RDCSB22 422 705
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)]
SB 22 Reengrossed 2016 First Extraordinary Session Morrell
Present law provides an exemption from state and local sales and use tax for sales at the
following types of facilities:
(1)A domed stadium facility owned by the state with a seating capacity of at least
70,000.
(2)A domed arena facility owned by a political subdivision located in a parish with a
population of between 185,000 and 250,000.
(3)An open baseball facility owned by the state.
(4)A publicly-owned facility, if the local taxing authority first authorizes the exemption.
Present law provides that the only taxable sales at these facilities are sales at trade shows at
which the sale of such goods is the primary purpose of the show.
Proposed law changes present law by removing the 250,000 upper limit on parish population
size for purposes of the exemption for a domed arena facility owned by a political
subdivision.
Proposed law changes present law by narrowing the exemptions from sales and use taxes at
these facilities to include only:
(1)Admission tickets to athletic contests or any large scale bid-upon event, wherever
sold.
(2)Any sale, service, or other transaction, including the sale of parking, occurring in
such facility in connection with athletic contests or any large scale bid-upon events.
(3)Sales of goods from a team merchandise store at the facility.
(4)50% of the cost price of admission tickets to events, activities, or enterprises other
than tickets to athletic contests or any large scale bid-upon events, wherever sold.
(5)Tours of the facility.
Proposed law provides that these exemptions will apply to any event, activity, or enterprise
held in conjunction with an athletic contest held in or adjacent to the facility to which the
exemptions apply.
Proposed law establishes an allocation of state monies to the Louisiana School of Math,
Science, and the Arts and the New Orleans Center for Creative Arts, in an amount equal to
30% of state sales and use tax revenues collected under the one cent state sales and use tax,
which revenues are derived from the newly taxable sales at the public facilities described
above. The allocation does not include sales and use tax applicable to sales at trade shows
or other events at which the sale of such goods or property is the primary purpose of the
show or event. The allocation is subject to legislative appropriation.
Proposed law establishes the following allocations of local sales and use taxes imposed by
political subdivisions in which certain facilities are located, and excludes sales and use tax
applicable to sales at trade shows or other events at which the sale of such goods or property
is the primary purpose of the show or event:
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(1)The avails of the sales and use taxes imposed in Orleans Parish by any political
subdivision which are attributable to sales in a state owned domed stadium with a
seating capacity in excess of 70,000, to be distributed to the New Orleans Council
on Aging.
(2)The avails of the sales and use taxes imposed in Orleans Parish by any political
subdivision which are attributable to sales at the UNO Lakefront Arena, to be
distributed to the University of New Orleans.
(3)The avails of the sales and use taxes imposed in Tangipahoa Parish by any political
subdivision which are attributable to sales in a public arena located on the property
of Southeastern Louisiana University, to be distributed to Southeastern Louisiana
University.
Proposed law provides legislative intent that the following activities will not be subject to
the imposition of sales, use, amusement, or other taxes levied by the state or any local taxing
authority:
(1)Sales of admission tickets and parking for intercollegiate athletic events sponsored
or promoted by La.-based colleges or universities and nonprofit corporations
affiliated with them.
(2)Sales of admission tickets and parking for high school athletic events sponsored or
promoted by La. high schools.
(3)Sales of admission tickets and parking for youth sport events sponsored or promoted
by La. based youth sports leagues and associations.
(4)Sales of admission tickets and parking for events sponsored by La.-based civic,
educational, historical, charitable, fraternal, or religious organizations that are
nonprofit organizations.
Applicable to taxable periods beginning on or after April 1, 2016.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 39:467 and 468; adds R.S. 39:470 and 470.1)
Summary of Amendments Adopted by Senate
Senate Floor Amendments to engrossed bill
(1)Makes technical changes.
(2)Changes the exemptions from state and local sales and use tax at certain
facilities.
(3)Applies exemptions to any event held in conjunction with certain events or
adjacent to the facility to which exemptions apply.
(4) Provides legislative intent for exemptions for certain La. college, high
school, and nonprofit events.
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
reengrossed bill:
1. Eliminate the upper limit on population size for the exemption for a domed arena
facility owned by a political subdivision.
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2. Add tours of the facility to the list of exemptions from sales and use tax imposed
on sales at these faclities..
3. Establish a dedication of local sales and use tax revenues, excluding sales and
use tax applicable to sales at trade shows or other events at which the sale of such
goods or property is the primary purpose of the show or event, as follows:
(a)From revenue derived from sales in Orleans Parish on sales made in a
state owned domed stadium with a seating capacity in excess of 70,000,
to be distributed to the New Orleans Council on Aging.
(b)From revenue derived from sales in Orleans Parish on sales made in at
the UNO Lakefront Arena, to be distributed to the University of New
Orleans.
(b)From revenue derived from sales in Tangipahoa Parish on sales made at
a public arena located on the property of Southeastern Louisiana
University, to be distributed to Southeastern Louisiana University.
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