HLS 161ES-195 ORIGINAL
2016 First Extraordinary Session
HOUSE CONCURRENT RESOL UTION NO. 3
BY REPRESENTATIVE HAVARD
TAX/SALES-USE-EXEMPT: Urges and requests the Department of Revenue to reexamine
their revenue ruling determination that a certain rate reduction and tax exemption is
applicable to sellers of nonprepared foods
1 A CONCURRENT RESOL UTION
2To urge and request the Department of Revenue to reexamine their revenue ruling
3 determination that a certain rate reduction and tax exemption is applicable to sellers
4 of nonprepared foods.
5 WHEREAS, the sale of food and food ingredients, which constitute nonprepared
6foods should be taxable; and
7 WHEREAS, examples of nonprepared foods are milk, flour, eggs, meats, vegetables,
8gelatins, salt, ketchup, potato chips, candy, chewing gum, and soft drinks in bottles or cans;
9and
10 WHEREAS, nonprepared foods are eligible for the reduced rate or exemption
11without regard to package size or quantity of product sold; and
12 WHEREAS, all sales of nonprepared food by grocery stores, delicatessens, meat and
13seafood markets, convenience stores, variety stores, department stores, and other retailers
14for home consumption are eligible for the reduced state sales tax rate or exemption; and
15 WHEREAS, if the aforementioned products are sold by restaurants, drive-ins, snack
16bars, candy and nut counters, private clubs or other establishments providing on-premises
17facilities for the consumption of the food, they are not eligible for the reduced rate or tax
18exemption; and
Page 1 of 3 HLS 161ES-195 ORIGINAL
HCR NO. 3
1 WHEREAS, when convenience stores sell prepared food and nonprepared food
2together, the prepared food is taxed at a higher rate than the nonprepared food during the
3same transaction; and
4 WHEREAS, sellers who sale food products in the identical unheated conditions in
5which the products were acquired from wholesalers, and who also sell similar products that
6they themselves have prepared, must apply different state sales tax rates to the two classes
7of food; and
8 WHEREAS, in cases where sellers of nonprepared foods have no information at the
9times of sales to indicate that the food purchased from them is other than for home
10consumption, but the actual consumption of the food is other than in homes, the purchasers
11will be required to remit a use tax to the department equal to the difference between te 4
12percent state sales tax rate that was due on the food purchased, and the state sales tax rate
13that was actually remitted to the vendors; and
14 WHEREAS, purchasing nonprepared foods for immediate consumption at a
15convenience store are eligible for exemption if the staff does not assist in heating the
16nonprepared food although the nonprepared food is heated using the sellers equipment; and
17 WHEREAS, taxing prepared foods and nonprepared foods at the same rate will
18eliminate any confusion with regards to the taxation rates of the particular foods; and
19 WHEREAS, the benefit derived from added economic activity from the taxation of
20nonprepared foods will assist in generating more revenue for the state during our current
21fiscal crisis.
22 THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby
23urge and request the Department of Revenue to reevaluate and remove the reduced rate and
24tax exemption applicable to certain sellers of nonprepared foods.
25 BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
26secretary of the Department of Revenue.
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HCR NO. 3
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)]
HCR 3 Original 2016 First Extraordinary Session Havard
Urges and requests the Dept. of Revenue to reevaluate their revenue ruling determining the
rate reduction and tax exemption applicable to certain retail sellers of nonprepared food.
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