HLS 161ES-75 ENGROSSED
2016 First Extraordinary Session
HOUSE BILL NO. 72
BY REPRESENTATIVE SHADOIN
TAX/SALES-USE, STATE: Increases the state sales tax on telecommunications services
(Item #24)
1 AN ACT
2To amend and reenact R.S. 47:302(C) and 331(C)(1) and (2), relative to state sales and use
3 tax; to provide for the tax on telecommunications services; to establish the tax rate;
4 to provide for effectiveness; and to provide for related matters.
5Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 47:302(C) and 331(C)(1) and (2) are hereby amended and reenacted
7to read as follows:
8 §302. Imposition of tax
9 * * *
10 C.(1) There is hereby levied a tax upon all sales of services, as herein
11 defined, in this state, at the rate of two percent of the amounts paid or charged for
12 such services.
13 (2) Notwithstanding any provision of law to the contrary, effective on April
14 1, 2016, the tax levied by this Section shall not apply to the furnishing of interstate
15 telecommunications services or international telecommunications services reflected
16 on bills submitted by telecommunications service providers to their customers which
17 are dated on and after that date, regardless of when such services are provided.
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HB NO. 72
1 (3) (2) The tax levied in this Section shall be collected from the dealer, as
2 defined herein, shall be paid at the time and in the manner hereinafter provided, and
3 shall be in addition to all other taxes, whether levied in the form of excise, license,
4 or privilege taxes, and shall be in addition to taxes levied under the provisions of
5 Chapter 3 of Subtitle II of this Title.
6 * * *
7 §331. Imposition of tax
8 * * *
9 C.(1) In addition to the tax levied on sales of services by R.S. 47:302(C) and
10 collected under the provisions of Chapter 2 of Subtitle II of this Title, there is hereby
11 levied a tax upon all sales of services in this state, as defined by Chapter 2 of Subtitle
12 II of this Title, in this state, at the rate of ninety-seven one hundredths of one percent
13 of the amounts paid or charged for such services.
14 (2)(i) Except as otherwise provided in Subparagraph (ii) of this Paragraph,
15 the The tax levied by this Section shall not apply to the furnishing of interstate
16 telecommunications services or international telecommunications services, as both
17 of those terms are defined in Chapter 2 of Subtitle II of this Title.
18 (ii) Notwithstanding any provision of law to the contrary, effective on April
19 1, 2016, the tax levied by this Section shall apply to the furnishing of interstate
20 telecommunications services and international telecommunications services, as both
21 of those terms are defined in Chapter 2 of Subtitle II of this Title, reflected on bills
22 submitted by telecommunications service providers to their customers which are
23 dated on and after that date, regardless of when such services are provided.
24 * * *
25 Section 2. This Act shall become effective on April 1, 2016.
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HB NO. 72
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 72 Engrossed 2016 First Extraordinary Session Shadoin
Abstract: Repeals provisions that reduce the tax on interstate and international
telecommunications services from 2% to 1% effective April 1, 2016 thereby keeping
the rate for these services at 2%.
Present law imposes a state sales tax on telecommunication services, in accordance with
sourcing rules and definitions established under present law. The rate imposed on intrastate
services is 3%, and the rate for interstate and international services is 2% through March 30,
2016, and decreases to 1% beginning April 1, 2016.
Proposed law repeals present law providing for the reduction in the tax rate for interstate
and international telecommunications from 2% to 1% on April 1, 2016.
Effective April 1, 2016.
(Amends R.S. 47:302(C) and 331(C)(1) and (2))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Remove rate increase to 5% for all telecommunications services.
2. Remove provision that reduces the tax on interstate and international
telecommunications services from 2% to 1% effective April 1, 2016.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.