27 B. There is hereby levied a tax upon the lease or rental within this state of
28 each item or article of tangible personal property, as defined herein; the levy of said
29 tax to be as follows:
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1 (1) At Until April 1, 2016, the rate of two per centum (2%) of the gross
2 proceeds derived from the lease or rental of tangible personal property, as defined
3 herein, where the lease or rental of such property is an established business, or part
4 of an established business, or the same is incidental or germane to the said business.
5 Beginning April 1, 2016, and extending through June 30, 2021, the tax rate shall be
6 two and one-half percent (2.5%). Beginning July 1, 2021, the rate shall be one and
7 one-half percent (1.5%).
8 (2) At Until April 1, 2016, the rate of two per centum (2%) of the monthly
9 lease or rental price paid by lessee or rentee, or contracted or agreed to be paid by
10 lessee or rentee to the owner of the tangible personal property. Beginning April 1,
11 2016, and extending through June 30, 2021, the tax rate shall be two and one-half
12 percent (2.5%). Beginning July 1, 2021, the rate shall be one percent (1.5%).
13 C.(1) There Until April 1, 2016, there is hereby levied a tax upon all sales
14 of services, as herein defined, in this state, at the rate of two percent of the amounts
15 paid or charged for such services. Beginning April 1, 2016, and extending through
16 June 30, 2021, the tax rate shall be two and one-half percent (2.5%). Beginning July
17 1, 2021, the rate shall be one and one-half percent (1.5%).
18 * * *
19 ยง305. Exclusions and exemptions from the tax
20 A.(1) The gross proceeds derived from the sale in this state of livestock,
21 poultry, and other farm products direct from the farm are exempted from the tax
22 levied by taxing authorities, provided that such sales are made directly by the
23 producers. When sales of livestock, poultry, and other farm products are made to
24 consumers by any person other than the producer, they are not exempted from the
25 tax imposed by taxing authorities.
26 (2) The gross proceeds derived from the sale in this state of livestock at
27 public sales sponsored by breeders' or registry associations or livestock auction
28 markets are exempted from the sales and use tax levied by the state only. When
29 public sales of livestock are made to consumers by any person other than through a
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1 public sale sponsored by a breeders' or registry association or a livestock auction
2 market, they are not exempted from the sales and use tax imposed by the state. This
3 Section shall be construed as exempting race horses entered in races and claimed at
4 any racing meet held in Louisiana, whether the horse claimed was owned by the
5 original breeder or not.
6 (3)(2) Every agricultural commodity sold by any person, other than a
7 producer, to any other person who purchases not for direct consumption but for the
8 purpose of acquiring raw product for use or for sale in the process of preparing,
9 finishing, or manufacturing such agricultural commodity for the ultimate retail
10 consumer trade, shall be exempted from any and all provisions of the sales and use
11 tax imposed by a taxing authority, including payment of the tax applicable to the
12 sale, storage, use, transfer, or any other utilization of or handling thereof, except
13 when such agricultural commodity is actually sold as a marketable or finished
14 product to the ultimate consumer, and in no case shall more than one tax be exacted.
15 For the purposes of this Section, "agricultural commodity" means horticultural,
16 viticultural, poultry, farm and range products, and livestock and livestock products.
17 (4)(a) The purchase of feed and feed additives for the purpose of sustaining
18 animals which are held primarily for commercial, business, or agricultural use shall
19 be exempted from the taxes levied by taxing authorities.
20 (b) For purposes of this Subsection:
21 (i) "Commercial use" means the purchasing, producing, or maintaining of
22 animals, including breeding stock, for resale;
23 (ii) "Business use" means the keeping and maintaining of animals which are
24 used in performing services in conjunction with a business enterprise, such as sentry
25 dogs and rental horses;
26 (iii) "Agricultural use" means the maintaining of work animals and beasts
27 of burden which are utilized in the activity of producing crops or animals for market,
28 in the production of food for human consumption, in the production of animal hides
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1 or other animal products for market, or in the maintaining of breeding stock for the
2 propagation of such agricultural use animals.
3 (c) This exemption shall not apply to the purchase of feed or feed additives
4 for animals kept primarily for personal, sporting, or other purposes, including but not
5 limited to purchases for pets of any kind or hunting dogs.
6 (5)(a) Solely for purposes of the sales and use tax levied by the state, such
7 tax shall not apply to the sale or use of materials, supplies, equipment, fuel, and
8 related items other than vessels used in the production or harvesting of crawfish.
9 The person who purchases the exempt items shall claim the exemption by executing
10 a certificate at the time of purchase. The Department of Revenue shall provide the
11 certificates to retail merchants. Any merchant who in good faith, and after
12 examination of the applicability of the certificate to that purchase with due care,
13 neglects or fails to collect the tax herein provided, due to the presentation by the
14 purchaser of a tax exemption certificate issued by the Department of Revenue,
15 including those issued pursuant to R.S. 47:305.10, shall not be liable for the payment
16 of the tax.
17 (b) Solely for purposes of the sales and use tax levied by the state, such tax
18 shall not apply to the sale or use of bait and feed used in the production or harvesting
19 of crawfish. The person who purchases the exempt items shall claim the exemption
20 by executing a certificate at the time of purchase. The Department of Revenue shall
21 provide the certificates to retail merchants. Any merchant who in good faith, and
22 after examination of the applicability of the certificate to that purchase with due care,
23 neglects or fails to collect the tax herein provided, due to the presentation by the
24 purchaser of a tax exemption certificate issued by the Department of Revenue,
25 including those issued pursuant to R.S. 47:305.10, shall not be liable for the payment
26 of the tax.
