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 36 Original 2016 Second Extraordinary Session James
Abstract: Adds various exemptions and exclusions to the list of state sales and use tax exemptions
and exclusions to be given effect beginning July 1, 2016.
Present law establishes a variety of state sales and use tax exclusions and exemptions.
Present law suspends numerous exemptions and exclusions from the state sales and use tax (R.S.
47:302, 321, 321.1, and 331) for two different periods of time, both occurring between April 1, 2016
and June 30, 2018.
Present law provides that the suspension of certain exemptions and exclusions for purposes of two
of the tax levies, R.S. 47:321 and 331, expires June 30, 2016. The suspension with respect to the
other two tax levies, R.S. 47:302 and 321.1 remains effective through June 30, 2018.
Present law provides an exclusion for isolated or occasional sales of tangible personal property by
a person not engaged in such business.
Proposed law retains present law but defines the following as isolated or occasional sales:
(1)Six or fewer separate sales of taxable items at retail during a 12-month period by a person
who does not habitually engage, or hold himself out as engaging, in the business of selling
taxable items at retail.
(2)The sale of the entire operating assets of a business, or of a separate division, branch, or
identifiable segment of a business.
(3)The sale of tangible personal property by an individual if the property was originally bought
by the individual or a member of the individual's family for the personal use of the individual
or the individual's family.
(4)The sale of tangible personal property by an individual if the individual is not required to be
registered as a dealer.
(5)The sale of tangible personal property by an individual if the individual does not employ an
auctioneer, broker, or factor, other than an online auction, to sell the property.
(6)The sale of tangible personal property by an individual if the total receipts from sales of the individual's tangible personal property in a calendar year do not exceed $3,000.
(7)Sales of aircraft, boats, mobile homes, or motor vehicles in this state of a class or type
required to be registered, licensed, titled, or documented in this state or by the U.S. govt.
shall not be isolated or occasional sales, except as provided in R.S. 47:6001.
Proposed law changes present law for purposes of exemptions and exclusions to the state sales and
use taxes imposed under R.S. 47:302, beginning July 1, 2016, by adding the following exemptions
and exclusions to the list of exemptions and exclusions that remain in effect through June 30, 2018.
(1)Sales of room rentals by a camp or retreat facility owned by a nonprofit organization.
(2)Sales of room rentals by a homeless shelter.
(3)Sales, leases, and rentals of tangible personal property and sales of services by hospitals
necessary to operate free hospitals.
(4)Sales, leases, or rentals to Boys State of La., Inc. and Girls State of La., Inc.
(5)Sales by nonprofit entities that sell donated goods.
(6)Isolated or occasional sales of tangible personal property by a person not engaged in such
business.
(7)Sales of human tissue transplants.
(8)Sales of food items by a youth organization chartered by the U. S. congress.
(9)Sales and donations of tangible personal property by food banks.
(10)Sales or purchases of fire-fighting equipment by volunteer fire departments.
(11)Sales to, and leases, rentals, and use of educational materials and equipment used for
classroom instruction by parochial and private elementary and secondary schools that comply
with the court order from the Dodd Brumfield decision and Section 501(c)(3) of the Internal
Revenue Code.
(12)Sales by parochial and private elementary and secondary schools that comply with the court
order from the Dodd Brumfield decision and Section 501(c)(3) of the Internal Revenue Code.
(13)Sales of admission charges to athletic and entertainment events for elementary and secondary
schools and membership fees or dues of nonprofit, civic associations.
(14)Sales or use of materials used directly in the collection of blood. (15)Sales or use of apheresis kits and Leuko reduction filters.
(16)Sales or use of orthotic devices, prosthetic devices, and wheelchairs prescribed by physicians,
optometrists, or licensed chiropractors for personal use.
(17)Sales or use of ostomy, colostomy, and ileostomy devices and equipment.
(18)Sales or use of adaptive driving equipment and motor vehicle modifications prescribed for
personal use.
