HLS 19RS-749 ORIGINAL
2019 Regular Session
HOUSE BILL NO. 609
BY REPRESENTATIVE STOKES
TAX/SALES-USE-EXEMPT: Provides with respect to the exclusions and exemptions
applicable to sales and use tax
1 AN ACT
2To amend and reenact R.S. 47:305(D)(1)(i) and 305.14(A)(1)(a), to enact R.S.
3 47:302(BB)(110) through (130), 305.72 through 305.81, 321(P)(111) through (131),
4 321.1(I)(111) through (131), and 331(V)(111) through (131) and to repeal R.S. 4:168
5 and 227, R.S. 47:301(3)(g), 301(7)(d) and (l), (8)(d) and (e), (10)(i), (k), (n), (t), (v),
6 (w), (gg), and (hh), (13)(e), (g), (h), (j), and (l), (14)(b)(ii) and (iii) and (k), (16)(n)
7 and (p), (18)(d)(ii), (h), and (i), 305(F), 305.9, 305.14(A)(1)(b), 305.40, 305.44,
8 305.51, 305.59, 305.60, 305.61, 305.65, 305.70, 305.71, 337.9(D)(28) and (29) and
9 6001, relative to sales and use taxes; to provide for exemptions from sales and use
10 taxes; to provide with respect to the tax treatment of the sale, lease, rental, or storage
11 of certain tangible personal property and sale of certain services; to repeal certain
12 sales and use tax exclusions and exemptions; to provide for certain requirements; to
13 provide for limitations; to provide for effectiveness; and to provide for related
14 matters.
15Be it enacted by the Legislature of Louisiana:
16 Section 1. R.S. 47:305(D)(1)(i) and 305.14(A)(1)(a) are hereby amended and
17reenacted and R.S. 47:302(BB)(110) through (130), 305.72 through 305.81, 321(P)(111)
18through (131), 321.1(I)(111) through (131), and 331(V)(111) through (131) are hereby
19enacted to read as follows:
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HB NO. 609
1 §302. Imposition of tax
2 * * *
3 BB. Notwithstanding any other provision of law to the contrary, including
4 but 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 (110) Sales of off-road vehicles purchased by buyers domiciled in another
10 state as provided in R.S.47:303(E)(1) and 305.56.
11 (111) New trucks, automobiles, aircraft, and boats, vessels, or other water
12 craft withdrawn from stock or kept in dealer inventory and used as demonstrators as
13 provided in R.S. 47:305(D)(1)(i).
14 (112) Purchases or rentals by private individuals of machines and materials
15 for home renal dialysis as provided in R.S. 47:305(G).
16 (113) Purchases of tangible personal property or taxable services by
17 nonprofit literacy organizations as provided in R.S. 47:305.14(A)(5).
18 (114) Sales, purchases, or rentals of property by Ducks Unlimited or Bass
19 Life as provided in R.S. 47:305.41.
20 (115) Sales by nonprofit organizations dedicated to the conservation of fish
21 or migratory waterfowl or wetlands as provided in R.S. 47:305.43.
22 (116) Value of catalogs distributed, in this state as provided in R.S.
23 47:305.49.
24 (117) Contract carrier buses as provided in R.S. 47:305.50(B).
25 (118) Sales, purchases or taxable services by a nonprofit organization which
26 conducts a program on sickle cell disease as provided in R.S. 47:305.53.
27 (119) Sales of original, one-of-a-kind works of art as provided in R.S.
28 47:305.57.
29 (120) Purchases by the Fore!Kids Foundation as provided in R.S. 47:305.68.
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1 (121) Consumption, distribution, or storage of refinery gas as provided in
2 R.S. 47:305.72.
3 (122) Sales by mass communication industries as provided in R.S. 47:305.73.
4 (123) Sales of anthropogenic carbon dioxide for use in qualified tertiary
5 recovery projects as provided in R.S. 47:305.74.
6 (124) Sales of admission to or sale of tangible personal property at Louisiana
7 heritage and cultural events as provided in R.S. 47:305.75.
8 (125) Sales of admission to museums as provided in R.S. 47:305.76.
