HLS 19RS-950 REENGROSSED
2019 Regular Session
HOUSE BILL NO. 597
BY REPRESENTATIVE STEFANSKI
TAX/SALES & USE: Authorizes a state and local sales and use tax exclusion for certain
re-leases or re-rentals of items of tangible personal property
1 AN ACT
2To enact R.S. 47:301(7)(m), 302(BB)(110), 321(P)(111), 321.1(I)(111), and 331(V)(111),
3 relative to state and local sales and use tax; to provide for a sales and use tax
4 exclusion for certain leases and rentals of tangible personal property; to provide for
5 definitions; to provide for restrictions or limitations; to provide for the effectiveness
6 of the exclusion; to provide for an effective date; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:301(7)(m), 302(BB)(110), 321(P)(111), 321.1(I)(111), and
9331(V)(111) are hereby enacted to read as follows:
10 §301. Definitions
11 As used in this Chapter the following words, terms, and phrases have the
12 meanings ascribed to them in this Section, unless the context clearly indicates a
13 different meaning:
14 * * *
15 (7)
16 * * *
17 (m)(i) For purposes of any sales, use, lease, or rental tax levied by the state
18 or any political subdivision of the state, the term "lease or rental" shall not mean or
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1 include the lease or rental of any item of tangible personal property made by a short-
2 term equipment rental dealer for the purpose of re-lease or re-rental.
3 (ii) For purposes of this Subparagraph, "short-term equipment rental dealer"
4 shall mean a person or entity whose principal business is the short-term rental of
5 tangible personal property classified under code numbers 532412 and 532310 of the
6 North American Industry Classification System, published by the United States
7 Bureau of the Census.
8 (iii) For purposes of this Subparagraph, "short-term rental" shall mean the
9 rental of an item of tangible personal property for a period of less than three hundred
10 sixty-five days, for an undefined period, or under an open-ended agreement.
11 * * *
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 * * *
20 (110) Lease or rental of tangible personal property made by a short-term
21 equipment rental dealer for the purpose of re-lease or re-rental as provided in R.S.
22 47:301(7)(m).
23 * * *
24 §321. Imposition of tax
25 * * *
26 P. Notwithstanding any other provision of law to the contrary, including but
27 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
28 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
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HB NO. 597
1 levied pursuant to the provisions of this Section, except for the retail sale, use,
2 consumption, distribution, or storage for use or consumption of the following:
3 * * *
4 (111) Lease or rental of tangible personal property made by a short-term
5 equipment rental dealer for the purpose of re-lease or re-rental as provided in R.S.
6 47:301(7)(m).
7 * * *
8 §321.1. Imposition of tax
9 * * *
10 I. Notwithstanding any other provision of law to the contrary, including but
11 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
12 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
13 levied pursuant to the provisions of this Section, except for the retail sale, use,
14 consumption, distribution, or storage for use or consumption of the following:
15 * * *
16 (111) Lease or rental of tangible personal property made by a short-term
17 equipment rental dealer for the purpose of re-lease or re-rental as provided in R.S.
18 47:301(7)(m).
19 * * *
20 §331. Imposition of tax
21 * * *
22 V. Notwithstanding any other provision of law to the contrary, including but
23 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
24 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
25 levied pursuant to the provisions of this Section, except for the retail sale, use,
26 consumption, distribution, or storage for use or consumption of the following:
27 * * *
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1 (111) Lease or rental of tangible personal property made by a short-term
2 equipment rental dealer for the purpose of re-lease or re-rental as provided in R.S.
3 47:301(7)(m).
4 * * *
5 Section 2. This Act shall become effective upon signature by the governor or, if not
6signed by the governor, upon expiration of the time for bills to become law without signature
7by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
8vetoed by the governor and subsequently approved by the legislature, this Act shall become
9effective on the day following such approval.
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 597 Reengrossed 2019 Regular Session Stefanski
Abstract: Establishes a state and local sales and use tax exclusion for the re-lease or re-
rental of items of tangible personal property made by a short-term equipment rental
dealer.
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 provides that state and local sales and use tax apply to the re-lease or re-rental
of items of tangible personal property made by a short-term equipment rental dealer.
Present law suspends numerous exclusions and exemptions from the four levies of state sales
and use tax (R.S. 47:302, 321, 321.1, and 331) through June 30, 2025.
Proposed law establishes an exclusion from state and local sales and use tax for the re-lease
or re-rental of any item of tangible personal property made by a short-term equipment rental
dealer.
Proposed law defines, for purposes of the exclusion in proposed law, a "short-term
equipment rental dealer" as a person or entity whose principal business is the short-term
rental of tangible personal property classified under code numbers 532412 and 532310 of
the North American Industry Classification System (NAICS), published by the U. S. Bureau
of Census.
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HB NO. 597
Proposed law further defines a "short-term rental" as the rental of tangible personal property
for a period of less than 365 days, for an undefined period, or under an open-ended
agreement.
Proposed law changes present law by adding the sales and use tax exclusion for the re-lease
or re-rental of items of tangible personal property as established in proposed law to the list
of exclusions and exemptions that are effective through June 30, 2025.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 47:301(7)(m), 302(BB)(110), 321(P)(111), 321.1(I)(111), and 331(V)(111))
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