27 (6) Solely for purposes of the sales and use tax levied by the state, such tax
28 shall not apply to the sale or use of materials, supplies, equipment, fuel, bait, and
29 related items other than vessels used in the production or harvesting of catfish. The
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1 person who purchases the exempt items shall claim the exemption by executing a
2 certificate at the time of purchase. The Department of Revenue shall provide the
3 certificates to retail merchants. Any merchant who in good faith, and after
4 examination of the applicability of the certificate to that purchase with due care,
5 neglects or fails to collect the tax herein provided, due to the presentation by the
6 purchaser of a tax exemption certificate issued by the Department of Revenue, shall
7 not be liable for the payment of the tax.
8 B. For purposes of the sales and use tax of all taxing authorities, the "use
9 tax," as defined herein, shall not apply to livestock and livestock products, to poultry
10 and poultry products, to farm, range and agricultural products when produced by the
11 farmer and used by him and members of his family.
12 C. For purposes of the sales and use tax of all taxing authorities, where a part
13 of the cost price of a motor vehicle is represented by a motor vehicle returned to the
14 dealer's inventory, the use tax is payable on the total cost price less the wholesale
15 value of the article returned.
16 D.(1) The sale at retail, the use, the consumption, the distribution, and the
17 storage to be used or consumed in the taxing jurisdiction of the following tangible
18 personal property is hereby specifically exempted from the tax imposed by taxing
19 authorities, except as otherwise provided in this Paragraph:
20 (a) Gasoline.
21 (b) Steam, for purposes of the state sales and use tax, shall be exempt as
22 provided in R.S. 47:305.72.
23 (c) Water (not including (excluding mineral water or carbonated water or any
24 water put in bottles, jugs, or containers, all of which are not exempted) for purposes
25 of the state sales and use tax, shall be exempt as provided in R.S. 47:305.72).
26 (d) Electric power or energy and any materials or energy sources used to fuel
27 the generation of electric power for resale or used by an industrial manufacturing
28 plant for self-consumption or cogeneration, for purposes of the state sales and use
29 tax, shall be exempt as provided in R.S. 47:305.72.
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1 (e) Repealed by Acts 2007, No. 480, ยง2.
2 (f) [RESERVED] Fertilizer and containers used for farm products when sold
3 directly to the farmer.
4 (g) Natural gas, for purposes of the state sales and use tax, shall be exempt
5 as provided in R.S. 47:305.72.
6 (h) All energy sources when used for boiler fuel except refinery gas, for
7 purposes of the state sales and use tax, shall be exempt as provided in R.S.
8 47:305.72.
9 (i) New trucks, new automobiles, new aircraft, and new boats, vessels, or
10 other water craft withdrawn from stock by factory authorized new truck, new
11 automobile, new aircraft dealers, and factory-authorized dealers of new boats,
12 vessels, or other water craft, and used trucks and used automobiles withdrawn from
13 stock by new or used motor vehicle dealers, which are withdrawn for use as
14 demonstrators.
15 (j) Solely for purposes of the state sales and use tax, drugs prescribed by a
16 physician or dentist.
17 (k)(i) Solely for purposes of the state sales and use tax, orthotic, including
18 prescription eyeglasses and contact lenses, and prosthetic devices and wheelchairs
19 and wheelchair lifts prescribed by physicians, optometrists or licensed chiropractors
20 for personal consumption or use.
21 (ii) Solely for purposes of the sales and use tax of political subdivisions, the
22 sale to, or the purchase by, an individual or by a medical service provider such as a
23 physician, clinic, surgical center, or other healthcare facility of a prosthetic device
24 which is sold or purchased with the intention of being personally used or consumed
25 by individuals pursuant to a prescription by a physician when the individual is
26 covered by the state of Louisiana Medicaid insurance program or a Medicaid
27 insurance program administered by a third party on behalf of the state of Louisiana.
28 (l) Solely for purposes of the state sales and use tax, the sale or purchase of
29 any ostomy, ileostomy or colostomy device or any other appliance including
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1 catheters or any related item which is required as the result of any surgical procedure
2 by which an artificial opening is created in the human body for the elimination of
3 natural waste.
4 (m) Solely for purposes of the state sales and use tax, patient aids prescribed
5 by a physician or a licensed chiropractor for home use.
6 (n) Solely for purposes of the state sales and use tax, food sold for
7 preparation and consumption in the home including by way of extension and not of
8 limitation bakery products.
9 (o) Solely for purposes of the state sales and use tax, dairy products.
10 (p) Solely for purposes of the state sales and use tax, soft drinks.
11 (q) Solely for purposes of the state sales and use tax, fresh fruits and
12 vegetables.
13 (r) Solely for purposes of the state sales and use tax, package foods requiring
14 further preparation by the purchaser.
15 (s) Solely for purposes of the state sales and use tax, any and all medical
16 devices used exclusively by the patient in the medical treatment of various diseases
17 or administered exclusively to the patient by a physician, nurse, or other health care
18 professional or health care facility in the medical treatment of various diseases under
19 the supervision of and prescribed by a licensed physician.
20 (t) Orthotic devices, prosthetic devices, prostheses and restorative materials
21 utilized by or prescribed by dentists in connection with health care treatment or for
22 personal consumption or use and any and all dental devices used exclusively by the
23 patient or administered exclusively to the patient by a dentist or dental hygienist in
24 connection with dental or health care treatment. Notwithstanding any other
25 provision of law to the contrary, the exemptions from the state sales and use tax
26 provided in this Subparagraph shall be applicable to any sales and use tax levied by
27 any local governmental subdivision or school board.
