Section 17. The provisions of Sections 8, 9, 10, 11, 12, 13, and 14 shall become
effective on April 1, 2019.
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 61 Reengrossed 2016 First Extraordinary Session Jay Morris
Abstract: Provides for the applicability of various exclusions and exemptions for the 1%
state sales and use tax.
Present law imposes a combined 4% rate for state sales and use tax upon the sale at retail,
the use, the consumption, the distribution, the storage, lease, or rental of tangible personal
property (property) in La., as well as certain specific services. (R.S. 47:302, 321, and 331)
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":
The amount designated as a cash discount or a rebate by a vendor or manufacturer
of any new vehicle subject to the motor vehicle license tax.
The portion of the value of refinery gas in excess of 52 cents per thousand cubic feet
multiplied by a fraction the numerator of which shall be the posted price for a barrel
of West Texas Intermediate Crude Oil on December first of the preceding calendar
year and the denominator of which shall be $29.
Payments made by a manufacturer directly to a dealer of the manufacturer's product
for the purpose of reducing the retail "cost price" of that 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.
Electricity and natural gas purchased or used by paper or wood products
manufacturing facilities.
Property consumed in the manufacturing process by paper and wood products
manufacturers.
(2)From the definition of "hotel", for purposes of the sales tax on services, nonprofit
camp and retreat facilities, and facilities devoted exclusively to the temporary
housing of homeless transient persons who are charged no more than $20 per day.
(3)From the definition of "lease or rental":
Oilfield drilling equipment to be re-leased or re-rented.
Property used by a private contractor in the performance of a contract for the U.S.
Navy.
Airplanes or airplane equipment used by a commuter airline domiciled in La.
Materials and equipment used for instruction by a private elementary or secondary
school.
Manufacturing machinery and equipment used for purposes related to production of
biodiesel.
Pallets used by a manufacturer for packaging. (4)From the definition of "person", private colleges and universities.
(5)From the definition of "retail sale":
Natural gas used in certain iron production methods.
Electricity for chlor-alkali manufacturing.
A new school bus or a school bus that is less than 5 years old purchased by an
independent operator, to be used to service a public school.
Airplanes and airplane equipment for a commuter airline domiciled in La.
La. manufactured or assembled passenger aircraft to be delivered outside of La.
Pollution control equipment.
Pelletized paper waste used as fuel for power generation.
Property sold by a private elementary or secondary school, the proceeds of which
support the school.
Manufacturing machinery and equipment used for purposes related to production of
biodiesel.
Telephone directories used for advertising.
Natural gas to be held, used or consumed in providing natural gas storage ("cushion"
or "pad" gas).
Used books and course-related software purchased by online private colleges and
universities, which materials are provided to students free of charge.
Food bought by a private elementary or secondary school for a breakfast or lunch
program.
Storm shutter devices.
Property sold at a military installation.
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).
(6)From the definition of "sales price":
That portion of the value of refinery gas sold to another person by the person who
owns the gas generation facility, whether at retail or wholesale, that is in excess of
52 cents per thousand cubic feet multiplied by a fraction the numerator of which shall
be the posted price for a barrel of West Texas Intermediate Crude Oil on December
first of the preceding calendar year and the denominator of which shall be $29.
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 following sectors: manufacturing,
agriculture, forestry, fishing, hunting, power generation, recyclable material sales,
news publications, radio broadcasting, and specific farm equipment.
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.
(7)From the definition of "sales of services":
Admissions to and membership fees or dues for nonprofit civic organizations,
including by way of illustration and not of limitation the YMCA, YWCA, and
Catholic Youth Organizations.
Admissions to museums.
Admissions to nonprofit camp or retreat facilities.
Repairs performed in La. when property is to be exported.
Labor, materials, services, and supplies for repairing, or converting a drilling rig, if
the drilling rig is used in Outer Continental Shelf waters.
Services performed by a private contractor under contract with the U.S. Navy for the
construction or overhaul of marine vessels.
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).
(8)From the definition of "tangible personal property":
Numismatic coins, and platinum, gold, and silver bullion.
Geophysical survey information or geophysical data analysis transferred in the form
of tangible personal property and furnished under a restricted use agreement.
Custom computer software.
Equipment used for digital television conversion.
Machinery and equipment used by a glass manufacturer, radio station, or public
utility in New Orleans, and tooling machinery used in a compression mold process.
Newspapers.
(9)From the definition of "use":
Rental of motor vehicles and other tangible personal property.
Property sold by a private elementary or secondary school, the proceeds of which
support the school.
Free telephone directories used for advertising.
Manufacturing machinery and equipment used for purposes related to production of
biodiesel.
Use of educational materials and equipment by private elementary and secondary
schools.
Used books and course-related software by online private colleges and universities
if purchased from outside of La. and provided to students free of charge.
Storm shutter device.
Anthropogenic carbon dioxide used in a qualified tertiary recovery project (mineral
exploration and production). Proposed law changes present law by limiting the application of the exclusions to the 3%
state sales and use tax (R.S. 47:302 and 331).
