2018 Regular Session ENROLLED
SENATE BILL NO. 529
BY SENATOR APPEL
1 AN ACT
2 To amend and reenact R.S. 47:303.1(B)(2), (C), (D), and (F), 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), and (F) are hereby amended and reenacted
8 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.
18 (b) Separate DP Numbers shall be issued to and shall be continued to be
19 held by taxpayers that are subsidiary entities of a private, nonprofit, tax-exempt
20 organization, as defined under Section 501(c)(3) of the Internal Revenue Code,
21 that meets the requirements of Subparagraph (a) of this Paragraph, as well as
22 to those taxpayer entities in which the tax-exempt organization is the sole
23 member, provided that these entities are licensed by the Louisiana Department
24 of Health, Louisiana Board of Pharmacy, or otherwise have as their mission
25 promoting the delivery of healthcare and patient medical services and products
26 and further provided that these entities and the tax exempt organization
27 together have in the aggregate an annual average of ten million dollars of
ACT No. 250
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1 taxable purchases or leases of tangible personal property and taxable services
2 for three calendar years prior to the year of application, and have such an
3 average for each subsequent three-year period, and which obtain the required
4 approvals and meet the qualifications provided for in Subparagraphs (1)(b) and
5 (1)(d) of this Subsection.
6 * * *
7 C. Upon application by a taxpayer to the department for a DP Number
8 pursuant to Paragraph (B)(1) or (2) of this Section, the department shall notify by
9 certified mail the local agency or agencies charged with collection of the sales and
10 use tax imposed by the political subdivisions in the parish or parishes in which the
11 taxpayer has a manufacturing establishment or facility or is a private, nonprofit, tax-
12 exempt organization taxpayer that meets the requirements of Paragraph (B)(2)
13 of this Section. The department and the local collection agency or agencies shall
14 review the application and shall audit the taxpayer to determine that the taxpayer
15 meets the qualifications provided in Subsection B of this Section, if the department
16 or local collection agency or agencies consider such audit necessary.
17 D. If the taxpayer applying for a DP Number pursuant to Paragraph (B)(1)
18 or (2) of this Section meets the qualifications of Subsection B of this Section and
19 obtains written approval from the local agency or agencies charged with the
20 collection of sales and use tax imposed by the political subdivisions in the parish or
21 parishes in which the taxpayer has a manufacturing establishment or facility or is a
22 private, nonprofit, tax-exempt organization taxpayer that meets the requirements
23 of Paragraph (B)(2) of this Section, the department shall issue the DP Number to
24 the taxpayer. If the taxpayer meets the qualifications of Subsection B of this Section
25 but written approval is denied or withheld by the local agency or agencies charged
26 with the collection of sales and use tax imposed by the political subdivisions in the
27 parish or parishes in which the taxpayer has a manufacturing establishment or
28 facility or is a private, nonprofit, tax-exempt organization, the department shall issue
29 a DP Number to the taxpayer which that shall be applicable only for the purposes
30 of state sales and use tax.
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1 * * *
2 F. The DP Number issued by the department under this Section may be
3 revoked by the secretary at any time if the taxpayer fails to meet the qualifications
4 provided in this Section, or if the department receives written notice of the
5 revocation of approval for issuance of the DP Number from all of the local tax
6 collection agencies which that had previously given their approval pursuant to
7 Subsection D of this Section.
8 * * *
9 Section 2. This Act shall become effective on July 1, 2018.
PRESIDENT OF THE SENATE
SPEAKER OF THE HOUSE OF REPRESENTATIVES
GOVERNOR OF THE STATE OF LOUISIANA
APPROVED:
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.