GREEN SHEET REDIGEST
HB 209 2019 Regular Session Davis
TAX EXEMPTIONS: Authorizes a sales and use tax exemption for new automobiles,
aircraft, boats, vessels or other water craft used as demonstrators
DIGEST
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other water craft withdrawn from stock by factory-authorized dealers, and used trucks and
used automobiles withdrawn from stock by new or used motor vehicle dealers for use as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Proposed law retains present law exemption for vehicles, aircraft, and vessels withdrawn
from stock and provides that the exemption in present law applies to aircraft, vessels, and
vehicles, including motorcycles, kept in a dealer's inventory that are also 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
trucks, automobiles, aircraft, and boats, vessels, or other water craft used as demonstrators.
Proposed law changes present law by adding the exemption for new and used trucks,
automobiles, motorcycles, aircraft, and boats, vessels, or other water craft withdrawn from
stock or kept in a dealer's inventory to be used as demonstrators to the list of exemptions that
are effective through June 30, 2025.
Effective July 1, 2019.
(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))
Summary of Amendments Adopted by House
The House Floor Amendments to the engrossed bill:
1. Change the effective date from signature of the governor to July 1, 2019.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the reengrossed bill
1. Add motorcycles to list of exempt demonstrators.
2. Make technical changes.
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Prepared by Leonore Heavey.