Present law establishes the following exemptions from state sales and use taxes:
(1)All transactions of an offtrack wagering facility.
(2)All transactions by the La. Insurance Guaranty Association.
(3)All transactions of a nonprofit electric cooperative.
(4)All transactions of a private contractor for the construction and operation of a
sewerage or wastewater treatment facility for a political subdivision.
(5)Boiler fuel.
(6)New motor vehicles, aircraft, boats and other water craft that are withdrawn from
stock by a factory authorized dealer of such equipment for use as demonstrators.
(7)Meals furnished by educational institutions, hospitals, nursing homes, adult
continuing care retirement communities, mental institutions, and boarders of rooming
houses.
(8)Labor, materials, services, and supplies for repairing, or converting a drilling rig, if
the drilling rig is used in Outer Continental Shelf waters.
(9)Adaptive driving equipment and motor vehicle modifications prescribed for personal
use by a physician, a licensed chiropractor, or a driver rehabilitation specialist
licensed by the state.
(10)Amounts paid by radio and television broadcasters for the right to exhibit or
broadcast copyrighted material and the use of film, video or audio tapes, records or
any other means supplied by licensors thereof in connection with such exhibition or
broadcast and the sales and use tax shall not apply to licensors or distributors thereof.
(11)Admissions to performances by little theaters.
(12)Admissions to performances by nonprofit musical organizations.
(13)Amounts paid by the operator of a motion picture theatre to a distributing agency for
use of films of photoplay.
(14)Admissions to entertainment events furnished by nonprofit charitable, educational
and religious organizations when the entire proceeds from such sales, except for
necessary expenses connected with the entertainment events, are used for the
purposes for which the organizations furnishing the events were organized.
(15)Vehicles loaned by a motor vehicle dealer free of charge to a secondary school,
college, or public school board for exclusive use in a driver education program.
(16)Pharmaceutical samples distributed without charge.
(17)Catalogs.
(18)Steam, water, electric power, and natural gas, boiler fuel utilized for nonresidential
purposes (business utilities).
(19)Newspapers published in La. by religious organizations.
(20)An event sponsored by a domestic nonprofit organization that is exempt from tax
under Section 501(c)(3) of the Internal Revenue Code when the event provides La.
heritage, culture, crafts, art, food, and music, and the sponsor has contracted for
production management and financing services for the event. (21)Installation and service of cable television equipment fees paid by a subscriber.
(22)Use of coin-operated washing or drying machines in a commercial laundromat.
(23)Purchases of materials, supplies, fuel, and repairs for the vessel of a qualified
commercial fisherman.
(24)Purchases of materials, supplies, and repair services by certain seafood-processing
facilities.
(25)Gasahol.
(26)Materials for the construction of and supplies for the operation of any not-for-profit
retirement center owned or operated by any public trust authority or not-for-profit.
(27)Sales of Ducks Unlimited or Bass Life or any of their chapters or any rental or
purchase of property or services by Ducks Unlimited or Bass Life or any of their
chapters.
(28)Gate admissions to grounds and parking fees at fairs and festivals sponsored by
recognized nonprofit organizations chartered under the state of La.
(29)Vessels leased for use offshore beyond the territorial limits of La. for the production
of oil, gas, sulphur, and other minerals or for the providing of services to those
engaged in such production.
(30)Diesel fuel, butane, propane, or other liquefied petroleum gases used or consumed
for farm purposes.
(31)Purchases or sales of specialty items for use in connection with Mardi Gras activities.
(32)Admission to ballet performances of nonprofit ballet organizations.
(33)Sales made by nonprofit organizations dedicated to the conservation of fish or
migratory waterfowl.
(34)Raw materials used in printing processes.
(35)Purchase of trucks with a gross weight of 26,000 pounds or more and certain trailers
if used at least 80% of the time in interstate commerce and whose activities are
subject to the jurisdiction of the U.S. D.O.T.
(36)Purchase of certain contract carrier buses used 80% of the time in interstate
commerce.
(37)Parts or services used in the fabrication, modification, or repair of rail rolling stock.
(38)Utilities, including electricity, used by steelworks and blast furnaces.
(39)Purchases of certain items of tangible personal property, made on the first
consecutive Friday and Saturday of August each year.
(40)Sale of original, one-of-a-kind art from an established location within the boundaries
of a cultural product district.
(41)The first $1,500 of the purchase price of certain hurricane preparedness items or
supplies purchased on Saturday and Sunday during the last weekend in May of each
year.
(42)Purchases of construction supplies by Habitat for Humanity affiliates, Fuller Center
for Housing covenant partners, and the Make it Right Foundation.
(43)Purchase of certain water conservation equipment for use within the Sparta
Groundwater Conservation District. HLS 161ES-26 REENGROSSED
HB NO. 61
(44)Purchases of firearms, ammunition, and hunting supplies for the first consecutive
Friday through Sunday of September.