28 (u) Solely for purposes of the state sales and use tax, adaptive driving
29 equipment and motor vehicle modifications prescribed for personal use by a
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1 physician, a licensed chiropractor, or a driver rehabilitation specialist licensed by the
2 state.
3 (2) [RESERVED] Sales of meals furnished as follows shall be exempt:
4 (i) To the staff and students of educational institutions, including but not
5 limited to kindergartens, if the meals are consumed on the premises where
6 purchased, or if they are purchased in advance by students, faculty, or staff pursuant
7 to a meal plan sponsored by the institution or organization or purchased in advance
8 pursuant to any other payment arrangement sanctioned by the institution or
9 organization and generally available to students, faculty, and staff of the institution
10 or organization, regardless of where such meals are consumed.
11 (ii) To the staff and patients of hospitals and to the staff and residents of
12 nursing homes, adult residential care providers, and continuing care retirement
13 communities.
14 (iii) To the staff, inmates, and patients of mental institutions.
15 (iv) To the boarders of rooming houses.
16 (v) Occasional meals furnished to the public in educational, religious, or
17 medical organization facilities.
18 (b) Except as provided for in Item (a)(i) of this Paragraph, the furnishing of
19 such meals shall be exempt from the taxes imposed by this Chapter if the meals are
20 consumed on the premises where purchased.
21 (3)(a) Except as provided in Subparagraph (b) of this Paragraph, food sales
22 by restaurants, drive-ins, snack bars, candy and nut counters, private clubs, and sales
23 made by an establishment not specifically exempted elsewhere who furnish facilities
24 for the consumption of the food on the premises are not exempt from the taxes
25 imposed by taxing authorities.
26 (b) Bakery products sold for consumption in the home when purchased at
27 grocery stores, bakeries, and donut shops, regardless of whether such businesses
28 furnish facilities for the consumption of food on the premises, shall be exempt from
29 state sales and use taxes.
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1 (4)(a) The exemption for food, drugs, orthotic devices, prosthetic devices
2 except for those provided for in Item (1)(k)(ii) of this Subsection, and wheelchairs
3 and wheelchair lifts prescribed by physicians or licensed chiropractors for personal
4 consumption or use; for patient aids prescribed by a physician or licensed
5 chiropractor for home use; and ostomy, ileostomy or colostomy devices, or other
6 appliances including catheters or related items required as the result of any surgical
7 procedure by which an artificial opening is created in the human body for the
8 elimination of natural waste applies only to sales taxes imposed by the state of
9 Louisiana and does not apply to such taxes authorized and imposed by any school
10 board, municipality, or other local taxing authority notwithstanding any other
11 provisions of law to the contrary, and specifically, but not exclusively, R.S. 47:337.8.
12 (b) However, sales taxes authorized and imposed by any taxing authority
13 shall not apply to the procurement and administration of cancer and related
14 chemotherapy prescription drugs used exclusively by the patient in his medical
15 treatment when administered exclusively to the patient by a physician, nurse, or other
16 health care professional in a physician's office where patients are not regularly kept
17 as bed patients for twenty-four hours or more.
18 (5)(a) However sales taxes authorized and imposed by any school board,
19 municipality, or other local taxing authority shall not apply to the sale of prescription
20 drugs under the pharmaceutical vendor program for Title XIX of the Social Security
21 Act as administered by the Department of Health and Hospitals of the state of
22 Louisiana. Beginning January 1, 1999, such taxes shall not apply to the sale of such
23 drugs under Title XXI of the Social Security Act as administered by such
24 department.
25 (b) The administration of prescription drugs used exclusively by the patient
26 in the medical treatment of various diseases or injuries when administered
27 exclusively to the patient by a physician, nurse, or other health care professional in
28 a physician's office where patients are not regularly kept as bed patients for twenty-
29 four hours or more shall be a professional service.
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1 (c) For the time after July 1, 1999, school boards, municipalities, and other
2 local taxing authorities may by ordinance or resolution provide for the following:
3 (i) An exemption for the sale of prescription drugs administered as provided
4 for in Subparagraph (b) of this Paragraph, or an exemption for the procurement and
5 administration of chemotherapy drugs used exclusively by the patient in his medical
6 treatment if administered exclusively to the patient by a physician, nurse, or other
7 health care professional in a physician's office where patients are not regularly kept
8 as bed patients for twenty-four hours or more.
9 (ii) An amnesty for any person who may have been responsible to impose,
10 collect, and/or remit the tax previously imposed on the transactions provided for in
11 Subparagraph (b) and (c) of this Paragraph prior to the time such exemption and/or
12 amnesty is granted according to such reasonable terms and conditions as the
13 respective school boards, municipalities and other local taxing authorities may adopt.
14 (6) The exemptions from the state sales and use tax provided in this
15 Subsection in existence as of the effective date of Act 205 of 1978* shall be
16 applicable to any sales and use tax levied by any local governmental subdivision or
17 school board except as otherwise specifically provided in this Subsection. Without
18 determining the validity of any exemptions placed in this Subsection subsequent to
19 the effective date of Act 205 of 1978, all Acts after the 1991 Regular Session placing
20 an exemption in this Subsection which is applicable to a political subdivision must,
21 to be effective, specifically provide in the title and body of the bill that it is
22 applicable to a political subdivision. The exemptions provided in R.S.
23 47:305(D)(1)(t) are hereby deemed to specifically comply with Act 205 of 1978.
