The original instrument was prepared by Leonore F. Heavey. The following digest,
which does not constitute a part of the legislative instrument, was prepared by James
Benton.
DIGEST
SB 25 Engrossed 2016 First Extraordinary Session Cortez
Present law provides for over 190 exclusions and exemptions to the state sales and use tax.
Proposed law sunsets all sales and use tax exemptions and exclusions other than the following:
(1)Food for home consumption, as defined in R.S. 47:305(D)(1)(n) through (r) on January 1,
2003, as provided in Art. VII, §2.2 of the constitution.
(2)Natural gas, as provided in Art. VII, §2.2 of the constitution.
(3)Electricity, as provided in Art. VII, §2.2 of the constitution.
(4)Water, as provided in Art. VII, §2.2 of the constitution.
(5)Prescription drugs, as provided in Art. VII, §2.2 of the constitution.
(6)Purchases of gasoline, diesel fuel, or special fuels which are subject to excise tax under
Chapter 7 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950, as provided
in Art. VII, §27 of the constitution.
(7)Sales to the United States government and its agencies, as provided in R.S. 301(10)(g).
(8)Property purchased for exclusive use outside the state, as provided in R.S. 47:305.10.
(9)Any sale or purchase for which the imposition of state sales and use tax is prohibited under
the federal law.
(10)Purchases by state and local governments as provided in R.S. 47:301(8)(c).
(11)Purchases of tangible personal property and services for resale as provided in R.S.
47:301(10)(a).
Proposed law supercedes and controls to the extent of conflict with any other provision of law.
Effective July 1, 2017.
(Adds R.S. 47:319) Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs to
the original bill
1. Clarifies the exemption for purchases of gasoline, diesel fuel, or special fuels.
2. Adds exemptions for purchases by state and local governments and purchases of
tangible personal property and services for resale.