ENROLLED
ACT No. 26
2016 First Extraordinary Session
HOUSE BILL NO. 62
BY REPRESENTATIVE JACKSON
1 AN ACT
2 To amend and reenact R.S. 47:301(3), (7), (10), (13), (14), (16), (18), and (28) and 318(A),
3 and to enact R.S. 47:321.1, relative to state sales and use tax; to impose a sales and
4 use tax; to provide for the rate and base of the tax; to provide for the disposition of
5 collections; to provide for exceptions and limitations; to provide for effectiveness;
6 and to provide for related matters.
7 Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:301(3), (7), (10), (13), (14), (16), (18), and (28) and 318(A) are
9 hereby amended and reenacted and R.S. 47:321.1 is hereby enacted to read as follows:
10 §301. Definitions
11 As used in this Chapter the following words, terms, and phrases have the
12 meaning ascribed to them in this Section, unless the context clearly indicates a
13 different meaning:
14 * * *
15 (3)(a) "Cost price" means the actual cost of the articles of tangible personal
16 property without any deductions therefrom on account of the cost of materials used,
17 labor, or service cost, except those service costs for installing the articles of tangible
18 personal property if such cost is separately billed to the customer at the time of
19 installation, transportation charges, or any other expenses whatsoever, or the
20 reasonable market value of the tangible personal property at the time it becomes
21 susceptible to the use tax, whichever is less.
22 (b) In the case of tangible personal property which has acquired a tax situs
23 in a taxing jurisdiction and is thereafter transported outside the taxing jurisdiction for
24 repairs performed outside the taxing jurisdiction and is thereafter returned to the
25 taxing jurisdiction, the cost price shall be deemed to be the actual cost of any parts
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1 and/or materials used in performing such repairs, if applicable labor charges are
2 separately stated on the invoice. If the applicable labor charges are not separately
3 stated on the invoice, it shall be presumed that the cost price is the total charge
4 reflected on the invoice.
5 (c) "Cost price" shall not include the supplying and installation of board
6 roads to oil field operators if the installation charges are separately billed to the
7 customer at the time of installation.
8 (d)(i) In the case of interchangeable components located in Louisiana, a
9 taxpayer may elect to determine the cost price of such components as follows:
10 (aa) The taxpayer shall send to the secretary written notice of the calendar
11 month selected by the taxpayer as the first month for the determination of cost price
12 under this Paragraph (the "First Month"). The taxpayer may select any month. The
13 taxpayer shall send to the secretary notice of an election to designate a First Month
14 on the first day of the designated First Month, or ninety days from July 1, 1990,
15 whichever is later.
16 (bb) For the First Month and each month thereafter, cost price shall be based
17 and use tax shall be paid only on one-sixtieth of the aggregate cost price of the
18 interchangeable components deployed and earning revenue within Louisiana during
19 the month, without regard to any credit or other consideration for Louisiana state,
20 political subdivision, or school board use tax previously paid on such
21 interchangeable components.
22 (cc) Any election made under this Paragraph shall be irrevocable for a period
23 of sixty consecutive months inclusive of the First Month. If at any time after the
24 sixty-month period the taxpayer revokes its election, no credit or other consideration
25 for use taxes paid pursuant thereto shall be applied to any use tax liability arising
26 after such revocation.
27 (ii)(aa) For purposes of this Paragraph, "interchangeable component" means
28 a component that is used or stored for use in measurement-while-drilling instruments
29 or systems manufactured or assembled by the taxpayer, which measurement-while-
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1 drilling instruments or systems collectively generate eighty percent or more of their
2 annual revenue from their use outside of the state.
3 (bb) "Measurement-while-drilling instruments or systems" means
4 instruments or systems which measure information from a downhole location in a
5 borehole, transmit the information to the surface during the process of drilling the
6 borehole using a wireless technique, and receive and decode the information on the
7 surface.
8 (iii) The method for determining cost price of interchangeable components
9 provided for in this Paragraph shall apply to any use taxes imposed by a local
10 political subdivision or school board. For purposes of that application, the words
11 "political subdivision" or "school board" as the case may be, shall be substituted for
12 the words "Louisiana" or "State" in each instance where those words appear in this
13 Paragraph and an appropriate official of the local political subdivision or school
14 board shall be designated to receive the notices required by this Paragraph.
15 (e) "Cost price" shall not include any amount designated as a cash discount
16 or a rebate by a vendor or manufacturer of any new vehicle subject to the motor
17 vehicle license tax. For purposes of this Paragraph "rebate" means any amount
18 offered by the vendor or manufacturer as a deduction from the listed retail price of
19 the vehicle.
20 (f) The "cost price" of refinery gas shall be fifty-two cents per thousand
21 cubic feet multiplied by a fraction the numerator of which shall be the posted price
22 for a barrel of West Texas Intermediate Crude Oil on December first of the preceding
23 calendar year and the denominator of which shall be twenty-nine dollars, and
24 provided further that such cost price shall be the maximum value placed upon
25 refinery gas by the state and by any political subdivision under any authority or grant
26 of power to levy and collect use taxes.
27 (g) "Cost price", for purposes of the use tax imposed by the state and its
28 political subdivisions, shall exclude any amount that a manufacturer pays directly to
29 a dealer of the manufacturer's product for the purpose of reducing and that actually
30 results in an equivalent reduction in the retail "cost price" of that product. This
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1 exclusion shall not apply to the value of the coupons that dealers accept from
2 purchasers as part payment of the "sales price" and that are redeemable by the
3 dealers through manufacturers or their agents. The value of such coupons is deemed
4 to be part of the "cost price" of the product purchased through the use of the coupons.
5 (h)(i) For purposes of a publishing business which distributes its news
6 publications at no cost to readers and pays unrelated third parties to print such news
7 publications, the term "cost price" shall mean only the lesser of the following costs:
8 (aa) The printing cost paid to unrelated third parties to print such news
9 publications, less any itemized freight charges for shipping the news publications
10 from the printer to the publishing business and any itemized charges for paper and
11 ink.
12 (bb) Payments to a dealer or distributor as consideration for distribution of
13 the news publications.
14 (ii) The definition of "cost price" provided for in this Subparagraph shall be
15 applicable to taxes levied by all tax authorities in the state.
16 (i)(i) For purposes of the imposition of the use tax levied by the state and any
17 political subdivision whose boundaries are coterminous with those of the state under
18 R.S. 47:302, 321, and 331, the cost price of machinery and equipment used by a
19 manufacturer in a plant facility predominately and directly in the actual
20 manufacturing for agricultural purposes or the actual manufacturing process of an
21 item of tangible personal property, which is for ultimate sale to another and not for
22 internal use, at one or more fixed locations within Louisiana, shall be reduced as
23 follows:
24 (aa) For the period ending on June 30, 2005, the cost price shall be reduced
25 by five percent.
26 (bb) For the period beginning July 1, 2005, and ending on June 30, 2006, the
27 cost price shall be reduced by nineteen percent.
28 (cc) For the period beginning July 1, 2006, and ending on June 30, 2007, the
29 cost price shall be reduced by thirty-five percent.
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1 (dd) For the period beginning July 1, 2007, and ending on June 30, 2008, the
2 cost price shall be reduced by fifty-four percent.
3 (ee) For the period beginning July 1, 2008, and ending on June 30, 2009, the
4 cost price shall be reduced by sixty-eight percent.
5 (ff) For all periods beginning on or after July 1, 2009, the cost price shall be
6 reduced by one hundred percent.
7 (ii) For purposes of this Subparagraph, the following definitions shall apply:
8 (aa) "Machinery and equipment" means tangible personal property or other
9 property that is eligible for depreciation for federal income tax purposes and that is
10 used as an integral part in the manufacturing of tangible personal property for sale.
11 "Machinery and equipment" shall also mean tangible personal property or other
12 property that is eligible for depreciation for federal income tax purposes and that is
13 used as an integral part of the production, processing, and storing of food and fiber
14 or of timber.
15 (I) Machinery and equipment, for purposes of this Subparagraph, also
16 includes but is not limited to the following:
17 (aaa) Computers and software that are an integral part of the machinery and
18 equipment used directly in the manufacturing process.
19 (bbb) Machinery and equipment necessary to control pollution at a plant
20 facility where pollution is produced by the manufacturing operation.
21 (ccc) Machinery and equipment used to test or measure raw materials, the
22 property undergoing manufacturing or the finished product, when such test or
23 measurement is a necessary part of the manufacturing process.
24 (ddd) Machinery and equipment used by an industrial manufacturing plant
25 to generate electric power for self consumption or cogeneration.
26 (eee) Machinery and equipment used primarily to produce a news
27 publication whether it is ultimately sold at retail or for resale or at no cost. Such
28 machinery and equipment shall include but not be limited to all machinery and
29 equipment used primarily in composing, creating, and other prepress operations,
30 electronic transmission of pages from prepress to press, pressroom operations, and
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1 mailroom operations and assembly activities. The term "news publication" shall
2 mean any publication issued daily or regularly at average intervals not exceeding
3 three months, which contains reports of varied character, such as political, social,
4 cultural, sports, moral, religious, or subjects of general public interest, and
5 advertising supplements and any other printed matter ultimately distributed with or
6 a part of such publications.
7 (II) Machinery and equipment, for purposes of this Subparagraph, does not
8 include any of the following:
9 (aaa) A building and its structural components, unless the building or
10 structural component is so closely related to the machinery and equipment that it
11 houses or supports that the building or structural component can be expected to be
12 replaced when the machinery and equipment are replaced.
13 (bbb) Heating, ventilation, and air-conditioning systems, unless their
14 installation is necessary to meet the requirements of the manufacturing process, even
15 though the system may provide incidental comfort to employees or serve, to an
16 insubstantial degree, nonproduction activities.
17 (ccc) Tangible personal property used to transport raw materials or
18 manufactured goods prior to the beginning of the manufacturing process or after the
19 manufacturing process is complete.
20 (ddd) Tangible personal property used to store raw materials or
21 manufactured goods prior to the beginning of the manufacturing process or after the
22 manufacturing process is complete.
23 (bb) "Manufacturer" means:
24 (I) A person whose principal activity is manufacturing, as defined in this
25 Subparagraph, and who is assigned by the Louisiana Workforce Commission a North
26 American Industrial Classification System code within the agricultural, forestry,
27 fishing, and hunting Sector 11, the manufacturing Sectors 31-33, the information
28 Sector 511110 as they existed in 2002, or industry code 423930 as a recyclable
29 material merchant wholesaler engaged in manufacturing activities, which must
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1 include shredding facilities, as determined by the secretary of the Department of
2 Revenue.
3 (II) A person whose principal activity is manufacturing and who is not
4 required to register with the Louisiana Workforce Commission for purposes of
5 unemployment insurance, but who would be assigned a North American Industrial
6 Classification System code within the agricultural, forestry, fishing, and hunting
7 Sector 11, the manufacturing Sectors 31-33, the information Sector 511110 as they
8 existed in 2002, as determined by the Louisiana Department of Revenue from federal
9 income tax data, if he were required to register with the Louisiana Workforce
10 Commission for purposes of unemployment insurance.
11 (cc) "Manufacturing" means putting raw materials through a series of steps
12 that brings about a change in their composition or physical nature in order to make
13 a new and different item of tangible personal property that will be sold to another.
14 Manufacturing begins at the point at which raw materials reach the first machine or
15 piece of equipment involved in changing the form of the material and ends at the
16 point at which manufacturing has altered the material to its completed form. Placing
17 materials into containers, packages, or wrapping in which they are sold to the
18 ultimate consumer is part of this manufacturing process. Manufacturing, for
19 purposes of this Subparagraph, does not include any of the following:
20 (I) Repackaging or redistributing.
21 (II) The cooking or preparing of food products by a retailer in the regular
22 course of retail trade.
23 (III) The storage of tangible personal property.
24 (IV) The delivery of tangible personal property to or from the plant.
25 (V) The delivery of tangible personal property to or from storage within the
26 plant.
