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
Thomas L. Tyler.
DIGEST
SB 15 Reengrossed 2016 Second Extraordinary Session Morrell
Present law provides for numerous exclusions and exemptions from state sales and use tax for
various transactions involving nonprofit organizations.
Present law suspends several state sales tax exemptions relating to sales by nonprofit organizations
from April 1, 2016, to June 30, 2018, for purposes of the 2% sales tax imposed by R.S. 47:302, and
from April 1, 2016, to June 30, 2016, for purposes of each of the 1% state sales tax levies in R.S.
47:321 and 331. These exemptions will be fully restored on July 1, 2018.
Proposed law retains these provisions but requires that certain nonprofits that sell exempt tangible
personal property and services be subject to an annual reporting requirement based on transactions
occurring during the previous fiscal year, beginning July 1st of the preceding year and ending on
June 30th of the current year.
Proposed law requires that the annual report contain the name of the organization, its federal and
state tax identification numbers, the annual gross sales of tangible personal property or services that
are not subject to the sales and use taxes, and additional information as required by the secretary of
the Department of Revenue to determine the annual sales tax revenue loss to the state due to the
exemptions or exclusions.
Proposed law requires that the annual report is due on September 30th of each year and requires that
it be submitted electronically to the secretary.
Proposed law specifically lists the transactions by nonprofits that are to be reported.
Proposed law provides that these reporting requirements do not apply to nonprofit entities and their
affiliates organized and operated exclusively for religious purposes that are exempt from federal
income taxes under §501(c)(3) of the Internal Revenue Code.
Effective on July 1, 2016.
(Adds R.S. 47:306.4)
Summary of Amendments Adopted by Senate
Senate Floor Amendments to engrossed bill 1. Adds provision that the reporting be based on transactions beginning July 1st of the
previous fiscal year and ending June 30th of the current year.
2. Changes the due date of the annual report to September 30th.
3 Adds requirement that the report be filed electronically.
4. Adds provision that reporting requirement does not apply to nonprofit entities and
their affiliates organized and operated exclusively for religious purposes which are
exempt from federal income taxes under §501(c)(3) of the I.R.C.
5. Changes effective date from governor's signature to July 1, 2016.