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 365 Original 2017 Regular Session Ivey
Abstract: Excludes certain transactions involving manufacturing machinery and equipment from
imposition of local sales and use tax.
Present law provides numerous definitions for and exclusions from imposition of the state sales and
use tax.
Present law excludes from the definition of "cost price", for purposes of imposition of the state sales
and use tax, the cost price of machinery and equipment used by certain manufacturers in the actual
manufacturing for either agricultural purposes or the production of items of tangible personal
property.
Present law excludes from the definition of "sales price", for purposes of imposition of the state sales
and use tax, the sales price of machinery and equipment used by certain manufacturers in the actual
manufacturing for either agricultural purposes or the production of items of tangible personal
property.
Present law, for purposes of the lease or rental tax imposed by the state, excludes the "gross
proceeds", "monthly lease or rental price paid", and "monthly lease or rental price contracted or
agreed to be paid" for machinery and equipment used by certain manufacturers in the actual
manufacturing for either agricultural purposes or the production of items of tangible personal
property.
Proposed law changes present law to extend the exclusions for manufacturing machinery and
equipment to any sales and use tax levied by any taxing authority which includes local sales and use
tax.
Present law provides an option for local taxing authorities to provide for certain exclusions and
exemptions from the state sales and use tax, including the exclusions for manufacturing machinery
and equipment in present law.
Proposed law repeals present law in favor of the mandatory exclusion in proposed law.
(Amends R.S. 47:301(3)(i)(i)(intro. para.) and (iii), (13)(k)(i)(intro. para.) and (iii), and (28)(a)(intro.
para.) and (c); Repeals R.S. 47:337.10(I))