27 (VI) Actions such as sorting, packaging, or shrink wrapping the final
28 material for ease of transporting and shipping.
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1 (dd) "Manufacturing for agricultural purposes" means the production,
2 processing, and storing of food and fiber and the production, processing, and storing
3 of timber.
4 (ee) "Plant facility" means a facility, at one or more locations, in which
5 manufacturing, referred to in Sectors 11 and 31-33 of the North American Industrial
6 Classification system as of 2002, of a product of tangible personal property takes
7 place.
8 (ff) "Used directly" means used in the actual process of manufacturing or
9 manufacturing for agricultural purposes.
10 (iii) No person shall be entitled to purchase, use, lease, or rent machinery or
11 equipment as defined herein without payment of the tax imposed by R.S. 47:302,
12 321, and 331 before receiving a certificate of exclusion from the secretary of the
13 Department of Revenue certifying that he is a manufacturer as defined herein.
14 (iv) The secretary of the Department of Revenue is hereby authorized to
15 adopt rules and regulations in order to administer the exclusion provided for in this
16 Subparagraph.
17 (j) For the purpose of the sales and use taxes imposed by the state or any
18 political subdivision whose boundaries are coterminous with those of the state under
19 R.S. 47:302, 321, and 331, the "cost price" of electric power or energy, or natural gas
20 for the period beginning July 1, 2007 and thereafter, purchased or used by paper or
21 wood products manufacturing facilities shall not include any of such cost.
22 (k)(i) For purposes of the imposition of the sales and use tax levied by the
23 state or any political subdivision whose boundaries are coterminous with those of the
24 state under R.S. 47:302, 321, and 331, the tax on the cost price of tangible property
25 consumed in the manufacturing process, such as fuses, belts, felts, wires, conveyor
26 belts, lubricants, and motor oils and the tax on the cost price of repairs and
27 maintenance of manufacturing machinery and equipment shall be reduced as follows:
28 (aa) For the period beginning July 1, 2010, and ending on June 30, 2011, the
29 state sales and use tax on the cost price shall be reduced by twenty-five percent.
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1 (bb) For the period beginning July 1, 2011, and ending June 30, 2012, the
2 state sales and use tax on the cost price shall be reduced by fifty percent.
3 (cc) For the period beginning July 1, 2012, and ending June 30, 2013, the
4 state sales and use tax on the cost price shall be reduced by seventy-five percent.
5 (dd) For all periods beginning on and after July 1, 2013, the state sales and
6 use tax on the cost price shall be reduced by one hundred percent.
7 (ii) For purposes of this Subparagraph, "manufacturer" means a person
8 whose principal activity is manufacturing and who is assigned an industry group
9 designation by the United States Census of 3211 through 3222 or 113310 pursuant
10 to the North American Industry Classification System of 2007.
11 * * *
12 (7)(a) "Lease or rental" means the leasing or renting of tangible personal
13 property and the possession or use thereof by the lessee or renter, for a consideration,
14 without transfer of the title of such property. For the purpose of the leasing or
15 renting of automobiles, "lease" means the leasing of automobiles and the possession
16 or use thereof by the lessee, for a consideration, without the transfer of the title of
17 such property for a one hundred eighty-day period or more. "Rental" means the
18 renting of automobiles and the possession or use thereof by the renter, for a
19 consideration, without the transfer of the title of such property for a period less than
20 one hundred eighty days.
21 (b) The Solely for purposes of the state sales and use taxes imposed under
22 R.S. 47:302, 321, and 331, the term "lease or rental", however, as herein defined,
23 shall not mean or include the lease or rental made for the purposes of re-lease or re-
24 rental of casing tools and pipe, drill pipe, tubing, compressors, tanks, pumps, power
25 units, other drilling or related equipment used in connection with the operating,
26 drilling, completion, or reworking of oil, gas, sulphur, or other mineral wells.
27 (c) The term "lease or rental", as herein defined shall not mean or include a
28 lease or rental of property to be used in performance of a contract with the United
29 States Department of the Navy for construction or overhaul of U.S. Naval vessels.
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1 (d) The Solely for purposes of the state sales and use taxes imposed under
2 R.S. 47:302, 321, and 331, the term "lease or rental", as herein defined, shall not
3 mean the lease or rental of airplanes or airplane equipment by a commuter airline
4 domiciled in Louisiana.
5 (e) For purposes of state and political subdivision sales and use tax, the term
6 "lease or rental", as herein defined, shall not mean the lease or rental of items,
7 including but not limited to supplies and equipment, which are reasonably necessary
8 for the operation of free hospitals.
9 (f) For purposes of state and political subdivision sales and use tax, "lease
10 or rental" shall not mean the lease or rental of educational materials or equipment
11 used for classroom instruction by approved parochial and private elementary and
12 secondary schools which comply with the court order from the Dodd Brumfield
13 decision and Section 501(c)(3) of the Internal Revenue Code, limited to books,
14 workbooks, computers, computer software, films, videos, and audio tapes.
15 (g) For purposes of state and political subdivision sales and use tax, "lease
16 or rental" shall not mean the lease or rental of tangible personal property to Boys
17 State of Louisiana, Inc. and Girls State of Louisiana, Inc. which is used by such
18 organizations for their educational and public service programs for 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) R.S. 32:1252(35), or
22 vehicle manufacturers, as defined in R.S. 32:1252(11) R.S. 32:1252(24), for their use
23 in furnishing such leased or rented motor vehicles to their customers in performance
24 of their obligations under warranty agreements associated with the purchase of a
25 motor vehicle or when the applicable warranty has lapsed and the leased or rented
26 motor vehicle is provided to 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 under
5 R.S. 47:302, 321, and 331, 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)(i) For purposes of any sales, use, or lease tax levied by the state, or any
9 political subdivision of the state, the term "lease or rental" shall not include the lease
10 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)(i) For purposes of the sales and use tax levied by all tax authorities in this
15 state the state under R.S. 47:302, 321, and 331, and by any political subdivision, the
16 term "lease or rental" shall not apply to leases or rentals of pallets which are used in
17 packaging products produced by a manufacturer.
18 (ii) For purposes of this Subparagraph, the term "manufacturer" shall mean
19 a person whose primary activity is manufacturing and who is assigned by the
20 Louisiana Workforce Commission a North American Industrial Classification
21 System code within the manufacturing sectors 31-33 as they existed in 2002.
22 * * *
23 (10)(a)(i) Solely for the purposes of the imposition of the state sales and use
24 tax, "retail sale" or "sale at retail" means a sale to a consumer or to any other person
25 for any purpose other than for resale as tangible personal property, or for the lease
26 of automobiles in an arm's length transaction, and shall mean and include all such
27 transactions as the secretary, upon investigation, finds to be in lieu of sales; provided
28 that sales for resale or for lease of automobiles in an arm's length transaction must
29 be made in strict compliance with the rules and regulations. Any dealer making a
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1 sale for resale or for the lease of automobiles, which is not in strict compliance with
2 the rules and regulations, shall himself be liable for and pay the tax.
3 (ii) Solely for purposes of the imposition of the sales and use tax levied by
4 a political subdivision or school board, "retail sale" or "sale at retail" shall mean a
5 sale to a consumer or to any other person for any purpose other than for resale in the
6 form of tangible personal property, or resale of those services defined in Paragraph
7 (14) of this Section provided the retail sale of the service is subject to sales tax in this
8 state, and shall mean and include all such transactions as the collector, upon
9 investigation, finds to be in lieu of sales; provided that sales for resale be made in
10 strict compliance with the rules and regulations. Any dealer making a sale for resale,
11 which is not in strict compliance with the rules and regulations shall himself be liable
12 for and pay the tax. A local collector shall accept a resale certificate issued by the
13 Department of Revenue, provided the taxpayer includes the parish of its principal
14 place of business and local sales tax account number on the state certificate.
15 However, in the case of an intra-parish transaction from dealer to dealer, the
16 collector may require that the local exemption certificate be used in lieu of the state
17 certificate. The department shall accommodate the inclusion of such information on
18 its resale certificate for such purposes.
19 (iii) "Retail sale" or "sale at retail" for purposes of sales and use taxes
20 imposed by the state on transactions involving the sale for rental of automobiles
21 which take place on or after January 1, 1991, and by political subdivisions on such
22 transactions on or after July 1, 1996, and state sales and use taxes imposed on
23 transactions involving the lease or rental of tangible personal property other than
24 automobiles which take place on or after July 1, 1991, means a sale to a consumer
25 or to any other person for any purpose other than for resale as tangible personal
26 property, or for lease or rental in an arm's length transaction in the form of tangible
27 personal property, and shall mean and include all such transactions as the secretary,
28 upon investigation, finds to be in lieu of sales; provided that sales for resale or for
29 lease or rental in an arm's length transaction must be made in strict compliance with
30 the rules and regulations. Any dealer making a sale for resale or for lease or rental,
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1 which is not in strict compliance with the rules and regulations, shall himself be
2 liable for and pay the tax. For purposes of the imposition of the tax imposed by any
3 political subdivision of the state, for the period beginning on July 1, 1999, and
4 ending on June 30, 2000, the term "retail sale" or "sale at retail" shall not include
5 one-fourth of the sales price of any tangible personal property which is sold in order
6 to be leased or rented in an arm's length transaction in the form of tangible personal
7 property. For purposes of the imposition of the tax imposed by any political
8 subdivision of the state, for the period beginning on July 1, 2000, and ending on June
9 30, 2001, the term "retail sale" or "sale at retail" shall not include one-half of the
10 sales price of any tangible personal property which is sold in order to be leased or
11 rented in an arm's length transaction in the form of tangible personal property. For
12 purposes of the imposition of the tax imposed by any political subdivision of the
13 state, for the period beginning on July 1, 2001, and ending on June 30, 2002, the
14 term "retail sale" or "sale at retail" shall not include three-fourths of the sales price
15 of any tangible personal property which is sold in order to be leased or rented in an
16 arm's length transaction in the form of tangible personal property. Beginning July
17 1, 2002, for the purposes of imposition of the tax levied by any political subdivision
18 of the state, the term "retail sale" or "sale at retail" shall not include the sale of any
19 tangible personal property which is sold in order to be leased or rented in an arm's
20 length transaction in the form of tangible personal property.
21 (iv) "Retail sale" or "sale at retail", for purposes of sales and use taxes
22 imposed by the state on transactions involving the sale for rental of automobiles
23 which take place prior to January 1, 1991, and by political subdivisions on such
24 transactions prior to July 1, 1996, and imposed on transactions involving the lease
25 or rental of tangible personal property other than autos which take place prior to July
26 1, 1991, and for purposes of local sales and use taxes levied by political subdivisions
27 except for transactions involving the sale for rental of automobiles on or after July
28 1, 1996, means a sale to a consumer or to any other person for any purpose other
29 than for resale in the form of tangible personal property, and shall mean and include
30 all such transactions as the secretary, upon investigation, finds to be in lieu of sales;
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1 provided that sales for resale must be made in strict compliance with the rules and
2 regulations. Any dealer making a sale for resale, which is not in strict compliance
3 with the rules and regulations, shall himself be liable for and pay the tax. However,
4 contrary provisions of law notwithstanding, any political subdivision may, by
5 ordinance, adopt the definition of "retail sale" or "sale at retail" provided in Item (iii)
6 of this Subparagraph for purposes of the imposition of its sales and use tax.
7 (v) Became null and void on June 30, 2006. See Acts 2002, 1st Ex. Sess.,
8 No. 3.
9 (vi) Solely for purposes of the payment of state sales and use tax, until
10 January 1, 2007, the term "sale at retail" shall not include purchases made in
11 connection with the filming or production of a motion picture by a motion picture
12 production company which has been relieved from the payment of state sales and use
13 tax under the provisions of Chapter 12 of Subtitle II of this Title, also known as the
14 "Louisiana Motion Picture Incentive Act". This exclusion shall be retroactively
15 revoked if it is determined that a motion picture production company that has been
16 relieved from payment of state sales and use tax under Chapter 12 failed to meet the
17 conditions of such relief.