24 E. It is not the intention of any taxing authority to levy a tax upon articles of
25 tangible personal property imported into this state, or produced or manufactured in
26 this state, for export; nor is it the intention of any taxing authority to levy a tax on
27 bona fide interstate commerce; however, nothing herein shall prevent the collection
28 of the taxes due on sales of tangible personal property into this state which are
29 promoted through the use of catalogs and other means of sales promotion and for
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1 which federal legislation or federal jurisprudence enables the enforcement of the
2 sales tax of a taxing authority upon the conduct of such business. It is, however, the
3 intention of the taxing authorities to levy a tax on the sale at retail, the use, the
4 consumption, the distribution, and the storage to be used or consumed in this state,
5 of tangible personal property after it has come to rest in this state and has become a
6 part of the mass of property in this state. At such time as federal legislation or
7 federal jurisprudence as to sales in interstate commerce promoted through the use of
8 catalogs and other means of sales promotions enables the enforcement of this
9 Chapter or any other law or local ordinance imposing a sales tax against vendors that
10 have no other nexus with the taxing jurisdiction, the following provisions shall apply
11 to such sales on which sales and use tax would not otherwise be collected.
12 F. The sales, use and lease taxes imposed by taxing authorities shall not
13 apply to the amounts paid by radio and television broadcasters for the right to exhibit
14 or broadcast copyrighted material and the use of film, video or audio tapes, records
15 or any other means supplied by licensors thereof in connection with such exhibition
16 or broadcast and the sales and use tax shall not apply to licensors or distributors
17 thereof.
18 G. The sales, use, and lease taxes imposed by taxing authorities shall not
19 apply to the purchase or rental by private individuals of machines, parts therefor, and
20 materials and supplies which a physician has prescribed for home renal dialysis.
21 H. "Demonstrators" as used in Subsection D of this Section for purposes of
22 the sales and use tax levied by all taxing authorities shall mean all of the following:
23 (1) New and used trucks and automobiles for which dealer inventory plates
24 may be obtained pursuant to R.S. 47:473, and new aircraft titled in the dealer's name
25 for use as demonstrators which are kept primarily on the dealer's premises during
26 normal business hours and which are available for demonstration purposes.
27 However, the occasional use of a demonstrator by authorized personnel of the dealer
28 shall not disqualify such demonstrator from the exemption herein designated.
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1 (2) New boats, vessels, or other water craft, hereafter, "boats," which comply
2 with all the following:
3 (a) They are registered in a boat, vessel, or water craft dealer's name with the
4 appropriate agency.
5 (b) They are reported by the dealer to the department as demonstrators and
6 are clearly identified as demonstrators in the manner required by the department.
7 (c) They are used by those designated by such dealer for any activity which
8 results in the advertisement, promotion of sales, or demonstration of the qualities of
9 the boat for the purpose of increasing sales of such boats; provided that such use
10 does not occur on more than six consecutive days and does not occur on more than
11 twelve days in any calendar month. The dealer shall keep such logs or other records
12 of such use as shall be required by the department.
13 (d) They are ultimately sold at retail.
14 I. The sales and use taxes imposed by the state of Louisiana or any of its
15 political subdivisions shall not apply to the labor, or sale of materials, services, and
16 supplies, used for repairing, renovating or converting of any drilling rig, or
17 machinery and equipment which are component parts thereof, which is used
18 exclusively for the exploration or development of minerals outside the territorial
19 limits of the state in Outer Continental Shelf waters. For the purposes of this
20 Subsection, "drilling rig" means any unit or structure, along with its component
21 parts, which is used primarily for drilling, workover, intervention or remediation of
22 wells used for exploration or development of minerals. For purposes of this
23 Subsection, "component parts" means any machinery or equipment necessary for a
24 drilling rig to perform its exclusive function of exploration or development of
25 minerals.
26 * * *
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1 ยง305.72. Exclusions and Exemptions; manufacturer's utilities
2 Manufacturer's utilities include the following energy sources when purchased
3 by a manufacturer with a designation from the Louisiana Workforce Commission as
4 North American Industrial Classification Code 31 through 33:
5 (1) Electric power or energy, any materials or energy sources used to either
6 fuel the generation of electric power for resale or used by an industrial
7 manufacturing plant for self-consumption or cogeneration.
8 (2) Steam.
9 (3) Water, excluding mineral and carbonated water, and any other water
10 contained in a bottle or other receptacle.
11 (4) Natural gas.
12 (5) All energy sources, including pelletized paper waste, which energy
13 source is for boiler fuel, by paper or wood products manufacturing facilities, for
14 steelworks, or for a blast furnace. For purposes of this Paragraph "energy sources"
15 does not include refinery gas.
16 (7) Purchases of butane and propane for nonresidential purposes
17 (8) Utilities used by steelworks and blast furnaces.
18 * * *
19 ยง315.6. Sales and use tax rebate; machinery and equipment
20 A. There is hereby established a program for the rebate of state sales and use
21 taxes paid on the purchase of machinery and equipment by eligible businesses, to be
22 administered by the secretary of the Department of Revenue. The program is
23 established as a successor policy to various Louisiana state sales and use tax
24 exemptions and exclusions for certain machinery and equipment for purposes of
25 state taxes, which policy was repealed March 30, 2016.
26 B. The following types of business are eligible for the rebate.
27 (1) A person whose principal activity is manufacturing and who is assigned
28 by the Louisiana Workforce Commission a North American Industrial Classification
29 System code within the agricultural, forestry, fishing, and hunting Sector 11, the
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1 manufacturing Sectors 31 through 33, the information Sector 511110, Sectors 3211
2 through 3222, and Sector codes 113310, 327213, 3361, and Sector code 423930 as
3 a recyclable material merchant wholesaler or shredding facility that is engaged in
4 manufacturing activity.
