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 20 Original 2018 First Extraordinary Session Havard
Abstract: Provides for the exclusions and exemptions applicable to state sales and use taxes
beginning on and after July 1, 2018.
Present law suspends numerous exclusions and exemptions (exemptions) from the state sales and
use taxes imposed under 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.
Present law provides that the suspension of certain exemptions for purposes of the tax levies in R.S.
47:321 and 331, expired June 30, 2016. The suspension with respect to the tax levies in R.S. 47:302
and 321.1, remains effective through June 30, 2018.
Present law establishes various provisions concerning specific exemptions to provide that the
exemptions shall be applicable under all circumstances.
Proposed law changes present law by revising the various provisions for effectiveness of certain
specific exemptions to sunset those provisions by June 30, 2018.
Proposed law changes present law regarding the effectiveness of all exemptions by establishing that
on and after July 1, 2018, only the following exemptions shall be applicable to all state sales and use
tax levies:
(1)Food for home consumption as defined in R.S. 47:305(D)(1)(n) through (r) on Jan. 1, 2003.
(Const. Art. VII, §2.2)
(2)Natural gas. (Const. Art. VII, §2.2)
(3)Electricity. (Const. Art. VII, §2.2)
(4)Water. (Const. Art. VII, §2.2)
(5)Prescription drugs. (Const. Art. VII, §2.2)
(6)Gasoline and other motor fuels subject to the state excise tax on fuel.
(Const. Art. VII, §27)
(7) Sales to the U.S. government and its agencies. (R.S. 47:301(10)(g)) (8)Other constructions permanently attached to the ground. (R.S. 47:301(16)(l))
(9)Installation charges on tangible personal property. (R.S. 47:301(3)(a))
(10)Installation of oil field board roads. (R.S. 47:301(3)(c))
(11)Transactions involving the construction or overhaul of U.S. Navy vessels (R.S. 47:301(7)(c)
and (14)(h))
(12)Property purchased for exclusive use outside the state. (R.S. 47:305.10)
(13)Sales, leases, or rentals of tangible personal property paid by or under the provisions of
Medicare. (R.S. 47:315.3)
(14)Sales of human tissue transplants. (R.S. 47:301(10)(d))
(15)Sales of raw agricultural commodities. (R.S. 47:301(10)(e) and 305(A)(3))
(16)Sales of food by a youth serving organization chartered by the U.S. Congress.
(R.S. 47:301(10)(h))
(17)Tangible personal property sold or donated to a food bank. (R.S. 47:301(10)(j) and (18)(a)(i))
(18)Materials used in the collection of blood. (R.S. 47:301(16)(j))
(19)Aphaeresis kits and leuko reduction filters. (R.S. 47:301(16)(k))
(20)Donations to schools and food banks from resale inventory. (R.S. 47:301(18)(a))
(21)Manufacturers rebates on a new motor vehicle. (R.S. 47:301(3)(e) and (13)(b))
(22)Leases or rentals of railroad rolling stock. (R.S. 47:301(4)(k))
(23)Sales, purchases and leases of tangible personal property by free hospitals.
(R.S. 47:301(7)(e), (10)(p), and (18)(c))
(24)Purchases by a nonprofit entity that sells donated goods. (R.S. 47:301(8)(f))
(25)Tangible personal property for resale. (R.S. 47:301(10)(a)(i))
(26)Purchases of property for lease or rental. (R.S. 47:301(10)(a)(iii) and (18)(a)(iii))
(27)Isolated or occasional sales of tangible personal property by a person not engaged in such
business. (R.S. 47:301(1) and (10)(c)(ii)(bb)) (28)Use of a motor vehicle in La. by a member of the active duty military.
(R.S. 47:303(A)(3)(a) and 305.48)
(29)Purchases made with food stamps and WIC. (R.S. 47:305.46)
(30)An article traded in on the purchase of tangible personal property.
(R.S. 47:301(13)(a))
(31)Donation of toys. (R.S. 47:301(10)(aa)(i) and (18)(m))
(32)Stocks, bonds, notes, and other obligations or securities. (R.S. 47:301(16)(b)(i))
(33)Credit for sales and use taxes paid to another state on tangible personal property imported
in La. (R.S. 47:303(A)(3)(a))
(34)Work product of certain professionals. (R.S. 47:301(16)(e))
(35)Purchases by a regionally accredited independent educational institution.
(R.S. 47:301(8)(b))
(36)Sales through a coin-operated vending machine. (R.S.47:301(10)(b)(i))
(37)Purchases by a private postsecondary academic degree-granting institution.
(R.S. 47:301(10)(cc) and(18)(n))
(38)Purchases of food items for school lunch and breakfast programs by a nonpublic elementary
or secondary school. (R.S. 47:301(10)(dd))
(39)A repair service performed in La. when the repaired property is exported.
(R.S. 47:301(14)(g)(i)(bb))
(40)Funeral directing services. (R.S. 47:301(14)(j))
(41)Feed and feed additives for animals held for business purposes. (R.S. 47:305(A)(4))
(42)Farm products produced and used by farmers. (R.S. 47:305(B))
(43)Sale of fertilizer and containers to farmers. (R.S. 47:305(D)(1)(f))
(44)Sales of seeds for planting crops. (R.S. 47:305.3)
(45)Sales of pesticides for agricultural purposes. (R.S. 47:305.8)
(46) The cost price for the printing of a news publication. (R.S. 47:301(3)(h)) (47) Vehicle rentals to a warranty customer. (R.S. 47:301(7)(h))
(48) Leases or rentals of a crane and related equipment with an operator.
(R.S. 47:301(7)(k))
(49)Sales by and to the state and its political subdivisions. (R.S. 47:301(8)(c))
(50) Sales of materials for further processing. (R.S. 47:301(10)(c)(i)(aa))
(51)The sales price for new farm equipment used in poultry production.
