SLS 18RS-1876 ORIGINAL
2018 Regular Session
SENATE BILL NO. 529
BY SENATOR APPEL
TAX/SALES. Provides for direct payment of state and local sales tax due on purchases by
certain nonprofit subsidiaries. (7/1/18)
1 AN ACT
2 To amend and reenact R.S. 47:303.1(B)(2), (C), (D), (F), and (G), relative to direct payment
3 numbers; to authorize certain nonprofit subsidiaries to obtain direct payment
4 numbers for state and local sales and use tax; to provide for an effective date; and to
5 provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:303.1(B)(2), (C), (D), (F), and (G) are hereby amended and
8 reenacted to read as follows:
9 ยง303.1. Direct Payment Numbers
10 * * *
11 B. * * *
12 * * *
13 (2)(a) A DP Number shall be issued to and shall be continued to be held by
14 a taxpayer which that is a private, nonprofit, tax-exempt organization as defined
15 under Section 501(3)(c) (c)(3) of the Internal Revenue Code, which that obtains the
16 required approvals, and which that meets all of the qualifications provided for in this
17 Section except Subparagraph (1)(a) of this Subsection.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 529
SLS 18RS-1876 ORIGINAL
1 (b) Separate DP Numbers shall be issued to and shall be continued to be
2 held by taxpayers that are subsidiary entities of a private, nonprofit, tax-exempt
3 organization, as defined under Section 501(c)(3) of the Internal Revenue Code,
4 that meets the requirements of Subparagraph (B)(2)(a) of this Section, as well
5 as to those taxpayer entities in which the tax-exempt organization is the sole
6 member, provided that these entities and the tax-exempt organization together
7 have in the aggregate an annual average of five million dollars of taxable
8 purchases or leases of tangible personal property and taxable services for three
9 calendar years prior to the year of application, and have such an average for
10 each subsequent three-year period, and which obtain the required approvals
11 and meet the qualifications provided for in Subparagraphs (1)(b) and (1)(d) of
12 this Subsection.
13 * * *
14 C. Upon application by a taxpayer to the department for a DP Number
15 pursuant to Paragraph (B)(1) or (2) of this Section, the department shall notify by
16 certified mail the local agency or agencies charged with collection of the sales and
17 use tax imposed by the political subdivisions in the parish or parishes in which the
18 taxpayer has a manufacturing establishment or facility or is a private, nonprofit, tax-
19 exempt organization taxpayer that meets the requirements of Paragraph (B)(2)
20 of this Section. The department and the local collection agency or agencies shall
21 review the application and shall audit the taxpayer to determine that the taxpayer
22 meets the qualifications provided in Subsection B of this Section, if the department
23 or local collection agency or agencies consider such audit necessary.
24 D. If the taxpayer applying for a DP Number pursuant to Paragraph (B)(1)
25 or (2) of this Section meets the qualifications of Subsection B of this Section and
26 obtains written approval from the local agency or agencies charged with the
27 collection of sales and use tax imposed by the political subdivisions in the parish or
28 parishes in which the taxpayer has a manufacturing establishment or facility or is a
29 private, nonprofit, tax-exempt organization taxpayer that meets the requirements
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Coding: Words which are struck through are deletions from existing law;
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1 of Paragraph (B)(2) of this Section, the department shall issue the DP Number to
2 the taxpayer. If the taxpayer meets the qualifications of Subsection B of this Section
3 but written approval is denied or withheld by the local agency or agencies charged
4 with the collection of sales and use tax imposed by the political subdivisions in the
5 parish or parishes in which the taxpayer has a manufacturing establishment or
6 facility or is a private, nonprofit, tax-exempt organization, the department shall issue
7 a DP Number to the taxpayer which that shall be applicable only for the purposes
8 of state sales and use tax.
9 * * *
10 F. The DP Number issued by the department under this Section may be
11 revoked by the secretary at any time if the taxpayer fails to meet the qualifications
12 provided in this Section, or if the department receives written notice of the
13 revocation of approval for issuance of the DP Number from all of the local tax
14 collection agencies which that had previously given their approval pursuant to
15 Subsection D of this Section.
16 G. The taxpayer may appeal the secretary's or local collection agency's
17 denial or revocation of a DP Number to the Board of Tax Appeals.
18 * * *
19 Section 2. This Act shall become effective on July 1, 2018.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 529 Original 2018 Regular Session Appel
Present law authorizes purchasers that have average annual purchases for a three-year period
of $5 million to apply for direct pay (DP) numbers allowing the purchaser to make all
purchases without remitting the sales and use tax to their vendors and allowing the purchaser
to report and pay the tax due directly to the Department of Revenue and local tax collection
authorities.
Proposed law retains present law and authorizes taxpayers that are subsidiary entities of a
private, nonprofit, tax-exempt organization, including entities in which the tax-exempt
organization is the sole member, that otherwise meet the direct pay requirements to obtain
DP numbers from the secretary of the Department of Revenue and local tax collection
authorities to authorize the direct payment of sales and use tax to taxing authorities.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 529
SLS 18RS-1876 ORIGINAL
Effective July 1, 2018.
(Amends R.S. 47:303.1(B)(2), (C), (D), (F), and (G))
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.