9 (126) Sales, leases, or rentals to a commuter airline domiciled in Louisiana
10 as provided in R.S. 47:305.77.
11 (127) Sales of pelletized paper waste as provided in R.S. 47:305.78.
12 (128) Sales or use of construction materials purchased by a nonprofit
13 organization as provided in R.S. 47:305.79.
14 (129) Sales for re-sale of specialty Mardi Gras items as provided in R.S.
15 47:305.80.
16 (130) Sale or use of any cellular or mobile telephone as provided by R.S.
17 305.81.
18 * * *
19 §305. Exclusions and exemptions from the tax
20 * * *
21 D.(1) The sale at retail, the use, the consumption, the distribution, and the
22 storage to be used or consumed in the taxing jurisdiction of the following tangible
23 personal property is hereby specifically exempted from the tax imposed by taxing
24 authorities, except as otherwise provided in this Paragraph:
25 * * *
26 (i) New trucks, new automobiles, new aircraft, and new boats, vessels, or
27 other water craft withdrawn from stock or kept in a dealer's inventory by factory
28 authorized new truck, new automobile, new aircraft dealers, and factory-authorized
29 dealers of new boats, vessels, or other water craft, and used trucks and used
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1 automobiles withdrawn from stock or kept in a dealer's inventory by new or used
2 motor vehicle dealers, which are withdrawn for use as demonstrators.
3 * * *
4 §305.14. Exclusions and exemptions; nonprofit organizations; nature of exemption;
5 limitations; qualifications; newspapers; determination of tax exempt status
6 A.(1)(a) The sales and use taxes imposed by taxing authorities shall not
7 apply to sales of tangible personal property at, or admission charges for, outside gate
8 admissions to, or parking fees associated with, events sponsored by domestic, civic,
9 educational, historical, charitable, fraternal, or religious organizations, which are
10 nonprofit, when the entire proceeds, except for necessary expenses such as fees paid
11 for guest speakers, chair and table rentals, and food and beverage utility related items
12 connected therewith, are used for educational, charitable, religious, or historical
13 restoration purposes, including the furtherance of the civic, educational, historical,
14 charitable, fraternal, or religious purpose of the organization. In addition, newspapers
15 published in this state by religious organizations shall also be exempt from such
16 taxes, provided that the price paid for the newspaper or a subscription to the
17 newspaper does not exceed the cost to publish such newspaper.
18 * * *
19 §305.72. Exemption; residue or by-products consumed by producer; exceptions
20 Notwithstanding any other provision of law to the contrary the exercise of
21 any right of ownership over the consumption, distribution, and storage for use or
22 consumption in this state of refinery gas, except the sale to another person, whether
23 at retail or wholesale, only if the refinery gas is ultimately consumed as an energy
24 source by the person who owns the facility in which it is created and is not sold shall
25 be exempt from any sales and use taxes imposed by the state or any other taxing
26 authority. Notwithstanding any other law to the contrary, the use of refinery gas shall
27 be taxed at the cost price value provided in R.S. 47:301(3)(f). If refinery gas, except
28 for feedstock, is sold to another person, whether at retail or wholesale, the sale shall
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1 be taxable and the sales price value shall be as provided for in R.S. 47:301(13)(d).
2 The provisions of this Section shall not apply to feedstocks.
3 §305.73. Exemption; mass communication industries
4 A. Sales and use of the following, including all chemical supplies necessary
5 to produce such items whether manufactured by a printer or purchased from a
6 subcontractor if purchased by a news publication, as defined in R.S. 47:301(24),
7 shall be exempt from sales and use taxes imposed by the state or any other taxing
8 authority:
9 (1) Artwork.
10 (2) Blankets and bars.
11 (3) Chemicals.
12 (4) Color separations.
13 (5) Dyes.
14 (6) Film, including negatives.
15 (7) Offset plates.
16 (8) Press proofs and photomechanical proofs.
17 (9) Layouts.
18 (10) Typesetting.
19 (11) Rubber plates.
20 (12) Paper.
21 (13) Ink.
22 B. Sales of newspapers shall be exempt from sales and use taxes imposed by
23 the state or any other taxing authority.