5 (2) A person whose principal activity is manufacturing and who is not
6 required to register with the Louisiana Workforce Commission for purposes of
7 unemployment insurance, but who would be assigned a North American Industrial
8 Classification System code within the agricultural, forestry, fishing, and hunting
9 Sector 11, the manufacturing Sectors 31 through 33, the information Sector 511110,
10 as determined by the Louisiana Department of Revenue from federal income tax
11 data.
12 (3) A radio station located in Louisiana and owned by a Louisiana resident.
13 (4) A public utility regulated by the City of New Orleans.
14 C. Property eligible for a rebate of state sales and use taxes.
15 (1) The following types of machinery and equipment are eligible for the
16 rebate:
17 (a) Property that is eligible for depreciation for federal income tax purposes
18 and that is used as an integral part in the manufacturing of tangible personal property
19 for sale.
20 (b) Property that is eligible for depreciation for federal income tax purposes
21 and that is used as an integral part of the production, processing, and storing of food,
22 fiber, or timber.
23 (c) Computers and software that are an integral part of the machinery and
24 equipment used directly in the manufacturing process.
25 (d) Machinery and equipment necessary to control pollution at a plant
26 facility where pollution is produced by the manufacturing operation.
27 (e) Machinery and equipment used to test or measure raw materials, property
28 undergoing manufacturing, or a finished product, when such test or measurement is
29 a necessary part of the manufacturing process.
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1 (f) Machinery and equipment used by an industrial manufacturing plant to
2 generate electric power for self consumption or cogeneration.
3 (g) Machinery and equipment used primarily to produce a news publication
4 whether it is ultimately sold at retail or for resale or at no cost. Such machinery and
5 equipment shall include but not be limited to all machinery and equipment used
6 primarily in composing, creating, and other prepress operations, electronic
7 transmission of pages from prepress to press, pressroom operations, and mailroom
8 operations and assembly activities. The term "news publication" shall mean any
9 publication issued daily or regularly at average intervals not exceeding three months,
10 which contains reports of varied character, such as political, social, cultural, sports,
11 moral, religious, or subjects of general public interest, and advertising supplements
12 and any other printed matter ultimately distributed with or as a part of such
13 publications.
14 (h) Machinery and equipment used or consumed in this state to manufacture,
15 produce, or extract unblended biodiesel.
16 (2) The following types of machinery and equipment are ineligible for the
17 rebate:
18 (a) A building and its structural components, unless the building or structural
19 component is so closely related to the machinery and equipment that it houses or
20 supports that the building or structural component can be expected to be replaced
21 when the machinery and equipment are replaced.
22 (b) Heating, ventilation, and air-conditioning systems, unless their
23 installation is necessary to meet the requirements of the manufacturing process, even
24 though the system may provide incidental comfort to employees or serve, to an
25 insubstantial degree, nonproduction activities.
26 (c) Tangible personal property used to transport raw materials or
27 manufactured goods prior to the beginning of the manufacturing process or after the
28 manufacturing process is complete.
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1 (d) Tangible personal property used to store raw materials or manufactured
2 goods prior to the beginning of the manufacturing process or after the manufacturing
3 process is complete.
4 Section 2. R.S. 4:168 and 227, R.S. 40:582.1 through 582.7, R.S. 47:301.1(D),
5305.6, 305.7, 305.8, 305.11, 305.13, 305.16, 305.17, 305.18, 305.19, 305.20, 305.25, 305.26,
6305.28, 305.33, 305.37, 305.40, 305.41, 305.42, 305.43, 305.44, 305.45, 305.49,
7305.50(E)(1), 305.51, 305.52, 305.53, 305.54, 305.57, 305.58, 305.59, 305.60, 305.61,
8305.62, 305.63, 305.64, 305.65, 305.66, 305.67, 305.68, 305.69, 305.70, 305.71, 306(A)(2),
9306.1, 306.2, 315.1, 315.2, 315.3, 315.5, and 6001 are hereby repealed in their entirety.
10 Section 3. The provisions of this Act shall be applicable for taxable periods
11beginning on and after April 1, 2016.
12 Section 4. This Act shall become effective upon signature by the governor or, if not
13signed by the governor, upon expiration of the time for bills to become law without signature
14by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
15vetoed by the governor and subsequently approved by the legislature, this Act shall become
16effective on the day following such approval.
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)]
HB 104 Engrossed 2016 First Extraordinary Session Stokes
Abstract: Repeals various exclusions and exemptions from state and local sales and use
tax, and increases the rate for the state sales and use tax from 4% to 4.5% until June
30, 2021 and decreases the rate from 4.5% to 3.5% thereafter.
Present law imposes a 4% state sales and use tax upon the sale at retail, the use, the
consumption, the distribution, and the storage for use or consumption in this state of each
item or article of tangible personal property as well as certain services.
Proposed law increases the tax from 4% to 4.5% beginning April 1, 2016, and then decreases
the rate from 4.5% to 3.5% beginning June 30, 2021.
Present law provides definitions for terms used for purposes of state and local sales and use
tax. Present law establishes the following exclusions from tax in the form of definitions:
(1)From the definition of "cost price":
Installation cost for installing tangible personal property if billed separately.
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Supply and installation of oil field board roads.
Specific method for determining pricing relative to the publication of a free news
publication.
Payments made by a manufacturer directly to a dealer of the manufacturer's product
for the purpose of reducing the "cost price" of the product.
