HLS 19RS-680 ORIGINAL
2019 Regular Session
HOUSE BILL NO. 304
BY REPRESENTATIVE DWIGHT
TAX EXEMPTIONS: Provides for state sales and use tax exemption for new automobiles,
aircraft, boats, vessels or other water craft used as demonstrators
1 AN ACT
2To amend and reenact R.S. 47:305(D)(1)(i) and to enact R.S. 47:302(BB)(110), 321(P)(111),
3 321.1(I)(111), and 331(V)(111), relative to sales and use tax; to provide for a sales
4 and use tax exemption for certain vehicles, aircraft, boats, and water craft as used as
5 demonstrators; to provide for restrictions and limitations on the use of the vehicles,
6 air craft, boats, and water craft; to provide for the effectiveness of the exemption; to
7 provide for an effective date; and to provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 47:305(D)(1)(i) is hereby amended and reenacted and R.S.
1047:302(BB)(110), 321(P)(111), 321.1(I)(111), and 331(V)(111) are hereby enacted to read
11as follows:
12 §302. Imposition of tax
13 * * *
14 BB. Notwithstanding any other provision of law to the contrary, including
15 but not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
16 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
17 levied pursuant to the provisions of this Section, except for the retail sale, use,
18 consumption, distribution, or storage for use or consumption of the following:
19 * * *
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 19RS-680 ORIGINAL
HB NO. 304
1 (110) New trucks, new automobiles, new aircraft, and new boats, vessels, or
2 other water craft withdrawn from stock or kept in dealer inventory and used as
3 demonstrators as provided in R.S.47:305(D)(1)(i).
4 * * *
5 §305. Exclusions and exemptions from the tax
6 * * *
7 D.(1) The sale at retail, the use, the consumption, the distribution, and the
8 storage to be used or consumed in the taxing jurisdiction of the following tangible
9 personal property is hereby specifically exempted from the tax imposed by taxing
10 authorities, except as otherwise provided in this Paragraph:
11 * * *
12 (i) New trucks, new automobiles, new aircraft, and new boats, vessels, or
13 other water craft withdrawn from stock or kept in a dealer's inventory by factory
14 authorized new truck, new automobile, new aircraft dealers, and factory-authorized
15 dealers of new boats, vessels, or other water craft, and used trucks and used
16 automobiles withdrawn from stock or kept in a dealer's inventory by new or used
17 motor vehicle dealers, which are withdrawn for use as demonstrators.
18 * * *
19 §321. Imposition of tax
20 * * *
21 P. Notwithstanding any other provision of law to the contrary, including but
22 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
23 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
24 levied pursuant to the provisions of this Section, except for the retail sale, use,
25 consumption, distribution, or storage for use or consumption of the following:
26 * * *
27 (111) New trucks, new automobiles, new aircraft, and new boats, vessels, or
28 other water craft withdrawn from stock or kept in dealer inventory and used as
29 demonstrators as provided in R.S.47:305(D)(1)(i).
30 * * *
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HB NO. 304
1 §321.1. Imposition of tax
2 * * *
3 I. Notwithstanding any other provision of law to the contrary, including but
4 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
5 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
6 levied pursuant to the provisions of this Section, except for the retail sale, use,
7 consumption, distribution, or storage for use or consumption of the following:
8 * * *
9 (111) New trucks, new automobiles, new aircraft, and new boats, vessels, or
10 other water craft withdrawn from stock or kept in dealer inventory and used as
11 demonstrators as provided in R.S.47:305(D)(1)(i).
12 * * *
13 §331. Imposition of tax
14 * * *
15 V. Notwithstanding any other provision of law to the contrary, including but
16 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
17 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
18 levied pursuant to the provisions of this Section, except for the retail sale, use,
19 consumption, distribution, or storage for use or consumption of the following:
20 * * *
21 (111) New trucks, new automobiles, new aircraft, and new boats, vessels, or
22 other water craft withdrawn from stock or kept in dealer inventory and used as
23 demonstrators as provided in R.S.47:305(D)(1)(i).
24 * * *
25 Section 2. This Act shall become effective upon signature by the governor or, if not
26signed by the governor, upon expiration of the time for bills to become law without signature
27by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
28vetoed by the governor and subsequently approved by the legislature, this Act shall become
29effective on the day following such approval.
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are additions. HLS 19RS-680 ORIGINAL
HB NO. 304
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 304 Original 2019 Regular Session Dwight
Abstract: Reinstates 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 that are 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 new truck, new automobile,
new aircraft dealers, and factory-authorized dealers of new boats, vessels, or other water
craft, 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 includes not only new trucks, new automobiles, new
aircraft, and new boats, vessels, or other water craft withdrawn from stock but also those that
are kept in a dealer's inventory and 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 used as demonstrators
to the list of exemptions that are effective through June 30, 2025.
Effective upon signature of 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))
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