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 561 Original 2017 Regular Session Jones
Abstract: Imposes a 1/2% state sales and use tax and dedicates proceeds to the 21
st
Century
Highway Fund for transportation infrastructure.
Present law imposes state sales and use taxes on the sale, use, lease, or rental of tangible personal
property pursuant to the following levies:
R.S. 47:302 - 2% tax
R.S. 47:321 - 1% tax
R.S. 47:321.1 - 1% tax
R.S. 47:331 - 0.97% tax
R.S. 51:1286 - .03% tax (LA Tourism and Promotion District)
Present law providing for the 1% tax imposed pursuant to R.S. 47:321.1 sunsets July 1, 2018.
Proposed law retains present law and imposes a new 1/2% state sales and use tax upon the sale at
retail, the use, the consumption, the distribution, and the storage for use or consumption in this state
of each item or article of tangible personal property as well as certain services. The tax is imposed
from July 1, 2018 through June 30, 2038.
Proposed law dedicates the avails of the tax to the 21
st
Century Transportation and Infrastructure
Fund.
Present law suspends numerous exemptions and exclusions from the state sales and use tax (R.S.
47:302, 321, 321.1, and 331) for two different periods of time, both occurring between April 1, 2016
and June 30, 2018. The suspension with respect to the taxes levied under R.S. 47:302 and 321.1 are
effective through June 30, 2018.
Proposed law retains present law.
Proposed law notwithstanding any other provision of present law authorizes only the following
exclusions and exemptions applicable to the new tax:
(1)Food for home consumption, including soft drinks, bakery items, fresh product, and dairy
products. (2)Natural gas used for residential purposes.
(3)Electricity, used for residential purposes.
(4)Water used for residential purposes.
(5)Prescription drugs.
(6)Motor fuels subject to the state excise tax on motor fuels.
(7)Sales to the United States government.
(8)Other constructions permanently attached to the ground.
(9)Installation charges on tangible personal property.
(10)Installation of oil field board roads.
(11)Transactions involving the construction or overhaul of U.S. Navy and Coast Guard vessels.
(12)Property purchased for exclusive use outside the state.
(13)Purchases and leases of durable medical equipment under the provisions of Medicare.
(14)Sales of human tissue transplants.
(15)Sales of raw agricultural products.
(16)Sales of food by youth serving organizations chartered by congress.
(17)Tangible personal property sold to food banks.
(18)Sales of pollution control devices.
(19)Materials used in the collection of blood.
(20)Aphaeresis kits and leuko reduction filters.
(21)Donation to schools and food banks from resale inventory.
(22)Manufacturers rebates on new motor vehicles.
(23)Lease or rentals of railroad rolling stock.
(24)Purchases and leases by free hospitals. (25)Purchases by nonprofit entities that sell donated goods.
(26)Sales of tangible personal property for resale.
(27)Purchases of property for lease or rental.
(28)Isolated or occasional sales of tangible personal property.
(29)Use of motor vehicles in Louisiana by active duty military.
(30)Purchases made with food stamps and WIC.
(31)Articles traded in on purchases of tangible personal property.
(32)Donations of toys.
(33)Stocks, bonds, notes or other obligations or securities.
(34)Credit for sales and use taxes paid to other states on tangible personal property imported in
La.
(35)Work product of certain professionals.
(36) Purchases by regionally accredited independent educational institutions.
(37)Sales through coin-operated vending machines.
(38)Purchases by a private postsecondary academic degree-granting institution.
(39)Purchases of food items for school lunch or breakfast programs by nonpublic elementary or
secondary schools.
(40)Repair services performed in La. when the repaired property is exported.
(41)Funeral directing services.
(42)Sales of feed and feed additives for animals held for business purposes.
(43)Sales of farm products produced and used by farmers.
(44)Sales of fertilizers and containers to farmers.
(45)Sales of seeds for planting crops.
(46)Sales of pesticides for agricultural purposes. (47)The cost price for the printing of a news publication.
(48)Vehicle rentals for re-rental to warranty customers.
(49)The definition of "lease or rental" for purposes of the lease or rental of a crane and related
equipment with an operator.
(50)Sales by and to the state and its political subdivisions.
(51)Sales of materials for further processing.
(52)Sales of electricity for chlor-alkali manufacturing.
(53)The sales price for new farm equipment used in poultry production.
(54)The price of a factory built home.
(55)Any advertising service rendered by an advertising business.
(56)Sale of livestock, poultry, and other farm products direct from the farm.