24 C. Sales or use of machinery and equipment for a radio or television station
25 located in Louisiana, which property is mandated to be licensed for radio or
26 television broadcasting from the Federal Communications Commission, shall be
27 exempt from the sales and use tax imposed by the state or any other taxing authority.
28 D. The exercise of any right of ownership, including the transfer of title to
29 or possession of, or the distribution of telephone directories acquired by an
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1 advertising company that is not affiliated with a provider of telephone services if the
2 telephone directories are distributed free of charge to the recipients , shall be exempt
3 from sales and use taxes imposed by the state or any other taxing authority.
4 E. Newspapers published in this state by religious organizations shall be
5 exempt from the sales and use tax imposed by the state or any other taxing authority,
6 provided that the price paid for the newspaper or a subscription to the newspaper
7 does not exceed the cost to publish the newspaper.
8 F. For commercial printers, the exemptions provided for in this Section shall
9 be limited to materials which are part of a final product.
10 §305.74. Exemption; anthropogenic carbon dioxide
11 Sales of anthropogenic carbon dioxide for use in a qualified tertiary recovery
12 project approved by the assistant secretary of the office of conservation of the
13 Department of Natural Resources pursuant to R.S. 47:633.4 shall be exempt from
14 sales and use taxes imposed by the state or any other taxing authority.
15 §305.75. Exemption; major entertainment events sponsored by a domestic nonprofit
16 organization
17 A. Sales of admission to or sales of tangible personal property at an event
18 which meets both of the following requirements shall be exempt from sales and use
19 taxes imposed by the state or any other taxing authority:
20 (1) The event is sponsored by a domestic nonprofit organization that is
21 exempt from tax under Section 501(c)(3) of the Internal Revenue Code and the event
22 provides Louisiana heritage, culture, crafts, art, food, and music, and the event
23 sponsor has contracted for production management and financing services constitute
24 necessary expenses of the sponsor for purposes of the event.
25 (2) The event transpires over a minimum of seven but not more than twelve
26 days and has a five-year annual average attendance of at least three hundred
27 thousand over the duration of the event. For purposes of determining the five-year
28 annual average attendance, the calculation shall include the total annual attendance
29 for each of the five most recent years.
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1 B. The sales of tangible personal property provided in Subsection (A) of this
2 Section shall be exempt only if the sales are conducted by the event sponsor event.
3 §305.76. Exemption; admission to museums
4 A. The sale of admission to museums shall be exempt from sales and use
5 taxes imposed by the state or any other taxing authority.
6 B. For purposes of this Section the term "museum" shall mean a public or
7 private nonprofit institution which is organized on a permanent basis for essentially
8 educational or aesthetic purposes and which use professional staff to own or use
9 tangible objects, whether animate or inanimate, care for those objects and exhibit
10 them to the public on a regular basis. Museums include but are not limited to the
11 following institutions:
12 (1) Museums relating to art, history, including historic buildings, natural
13 history, science, and technology.
14 (2) Aquariums and zoological parks.
15 (3) Botanical gardens and arboretums.
16 (4) Nature centers.
17 (5) Planetariums.
18 §305.77. Exemption; domestic commuter airlines
19 The sale, lease, or rental of airplanes or airplane equipment or parts to a
20 commuter airline domiciled in Louisiana shall be exempt from sales and use taxes
21 imposed by the state or any other taxing authority.
22 §305.78. Exemption; materials and energy sources used for boiler fuel
23 A. The sales of pelletized paper waste when purchased for use as
24 combustible fuel by an electric utility or in an industrial manufacturing, processing,
25 compounding, reuse, or production process, including the generation of electricity
26 or process steam, at a fixed location in this state, shall be exempt from sales and use
27 taxes imposed by the state or any other taxing authority. However, sales shall not be
28 exempt unless the purchaser has signed a certificate stating that the fuel purchased
29 is for the exclusive use designated herein.
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1 B. For purposes of this Section, "pelletized paper waste" means pellets
2 produced from discarded waste paper that has been diverted or removed from solid
3 waste which is not marketable for recycling and which is wetted, extruded, shredded,
4 or formulated into compact pellets of various sizes for use as a supplemental fuel in
5 a permitted boiler.
