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 209 Engrossed 2019 Regular Session Davis
Abstract: Provides for the effectiveness of the sales and use tax exemption for new trucks, new
automobiles, new aircraft, and new boats, vessels, or other water craft withdrawn from stock
used as demonstrators and extends the exemption to include vehicles kept in a dealer's
inventory.
Present law imposes state sales and use taxes on the sale, use, lease, or rental of tangible personal
property pursuant to the following levies in the following amounts:
R.S. 47:302 - 2%
R.S. 47:321 - 1%
R.S. 47:321.1 - .45%
R.S. 47:331 - .97%
R.S. 51:1286 - .03%
Present law exempts new trucks, new automobiles, new aircraft, and new boats, vessels, or other
water craft withdrawn from stock by factory-authorized dealers, and used trucks and used
automobiles withdrawn from stock by new or used motor vehicle dealers for use as demonstrators
from sales and use tax.
Proposed law retains present law but extends the exemption in present law to vehicles kept in a
dealer's inventory in addition to those used as demonstrators.
Present law suspends numerous exemptions from the four levies of state sales and use tax (R.S.
47:302, 321, 321.1, and 331) through June 30, 2025, including the exemption for new trucks, new
automobiles, new aircraft, and new boats, vessels, or other water craft used as demonstrators.
Proposed law changes present law by adding the exemption for new trucks, new automobiles, new
aircraft, and new boats, vessels, or other water craft withdrawn from stock or kept in a dealer's
inventory used as demonstrators to the list of exemptions that are effective through June 30, 2025.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 47:305(D)(1)(i); Adds R.S. 47:302(BB)(110), 321(P)(111), 321.1(I)(111), and
331(V)(111))