18 (b)(i) Solely for purposes of the sales and use tax levied by the state, the sale
19 of tangible personal property to a dealer who purchases said property for resale
20 through coin-operated vending machines shall be considered a "sale at retail", subject
21 to such tax. The subsequent resale of the property by the dealer through
22 coin-operated vending machines shall not be considered a "sale at retail".
23 (ii) Solely for purposes of the sales and use tax levied by political
24 subdivisions, the term "sale at retail" shall include the sale of tangible personal
25 property by a dealer through coin-operated vending machines.
26 (c)(i)(aa) The term "sale at retail" does not include sale of materials for
27 further processing into articles of tangible personal property for sale at retail.
28 (bb) Solely for purposes of the sales and use tax levied by the state, natural
29 gas when used in the production of iron in the process known as the "direct reduced
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1 iron process" is not a catalyst and is recognized by the legislature to be a material for
2 further processing into an article of tangible personal property for sale at retail.
3 (ii)(aa) Solely for purposes of the sales and use tax levied by the state, the
4 term "sale at retail" does not include sales of electricity for chlor-alkali
5 manufacturing processes.
6 (bb) The term "sale at retail" does not include an isolated or occasional sale
7 of tangible personal property by a person not engaged in such business.
8 (d) The term "sale at retail" does not include the sale of any human tissue
9 transplants, which shall be defined to include all human organs, bone, skin, cornea,
10 blood, or blood products transplanted from one individual into another recipient
11 individual.
12 (e) The term "sale at retail" does not include the sale of raw agricultural
13 commodities, including but not limited to feed, seed, and fertilizer, to be utilized in
14 preparing, finishing, manufacturing, or producing crops or animals for market. The
15 Department of Agriculture and Forestry may develop and promulgate guidelines to
16 determine who meets this definition. Any person meeting such guidelines shall
17 receive a certificate from the Department of Agriculture and Forestry indicating that
18 such person is eligible to purchase such items without paying tax thereon.
19 (f) Notwithstanding any other law to the contrary, for purposes of the
20 imposition of the sales and use tax of any political subdivision, the sale of a vehicle
21 subject to the Vehicle Registration License Tax Law (R.S. 47:451 et seq.) shall be
22 deemed to be a "retail sale" or a "sale at retail":
23 (i) In the political subdivision of the principal residence of the purchaser if
24 the vehicle is purchased for private use, or
25 (ii) In the political subdivision of the principal location of the business if the
26 vehicle is purchased for commercial use, unless the vehicle purchased for
27 commercial use is assigned, garaged, and used outside of such political subdivision,
28 in which case the sale shall be deemed a "retail sale" or a "sale at retail" in the
29 political subdivision where the vehicle is assigned, garaged, and used.
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1 (g) The term "retail sale" does not include a sale of corporeal movable
2 property which is intended for future sale to the United States government or its
3 agencies, when title to such property is transferred to the United States government
4 or its agencies prior to the incorporation of that property into a final product.
5 (h) The term "sale at retail" does not include the sale of food items by youth
6 serving organizations chartered by congress.
7 (i) The term "sale at retail" does not include the purchase of a new school
8 bus or a used school bus which is less than five years old by an independent operator,
9 when such bus is to be used exclusively in a public school system. This exclusion
10 shall apply to all sales and use taxes levied by any local political subdivision.
11 (j) The term "sale at retail" does not include the sale of tangible personal
12 property to food banks, as defined in R.S. 9:2799.
13 (k) The term "sale at retail" shall not include the sale of airplanes or airplane
14 equipment or parts to a commuter airline domiciled in Louisiana.
15 (l) Solely for purposes of the state sales and use tax imposed under R.S.
16 47:302, 321, and 331, the term "sale at retail" shall not include the sale of a pollution
17 control device or system. Pollution control device or system shall mean any tangible
18 personal property approved by the Department of Revenue and the Department of
19 Environmental Quality and sold or leased and used or intended for the purpose of
20 eliminating, preventing, treating, or reducing the volume or toxicity or potential
21 hazards of industrial pollution of air, water, groundwater, noise, solid waste, or
22 hazardous waste in the state of Louisiana. For the purposes of any sales and use tax
23 levied by a political subdivision, the term "sale at retail" shall include the sale of a
24 pollution control device or system. In order to qualify, the pollution control device
25 or system must demonstrate either: a net decrease in the volume or toxicity or
26 potential hazards of pollution as a result of the installation of the device or system;
27 or that installation is necessary to comply with federal or state environmental laws
28 or regulations.
29 (m) For purposes of sales and use taxes imposed or levied by the state or any
30 political subdivision, the term "sale at retail" shall not include the sales of Louisiana-
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1 manufactured or Louisiana-assembled passenger aircraft with a maximum capacity
2 of eight persons, if, after all transportation, including transportation by the purchaser,
3 has been completed, the aircraft is ultimately received by the purchaser outside of
4 Louisiana. The place at which the aircraft is ultimately received shall be considered
5 as the place at which the aircraft is stored after all transportation has been completed.
6 (n) For purposes of sales and use taxes imposed or levied by the state or any
7 political subdivision thereof For purposes of the sales and use taxes imposed by the
8 state under R.S. 47:302, 321, and 331, and the sales and use taxes imposed by any
9 political subdivision, the term "sale at retail" shall not include the sales of pelletized
10 paper waste when purchased for use as combustible fuel by an electric utility or in
11 an industrial manufacturing, processing, compounding, reuse, or production process,
12 including the generation of electricity or process steam, at a fixed location in this
13 state. However, such sale shall not be excluded unless the purchaser has signed a
14 certificate stating that the fuel purchased is for the exclusive use designated herein.
15 For purposes of this Subparagraph, "pelletized paper waste" means pellets produced
16 from discarded waste paper that has been diverted or removed from solid waste
17 which is not marketable for recycling and which is wetted, extruded, shredded, or
18 formulated into compact pellets of various sizes for use as a supplemental fuel in a
19 permitted boiler.
20 (o) For the purposes of sales and use taxes imposed or levied by the state or
21 any local government subdivision or school board, the term "sale at retail" shall not
22 include the sale or purchase of equipment used in fire fighting by bona fide volunteer
23 and public fire departments.
24 (p) For purposes of state and political subdivision sales and use tax, the term
25 "sale at retail" shall not include the sale of items, including but not limited to
26 supplies and equipment, or the sale of services as provided in this Section, which are
27 reasonably necessary for the operation of free hospitals.
28 (q) For purposes of state and political subdivision sales and use tax, the term
29 "sale at retail" shall not include:
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1 (i) The sale of tangible personal property by approved parochial and private
2 elementary and secondary schools which comply with the court order from the Dodd
3 Brumfield decision and Section 501(c)(3) of the Internal Revenue Code, or students,
4 administrators, or teachers, or other employees of the school, if the money from such
5 sales, less reasonable and necessary expenses associated with the sale, is used solely
6 and exclusively to support the school or its program or curricula. This exclusion
7 shall not be construed to allow tax-free sales to students or their families by
8 promoters or regular commercial dealers through the use of schools, school faculty,
9 or school facilities.
10 (ii) The sale to approved parochial and private elementary and secondary
11 schools which comply with the court order from the Dodd Brumfield decision and
12 Section 501(c)(3) of the Internal Revenue Code of educational materials or
13 equipment used for classroom instruction limited to books, workbooks, computers,
14 computer software, films, videos, and audio tapes.
15 (r) For purposes of state and political subdivision sales and use tax, the term
16 "sale at retail" shall not include the sale of tangible personal property to Boys State
17 of Louisiana, Inc. and Girls State of Louisiana, Inc. which is used by such
18 organizations for their educational and public service programs for youth.
19 (s) The term "sale at retail" or "retail sale", for purposes of sales and use
20 taxes imposed by the state or any political subdivision or other taxing entity, shall
21 not include any charge, fee, money, or other consideration received, given, or paid
22 for the performance of funeral directing services. For purposes of this Subparagraph,
23 "funeral directing services" means the operation of a funeral home, or by way of
24 illustration and not limitation, any service whatsoever connected with the
25 management of funerals, or the supervision of hearses or funeral cars, the cleaning
26 or dressing of dead human bodies for burial, and the performance or supervision of
27 any service or act connected with the management of funerals from time of death
28 until the body or bodies are delivered to the cemetery, crematorium, or other agent
29 for the purpose of disposition. However, such services shall not mean or include the
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1 sale, lease, rental, or use of any tangible personal property as those terms are defined
2 in this Section.
3 (t) For purposes of sales and use taxes levied by the state or any political
4 subdivision of the state For purposes of the sales and use taxes imposed by the state
5 under R.S. 47:302, 321, and 331, and the sales and use taxes imposed by any
6 political subdivision, the term "sale at retail" shall not include the transfer of title to
7 or possession of telephone directories by an advertising company that is not affiliated
8 with a provider of telephone services if the telephone directories will be distributed
9 free of charge to the recipients of the telephone directories.
10 (u) For purposes of sales and use taxes levied and imposed by local
11 governmental subdivisions, school boards, and other political subdivisions whose
12 boundaries are not coterminous with those of the state, "sale at retail" by a person
13 shall not mean or include the sale of tangible personal property if such sale is made
14 under the provisions of Medicare.
15 (v) For purposes of the imposition of sales and use taxes imposed or levied
16 by all taxing authorities in the state For purposes of the sales and use taxes imposed
17 by the state under R.S. 47:302, 321, and 331, and the sales and use taxes imposed by
18 any political subdivision, in the case of the sale or other disposition by a dealer of
19 any cellular, PCS, or wireless telephone, or any electronic accessories that are
20 physically connected with such telephones and personal communication devices used
21 in connection with the sale or use of mobile telecommunications services, the term
22 "retail sale" or "sale at retail" shall mean and include the sale or any other disposition
23 of such cellular, PCS, or wireless telephone, any electronic accessories that are
24 physically connected with such telephones and personal communication devices by
25 the dealer to the purchaser, but shall not mean or include the withdrawal, use,
26 distribution, consumption, storage, donation, or any other disposition of any such
27 cellular, PCS, or wireless telephone, any electronic accessories that are physically
28 connected with such telephones, and personal communication devices by the dealer.
29 (w) For purposes of the imposition of sales and use taxes imposed or levied
30 by any political subdivision of the state, in the case of the sale or other disposition
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1 by a dealer of any cellular telephone, PCS telephone, wireless telephone, or other
2 wireless personal communication device that is used in connection with the sale or
3 use of mobile telecommunications services, or any electronic accessory that is
4 physically connected with any such telephone or personal communication device, the
5 term "retail sale" or "sale at retail" shall mean and include the sale or any other
6 disposition of any such telephone, other personal communication device, or
7 electronic accessory.
8 (x) For purposes of the sales and use tax imposed by the state or any political
9 subdivision whose boundaries are coterminous with those of the state, the terms
10 "retail sale" or "sale at retail" shall not include the following:
11 (i) The sale or purchase by a person of any fuel or gas, including but not
12 limited to butane and propane.
13 (ii) Beginning July 1, 2008, the sale or purchase by any person of butane and
14 propane.
15 (y)(i) Solely for the purposes of sales and use taxes levied by the state or any
16 political subdivision whose boundaries are coterminous with those of the state under
17 R.S. 47:302, 321, and 331, the term "sale at retail" shall not include the sale of
18 manufacturing machinery and equipment used or consumed in this state to
19 manufacture, produce, or extract unblended biodiesel.
20 (ii) As used in this Subparagraph, the following words and phrases have the
21 meaning ascribed to them:
22 (aa) "Manufacturing machinery and equipment" means tangible property
23 used or consumed, or held for use or consumption, as an integral part of a biodiesel
24 manufacturing, production, or extraction facility, process, or item of equipment.
25 Property shall be considered to be an integral part of such biodiesel manufacturing,
26 production, or extraction facility, process, or item of equipment only if such property
27 is used or consumed directly in the manufacturing, production, or extraction process
28 or is part of, physically attached to, or otherwise directly associated with such
29 property. Property, the installation of which is reasonably necessary for the proper
30 installation, operation, maintenance of property which directly results in such
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1 manufacturing, production, or extraction shall be considered as directly associated
2 with such property.
