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 426 Engrossed 2016 Regular Session Broadwater
Abstract: Expands the qualifications for eligibility for a business to obtain a Direct Payment
Number for purposes of direct payment of sales and use taxes due on purchases by the
business.
Present law provides that a taxpayer who has obtained a Direct Payment Number (DPN) from the
Dept. of Revenue may directly pay both state and local sales and use taxes which are due on its
purchases of tangible personal property and services or leases.
Present law establishes requirements for a taxpayer to receive a DPN, which include:
(1)The taxpayer is a manufacturer of tangible personal property for resale where such
manufacturing occurs at a manufacturing establishment or facility within La. and the
taxpayer's primary place of business is in La.
(2)The taxpayer has an annual average of $5,000,000 of taxable purchases or leases of tangible
personal property and taxable services for three calendar years prior to the year of application
by the taxpayer, and maintains such an average for each subsequent three-year period.
Proposed law changes present law by expanding the qualifications from manufacturers to any
business, and by removing the requirement that the taxpayer's primary business be located in La.
Proposed law changes present law by reducing the required annual minimum amount of taxable
purchases and leases from $5,000,000 to $800,000.
Proposed law changes present law by reducing both the retroactive and prospective periods of time
during which the business would maintain the minimum amount of taxable purchases and leases
from three to two calendar years.
(Amends R.S. 47:303.1(B)(1)(a) and (c))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Delete the requirement that the taxpayer's primary business is located in La. 2. Reduce the retroactive and prospective periods of time during which the business would
maintain the minimum amount of taxable purchases and leases from three to two
calendar years.