Manufacturing machinery and equipment, for the following sectors: manufacturing,
agriculture, forestry, fishing, hunting, power generation, recyclable material sales,
news publications, radio broadcasting, and specific farm equipment.
Consumables used in the manufacturing process.
Electric power or energy purchased by a paper or wood products manufacturer.
(2)From the definition of "dealer":
Lessor of railroad rolling stock.
(3)From the definition of "hotel":
Camp facilities, retreat facilities, transient housing for the homeless.
(4)From the definition of "lease or rental":
Classroom equipment and materials used by nonpublic schools.
Equipment used by a contractor for a contract with the U.S. Navy for a vessel
overhaul.
Boys State of La., Inc. and Girls State of La., Inc.
Manufacturing machinery and equipment used for purposes related to production of
biodiesel.
Crane with an operator.
Pallets used by a manufacturer for packaging.
(5)From the definition of "person":
Transactions by a regionally accredited institution of higher education.
A nonprofit entity that sells donated goods and donates 75% of its revenues to
employing and training persons with disabilities or disadvantages.
(6)From the definition of "sale at retail":
Property purchased for resale through a vending machine.
Natural gas used in the production of iron.
Electricity for chlor alkali manufacturing.
Purchase of a school bus by an independent operator, if the bus is new or no more
than 5 years old.
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Purchases by an organization that buys toys for the purpose of donating them to
children.
Alternative substance used as fuel.
Property sold under the provisions of Medicare.
Purchases by food banks.
Purchase and use of property by Boys State of La., Inc. and Girls State of La., Inc.
Telephone directories used for advertising.
Fuel, gas, butane and propane.
Natural gas to be held, used or consumed in providing natural gas storage ("cushion"
or "pad" gas).
Funeral directing services.
Pelletized paper waste used as fuel for power generation.
Machinery and equipment used in the production, manufacture, and extraction of
unblended biodiesel.
Food for nonpublic school breakfast and lunch programs.
Storm shutter devices.
Pollution control equipment.
Anthropogenic carbon dioxide used in a qualified tertiary recovery project (mineral
exploration and production).
Property sold at an event for La. culture, crafts, food, art, and music, with a five year
annual attendance in excess of 300,000 (New Orleans Jazz Festival).
(7)From the definition of "sales price":
Funeral directing services.
Specific method for determining pricing relative to the publication of a free news
publication.
Payments made by a manufacturer directly to a dealer of the manufacturer's product
for the purpose of reducing the retail "sales price" of the product.
Manufacturing machinery and equipment, for the manufacturing and agriculture,
sectors.
Speciality items sold to members of a nonprofit carnival organizations for fund-
raising purposes if the members are participating in a parade sponsored by the
organization.
Electric power and natural gas purchased or used by paper or wood products
manufacturing facilities.
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Equipment and devices associated with the wireless communication devices and
wireless telephone service.
(8)From the definition of "sales of services":
Admissions to camp and retreat facilities.
Funeral directing.
Services performed at an event for La. culture, crafts, food, art, and music, with a
five year annual attendance in excess of 300,000 (New Orleans Jazz Festival).
Services utilized by a contractor for a contract with the U.S. Navy for a vessel
overhaul.
Admissions to entertainment provided by nonprofit organizations.
Repairs and renovations to drilling rigs and their component parts.
(9)From the definition of "tangible personal property":
Numismatic coins, and platinum, gold, and silver bullion.
Custom computer software.
Pharmaceuticals administered to livestock.
Equipment used for digital television conversion.
Machinery and equipment used by a motor vehicle manufacturer, glass manufacturer,
radio station, or utility company in New Orleans.
Newspapers.
(10)From the definition of "use":
Free telephone directories used for advertising.
Property sold by a nonpublic school.
Boys State of La., Inc. and Girls State of La., Inc.
Alternative substance use as fuel.
Purchases by an organization that buys toys for the purpose of donating them to
children.
Manufacturing machinery and equipment used for purposes related to production of
biodiesel.
Exclusion for sales to a private higher education institutions of used textbooks and
computer software provided free to students and limit applicability to nonprofit
entities.
Property created or derived as a residue or byproduct of certain manufacturing
processes.
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Equipment and devices associated with the wireless communication devices and
wireless telephone service.
Storm shutter device.
Anthropogenic carbon dioxide used in a qualified tertiary recovery project (mineral
exploration and production).
(11)Other definitions:
Exclusion for "gross proceeds" or "monthly lease or rental price paid" for machinery
and equipment used in agricultural manufacturing.
Proposed law changes present law by amending the following exclusions:
(1)Sunsets on March 30, 2016, the exclusion for the purchase of manufacturing
machinery and equipment for the following sectors: manufacturing, agriculture,
forestry, fishing, hunting, power generation, recyclable material sales, news
publications, radio broadcasting, manufacturers of biodiesel, and specific farm
equipment. A new state sales and use tax rebate program is established as a
successor to this policy.
(2)The exclusions for classroom equipment and materials used by nonpublic schools is
changed by limiting eligibility to nonprofit schools.
(3)The exclusion for the purchase of fuel, gas, butane and propane is changed by
limiting eligibility to purchases for residential use.
(4)The exclusion for the purchase of pelletized paper waste used as fuel for power
generation is changed by limiting applicability to the taxes imposed by a political
subdivision.
(5)The exclusion for admissions to entertainment provided by nonprofit organizations
is retained and merged with an exemption providing for the same tax treatment.
Proposed law repeals the following exclusions:
(1)Installation cost for installing tangible personal property if billed separately.
(2)Supply and installation of oil field board roads.
(3)Specific method for determining pricing relative to the publication of a free news
publication.