3 (bb) "Unblended biodiesel" means a fuel comprised of mono-alkyl esters of
4 long chain fatty acids derived from vegetable oils or animal fats, designated B100,
5 and meeting the requirements of the definition provided for in D 6751 of the
6 American Society of Testing and Materials (ATDM D 6751), before such fuel is
7 blended with a petroleum-based diesel fuel.
8 (z) Solely for the purposes of sales and use taxes levied by the state or any
9 political subdivision whose boundaries are coterminous with those of the, the term
10 "sale at retail" shall not include the sale of any alternative substance when such
11 alternative substance is used as a fuel by a manufacturer. "Alternative substance"
12 means any substance other than oil and natural gas and any product of oil and natural
13 gas. "Alternative substance" shall include petroleum coke, landfill gas, reclaimed
14 or waste oil, unblended biodiesel, or tire-derived fuel, but not coal, lignite, refinery
15 gas, nuclear fuel, or electricity. "Manufacturer" means a person whose principal
16 activity is manufacturing and who is assigned by the Louisiana Workforce
17 Commission a North American Industrial Classification System code with the
18 agricultural, forestry, fishing, and hunting Sector 11 or the manufacturing Sectors 31-
19 33 as they existed in 2002.
20 (aa)(i) For purposes of sales and use taxes imposed or levied by the state or
21 any political subdivision of the state, the term "sale at retail" shall not include the
22 sale of toys to a non-profit organization exempt from federal taxation pursuant to
23 Section 501(c)(3) of the Internal Revenue Code if the sole purpose of the purchasing
24 organization is to donate toys to minors and the toys are, in fact, donated.
25 (ii) The exclusion provided in this Subparagraph shall not apply if the
26 donation is intended to ultimately yield a profit to a promoter of the organization or
27 to any individual contracted to provide services or equipment, or both, to the
28 organization.
29 (iii) A certificate of exclusion shall be obtained from the secretary or the tax
30 collector of the political subdivision, under such regulations as he shall prescribe, in
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1 order for nonprofit organizations to qualify for the exclusion provided for in this
2 Subparagraph.
3 (bb) For purposes of sales and use taxes imposed or levied by the state under
4 R.S. 47:302, 321, and 331, the terms "retail sale" and "sale at retail" shall not include
5 sales of natural gas to be held, used, or consumed in providing natural gas storage
6 services or operating natural gas storage facilities.
7 (cc) For purposes of the sales and use tax imposed by the state or any
8 political subdivision of the state, the terms "retail sale" or "sale at retail" shall not
9 mean or include the purchase of textbooks and course-related software by a private
10 postsecondary academic degree-granting institution, accredited by a national or
11 regional commission that is recognized by the United States Department of
12 Education and is licensed by the Board of Regents, which institution has its main
13 location within this state and offers only online instruction, when all of the following
14 apply:
15 (i) The textbooks and course-related software are physically outside of this
16 state when purchased from a vendor outside of this state and then imported into this
17 state.
18 (ii) The first student use of the textbooks and course-related software occurs
19 outside of this state.
20 (iii) The textbooks and course-related software are provided to the student
21 free of charge.
22 (dd) For purposes of sales and use taxes imposed or levied by the state, the
23 terms "retail sale" or "sale at retail" shall not include the purchase of food items for
24 school lunch or breakfast programs by nonpublic elementary or secondary schools
25 which participate in the National School Lunch and School Breakfast programs or
26 the purchase of food items by nonprofit corporations which serve students in
27 nonpublic elementary or secondary schools and which participate in the National
28 School Lunch and School Breakfast programs.
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1 (ee)(i) Solely for the purposes of the imposition of the state sales and use tax
2 imposed under R.S. 47:302, 321, and 331, the term "retail sale" and "sale at retail"
3 shall not include the sale of any storm shutter device.
4 (ii) As used in this Subparagraph, "storm shutter device" means materials
5 and products manufactured, rated, and marketed specifically for the purpose of
6 preventing window damage from storms.
7 (iii) The secretary of the Department of Revenue, in consultation with the
8 Department of Insurance, shall promulgate such rules and regulations in accordance
9 with the Administrative Procedure Act as may be necessary to carry out the
10 provisions of this Subparagraph.
11 (ff) For purposes of sales taxes imposed by the state or any political
12 subdivision of the state, the term "retail sale" or "sale at retail" shall not include sales
13 of tangible personal property by the Military Department, state of Louisiana, which
14 occur on an installation or other property owned or operated by the Military
15 Department.
16 (gg) For purposes of sales and use tax imposed by the state under R.S.
17 47:302, 321, and 331 or any political subdivision of the state, the term "sale at retail"
18 shall not include the sale of anthropogenic carbon dioxide for use in a qualified
19 tertiary recovery project approved by the assistant secretary of the office of
20 conservation of the Department of Natural Resources pursuant to R.S. 47:633.4.
21 (hh) For purposes of sales and use tax imposed by the state, any political
22 subdivision whose boundaries are coterminous with those of the state under R.S.
23 47:302, 321, and 331, or any other political subdivision, the term "sale at retail" shall
24 not include the sale of tangible personal property at an event providing Louisiana
25 heritage, culture, crafts, art, food, and music which is sponsored by a domestic
26 nonprofit organization that is exempt from tax under Section 501(c)(3) of the
27 Internal Revenue Code. The provisions of this Subparagraph shall apply only to an
28 event which transpires over a minimum of seven but not more than twelve days and
29 has a five-year annual average attendance of at least three hundred thousand over the
30 duration of the event. For purposes of determining the five-year annual average
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1 attendance, the calculation shall include the total annual attendance for each of the
2 five most recent years. The provisions of this Subparagraph shall apply only to sales
3 by the sponsor of the event.
4 * * *
5 (13)(a) "Sales price" means the total amount for which tangible personal
6 property is sold, less the market value of any article traded in including any services,
7 except services for financing, that are a part of the sale valued in money, whether
8 paid in money or otherwise, and includes the cost of materials used, labor or service
9 costs, except costs for financing which shall not exceed the legal interest rate and a
10 service charge not to exceed six percent of the amount financed, and losses; provided
11 that cash discounts allowed and taken on sales shall not be included, nor shall the
12 sales price include the amount charged for labor or services rendered in installing,
13 applying, remodeling, or repairing property sold.
14 (b) The term "sales price" shall not include any amount designated as a cash
15 discount or a rebate by the vendor or manufacturer of any new vehicle subject to the
16 motor vehicle license tax. For purposes of this Paragraph "rebate" means any
17 amount offered by a vendor or manufacturer as a deduction from the listed retail
18 price of the vehicle.
19 (c) "Sales price" shall not include the first fifty thousand dollars of the sale
20 price of new farm equipment used in poultry production.
21 (d) Notwithstanding any other provision of law to the contrary, for purposes
22 of state and political subdivision sales and use tax, the "sales price" of refinery gas,
23 except for feedstock, not ultimately consumed as an energy source by the person who
24 owns the facility in which the refinery gas is created as provided for in Subparagraph
25 (18)(d) of this Section, but sold to another person, whether at retail or wholesale,
26 shall be fifty-two cents per thousand cubic feet multiplied by a fraction the
27 numerator of which shall be the posted price for a barrel of West Texas Intermediate
28 Crude Oil on December first of the preceding calendar year and the denominator of
29 which shall be twenty-nine dollars, and provided further that such sales price shall
30 be the maximum value placed upon refinery gas by the state and by any political
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1 subdivision under any authority or grant of power to levy and collect sales or use
2 taxes, and such sale shall be taxable.
3 (e) The term "sales price", solely for purposes of the sales tax imposed by
4 the state sales and use taxes imposed under R.S. 47:302, 321, and 331 and those of
5 its political subdivisions, shall exclude any amount that a manufacturer pays directly
6 to a dealer of the manufacturer's product for the purpose of reducing and that actually
7 results in an equivalent reduction in the retail "sales price" of that product. This
8 exclusion shall not apply to the value of the manufacturer's coupons that dealers
9 accept from purchasers as part payment of the "sales price" and that are redeemable
10 by the dealers through manufacturers or their agents. The value of such coupons is
11 deemed to be part of the "sales price" of the product purchased through the use of the
12 coupons.
13 (f) The term "sales price" shall exclude any charge, fee, money, or other
14 consideration received, given, or paid for the performance of funeral directing
15 services as defined in Subparagraph (10)(s) of this Section.
16 (g) For Solely for purposes of the imposition of sales and use taxes imposed
17 or levied by all state sales and use taxes imposed under R.S. 47:302, 321, and 331
18 and those of all other taxing authorities in the state, in the case of the retail sale by
19 a dealer of any cellular, PCS, or wireless telephone, any electronic accessories that
20 are physically connected with such telephones and personal communications devices
21 used in connection with the sale or use of mobile telecommunications services, as
22 defined in R.S. 47:301(10)(v), the term "sales price" shall mean and include only the
23 amount of money, if any, actually received by the dealer from the purchaser for each
24 such cellular, PCS, or wireless telephone and any electronic accessories that are
25 physically connected with such telephones and personal communication devices, but
26 shall not include (i) any amount received by the dealer from the purchaser for
27 providing mobile telecommunications services, or (ii) any commissions, fees,
28 rebates, or other amounts received by the dealer from any source other than the
29 purchaser as a result of or in connection with the sale of the cellular, PCS, or wireless
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1 telephone, any electronic accessories that are physically connected with such
2 telephones and personal communication devices.
3 (h) For Solely for the purpose of the imposition of sales and use tax imposed
4 or levied by all state sales and use taxes imposed by the state under R.S. 47:302, 321,
5 and 331 and those of all other taxing authorities in the state of any cellular, PCS, or
6 wireless telephone used in connection with the sale or use of mobile
7 telecommunications services, as defined in R.S. 47:301(10)(v), after January 1, 2002,
8 the term "sales price" shall mean and include the greater of (i) the amount of money
9 actually received by the dealer from the purchaser for each such telephone, or (ii)
10 twenty-five percent of the cost of such telephone to the dealer, but shall not include
11 any amount received by the dealer from the purchaser for providing mobile
12 telecommunications services or any commissions, fees, rebates, or other amounts
13 received by the dealer from any source other than the purchaser as a result of or in
14 connection with the sale of the telephone.
15 (i)(i) For purposes of a publishing business which distributes its news
16 publications at no cost to readers and pays unrelated third parties to print such news
17 publications, the term "sales price" shall mean only the lesser of the following costs:
18 (aa) The printing cost paid to unrelated third parties to print such news
19 publications, less any itemized freight charges for shipping the news publications
20 from the printer to the publishing business and any itemized charges for paper and
21 ink.
22 (bb) Payments to a dealer or distributor as consideration for distribution of
23 the news publications.
24 (ii) The definition of "sales price" provided for in this Subparagraph shall be
25 applicable to taxes levied by all tax authorities in the state.
26 (j) For the purpose of the imposition of sales and use tax imposed or levied
27 by any political subdivision of the state, in the case of any retail sale or sale at retail,
28 of any cellular telephone, PCS telephone, or wireless telephone used in connection
29 with the sale or use of mobile telecommunications services, as defined in R.S.
30 47:301(10)(w), or any electronic accessory that is physically connected with any
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1 such telephone or personal communication device, the term "sales price" shall mean
2 and include the greater of (i) the amount of money, if any, actually received by the
3 dealer from the purchaser at the time of the retail sale or sale at retail by the dealer
4 to the purchaser for each such telephone, personal communication device, or
5 electronic accessory, or (ii) twenty-five percent of the cost of such telephone to the
6 dealer, but shall not include any amount received by the dealer from the purchaser
7 for providing mobile telecommunications services or any commissions, fees, rebates,
8 activation charges, or other amounts received by the dealer from any source other
9 than the purchaser as a result of or in connection with the sale of the telephone.
