HLS 17RS-1099 ENGROSSED
2017 Regular Session
HOUSE BILL NO. 411
BY REPRESENTATIVE JAMES
TAX/SALES-USE, ST-EXEMPT: Provides for effectiveness and applicability of the state
sales and use tax exemption for purchases and leases by qualifying radiation therapy
treatment centers
1 AN ACT
2To amend and reenact R.S. 47:302(X)(introductory paragraph), relative to state sales and use
3 tax; to provide with respect to the base of the two percent sales and use tax; to
4 provide with respect to exemptions and exclusions; to provide for effectiveness; and
5 to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:302(X)(introductory paragraph) is hereby amended and reenacted
8to read as follows:
9 ยง302. Imposition of tax
10 * * *
11 X. Notwithstanding any other provision of law to the contrary, including but
12 not limited to any contrary provisions of this Chapter, for the period April 1, 2016
13 through July 1, 2018, there shall be no exclusions and exemptions to the tax levied
14 pursuant to the provisions of this Section except for exemptions and exclusions for
15 sales or purchases of the following items and for those items enumerated in
16 Subsection AA of this Section:
17 * * *
Page 1 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 17RS-1099 ENGROSSED
HB NO. 411
1 Section 2. This Act shall become effective on July 1, 2018; if vetoed by the
2 governor and subsequently approved by the legislature, this Act shall become
3 effective on July 1, 2018, or on the day following such approval by the legislature,
4 whichever is later.
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 411 Engrossed 2017 Regular Session James
Abstract: Removes the July 1, 2018, sunset provision with respect to the applicability of
certain exclusions and exemptions effective for the 2% state sales and use tax
making the effectiveness of the exclusions and exemptions permanent.
Present law imposes a 2% state sales and use tax upon the sale, use, lease, or rental of
tangible personal property and certain services occurring in this state.
Present law, for the period from April 1, 2016, through July 1, 2018, restricts the
applicability of various exclusions and exemptions against that tax to the following:
(1)Food for home consumption, as defined in R.S. 47:305(D)(1)(n) through (r) on Jan.
1, 2003, as provided in Article VII, Section 2.2 of the Constitution of La.
(2)Natural gas, as provided in Article VII, Section 2.2 of the Constitution of La.
(3)Electricity, as provided in Article VII, Section 2.2 of the Constitution of La.
(4)Water, as provided in Article VII, Section 2.2 of the Constitution of La.
(5)Prescription drugs, as provided in Article VII, Section 2.2 of the Constitution of La.
(6)Gasoline and other motor fuels subject to the state excise tax on fuel.
(7)Sales to the U. S. government and its agencies, as provided in R.S. 47:301(10)(g).
(8)Sales of raw agricultural products, as provided in R.S. 47:301(10)(e) and 305(A)(3).
(9)Lease or rentals of railroad rolling stock as provided in R.S. 47:301(4)(k), piggyback
trailers as provided in R.S. 47:305.45, and certain trucks and trailers in interstate
commerce as provided in R.S. 47:305.50(A) and (B).
(10)Tangible personal property for resale as provided in R.S. 47:301(10)(a)(i).
(11) Feed and feed additives for animals held for business purposes as provided in R.S.
47:305(A)(4).
(12)Farm products produced and used by farmers as provided in R.S. 47:305(B).
(13)Sales of fertilizers and containers to farmers as provided in R.S. 47:305(D)(1)(f).
(14)Sales of seeds for planting crops as provided in R.S. 47:305.3.
Page 2 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 17RS-1099 ENGROSSED
HB NO. 411
(15)Sales of pesticides for agricultural purposes as provided in R.S. 47:305.8.
(16)Purchases, use, and lease of manufacturing machinery and equipment as provided
in R.S. 47:301(3)(i)(i), (13)(k), and (28)(a).
(17)Sales of materials for further processing as provided in R.S. 47:301(10)(c)(i)(aa).
(18)Sale of 50-ton vessels and new component parts and sales of certain materials and
services to vessels operating in interstate commerce as provided in R.S. 47:305.1 (A)
and (B).
(19)La. Tax Free Shopping Program for international visitors as provided in R.S.
51:1301.
(20)Sales of farm equipment used in poultry production as provided in R.S.
47:301(13)(c).
(21)Sales of pharmaceuticals administered to livestock for agricultural purposes as
provided in R.S. 47:301(16)(f).
(22)Sales of livestock, poultry, and other farm products and sales at public livestock
auctions as provided in R.S. 47:305(A)(1) and (2).
(23)Materials used in the production of crawfish and catfish as provided in R.S.
47:305(A)(5) and (6).
(24)First $50,000 of farm equipment purchases as provided in R.S. 47:305.25.
(25)Fuel used on the farm as provided in R.S. 47:305.37.
(26)Taxation of electrical cooperatives as provided in R.S. 12:425.
(27)Overhaul of naval vessels as provided in R.S. 47:301(7)(c) and (14)(h).
