RÉSUMÉ DIGEST
ACT 6 (SB 15) 2016 Second Extraordinary Session Morrell
Prior law provided for numerous exclusions and exemptions from state sales and use tax for
various transactions involving nonprofit organizations.
Prior law suspended 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.
New 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.
New 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.
New law requires that the annual report is due on September 30th of each year and requires
that it be submitted electronically to the secretary.
New law specifically lists the transactions by nonprofits that are to be reported.
New law provides that these reporting requirements do not apply to nonprofit entities and
their affiliates 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)