(57)The gross proceeds derived from the sale of livestock at public sales sponsored by breeders'
or registry associations or livestock auction markets.
(58)Sale of agricultural products by a person other than the producer, for use in further
processing.
(59)Transactions in interstate commerce and tangible personal property imported into this state,
or produced or manufactured in La. for export.
(60)Sales of ships, vessels, barges, and related supplies.
(61)The first $50,000 in value of certain new farm equipment.
(62)Sales of trucks and trailers if used at least 80% of the time in interstate commerce.
(63)Sale of freight cars, piggy-back cars, rail rolling stock, and railroad ties.
(64)Purchases by a council on aging.
(65)Sale of pharmaceuticals administered to livestock.
(66)Sale of materials and supplies used in the production of crawfish and catfish.
(67)Sales of room rentals by a camp or retreat facility owned by a nonprofit organization. (68)Sales of room rentals by a homeless shelter.
(69)Sales, leases, and rentals of tangible personal property and sales of services by hospitals
necessary to operate free hospitals.
(70)Sales, leases, or rentals to Boys State of La., Inc. and Girls State of La., Inc.
(71)Sales by nonprofit entities that sell donated goods.
(72)Sales and donations of tangible personal property by food banks.
(73)Sales or purchases of fire-fighting equipment by volunteer fire departments.
(74)Sales to, and leases, rentals, and use of educational materials and equipment used for
classroom instruction 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.
(75)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.
(76)Sales of admission charges to athletic and entertainment events for elementary and secondary
schools and membership fees or dues of nonprofit, civic associations.
(77)Sales or use of materials used directly in the collection of blood.
(78)Sales or use of apheresis kits and Leuko reduction filters.
(79)Sales or use of orthotic devices, prosthetic devices, hearing aids, eyeglasses, contact lenses,
and wheelchairs prescribed by physicians, optometrists, or licensed chiropractors for personal
use.
(80)Sales or use of ostomy, colostomy, and ileostomy devices and equipment.
(81)Sales of medical devices.
(82)Sales of restorative materials used by dentists.
(83)Sales or use of adaptive driving equipment and motor vehicle modifications prescribed for
personal use.
(84)Sales or use of meals by educational institutions, medical facilities, mental institutions, and
occasional meals furnished by educational, religious, or medical organizations.
(85)Purchases or rentals of kidney dialysis machines, parts, materials, and supplies for home use under a physician's prescription.
(86)Sales of admissions to entertainment events by Little Theater organizations.
(87)Sales of admissions to musical performances sponsored by nonprofit organizations.
(88)Sales of admissions to entertainment events sponsored by domestic nonprofit charitable,
religious, and educational organizations.
(89)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.
(90)Sales of admissions and parking fees at fairs and festivals sponsored by nonprofit
organizations.
(91)Purchases of fishing vessels, supplies, fuels, lubricants, and repairs for the vessels of licensed
commercial fishermen.
(92)Sales of butane, propane, or other liquified petroleum gases for private, residential
consumption.
(93) Sales and purchases by certain organizations that provide training for blind persons.
(94)Sales of polyroll tubing for use in commercial farm irrigation.
(95)Rentals or leases of certain oilfield property for re-lease or re-rental.
(96)Sales of aircraft manufactured in Louisiana with a capacity in excess of eight persons as
provided in R.S. 47:301(10)(m).
(97)Labor, materials, services, and supplies used for the repair, renovation, or conversion of
drilling rig machinery and equipment which become component parts of a drilling rig used
exclusively for exploration or development of minerals as provided in R.S.
47:301(14)(g)(iii).
(98)Repairs and materials used on drilling rigs and equipment used exclusively for exploration
or development of minerals.
(99)Sales by thrift shops located on military installations.
(100)Leases or rentals of vessels for use in offshore mineral production, or the provision of
services to those engaged in mineral production.
(101)Sales of gasohol. (102)Sales or purchases by sheltered workshops.
(103) Pharmaceutical samples manufactured or imported into the state free of charge.
Present law dedicates a portion of state sales and use tax proceeds for distribution to certain tax
increment financial district and economic development projects.
Proposed law adds to present law by specifying that the dedication of sales tax provided in present
law shall not apply to the avails of the new tax.
Applicable for taxable periods beginning on and after July 1, 2018.
Effective if and when the proposed amendment of Article VII, Sec. 27 of the Constitution of La.
contained in the Act which originated as House Bill No. NUMBER of this 2017 R.S. of the
Legislature is adopted at a statewide election and becomes effective.
(Adds R.S. 47:321.2)