10 (k)(i) For purposes of the imposition of the sales tax levied by the state and
11 any political subdivision whose boundaries are coterminous with those of the state,
12 under R.S. 47:302, 321, and 331, the sales price of machinery and equipment
13 purchased by a manufacturer for use in a plant facility predominately and directly in
14 the actual manufacturing for agricultural purposes or the actual manufacturing
15 process of an item of tangible personal property, which is for ultimate sale to another
16 and not for internal use, at one or more fixed locations within Louisiana shall be
17 reduced as follows:
18 (aa) For the period ending on June 30, 2005, the sales price shall be reduced
19 by five percent.
20 (bb) For the period beginning July 1, 2005, and ending on June 30, 2006, the
21 sales price shall be reduced by nineteen percent.
22 (cc) For the period beginning July 1, 2006, and ending on June 30, 2007, the
23 sales price shall be reduced by thirty-five percent.
24 (dd) For the period beginning July 1, 2007, and ending on June 30, 2008, the
25 sales price shall be reduced by fifty-four percent.
26 (ee) For the period beginning July 1, 2008, and ending on June 30, 2009, the
27 sales price shall be reduced by sixty-eight percent.
28 (ff) For all periods beginning on or after July 1, 2009, the sales price shall
29 be reduced by one hundred percent.
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1 (ii) For purposes of this Subparagraph, "machinery and equipment",
2 "manufacturer", "manufacturing", "manufacturing for agricultural purposes","plant
3 facility", and "used directly" shall have the same meaning as defined in R.S.
4 47:301(3)(i)(ii).
5 (iii) No person shall be entitled to purchase, use, lease, or rent machinery or
6 equipment as defined herein without payment of the tax imposed by R.S. 47:302,
7 321, and 331 before receiving a certificate of exclusion from the secretary of the
8 Department of Revenue certifying that he is a manufacturer as defined herein.
9 (iv) The secretary of the Department of Revenue is hereby authorized to
10 adopt rules and regulations in order to administer the exclusion provided for in this
11 Subparagraph.
12 (l)(i) For Solely for purposes of the payment of the state sales and use tax
13 imposed under R.S. 47:302, 321, and 331 and the sales and use tax levied by any
14 political subdivision, the term "sales price" shall not include the price of specialty
15 items sold to members for fund-raising purposes by nonprofit carnival organizations
16 domiciled within Louisiana and participating in a parade sponsored by a carnival
17 organization.
18 (ii) The secretary of the Department of Revenue shall promulgate rules and
19 regulations for purposes of this exclusion.
20 (iii) No nonprofit carnival organization domiciled within Louisiana and
21 participating in a parade sponsored by a carnival organization shall claim exemption
22 or exclusion from the state sales and use tax or the sales and use tax levied by any
23 political subdivision before having obtained a certificate of authorization from the
24 secretary of the Department of Revenue. The secretary shall develop applications
25 for such certificates. The certificates shall be issued without charge to the entities
26 which qualify.
27 (m) For Solely for purposes of the sales and use tax imposed by the state or
28 any political subdivision whose boundaries are coterminous with those of the state
29 under R.S. 47:302, 321, and 331, the "sales price" of electric power or energy, or
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1 natural gas for the period beginning July 1, 2007, and thereafter, sold for use by
2 paper or wood products manufacturing facilities shall not include any of such price.
3 (14) "Sales of services" means and includes the following:
4 (a) The furnishing of sleeping rooms, cottages or cabins by hotels.
5 (b)(i) The sale of admissions to places of amusement, to athletic
6 entertainment other than that of schools, colleges, and universities, and recreational
7 events, and the furnishing, for dues, fees, or other consideration of the privilege of
8 access to clubs or the privilege of having access to or the use of amusement,
9 entertainment, athletic, or recreational facilities; but the term "sales of services" shall
10 not include membership fees or dues of nonprofit, civic organizations, including by
11 way of illustration and not of limitation the Young Men's Christian Association, the
12 Catholic Youth Organization, and the Young Women's Christian Association.
13 (ii) Places of amusement shall not include "museums", which are hereby
14 defined as public or private nonprofit institutions which are organized on a
15 permanent basis for essentially educational or aesthetic purposes and which use
16 professional staff to do all of the following:
17 (aa) Own or use tangible objects, whether animate or inanimate.
18 (bb) Care for those objects.
19 (cc) Exhibit them to the public on a regular basis.
20 (iii) Museums include but are not limited to the following institutions:
21 (aa) Museums relating to art, history, including historic buildings, natural
22 history, science, and technology.
23 (bb) Aquariums and zoological parks.
24 (cc) Botanical gardens and arboretums.
25 (dd) Nature centers.
26 (ee) Planetariums.
27 (iv) For purposes of the sales and use taxes of all tax authorities in the state,
28 the term "places of amusement" as used herein shall not include camp and retreat
29 facilities owned and operated by nonprofit organizations exempt from federal income
30 tax under Section 501(a) of the Internal Revenue Code as an organization described
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1 in Section 501(c)(3) of the Internal Revenue Code provided that the net revenue
2 derived from the organization's property is devoted wholly to the nonprofit
3 organization's purposes.
4 (c) The furnishing of storage or parking privileges by auto hotels and parking
5 lots.
6 (d) The furnishing of printing or overprinting, lithographic, multilith, blue
7 printing, photostating or other similar services of reproducing written or graphic
8 matter.
9 (e) The furnishing of laundry, cleaning, pressing and dyeing services,
10 including by way of extension and not of limitation, the cleaning and renovation of
11 clothing, furs, furniture, carpets and rugs, and the furnishing of storage space for
12 clothing, furs, and rugs. The service shall be taxable at the location where the
13 laundered, cleaned, pressed, or dyed article is returned to the customer.
14 (f) The furnishing of cold storage space, except that space which is furnished
15 pursuant to a bailment arrangement, and the furnishing of the service of preparing
16 tangible personal property for cold storage where such service is incidental to the
17 operation of storage facilities.
18 (g)(i)(aa) The furnishing of repairs to tangible personal property, including
19 but not restricted to the repair and servicing of automobiles and other vehicles,
20 electrical and mechanical appliances and equipment, watches, jewelry, refrigerators,
21 radios, shoes, and office appliances and equipment.
22 (bb)(I) For purposes of the sales and use tax levied by the state and by tax
23 authorities in East Feliciana Parish, charges for the furnishing of repairs to tangible
24 personal property shall be excluded from sales of services, as defined in this
25 Subparagraph, when the repaired property is (1) delivered to a common carrier or to
26 the United States Post Office Postal Service for transportation outside the state, or
27 (2) delivered outside the state by use of the repair dealer's own vehicle or by use of
28 an independent trucker. However, as to aircraft, delivery may be by the best
29 available means. This exclusion shall not apply to sales and use taxes levied by any
30 other parish, municipality or school board. However, any other parish, municipality
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1 or school board may apply the exclusion as defined in this Subparagraph to sales or
2 use taxes levied by any such parish, municipality, or school board. Offshore areas
3 shall not be considered another state for the purpose of this Subparagraph.
4 (II) For purposes of the sales and use tax levied by the tax authorities in
5 Calcasieu Parish, charges for the furnishing of repairs to aircraft shall be excluded
6 from sales of services, as defined in this Subparagraph, provided that the repairs are
7 performed at an airport with a runway that is at least ten thousand feet long, one
8 hundred sixty feet wide, and fourteen inches thick.
9 (ii) For the purposes of this Subparagraph, tangible personal property shall
10 include machinery, appliances, and equipment which have been declared immovable
11 by declaration under the provisions of Article 467 of the Louisiana Civil Code, and
12 things which have been separated from land, buildings, or other constructions
13 permanently attached to the ground or their component parts as defined in Article
14 466 of the Civil Code.
15 (iii)(aa) For purposes of the sales and use taxes imposed by the state or any
16 of its political subdivisions, sale of services shall not include the labor, or sale of
17 materials, services, and supplies, used for the repairing, renovating, or converting of
18 any drilling rig, or machinery and equipment which are component parts thereof,
19 which is used exclusively for the exploration or development of minerals outside the
20 territorial limits of the state in Outer Continental Shelf waters.
21 (bb) For the purposes of this Subitem, "drilling rig" means any unit or
22 structure, along with its component parts, which is used primarily for drilling,
23 workover, intervention or remediation of wells used for exploration or development
24 of minerals and "component parts" means any machinery or equipment necessary for
25 a drilling rig to perform its exclusive function of exploration or development of
26 minerals.
27 (h) The term "sale of service" shall not include an action performed pursuant
28 to a contract with the United States Department of the Navy for construction or
29 overhaul of U.S. Naval vessels.
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1 (i) Solely for purposes of the sales and use tax levied by the state, the
2 furnishing of telecommunications services for compensation, in accordance with the
3 provisions of R.S. 47:301.1. Local political subdivisions are prohibited from levying
4 a sales and use tax on telecommunications services not in effect on July 1, 1990,
5 provided, however, that the provisions of this Subparagraph shall not be construed
6 to prohibit the levy or collection of any franchise, excise, gross receipts, or similar
7 tax or assessment by any political subdivision of the state as defined in Article VI,
8 Section 44(2) of the Constitution of Louisiana.
9 (j) Notwithstanding any provision of law to the contrary, for purposes of
10 sales or use taxation by the state or any local political subdivision, the term "sales of
11 services" shall not mean or include any funeral directing services as defined in
12 Subparagraph (10)(s) of this Section. Subject to approval by the House Committee
13 on Ways and Means and the Senate Committee on Revenue and Fiscal Affairs, the
14 state Department of Revenue shall devise a formula for the calculation of the tax.
15 (k) For Solely for purposes of sales and use tax imposed by the state under
16 R.S. 47:302, 321, and 331, any political subdivision whose boundaries are
17 coterminous with those of the state, or any other political subdivision, the term "sales
18 of services" shall not mean or include admission charges for, outside gate admissions
19 to, or parking fees associated with an event providing Louisiana heritage, culture,
20 crafts, art, food, and music which is sponsored by a domestic nonprofit organization
21 that is exempt from tax under Section 501(c)(3) of the Internal Revenue Code. The
22 provisions of this Subparagraph shall apply only to an event which transpires over
23 a minimum of seven but not more than twelve days and has a five-year annual
24 average attendance of at least three hundred thousand over the duration of the event.
25 For purposes of determining the five-year annual average attendance, the calculation
26 shall include the total annual attendance for each of the five most recent years. The
27 provisions of this Subparagraph shall apply only to admission charges for, outside
28 gate admissions to, or parking fees associated with an event when the charges and
29 fees are payable to or for the benefit of the sponsor of the event.
30 * * *
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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, Solely for purposes of sales and use taxes imposed by the state
7 under R.S. 47:302, 321, and 331, gold, silver, or numismatic coins, or platinum,
8 gold, or silver bullion.
9 (iii) Proprietary geophysical survey information or geophysical data analysis
10 furnished under a restricted use agreement even though transferred in the form of
11 tangible personal property.
12 (c) The term "tangible personal property" shall not include the repair of a
13 vehicle by a licensed motor vehicle dealer which is performed subsequent to the
14 lapse of the applicable warranty on that vehicle and at no charge to the owner of the
15 vehicle. For the purpose of assessing a sales and use tax on this transaction, no
16 valuation shall be assigned to the services performed or the parts used in the repair.
17 (d)(i) Notwithstanding any provision of law to the contrary and solely for
18 purposes of state sales and use tax, any sale of a prepaid calling service or prepaid
19 wireless calling service, or both, shall be deemed to be the sale of tangible personal
20 property.
21 (ii) Prepaid calling services and prepaid wireless calling services shall be
22 subject to the tax imposed by this Chapter if the sale takes place in this state. If the
23 customer physically purchases a prepaid calling service or prepaid wireless calling
24 service at the vendor's place of business, the sale is deemed to take place at the
25 vendor's place of business. If the customer does not physically purchase the service
26 at the vendor's place of business, the sale of a prepaid calling service or prepaid
27 wireless calling service is deemed to take place at the first of the following locations
28 that applies to the sale:
29 (aa) The customer's shipping address, if the sale involves a shipment.