6 §305.79. Exemption; charitable housing development, construction, and restoration
7 A. Sales or use of construction materials purchased by a nonprofit
8 organization which are intended for the following purposes shall be exempt from
9 sales and use taxes imposed by the state or any other taxing authority:
10 (1) Construction of new residential dwellings to be donated or sold at below
11 market rates by a nonprofit organization established for that purpose.
12 (2) Rehabilitation and renovation of residential dwellings that were damaged
13 in a natural disaster which will be donated or sold at below market rates by a
14 nonprofit organization established for that purpose.
15 B. For purposes of this Section, "nonprofit organization" means a nonprofit
16 organization deemed to be tax exempt under Section 501(c)(3) of the Internal
17 Revenue Code.
18 §305.80. Exemption; Mardi Gras specialty items
19 A. The sale for re-sale of specialty items for use in connection with Mardi
20 Gras activities by carnival organizations and nonprofit organizations domiciled
21 within Louisiana and participating in a parade sponsored by a carnival organization,
22 shall be exempt from sales and use taxes imposed by the state or any other taxing
23 authority.
24 B.(1) For the purpose of this Section "specialty items" shall mean items
25 which are specially designed for the carnival or nonprofit organization and bear the
26 carnival or nonprofit organization's name or insignia, including but not limited to
27 doubloons, necklaces, cups, and coasters.
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1 (2) For the purpose of this Section "carnival organization" shall mean an
2 organization domiciled within Louisiana that plans to sponsor either a Mardi Gras
3 ball or parade during the next Mardi Gras season.
4 §305.81. Exemption; sales of cellular or mobile telephones and electronic
5 accessories
6 A. The sale or any other disposition of any cellular or mobile telephone, PCS
7 telephone, or wireless telephone used in connection with the sale or use of mobile
8 telecommunications services, or any electronic accessory that is physically
9 connected with any cellular or mobile telephone or personal communication device
10 shall be exempt from sales and use tax levied by the state or any taxing authority at
11 a rate of the greater of the following:
12 (1) The amount of money, if any, actually received by the dealer from the
13 purchaser at the time of the sale for each cellular or mobile telephone, personal
14 communication device, or electronic accessory.
15 (2) One hundred percent of the cost of the cellular or mobile telephone to the
16 dealer, but excluding any amount received by the dealer from the purchaser for
17 providing mobile telecommunications services or any commissions, fees, rebates,
18 activation charges, or other amounts received by the dealer from any source other
19 than the purchaser as a result of or in connection with the sale of the cellular or
20 mobile telephone.
21 B. For the purposes of this Section the terms "sale" or "other disposition"
22 shall not include the withdrawal, use, distribution, consumption, storage, donation,
23 or any other disposition of any cellular or mobile telephone or electronic accessory
24 by the dealer.
25 * * *
26 §321. Imposition of tax
27 * * *
28 P. Notwithstanding any other provision of law to the contrary, including but
29 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
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1 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
2 levied pursuant to the provisions of this Section, except for the retail sale, use,
3 consumption, distribution, or storage for use or consumption of the following:
4 * * *
5 (111) Sales of off-road vehicles purchased by buyers domiciled in another
6 state as provided in R.S.47:303(E)(1) and 305.56.
7 (112) New trucks, automobiles, aircraft, and boats, vessels, or other water
8 craft withdrawn from stock or kept in dealer inventory and used as demonstrators as
9 provided in R.S. 47:305(D)(1)(i).
10 (113) Purchases or rentals by private individuals of machines and materials
11 for home renal dialysis as provided in R.S. 47:305(G).
12 (114) Purchases of tangible personal property or taxable services by
13 nonprofit literacy organizations as provided in R.S. 47:305.14(A)(5).
14 (115) Sales, purchases, or rentals of property by Ducks Unlimited or Bass
15 Life as provided in R.S. 47:305.41.
16 (116) Sales by nonprofit organizations dedicated to the conservation of fish
17 or migratory waterfowl or wetlands as provided in R.S. 47:305.43.
18 (117) Value of catalogs distributed, in this state as provided in R.S.