(45)Purchases of polyroll tubing used for commercial farm irrigation.
(46)Purchase, lease, or repair of capital equipment or software used to operate capital
equipment at qualifying radiation therapy centers.
(47)Purchase of certain construction materials by Hands on New Orleans and Rebuilding
Together New Orleans covenant partners used on residential dwellings destroyed or
damaged by Hurricanes Katrina or Rita.
(48) Breastfeeding items.
(49)Purchase, use, or rental of materials, services, property, and supplies by the Fore!Kids
Foundation.
(50)Purchase of certain construction supplies by the Make it Right Foundation.
(51)Purchase of certain construction supplies by the St. Bernard Project, Inc.
(52)Antique airplanes and certain other aircraft.
Proposed law changes present law by limiting the applicability of the exemptions provided
in present law to the 3% state sales and use tax (R.S. 47:302 and 331).
Present law authorizes a refund of state sales and use taxes paid with regard to certain
materials used in the rehabilitation of an existing structure or the construction of a new house
and associated improvements in an approved housing development area as provided in the
Louisiana Housing Area Development Law.
Proposed law changes present law by limiting the applicability of the refund provided in
present law to the 3% state sales and use tax (R.S. 47:302 and 331).
Present law authorizes a refund of state sales and use taxes collected by a qualified charitable
organization on the sale of donated tangible personal property or items made from such
donated property. The monies refunded must be used exclusively in La. for land acquisition,
capital construction, or equipment, or debt service related thereto, or job training, job
placement, employment, or other related community services and support program costs.
Proposed law limits the refund provided in present law to the 3% state sales and use tax
(R.S. 47:302 and 331).
Present law authorizes a refund of state sales and use taxes paid by international travelers.
Proposed law limits the refund provided in present law to the 3% state sales and use tax (R.S.
47:302 and 331).
Present law authorizes a dealer to deduct $25 per cash register as compensation for the cost
of reprogramming cash registers as a result of a change in the state sales and use tax rate or
base. The amount is deducted from the state tax collections before they are remitted to the
Dept. of Revenue.
Proposed law repeals present law.
Repeals provisions of present law concerning use of alternative substances as fuel which are
null, void, and of no effect.
Page 6 of 7
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 161ES-26 REENGROSSED
HB NO. 61HB NO. 61
Provisions of proposed law sunset on April 1, 2019.
Effective April 1, 2016.
(Amends R.S. 4:168 and 227, R.S. 12:425, R.S. 22:2065, R.S. 33:4169(D), R.S. 40:582.7
(intro. para.), R.S. 47:301(3), (6) through (10), (13) through (16), (18), and (27), 302(R)(2)
and (3), (S), and (T), 305(D)(1)(b) through (d), (g) through (i), and (u), (2)(a)(intro. para.),
(F), and (I),305.6 through 305.9, 305.13, 305.14(A)(1), 305.16, 305.17, 305.18(A), 305.19,
305.20(C), 305.25(A)(intro. para.), 305.26, 305.28(A), 305.33, 305.40(A)(intro. para.),
305.41, 305.42, 305.43(A), 305.44(A)(intro. para.), 305.45(A)(intro. para.), 305.47, 305.49,
305.50(A)(1) and (2)(a), (B), and (E)(2), 305.51(A), 305.54(B)(1), 305.57(A), 305.58(A)(1),
305.59, 305.61(A), 305.62(B)(1), 305.63, 305.64(A)(1), 305.65(A), 305.67, 305.68, 305.70,
305.71, 331(P)(3) and (4), (Q) and (R), and 6001(A), and R.S. 51:1307(C); Repeals ยง4 of
Act No. 386 of 1990 R.S.)
Summary of Amendments Adopted by House
The House Floor Amendments to the engrossed bill:
1. Restore the following exclusions to full applicability to all state sales and use
taxes:
a. The first $50K of new farm equipment used in poultry production.
b. For 54% of the value of a new factory built home, and the entire value of
a used factory built home.
2. Restore the following exemptions to full applicability to all state sales and use
taxes:
a. Animal feed and feed additives for animals kept for business purposes.
b. Materials, supplies, equipment, fuel, and vessels used in the production
of crawfish.
c. Materials, supplies, equipment, fuel, and vessels used in the production
of catfish.
d. The first $50K of the sales price of certain farm equipment that includes
storage of grain.
e. Racehorses.
f. Fertilizer and containers used for farm purposes.
g. Sales of 50 ton vessels and new component parts and services for such
vessels.
h. Pesticide used for agricultural purposes.
i. First $50K of the sales price of farm irrigation equipment.
j. Rail rolling stock sold or leased in La.
k. Railroad ties modified in La.
l. Councils on aging.
3. Remove changes to the dedication and distribution of state sales and use tax for
economic development.
4. Change the effectiveness of the Act from contingent upon passage of other bills
to April 1, 2016.
5. Add an April 1, 2019, sunset for all provisions of proposed law.
Page 7 of 7
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.