30 (bb) The customer's billing address.
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1 (cc) Any other address of the customer that is known by the vendor.
2 (dd) The address of the vendor or, alternatively in the case of a prepaid
3 wireless calling service, the location associated with the mobile telephone number.
4 (e) The term "tangible personal property" shall not include work products
5 which are written on paper, stored on magnetic or optical media, or transmitted by
6 electronic device, when such work products are created in the normal course of
7 business by any person licensed or regulated by the provisions of Title 37 of the
8 Louisiana Revised Statutes of 1950, unless such work products are duplicated
9 without modification for sale to multiple purchasers. This exclusion shall not apply
10 to work products which consist of the creation, modification, updating, or licensing
11 of computer software.
12 (f) The term "tangible personal property" shall not include pharmaceuticals
13 administered to livestock used for agricultural purposes, except as otherwise
14 provided in this Subparagraph. Only pharmaceuticals not included in the term
15 "tangible personal property" shall be registered with the Louisiana Department of
16 Agriculture and Forestry. Legend drugs administered to livestock used for
17 agricultural purposes are not required to be registered, but such legend drugs that are
18 not registered shall be "tangible personal property".
19 (g)(i) Notwithstanding the provisions of R.S. 9:1149.1 et seq., except as
20 otherwise provided in this Subparagraph, the term "tangible personal property" shall
21 not include factory built homes.
22 (ii) For purposes of this Subparagraph, "factory built home" means a
23 residential structure which is built in a factory in one or more sections and has a
24 chassis or integrated wheel delivery system, which is either:
25 (aa) A structure built to federal construction standards as defined in Section
26 5402 of Title 42 of the United States Code.
27 (bb) A residential structure built to the Louisiana State Uniform Construction
28 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)(i) Solely for purposes of the imposition of the sales and use tax levied by
18 the state or any political subdivision whose boundaries are coterminous with those
19 of the state, for the period beginning July 1, 2002, and ending on June 30, 2003, the
20 term "tangible personal property" shall not include one-quarter of the cost price of
21 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 under R.S. 47:302, 321, and 331 or any political subdivision whose
5 boundaries are coterminous with those of the state, for all taxable periods beginning
6 on or after July 1, 2005, the term "tangible personal property" shall not include
7 custom computer software.
8 (i) Solely for purposes of the imposition of the state sales and use tax
9 imposed under R.S. 47:302, 321, and 331, the term "tangible personal property" shall
10 not include digital television conversion equipment and digital radio conversion
11 equipment as defined in this Section.
12 (i) "Digital television conversion equipment" shall include the following:
13 (aa) DTV transmitter and RF system.
14 (bb) Transmission line.
15 (cc) DTV antenna.
16 (dd) Tower.
17 (ee) Existing tower structural upgrade.
18 (ff) Advanced TV receiver (STL receiver).
19 (gg) Decoder (digital to analog converter for NTSC).
20 (hh) DTV transmission system test and monitoring.
21 (ii) Digital video/audio master control switcher.
22 (jj) Analog to digital conversion.
23 (kk) High definition up-converters.
24 (ll) High definition bypass switcher.
25 (mm) Down converters for standard definition.
26 (nn) Advanced TV transmitter (STL transmitter).
27 (oo) Advanced TV signal encoder.
28 (pp) DTV transmission monitoring.
29 (qq) High definition digital video switcher and DVE.
30 (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 apply only to the first purchase of each enumerated
29 item by an individual taxpayer who holds a Federal Communications Commission
30 license issued pursuant to 47 CFR Part 73. Individual taxpayers operating under
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1 several broadcaster licenses shall be allowed one purchase of each enumerated item
2 per license. Each subsequent purchase of any of the enumerated items by the same
3 taxpayer or license holder shall be subject to sales and use tax.
4 (iv) Repealed by Acts 2005, No. 243, §1, eff. June 29, 2005.
5 (v) Any eligible taxpayer who has purchased any item enumerated in Item
6 (i) or (ii) of this Subparagraph subsequent to January 1, 1999, but prior to the
7 effective date of this Act, shall be entitled to a credit against the state sales and use
8 tax due in any year for an amount equal to state sales and use tax paid on the
9 purchase of the item.
10 (vi) Local taxing authorities are hereby authorized to provide an exemption
11 from any local sales and use tax liability to any taxpayers holding a Federal
12 Communications Commission license issued pursuant to 47 CFR Part 73 which has
13 purchased any of the equipment listed in Item (i) or (ii) of this Subparagraph. Local
14 taxing authorities are further authorized to provide a credit against any tax liability
15 for the amount of local sales tax paid by taxpayers holding Federal Communications
16 Commission licenses issued pursuant to 47 CFR Part 73 on any equipment listed in
17 Item (i) or (ii) of the Subparagraph purchased subsequent to January 1, 1999, but
18 prior to June 25, 2002.
19 (vii) No exclusion from state sales and use tax as authorized in this
20 Subsection shall be allowed after the Federal Communications Commission has
21 issued an order mandating license holders, issued pursuant to 47 CFR Part 73, to
22 discontinue broadcasting their analog signal.
23 (viii) The Department of Revenue shall adopt rules and regulations necessary
24 for the implementation of this Act no later than August 1, 2002.
25 (j) The term "tangible personal property", for purposes of the payment of
26 sales and use taxes levied by all tax authorities in the state, shall not include
27 materials used directly in the collection, separation, treatment, testing, and storage
28 of blood by nonprofit blood banks and nonprofit blood collection centers.
29 (k) The term "tangible personal property" for purposes of the sales and use
30 taxes imposed by all tax authorities in this state shall not include apheresis kits and
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1 leuko reduction filters used by nonprofit blood banks and nonprofit blood collection
2 centers.
3 (l) For purposes of the sales and use tax imposed by the state of Louisiana,
4 by a political subdivision whose boundaries are coterminous with those of the state,
5 or by all political subdivisions of the state and without regard to the nature of the
6 ownership of the ground, tangible personal property shall not include other
7 constructions permanently attached to the ground which shall be treated as
8 immovable property.
9 (m)(i) Notwithstanding any other provision of law to the contrary, solely for
10 purposes of the sales and use tax levied by the state or any political subdivision
11 whose boundaries are coterminous with those of the state under R.S. 47:302, 321,
12 and 331, the term "tangible personal property" shall not include machinery and
13 equipment used by a motor vehicle manufacturer with a North American Industry
14 Classification System (NAICS) Code beginning with 3361, or by a glass container
15 manufacturer with a NAICS Code of 327213. This exclusion shall be subject to the
16 definitions and requirements of Item (3)(i)(ii) of this Section.
17 (ii) A political subdivision may provide for a sales and use tax exemption for
18 the sales, cost, or lease or rental price of manufacturing machinery and equipment
19 as provided for in this Section, either effective upon adoption or enactment or phased
20 in over a period of time, or effective for a certain period of time or duration, all as
21 set forth in the instrument, resolution, vote, or other affirmative action providing the
22 exemption.
23 (iii) Notwithstanding any other provision of this Section, tooling in a
24 compression mold process shall be considered manufacturing machinery and
25 equipment for purposes of this Section.
26 (n)(i) For purposes of the imposition of the sales and use tax levied by the
27 state, the term "tangible personal property" shall not include machinery and
28 equipment purchased by the owner of a radio station located within the state that is
29 licensed by the Federal Communications Commission for radio broadcasting, if the
30 owner is either of the following:
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1 (aa) An individual domiciled in the state who owns a business with
2 substantially all of its assets located in the state and substantially all of its payroll
3 paid in the state.
4 (bb) A business entity with substantially all of its assets located in the state
5 and substantially all of its payroll paid in the state; provided that the business entity
6 is not owned or controlled or is otherwise an affiliate of a multi-state business entity
7 and is not owned or controlled by an individual who is not domiciled in the state.
8 (ii) "Radio broadcasting" means the sound transmission made via
9 electromagnetic waves for direct sound reception by the general public.
10 (o)(i) For Solely for purposes of the imposition of the sales and use tax
11 levied by the state and any political subdivision whose boundaries are coterminous
12 with those of the state under R.S. 47:302, 321, and 331, the term "tangible personal
13 property" shall not include machinery and equipment as defined in and subject to the
14 requirements of R.S. 47:301(3)(i)(ii) which is purchased by a utility regulated by the
15 Public Service Commission or the council of the City of New Orleans. For the
16 purposes of this Paragraph, the term "utility" shall mean a person regulated by the
17 Public Service Commission or the council of the City of New Orleans who is
18 assigned a North American Industrial Classification System Code 22111, Electric
19 Power Generation, as it existed in 2002. Such utility shall also be considered a
20 "manufacturer" for purposes of R.S. 47:301(3)(i)(ii).
21 (ii) For purposes of this Subparagraph, a political subdivision whose
22 boundaries are not coterminous with those of the state may provide for a sales and
23 use tax exclusion for machinery and equipment as defined in and subject to the
24 requirements of R.S. 47:301(3)(i)(ii) which is purchased by a utility regulated by the
25 Public Service Commission or the council of the city of New Orleans.
26 (p) For Solely for purposes of sales and use taxes imposed by the state under
27 R.S. 47:302, 321, and 331 or any of its political subdivisions, the term "tangible
28 personal property" shall not include newspapers.
29 (q) For purposes of sales and use taxes imposed by the state, any statewide
30 taxing authority, or any political subdivision, the term "tangible personal property"
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1 shall not include any property that would have been considered immovable property
2 prior to the enactment on July 1, 2008, of Act No. 632 of the 2008 Regular Session
3 of the Legislature.
4 * * *
5 (18)(a)(i) Solely for purposes of the imposition of the state sales and use tax,
6 "use" means and includes the exercise of any right or power over tangible personal
7 property incident to the ownership thereof, except that it shall not include the sale at
8 retail of that property in the regular course of business or the donation to a school in
9 the state which meets the definition provided in R.S. 17:236 or to a public or
10 recognized independent institution of higher education in the state of property
11 previously purchased for resale in the regular course of a business. The term "use"
12 shall not include the purchase, the importation, the consumption, the distribution, or
13 the storage of automobiles to be leased in an arm's length transaction, nor shall the
14 term "use" include the donation of food items to a food bank as defined in R.S.
15 9:2799(B).
16 (ii) For purposes of the imposition of the sales and use tax levied by a
17 political subdivision or school board, "use" shall mean and include the exercise of
18 any right or power over tangible personal property incident to the ownership thereof,
19 except that it shall not include the sale at retail of that property in the regular course
20 of business or the donation to a school in the state which meets the definition
21 provided in R.S. 17:236 or to a public or recognized independent institution of higher
22 education in the state of property previously purchased for resale in the regular
23 course of a business. The term "use" shall not include the donation of food items to
24 a food bank as defined in R.S. 9:2799(B).
25 (iii) The term "use", for purposes of sales and use taxes imposed by the state
26 on the use for rental of automobiles which take place on or after January 1, 1991, and
27 by political subdivisions on such use on or after July 1, 1996, and state sales and use
28 taxes imposed on the use for lease or rental of tangible personal property other than
29 automobiles which take place on or after July 1, 1991, shall not include the purchase,
30 the importation, the consumption, the distribution, or the storage of tangible personal
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1 property to be leased or rented in an arm's length transaction as tangible personal
2 property. For purposes of the imposition of the tax levied by any political
3 subdivision of the state, for the period beginning July 1, 1999, and ending on June
4 30, 2000, the term "use" shall not include one-fourth of the cost price of any tangible
5 personal property which is purchased, imported, consumed, distributed, or stored and
6 which is to be leased or rented in an arm's length transaction in the form of tangible
7 personal property. For purposes of the imposition of the tax levied by any political
8 subdivision of the state, for the period beginning July 1, 2000, and ending on June
9 30, 2001, the term "use" shall not include one-half of the cost price of any tangible
10 personal property which is purchased, imported, consumed, distributed, or stored and
11 which is to be leased or rented in an arm's length transaction in the form of tangible
12 personal property. For purposes of the imposition of the tax levied by any political
13 subdivision of the state, for the period beginning July 1, 2001, and ending on June
14 30, 2002, the term "use" shall not include three-fourths of the cost price of any
15 tangible personal property which is purchased, imported, consumed, distributed, or
16 stored and which is to be leased or rented in an arm's length transaction in the form
17 of tangible personal property. Beginning July 1, 2002, for purposes of the imposition
18 of the tax levied by any political subdivision of the state, the term "use" shall not
19 include the purchase, the importation, the consumption, the distribution, or the
20 storage of any tangible personal property which is to be leased or rented in an arm's
21 length transaction in the form of tangible personal property.