(19)Sales or use of meals by educational institutions, medical facilities, mental institutions, and
occasional meals furnished by educational, religious, or medical organizations.
(20)Purchases or rentals of kidney dialysis machines, parts, materials, and supplies for home use
under a physician's prescription.
(21)Sales of admissions to entertainment events by Little Theater organizations.
(22)Sales of admissions to musical performances sponsored by nonprofit organizations.
(23)Sales of admissions to entertainment events sponsored by domestic nonprofit charitable,
religious, and educational organizations.
(24)Sales of admissions, parking fees, and sales of tangible personal property at events sponsored
by domestic, civic, educational, historical, charitable, fraternal, or religious nonprofit
organizations.
(25)Sales of admissions and parking fees at fairs and festivals sponsored by nonprofit
organizations.
(26)Purchases of fishing vessels, supplies, fuels, lubricants, and repairs for the vessels of licensed
commercial fisherman.
(27)Sales of butane, propane, or other liquified petroleum gases for private, residential
consumption.
Present law imposes a 1% temporary state sales and use tax (R.S. 47:321.1) for the period from April
1, 2016 through June 30, 2018.
Proposed law changes present law for purposes of exemptions and exclusions to the 1% temporary
state sales and use taxes imposed under R.S. 47:321.1 by adding the following exclusions and
exemptions to the list of state sales and use tax exemptions and exclusions to be given effect
beginning July 1, 2016:
(1)Sales of room rentals by a camp or retreat facility owned by a nonprofit organization. (2)Sales of room rentals by homeless shelters.
(3)Sales, leases, or rentals to Boys State of La., Inc. and Girls State of La., Inc.
(4)Sales or purchases of fire-fighting equipment by volunteer fire departments.
(5)Sales to, and leases, rentals, and use of educational materials and equipment used for
classroom instruction by parochial and private elementary and secondary schools that comply
with the court order from the Dodd Brumfield decision and Section 501(c)(3) of the Internal
Revenue Code.
(6)Sales by parochial and private elementary and secondary schools that comply with the court
order from the Dodd Brumfield decision and Section 501(c)(3) of the Internal Revenue Code.
(7)Sales of admission charges to athletic and entertainment events for elementary and secondary
schools and membership fees or dues of nonprofit, civic associations.
(8)Sales or use of orthotic devices, prosthetic devices, and wheelchairs prescribed by physicians,
optometrists, or licensed chiropractors for personal use.
(9)Sales or use of ostomy, colostomy, and ileostomy devices and equipment.
(10)Sales or use of adaptive driving equipment and motor vehicle modifications prescribed for
personal use.
(11)Sales of meals by education institutions, medical facilities, mental institutions, and
occasional meals furnished by educational, religious, or medical organizations.
(12)Purchases or rentals of kidney dialysis machines, parts, materials, and supplies for home use
under a physician's prescription.
(13)Sales of admissions to entertainment events by Little Theater organizations.
(14)Sales of admissions to musical performances sponsored by nonprofit organizations.
(15)Sales of admissions to entertainment events sponsored by domestic, nonprofit charitable,
religious, and educational organizations.
(16)Sales of admissions, parking fees, and sales of tangible personal property at events sponsored
by domestic, civic, educational, historical, charitable, fraternal, or religious nonprofit
organizations.
(17)Sales of admissions and parking fees at fairs and festivals sponsored by nonprofit
organizations. (18)Purchases of fishing vessels, supplies, fuels, lubricants, and repairs for the boats of licensed
commercial fisherman.
(19)Sales of butane, propane, or other liquified petroleum gases for private, residential
consumption.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:301(10)(c)(ii)(bb), 302(V)(intro. para.) as enacted by Act No. 25 of the 2016 1
st
E.S., and R.S. 47:321.1(F)(intro.para.); Adds R.S. 47:302(AA) and 321.1(F)(66))