(28)Purchases by state and local governments as provided in R.S. 47:301(8)(c).
(29)Transactions in interstate commerce and tangible personal property imported into
this state, or produced or manufactured in this state, for export as provided in R.S.
47:305(E).
(30)Parish councils on aging in R.S. 47:305.66.
(31)Articles traded in on purchases of tangible personal property as provided in R.S.
47:301(13)(a).
(32)A factory-built home as provided in R.S. 47:301(16)(g).
Proposed law changes present law by making permanent those restrictions on exclusions and
exemptions applicable against the tax.
Present law, beginning July 1, 2016, provides for the applicability of specific exclusions and
exemptions against the tax as follows:
(1)Sales of room rentals by a camp or retreat facility owned by a nonprofit organization
as provided in R.S. 47:301(6)(b).
(2)Sales of room rentals by a homeless shelter as provided in R.S. 47:301(6)(c).
Page 3 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 17RS-1099 ENGROSSED
HB NO. 411
(3)Sales, leases, and rentals of tangible personal property and sales of services
necessary to operate free hospitals as provided in R.S. 47:301(7)(e), (10)(p), and
(18)(c).
(4)Sales, leases, or rentals of tangible personal property to Boys State of La., Inc. and
Girls State of La., Inc. as provided in R.S. 47:301(7)(g) and (10)(r).
(5)Sales by nonprofit entities that sell donated goods as provided in R.S. 47:301(8)(f).
(6)Isolated or occasional sales of tangible personal property as provided in R.S.
47:301(10)(c)(ii)(bb).
(7)Sales of human tissue transplants as provided in R.S. 47:301(10)(d).
(8)Sales of food items by a youth-serving organization chartered by the U. S. Congress
as provided in R.S. 47:301(10)(h).
(9)Sales and donations of tangible personal property by food banks as provided in R.S.
47:301(10)(j) and (18)(a)(i).
(10)Sales or purchases of fire-fighting equipment by volunteer fire departments as
provided in R.S. 47:301(10)(o).
(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 as
provided in R.S. 47:301(7)(f), (10)(q)(ii), and (18)(e)(ii).
(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 as provided in R.S. 47:301(10)(q)(i) and (18)(e)(i).
(13)Sales, as provided in R.S. 47:301(14)(b)(i), but only of admissions to athletic and
entertainment events held for or by an elementary or secondary school and
membership fees or dues of nonprofit, civic associations.
(14)Sales or use of materials used directly in the collection of blood as provided in R.S.
47:301(16)(j).
(15)Sales or use of apheresis kits and leukoreduction filters as provided in R.S.
47:301(16)(k).
(16)Sales or use of orthotic devices, prosthetic devices, hearing aids, eyeglasses, contact
lenses, and wheelchairs prescribed by physicians, optometrists, or licensed
chiropractors used exclusively by the patient for personal use as provided in R.S.
47:305(D)(1)(k).
(17)Sales or use of ostomy, colostomy, and ileostomy devices and equipment as provided
in R.S. 47:305(D)(1)(l).
(18)Sales or use of adaptive driving equipment and motor vehicle modifications
prescribed for personal use as provided in R.S. 47:305(D)(1)(u).
(19)Sales of meals by educational institutions, medical facilities, mental institutions, and
occasional meals furnished by educational, religious, or medical organizations as
provided in R.S. 47:305(D)(2).
(20)Purchase or rental of kidney dialysis machines, parts, materials, and supplies for
home use under a physician's prescription as provided in R.S. 47:305(G).
Page 4 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 17RS-1099 ENGROSSED
HB NO. 411
(21)Sales of admissions to entertainment events by Little Theater organizations as
provided in R.S. 47:305.6.
(22)Sales of admissions to musical performances sponsored by nonprofit organizations
as provided in R.S. 47:305.7.
(23)Sales of admissions to entertainment events sponsored by domestic nonprofit
charitable, religious, and educational organizations as provided in R.S. 47:305.13.
(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 as provided in R.S. 47:305.14(A)(1).
(25)Sales of admissions and parking fees at fairs and festivals sponsored by nonprofit
organizations as provided in R.S. 47:305.18.
(26)Purchases of fishing vessels, supplies, fuels, lubricants, and repairs for the vessels
of licensed commercial fishermen as provided in R.S. 47:305.20.
(27)Sales of butane, propane, or other liquified petroleum gases for private, residential
consumption as provided in R.S. 47:305.39.
(28)Sales and purchases by certain organizations that provide training for blind persons
as provided in R.S. 47:305.15.
Proposed law retains present law.
Effective July 1, 2018.
(Amends R.S. 47:302(X)(intro. para.))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Add a termination of the sunset on the temporary restriction on exclusions and
exemptions applicable to the 2 % state sales and use tax levy.
2. Delete provisions concerning the sales and use tax exemption for capital
equipment and software purchased by a radiation treatment center.
3. Add a July 1, 2018, effective date.
Page 5 of 5
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.