The original instrument was prepared by Leonore F. Heavey. The following digest,
which does not constitute a part of the legislative instrument, was prepared by James
Benton.
DIGEST
SB 529 Engrossed 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, provided that these entities are license by the La. Dept of Health, La. Board of
Pharmacy, or otherwise have as their mission promoting the delivery of healthcare and patient
medical services and products and further provided that these entices and the tax exempt
organization together have in the aggregate an annual average of $10 million of taxable purchases
or leases of tangible personal property and taxable services for three calendar years prior to year of
application, and have such an average for each subsequent three-year period.
Effective July 1, 2018.
(Amends R.S. 47:303.1(B)(2), (C), (D), and (F))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs to
the original bill
1. Provides specificity regarding entities that may avail themselves of direct payment
numbers.
2. Changes the required taxable purchase amount from $5 million to $10 million for
purchases or leases of tangible personal property and taxable services.
3. Makes technical changes.