22 (iv) The term "use", for purposes of sales and use taxes imposed by the state
23 on the use for rental automobiles which take place prior to January 1, 1991, and by
24 political subdivisions on such use prior to July 1, 1996, and imposed on the use for
25 lease or rental of tangible personal property other than automobiles which take place
26 prior to July 1, 1991, and for purposes of local sales and use taxes levied by political
27 subdivisions, except for any use for rental automobiles on or after July 1, 1996, shall
28 include the purchase, the importation, the consumption, the distribution, or the
29 storage of tangible personal property to be leased or rented in an arm's length
30 transaction as tangible personal property.
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1 (b) Notwithstanding any other law to the contrary, for purposes of the
2 imposition of the sales and use tax of any political subdivision, the use of a vehicle
3 subject to the Vehicle Registration License Tax Law (R.S. 47:451 et seq.) shall be
4 deemed to be a "use":
5 (i) In the political subdivision of the principal residence of the purchaser if
6 the vehicle is purchased for private use, or
7 (ii) In the political subdivision of the principal location of the business if the
8 vehicle is purchased for commercial use, unless the vehicle purchased for
9 commercial use is assigned, garaged, and used outside of such political subdivision,
10 in which case the use shall be deemed a use in the political subdivision where the
11 vehicle is assigned, garaged, and used.
12 (c) For purposes of state and political subdivision sales and use tax, "use"
13 shall not include the exercise of any right or power by a free hospital over items,
14 including but not limited to supplies and equipment, which are reasonably necessary
15 for the operation of the free hospital.
16 (d)(i) Notwithstanding any other provision of law to the contrary, and except
17 as provided in Item (iii) of this Subparagraph, for purposes of state and political
18 subdivision sales and use tax, "use" means and includes the exercise of any right or
19 power over tangible personal property incident to the ownership thereof, except that
20 it shall not include the further processing of tangible personal property into articles
21 of tangible personal property for sale.
22 (ii) Except as provided in Item (iii) of this Subparagraph for refinery gas,
23 solely for purposes of state sales and use taxes imposed under R.S. 47:302, 321, and
24 331 and political subdivision use tax, "use" shall not include the storage,
25 consumption, or the exercise of any other right of ownership over tangible personal
26 property which is created or derived as a residue or byproduct of such processing.
27 Such residue or byproduct shall include but shall not be limited to catalyst cracker
28 coke derived from crude oil, wood chips, bark, and liquor derived from the
29 processing of sawlogs or pulpwood timber, or bagasse derived from sugarcane.
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1 (iii) Notwithstanding any other provision of law to the contrary, and
2 notwithstanding the provisions of this Subparagraph, "use" shall include the exercise
3 of any right of ownership over the consumption, the distribution, and the storage for
4 use or consumption in this state of refinery gas, except the sale to another person,
5 whether at retail or wholesale, only if the refinery gas is ultimately consumed as an
6 energy source by the person who owns the facility in which it is created and is not
7 sold. Notwithstanding any other law to the contrary, the use of refinery gas shall be
8 taxed at the cost price value provided in Subparagraph (3)(f) of this Section. If
9 refinery gas, except for feedstock, is sold to another person, whether at retail, or
10 wholesale, such sale shall be taxable and the sales price value shall be as provided
11 for in Subparagraph (13)(d) of this Section. The provisions of this Item shall not
12 apply to feedstocks.
13 (e) For purposes of state and political subdivision sales and use tax, "use"
14 shall not include the purchase of or the exercise of any right or power over:
15 (i) Tangible personal property sold by approved parochial and private
16 elementary and secondary schools which comply with the court order from the Dodd
17 Brumfield decision and Section 501(c)(3) of the Internal Revenue Code, or students,
18 administrators, or teachers, or other employees of the school, if the money from such
19 sales, less reasonable and necessary expenses associated with the sale, is used solely
20 and exclusively to support the school or its program or curricula.
21 (ii) Educational materials or equipment used for classroom instruction by
22 approved parochial and private elementary and secondary schools which comply
23 with the court order from the Dodd Brumfield decision and Section 501(c)(3) of the
24 Internal Revenue Code, limited to books, workbooks, computers, computer software,
25 films, videos, and audio tapes.
26 (f) For purposes of state and political subdivision sales and use tax, "use"
27 shall not include the purchase of or the exercise of any right or power over tangible
28 personal property used by Boys State of Louisiana, Inc. and Girls State of Louisiana,
29 Inc. for their educational and public service programs for youth.
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1 (g) Notwithstanding any provision of law to the contrary, for purposes of
2 sales or use taxation by the state or any local political subdivision, the term "use"
3 shall not mean or include any funeral directing services as defined in Subparagraph
4 (10)(s) of this Section.
5 (h) For Solely for purposes of sales and use taxes levied by the state under
6 R.S. 47:302, 321, and 331 or any political subdivision of the state, the term "use"
7 shall not include the exercise of any right of ownership in or the distribution of
8 telephone directories acquired by an advertising company that is not affiliated with
9 a provider of telephone services if the telephone directories will be distributed free
10 of charge to the recipients of the telephone directories.
11 (i) For Solely for purposes of the imposition of sales and use taxes imposed
12 or levied by all by the state under R.S. 47:302, 321, and 331 or by any other taxing
13 authorities in the state, in the case of the sale or any other disposition by a dealer of
14 any cellular, PCS, or wireless telephone, any electronic accessories that are
15 physically connected with such telephones and personal communications devices
16 used in connection with the sale or use of mobile telecommunications services, as
17 defined in R.S. 47:301(10)(v), the term "use" shall not include the withdrawal, use,
18 distribution, consumption, storage, donation, or any other disposition of any such
19 cellular, PCS, or wireless telephone, any electronic accessories that are physically
20 connected with such telephones and personal communications devices by the dealer.
21 (j) For purposes of the imposition of sales and use taxes imposed or levied
22 by any political subdivision of the state, in the case of the sale or any other
23 disposition by a dealer of any cellular telephone, PCS telephone, wireless telephone,
24 or other wireless personal communication device that is used in connection with the
25 sale or use of mobile telecommunications services, as defined in R.S. 47:301(10)(w),
26 or any electronic accessory that is physically connected with any such telephone or
27 personal communications device, the term "use" shall not include the withdrawal,
28 use, distribution, consumption, storage, donation, or any other disposition of any
29 such telephone or electronic accessory by the dealer.
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1 (k) Solely for purposes of the sales and use tax levied by the state or any
2 political subdivision whose boundaries are coterminous with those of the state under
3 R.S. 47:302, 321, and 331, the term "use" shall not include the purchase, the use, the
4 consumption, the distribution, the storage for use or consumption, or the exercise of
5 any right or power over manufacturing machinery and equipment used or consumed
6 in this state to manufacture, produce or extract unblended biodiesel.
7 (l) Solely for the purposes of sales and use taxes levied by the state or any
8 political subdivision whose boundaries are coterminous with those of the state, the
9 term "use" shall not include the use, the consumption, the distribution, the storage
10 for use or consumption in this state, or the exercise of any right or power over an
11 alternative substance as that term is defined in Subparagraph (10)(z) of this Section
12 when such alternative substance is used as a fuel by a manufacturer. "Manufacturer"
13 means a person whose principal activity is manufacturing and who is assigned by the
14 Louisiana Workforce Commission a North American Industrial Classification
15 System code with the agricultural, forestry, fishing, and hunting Sector 11 or the
16 manufacturing Sectors 31-33 as they existed in 2002.
17 (m)(i) For the purposes of sales and use taxes imposed or levied by the state
18 or any political subdivision of the state, the term "use" shall not include the purchase
19 of or the exercise of any right or power over toys by a non-profit organization
20 exempt from federal taxation pursuant to Section 501(c)(3) of the Internal Revenue
21 Code if the sole purpose of the purchasing organization is to donate toys to minors
22 and the toys are, in fact, donated.
23 (ii) The exclusion provided for in this Subparagraph shall be subject to the
24 same conditions as are provided for in Items (10)(aa)(ii) and (iii) of this Section.
25 (n) For purposes of sales and use tax imposed by the state or any political
26 subdivision of the state, the term "use" shall not mean or include the purchase,
27 importation, storage, distribution, or exportation of, or exercise of any right or power
28 over, textbooks and course-related software by a private postsecondary academic
29 degree-granting institution, accredited by a national or regional commission that is
30 recognized by the United States Department of Education and is licensed by the
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1 Board of Regents, which institution has its main location within this state and offers
2 only online instruction, when all of the following apply:
3 (i) The textbooks and course-related software are physically outside of this
4 state when purchased from a vendor outside of this state and then imported into this
5 state.
6 (ii) The first student use of the textbooks and course-related software occurs
7 outside of this state.
8 (iii) The textbooks and course-related software are provided to the student
9 free of charge.
10 (o) Solely for purposes of the imposition of the state sales and use tax under
11 R.S. 47:302, 321, and 331, the term "use" shall not include the purchase or use of any
12 storm shutter device as defined and provided for in Subparagraph (10)(ee) of this
13 Section.
14 (p) For Solely for purposes of sales and use tax imposed by the state under
15 R.S. 47:302, 321, and 331 or any political subdivision of the state, the term "use"
16 shall not mean or include the purchase, importation, storage, distribution or exercise
17 of any right or power over anthropogenic carbon dioxide used in a qualified tertiary
18 recovery project approved by the assistant secretary of the office of conservation of
19 the Department of Natural Resources pursuant to R.S. 47:633.4.
20 * * *
21 (28)(a) For purposes of the imposition of the lease or rental tax levied by the
22 state under R.S. 47:302, 321, and 331 and any political subdivision whose
23 boundaries are coterminous with those of the state, the "gross proceeds", "monthly
24 lease or rental price paid", and "monthly lease or rental price contracted or agreed
25 to be paid" for machinery and equipment used by a manufacturer in a plant facility
26 predominately and directly in the actual manufacturing for agricultural purposes or
27 the actual manufacturing process of an item of tangible personal property, including,
28 but not limited to rubber tired farm tractors, cane harvesters, cane loaders, cotton
29 pickers, combines, haybalers, attachments and sprayers, clippers, cultivators, discs,
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1 plows, and spreaders, which is for ultimate sale to another and not for internal use,
2 at one or more fixed locations within Louisiana shall be reduced as follows:
3 (i) For the period ending on June 30, 2005, by five percent.
4 (ii) For the period beginning July 1, 2005, and ending on June 30, 2006, by
5 nineteen percent.
6 (iii) For the period beginning July 1, 2006, and ending on June 30, 2007, by
7 thirty-five percent.
8 (iv) For the period beginning July 1, 2007, and ending on June 30, 2008, by
9 fifty-four percent.
10 (v) For the period beginning July 1, 2008, and ending on June 30, 2009, by
11 sixty-eight percent.
12 (vi) For all periods beginning on or after July 1, 2009, the sales price shall
13 be reduced by one hundred percent.
14 (b) For purposes of this Paragraph, "machinery and equipment",
15 "manufacturer", "manufacturing", "manufacturing for agricultural purposes","plant
16 facility", and "used directly" shall have the same meaning as defined in R.S.
17 47:301(3)(i)(ii).