(R.S. 47:301(13)(c))
(52) A factory built home. (R.S. 47:301(16)(g))
(53) Any advertising service rendered by an advertising business. (R.S. 47:302(D))
(54) Sales of livestock, poultry, and other farm products direct from a farm.
(R.S. 47:305(A)(1))
(55) Sales of livestock at a public sale sponsored by a breeders' or registry association or at a
livestock auction market. (R.S. 47:305(A)(2))
(56) Sales of agricultural commodities by a person other than the producer, for use in further
processing. (R.S. 47:305(A)(3))
(57) Transactions in interstate commerce and tangible personal property imported into this state,
or produced or manufactured in this state for export. (R.S. 47:305(E))
(58) Ships, vessels, barges, and related supplies. (R.S. 47:305.1)
(59) The sales price of new farm equipment, including polyroll tubing. (R.S. 47:305.25)
(60) A truck and trailer if used at least 80% of the time in interstate commerce.
(R.S. 47:305.50(A))
(61) Freight cars, piggyback trailers, and rail rolling stock, and railroad ties. (R.S. 47:305.45 and
305.50(F))
(62) Councils on Aging. (R.S. 47:305.66)
(63) Sales of pharmaceuticals administered to livestock for agricultural purposes.
(R.S. 47:301(16)(f))
(64) Materials used in the production of crawfish and catfish. (R.S. 47:305(A)(5) and (6)) (65)Sales of room rentals by a camp or retreat facility owned by a nonprofit organization. (R.S.
47:301(6)(b))
(66) Sales of room rentals by a homeless shelter. (R.S. 47:301(6)(c))
(67) Sales, leases, and rentals of tangible personal property to Boys State of La., Inc. and Girls
State of La., Inc. (R.S. 47:301(7)(g) and (10)(r))
(68) Sales or purchases of fire-fighting equipment by a volunteer fire department.
(R.S. 47:301(10)(o))
(69) Sales to, and leases, rentals, and use of educational materials and equipment used for
classroom instruction by a parochial and private elementary and secondary school that
complies with the court order from the Dodd Brumfield decision and federal law. (R.S.
47:301(7)(f), (10)(q)(ii) and (18)(e)(ii))
(70) Sales by a parochial and private elementary and secondary school that complies with the
court order from the Dodd Brumfield decision and federal law. (R.S. 47:301(10)(q)(i) and
(18)(e)(i))
(71) Sales (R.S. 47:301(14)(b)(i)) but only of admissions to an athletic and entertainment event
held for or by an elementary or secondary school and membership fees or dues of a nonprofit,
civic association.
(72) Sales or use of orthotic devices, prosthetic devices, hearing aids, eyeglasses, contact lenses,
and wheelchairs prescribed by a physician, optometrist, or licensed chiropractor used
exclusively by the patient for personal use. (R.S. 47:305(D)(1)(k))
(73) Sales or use of ostomy, colostomy, and ileostomy devices and equipment.
(R.S. 47:305(D)(1)(l))
(74) Sales of medical devices. (R.S. 47:305(D)(1)(s))
(75) Sales of orthotic and prosthetic devices and restorative materials utilized and prescribed by
dentists. (R.S. 47:305(D)(1)(t))
(76) Sales or use of adaptive driving equipment and motor vehicle modification prescribed for
personal use. (R.S. 47:305(D)(1)(u))
(77)Sales or use of a meal by an educational institution, medical facility, mental institution, and
an occasional meal furnished by an educational, religious, or medical organization. (R.S.
47:305(D)(2))
(78) Purchases or rentals of kidney dialysis machines, parts, materials, and supplies for home use
under a physician's prescription. (R.S. 47:305(G)) (79) Sales of admission to entertainment events by a Little Theater organization.
(R.S. 47:305.6)
(80) Sales of admission to musical performances sponsored by a nonprofit organization. (R.S.
47:305.7)
(81) Sales of admissions to entertainment events sponsored by domestic nonprofit charitable,
religious, and educational organizations. (R.S. 47:305.13)
(82)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. (R.S. 47:305.14(A)(1))
(83)Sales of admissions and parking fees at fairs and festivals sponsored by nonprofit
organizations. (R.S. 47:305.18)
(84) Purchases of fishing vessels, supplies, fuels, lubricants, and repairs for the vessels of licensed
commercial fishermen. (R.S. 47:305.20)
(85) Sales of butane, propane, or other liquified petroleum gases for private, residential
consumption. (R.S. 47:305.39)
(86) Sales and purchases by certain organizations that provide training for blind persons. (R.S.
47:305.15)
(87)Purchases and leases by qualifying radiation therapy treatment centers. (R.S. 47:305.64)
(88)Manufacturing machinery and equipment. (R.S. 47:301(3)(i), (13)(k), and (28)(a))
(89) Surface preparation, painting, and coating fixed or rotary wing aircraft and certified transport
category aircraft. (R.S. 47:301(14)(g)(iv))
(90)Sales of platinum, gold, and silver bullion. (R.S. 47:301(16)(b)(ii)(aa))
(91)Sales of certain numismatic coins. (R.S. 47:301(16)(b)(ii)(bb) and (cc))
Effective July 1, 2018.
(Amends R.S. 47:302(R)(2) and (3), (S), (T), (X)(intro. para.), and (AA)(intro. para.), (AA)(29)
through (31), and (AA)(32)(intro. para.), 321(H)(2) through (6), and (I) through (K), and 331(P), (Q),
and (R); Adds R.S. 47:302(BB), 321(P), and 331(V); Repeals R.S. 47:302(Y), 321(M), and 331(T),
and Act No. 395 of the 2017 R.S.)