(4)Payments made by a manufacturer directly to a dealer of the manufacturer's product
for the purpose of reducing the "cost price" of the product.
(5)Consumables used in the manufacturing process.
(6)Electric power or energy purchased by a paper or wood products manufacturer.
(7)Lessor of railroad rolling stock.
(8)Camp facilities, retreat facilities, transient housing for the homeless.
(9)Equipment and services used by a contractor for a contract with the U.S. Navy for
a vessel overhaul.
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(10)All purchases by Boys State of La., Inc. and Girls State of La., Inc.
(11)Crane with an operator.
(12)Pallets used by a manufacturer for packaging.
(13)Transactions by a regionally accredited institution of higher education.
(14)A nonprofit entity that sells donated goods and donates 75% of its revenues to
employing and training persons with disabilities or disadvantages.
(15)Property purchased for resale through a vending machine.
(16)Natural gas used in the production of iron.
(17)Electricity for chlor alkali manufacturing.
(18)Purchase of a school bus by an independent operator, if the bus is new or no more
than 5 years old.
(19)Purchases by an organization that buys toys for the purpose of donating them to
children.
(20)Alternative substance used as fuel.
(21)Property sold under the provisions of Medicare.
(22)Purchases by food banks
(23)Purchase and use of property by Boys State of La., Inc. and Girls State of La., Inc.
(24)Telephone directories used for advertising.
(25)Fuel, gas, butane and propane.
(26)Natural gas to be held, used or consumed in providing natural gas storage ("cushion"
or "pad" gas).
(27)Funeral directing services.
(28)Pelletized paper waste used as fuel for power generation.
(29)Food for nonpublic school breakfast and lunch programs.
(30)Storm shutter devices.
(31)Pollution control equipment.
(32)Anthropogenic carbon dioxide used in a qualified tertiary recovery project (mineral
exploration and production).
(33)Property and services sold at an event for La. culture, crafts, food, art, and music,
with a five year annual attendance in excess of 300,000 (New Orleans Jazz Festival).
(34)Speciality items sold to members of a non profit carnival organizations for fund-
raising purposes if the members are participating in a parade sponsored by the
organization.
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(35)Electric power and natural gas purchased or used by paper or wood products
manufacturing facilities.
(36)Equipment and devices associated with the wireless communication devices and
wireless telephone service.
(37)Admissions to camp and retreat facilities.
(38)Repairs and renovations to drilling rigs and their component parts.
(39)Numismatic coins, and platinum, gold, and silver bullion.
(40)Custom computer software.
(41)Pharmaceuticals administered to livestock.
(42)Equipment used for digital television conversion.
(43)Machinery and equipment used by a motor vehicle manufacturer, glass manufacturer,
radio station, or utility company in New Orleans.
(44)Newspapers.
(45)Free telephone directories used for advertising.
(46)Property sold by a nonpublic school.
(47)Sales to a private higher education institutions of used textbooks and computer
software provided free to students and limit applicability to nonprofit entities.
(48)Property created or derived as a residue or byproduct of certain manufacturing
processes.
(49)Equipment and devices associated with the wireless communication devices and
wireless telephone service.
(50)Exclusion for "gross proceeds" or "monthly lease or rental price paid" for machinery
and equipment used in agricultural manufacturing.
Present law establishes the following exemptions from state sales and use tax:
(1)Sale of livestock at public sales sponsored by breeders or registry associations or
livestock auction.
(2)Feed and feed additives for sustaining animals for business purposes.
(3)Materials, supplies, and equipment for production and harvesting of crawfish.
(3)Materials, supplies, and equipment for production and harvesting of catfish.
(4)Meals furnished at schools, hospitals, and other institutions.
(5)Materials, supplies, and services for the repair or conversion of drilling rigs used for
exploration and production outside of the territorial limits of the Outer Continental
Shelf.
(6)Purchases by parimutuel racetracks.
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(7)Purchases by off-track wagering facilities.
(8)Purchases of construction materials for home construction in certain designated
areas.
(9)A $25,000 per year limit on the sales and use tax imposed on telecommunications
services for a telephone call center.
(10)Admissions to little theater performances.
(11)Admissions to performances by nonprofit music organizations.
(12)Pesticides used for agricultural purposes
(13)Contracts prior to and within 90 days of tax levy.
(14)Admissions to entertainments furnished by certain domestic non profit corporations.
(15)Sales or purchases by persons who are blind.
(16)Cable television installation and repair.
(17)Income from coin operated laundries.
(18)Fairs, festivals and expositions sponsored by non profits.
(19)Leased vessels used in the production of minerals
(20)Materials, equipment, and supplies for commercial fishermen and seafood facilities.
(21)Farm equipment.
(22)New vehicles furnished by dealers for drivers education.
(23)Gasahol.
(24)Nonprofit retirement centers.
(25)Diesel, propane, and other fuels used on a farm.
(26)Mardi gras speciality items.
(27)Ducks Unlimited and Bass Life.
(28)Admissions to performances by nonprofit ballet organizations.
(29)Organizations dedicated to the preservation of waterfowl and fish.
(30)Raw materials used in the printing process.
(31)Per diem or car hire for freight cars and piggyback cars, and rail rolling stock.
(32)Catalogs.
(33)Rail rolling stock sold or leased in La.
(34)Utilities used by steelworks and blast furnaces.
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(35)Custom computer software.
(36)Sickle cell disease organizations.
(37)Annual sales tax holiday.
(38)Hurricane preparedness sales tax holiday.
(39)Second Amendment sales tax holiday.
(40)Sales of original artwork.