18 (c) No person shall be entitled to purchase, use, lease, or rent machinery or
19 equipment as defined herein without payment of the tax imposed by R.S. 47:302,
20 321, and 331 before receiving a certificate of exclusion from the secretary of the
21 Department of Revenue certifying that he is a manufacturer as defined herein.
22 (d) The secretary of the Department of Revenue is hereby authorized to
23 adopt rules and regulations in order to administer the exclusion provided for in this
24 Subparagraph.
25 (e) The manufacturer's exemption certificate granted by the Department of
26 Revenue shall serve as a substitute for the sales tax exemption for certain farm
27 equipment.
28 * * *
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1 §318. Disposition of collections
2 A. All monies collected under this Chapter shall be immediately paid into
3 the state treasury, upon receipt, and first credited to the Bond Security and
4 Redemption Fund as provided in Article VII, Section 9(B) of the Constitution of
5 Louisiana; then an amount equal to four-tenths of one percent of all monies collected
6 under this Chapter, and Chapters 2-A and 2-B of this Subtitle, and R.S. 51:1286 shall
7 be used as provided in this Section. The dedication of revenues provided for in this
8 Subsection shall in no way be interpreted to include any monies collected pursuant
9 to the taxes imposed under R.S. 47:321.1.
10 * * *
11 §321.1. Imposition of Tax
12 A. In addition to the tax levied by R.S. 47:302(A), 321(A), and 331(A) and
13 collected under the provisions of Chapter 2 of this Subtitle, there is hereby levied an
14 additional tax upon the sale at retail, the use, the consumption, the distribution, and
15 the storage for use or consumption in this state of each item or article of tangible
16 personal property as defined in Chapter 2 of this Subtitle. The levy of said tax shall
17 be as follows:
18 (1) At the rate of one percent of the sales price of each item or article of
19 tangible personal property when sold at retail in this state, the tax to be computed on
20 gross sales for the purpose of remitting the amount of tax to the state, and to include
21 each and every retail sale.
22 (2) At the rate of one percent of the cost price of each item or article of
23 tangible personal property when the same is not sold but is used, consumed,
24 distributed, or stored for use or consumption in this state, provided that there shall
25 be no duplication of the tax.
26 B. In addition to the tax levied by R.S. 47:302(B), 321(B), and 331(B) and
27 collected under the provisions of Chapter 2 of this Subtitle, there is hereby levied a
28 tax upon the lease or rental within this state of each item or article of tangible
29 personal property, as defined by Chapter 2 of this Subtitle; the levy of the tax to be
30 as follows:
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1 (1) At the rate of one percent of the gross proceeds derived from the lease
2 or rental of tangible personal property, as defined in Chapter 2 of this Subtitle, where
3 the lease or rental of such property is in an established business, or part of an
4 established business, or the same is incidental or germane to the business.
5 (2) At the rate of one percent of the monthly lease or rental price paid by a
6 lessee or rentee, or contracted or agreed to be paid by a lessee or rentee to the owner
7 of the tangible personal property.
8 C. In addition to the tax levied on sales of services by R.S. 47:302(C),
9 321(C), and 331(C) and collected under the provisions of Chapter 2 of this Subtitle,
10 there is hereby levied a tax upon all sales of services in this state, as those services
11 are defined by Chapter 2 of this Subtitle, at the rate of one percent of the amounts
12 paid or charged for the services.
13 D. The tax levied herein shall be collected from the dealer or wholesaler as
14 provided for and as defined by Chapter 2 of this Subtitle; shall be paid at the time
15 and in the manner provided therein; shall be in addition to all other taxes, whether
16 levied in the form of sales, excise, license, or privilege taxes; and shall be in addition
17 to taxes levied under the provisions of Chapter 2 of this Subtitle.
18 E. The provisions of this Section shall be inapplicable, inoperative, and of
19 no effect after June 30, 2018.
20 F. Notwithstanding any other provision of law to the contrary, including but
21 not limited to any contrary provision of this Chapter, there shall be no exemptions
22 or exclusions as defined in R.S. 47:301 to the tax levied pursuant to the provisions
23 of this Section, except for the sales or purchases of the following items:
24 (1) Food for home consumption, as defined in R.S. 47:305(D)(1)(n) through
25 (r) on January 1, 2003, as provided in Article VII, Section 2.2 of the Constitution of
26 Louisiana.
27 (2) Natural gas, as provided in Article VII, Section 2.2 of the Constitution
28 of Louisiana.
29 (3) Electricity, as provided in Article VII, Section 2.2 of the Constitution of
30 Louisiana.
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1 (4) Water, as provided in Article VII, Section 2.2 of the Constitution of
2 Louisiana.
3 (5) Prescription drugs, as provided in Article VII, Section 2.2 of the
4 Constitution of Louisiana.
5 (6) Gasoline and other motor fuels subject to the state excise tax on fuel.
6 (7) Sales to the United States government and its agencies, as provided in
7 R.S. 301(10)(g).
8 (8) Other constructions permanently attached to the ground, as provided in
9 R.S. 47:301(16)(l).
10 (9) Installation charges on tangible personal property, as provided in R.S.
11 47:301(3)(a).
12 (10) Installation of oil field board roads, as provided in R.S. 47:301(13)(c).
13 (11) Transactions involving the construction or overhaul of United States
14 Navy vessels, as provided in R.S. 47:301(7)(c) and (14)(h).
15 (12) Property purchased for exclusive use outside the state, as provided in
16 R.S. 47:305.10.
17 (13) Sale, lease or rental of tangible personal property paid by or under the
18 provisions of Medicare, as provided in R.S. 47:315.3.
19 (14) Sales of human tissue transplants, as provided in R.S. 47:301(10)(d).
20 (15) Sales of raw agricultural products, as provided in R.S. 47:301(10)(e)
21 and 305(A)(3).
22 (16) Sales of food by youth serving organizations chartered by congress, as
23 provided in R.S. 47:301(10)(h).
24 (17) Tangible personal property sold to food banks as provided in R.S.
25 47:301(10)(j).
26 (18) Materials used in the collection of blood as provided in R.S.
27 47:301(16)(j).
28 (19) Aphaeresis kits and leuko reduction filters as provided in R.S.
29 47:301(16)(k).
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1 (20) Donation to schools and food banks from resale inventory as provided
2 in R.S. 47:301(18)(a).
3 (21) Manufacturers rebates on new motor vehicles as provided in R.S.
4 47:301(3)(e) and (13)(b).
5 (22) Lease or rentals of railroad rolling stock as provided in R.S.
6 47:301(4)(k).
7 (23) Purchases and leases by free hospitals as provided in R.S. 47:301(7)(e),
8 (10)(p) and (18)(c).
9 (24) Purchases by nonprofit entities that sell donated goods as provided in
10 R.S. 47:301(8)(f).
11 (25) Tangible personal property for resale as provided in R.S.
12 47:301(10)(a)(i).
13 (26) Purchases of property for lease or rental as provided in La. R.S.
14 47:301(10)(a)(iii) and (18)(a)(iii).
15 (27) Isolated or occasional sales of tangible personal property as provided
16 in R.S. 47:301(1) and (10)(c)(ii)(bb).
17 (28) Use of motor vehicles in Louisiana by active duty military as provided
18 in La. R.S. 47:303(A) and 305.48.
19 (29) Purchases made with food stamps and WIC as provided in R.S.
20 47:305.46.
21 (30) Articles traded in on purchases of tangible personal property as
22 provided in R.S. 47:301(13)(a).
23 (31) Donations of toys as provided in R.S. 47:301(10)(z)(aa)(i) and (18)(m).
24 (32) Stocks, bonds, notes or other obligations or securities as provided in
25 R.S. 47:301(16)(b)(i).
26 (33) Credit for sales and use taxes paid to other states on tangible personal
27 property imported in Louisiana as provided in R.S. 47:303(A)(3)(a).
28 (34) Work product of certain professionals as provided in R.S.
29 47:301(16)(e).
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1 (35) Purchases by regionally accredited independent educational institutions
2 as provided in R.S. 47:301(8)(b).
3 (36) Sales through coin-operated vending machines as provided in R.S.
4 47:301(10)(b)(i).
5 (37) Purchases by a private postsecondary academic degree-granting
6 institution as provided in R.S. 47:301(10)(cc) and as provided in R.S. 47:301(18)(n).
7 (38) Purchases of food items for school lunch or breakfast programs by
8 nonpublic elementary or secondary schools as provided in R.S. 47:301(10)(dd).
9 (39) Repair services performed in Louisiana when the repaired property is
10 exported as provided in R.S. 47:301(14)(g)(i)(bb).
11 (40) Funeral directing services as provided in R.S. 47:301(14)(j).
12 (41) Feed and feed additives for animals held for business purposes as
13 provided in R.S. 47:305(A)(4).
14 (42) Farm products produced and used by farmers as provided in R.S.
15 47:305(B).
16 (43) Sales of fertilizers and containers to farmers as provided in R.S.
17 47:305(D)(1)(f).
18 (44) Sales of seeds for planting crops as provided in R.S. 47:305.3.
19 (45) Sales of pesticides for agricultural purposes as provided in R.S.
20 47:305.8.
21 (46) The cost price for the printing of a news publication as provided in R.S.
22 47:301(3)(h).
23 (47) Vehicle rentals to warranty customers as provided in R.S. 47:301(7)(h).
24 (48) Lease or rental of a crane and related equipment with an operator as
25 provided in R.S. 47:301(7)(k).
26 (49) Sales by and to the state and its political subdivisions as provided in
27 R.S. 47:301(8)(c).
28 (50) Sales of materials for further processing as provided in R.S.
29 47:301(10)(c)(i)(aa).
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1 (51) The sales price for new farm equipment used in poultry production as
2 provided in R.S. 47:301(13)(c).
3 (52) A factory built home as provided in R.S. 47:301(16)(g).
4 (53) Any advertising service rendered by an advertising business as provided
5 in R.S. 47:302(D).
6 (54) The sale of livestock, poultry, and other farm products direct from a
7 farm as provided in R.S. 47:305(A)(1).
8 (55) The sale of livestock at public sales sponsored by breeders' or registry
9 associations or livestock auction markets as provided in R.S. 47:305(A)(2).
10 (56) The sale of agricultural products by a person other than the producer,
11 for use in further processing as provided in R.S. 47:305(A)(3).
12 (57) Transactions in interstate commerce and tangible personal property
13 imported into this state, or produced or manufactured in this state, for export as
14 provided in R.S. 47:305(E).
15 (58) Ships, vessels, barges, and related supplies as provided in R.S. 47:305.1.
16 (59) The sales price for new farm equipment as provided in R.S. 47:305.25.
17 (60) Trucks and trailers if used at least eighty percent of the time in interstate
18 commerce as provided in R.S. 47:305.50(A).
19 (61) Freight cars, piggy-back cars and rolling stock, and railroad ties as
20 provided in R.S. 47:305.45 and 305.50(F).
21 (62) Councils on Aging as provided in R.S. 47:305.66.
22 (63) Sales of pharmaceuticals administered to livestock for agricultural
23 purposes as provided in R.S. 47:301(16)(f).
24 (64) Materials used in the production of crawfish and catfish as provided in
25 R.S. 47:305(A)(5) and (6).
26 (65) Manufacturing machinery and equipment as provided in R.S.
27 47:301(3)(i), (13)(k), and (28)(a). The provisions of this Paragraph shall be
28 operative and in effect beginning July 1, 2016.
29 G. The avails of the tax collected under this Section shall be deposited
30 immediately into the state treasury, and, after compliance with the requirements of
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1 Article VII, Section 9(B) of the Constitution of Louisiana, the state treasurer shall
2 pay the remainder of the monies into the state general fund.
3 H. No amount of additional revenue collected as a result of this Section shall
4 be remitted to any tax increment financing district or economic development project.
5 Section 2. This Act shall be applicable for taxable periods beginning on April 1,
6 2016.
7 Section 3. The provisions of this Act shall become effective on April 1, 2016.
SPEAKER OF THE HOUSE OF REPRESENTATIVES
PRESIDENT OF THE SENATE
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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