(41)Various charitable residential construction organizations..
(42)Sparta Groundwater Conservation District.
(43)Commercial farm irrigation equipment.
(44)Qualifying radiation therapy centers.
(45)Parish councils on aging.
(46)Breastfeeding items.
(47)Fore!Kids Foundation.
(48)Collections from certain interstate and foreign transportation dealers.
Proposed law repeals these exemptions:
Present law establishes sales and use tax refunds for certain new construction materials,
rentals covered by Medicare, and nonprofit charitable organizations which sell donated
goods.
Proposed law repeals present law establishing these refunds.
Applicable for taxable periods beginning on and after April 1, 2016.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:301(3), (4)(k), (6), (7), (8), (10), (13), (14), (16), (18), and (28), 302(A),
(B), and (C), and 305; Adds R.S. 47:305.72 and 315.6; Repeals R.S. 4:168 and 227, R.S.
40:582.1 through 582.7, R.S. 47:301.1(D), 305.6, 305.7, 305.8, 305.11, 305.13, 305.16,
305.17, 305.18, 305.19, 305.20, 305.25, 305.26, 305.28, 305.33, 305.37, 305.40, 305.41,
305.42, 305.43, 305.44, 305.45, 305.49, 305.50(E)(1), 305.51, 305.52, 305.53, 305.54,
305.57, 305.58, 305.59, 305.60, 305.61, 305.62, 305.63, 305.64, 305.65, 305.66, 305.67,
305.68, 305.69, 305.70, 305.71, 306(A)(2), 306.1, 306.2, 315.1, 315.2, 315.3, 315.5, and
6001.)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Remove provisions contingent upon passage of constitutional amendment.
2. Sunsets (March 30, 2016) the sales and use tax exclusions for certain
manufacturing machinery and equipment for the following types of industry:
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agriculture, automotive, glass, compression mold processors, producers of
unblended biodiesel, radio stations located in La., utilities regulated by the
Public Service Commission or the city of New Orleans.
3. Establish a program for sales and use tax rebates for manufacturing machinery
and equipment for various industries, including the following: agriculture,
automotive, glass, compression mold processors, producers of unblended
biodiesel, radio stations located in La., utilities regulated by the Public Service
Commission or the city of New Orleans.
4. Limit the exemption for non-residential utilities to manufacturers with a North
American Industrial Classification System Code of 31 through 33.
5. Restore present law for the following exclusions and exemptions:
a. Exclusions for transactions of a La. owned and based commuter airlines.
b. Exclusions for transactions of a free hospital.
c. Definition of cost of refinery gas.
d. Exclusion for consumables used in the manufacturing process.
e. Exclusions for transactions of a private K-12 schools, and limits the
exclusion to nonprofit schools.
f. Exclusion for the purchase of pelletized paper waste for use as an energy
source, and limit it to taxes imposed by a political subdivision.
g. Exclusion for transactions of a volunteer fire department.
h. Definition for point of sale with regard to purchase of a motor vehicle.
i. Exclusion for the lease or loan of a motor vehicle by a dealership to a
customer while their car is repaired.
j. Exclusion for leases and rentals made under the provisions of Medicare.
k. Exclusion for leases machinery and equipment used to manufacture,
produce, or extract unblended biodiesel.
l. Exclusion and definitions related to the sale or other disposition of
cellular phones and accessories.
m. Exclusion for sales of fuel or gas, including butane or propane, and limits
it to purchases for residential use.
n. Exclusion for sales to a private higher education institutions of used
textbooks and computer software provided free to students and limit
applicability to nonprofit entities.
o. Exclusion for sales or tangible personal property by the La. Military
Dept. which occur on property owned by the Military Dept.
p. Exclusion for membership fees or dues to nonprofit civic organizations,
and combines this with the exemption in R.S. 47:305.13 relative to
admissions to entertainment offered by nonprofit organizations.
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q. Definition concerning the sales tax on telecommunication services.
r. Exclusion for the sales of repair services on property to be exported from
the state, as well as certain property in Calcasieu Parish.
s. Definition concerning the taxable nature of prepaid calling services.
t. Purchase of fuel or gas by a person, including butane and propane, and
limit applicability to residential use.
u. Exclusion for materials used by nonprofit blood banks and blood
collection centers.
v. Exclusion for property permanently attached to the ground, which is
treated as immovable property.
w. Exclusions relative to the definition of "use", regarding donations to
schools, higher education institutions, and food banks, and the storage of
automobiles.
x.Exemption for the sale of livestock, and other farm products direct from
the farm.
y. Exemption for the sale of livestock, and other farm products used by the
farmer.
z. Definition concerning the "cost price" of a motor vehicle returned to the
dealer's inventory.
aa.Exemption for amounts paid by radio and television broadcasters for the
right to exhibit or broadcast copyrighted material.
bb.Exclusion for machinery and equipment of motor vehicle and glass
manufacturers, radio stations, and utilities in New Orleans.
cc.Exclusion for property created or derived as a byproduct or residue.
5. Add new exemptions:
a. Exemption for manufacturer's utilities.
b. Program for rebate of state sales and use tax paid by certain
manufacturers on qualifying machinery and equipment.
6. Repeal the following exclusions and exemption:
a. Exclusion for cost of installing tangible personal property.
b. Exclusion for the purchase of electricity and natural gas by wood and
paper manufacturers.
c. Exclusion for purchase and use of property by Boys State of La., Inc. and
Girls State of La., Inc.
d. Exclusion for "gross proceeds" or "monthly lease or rental price paid" for
machinery and equipment used in agricultural manufacturing.
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