19 47:305.49.
20 (118) Contract carrier buses as provided in R.S. 47:305.50(B).
21 (119) Sales, purchases or taxable services by a nonprofit organization which
22 conducts a program on sickle cell disease as provided in R.S. 47:305.53.
23 (120) Sales of original, one-of-a-kind works of art as provided in R.S.
24 47:305.57.
25 (121) Purchases by the Fore!Kids Foundation as provided in R.S. 47:305.68.
26 (122) Consumption, distribution, or storage of refinery gas as provided in
27 R.S. 47:305.72.
28 (123) Sales by mass communication industries as provided in R.S. 47:305.73.
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1 (124) Sales of anthropogenic carbon dioxide for use in qualified tertiary
2 recovery projects as provided in R.S. 47:305.74.
3 (125) Sales of admission to or sale of tangible personal property at Louisiana
4 heritage and cultural events as provided in R.S. 47:305.75.
5 (126) Sales of admission to museums as provided in R.S. 47:305.76.
6 (127) Sales, leases, or rentals to a commuter airline domiciled in Louisiana
7 as provided in R.S. 47:305.77.
8 (128) Sales of pelletized paper waste as provided in R.S. 47:305.78.
9 (129) Sales or use of construction materials purchased by a nonprofit
10 organization as provided in R.S. 47:305.79.
11 (130) Sales for re-sale of specialty Mardi Gras items as provided in R.S.
12 47:305.80.
13 (131) Sale or use of any cellular or mobile telephone as provided by R.S.
14 305.81.
15 * * *
16 §321.1. Imposition of tax
17 * * *
18 I. Notwithstanding any other provision of law to the contrary, including but
19 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
20 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
21 levied pursuant to the provisions of this Section, except for the retail sale, use,
22 consumption, distribution, or storage for use or consumption of the following:
23 * * *
24 (111) Sales of off-road vehicles purchased by buyers domiciled in another
25 state as provided in R.S.47:303(E)(1) and 305.56.
26 (112) New trucks, automobiles, aircraft, and boats, vessels, or other water
27 craft withdrawn from stock or kept in dealer inventory and used as demonstrators as
28 provided in R.S. 47:305(D)(1)(i).
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1 (113) Purchases or rentals by private individuals of machines and materials
2 for home renal dialysis as provided in R.S. 47:305(G).
3 (114) Purchases of tangible personal property or taxable services by
4 nonprofit literacy organizations as provided in R.S. 47:305.14(A)(5).
5 (115) Sales, purchases, or rentals of property by Ducks Unlimited or Bass
6 Life as provided in R.S. 47:305.41.
7 (116) Sales by nonprofit organizations dedicated to the conservation of fish
8 or migratory waterfowl or wetlands as provided in R.S. 47:305.43.
9 (117) Value of catalogs distributed, in this state as provided in R.S.
10 47:305.49.
11 (118) Contract carrier buses as provided in R.S. 47:305.50(B).
12 (119) Sales, purchases or taxable services by a nonprofit organization which
13 conducts a program on sickle cell disease as provided in R.S. 47:305.53.
14 (120) Sales of original, one-of-a-kind works of art as provided in R.S.
15 47:305.57.
16 (121) Purchases by the Fore!Kids Foundation as provided in R.S. 47:305.68.
17 (122) Consumption, distribution, or storage of refinery gas as provided in
18 R.S. 47:305.72.
19 (123) Sales by mass communication industries as provided in R.S. 47:305.73.
20 (124) Sales of anthropogenic carbon dioxide for use in qualified tertiary
21 recovery projects as provided in R.S. 47:305.74.
22 (125) Sales of admission to or sale of tangible personal property at Louisiana
23 heritage and cultural events as provided in R.S. 47:305.75.
24 (126) Sales of admission to museums as provided in R.S. 47:305.76.
25 (127) Sales, leases, or rentals to a commuter airline domiciled in Louisiana
26 as provided in R.S. 47:305.77.
27 (128) Sales of pelletized paper waste as provided in R.S. 47:305.78.
28 (129) Sales or use of construction materials purchased by a nonprofit
29 organization as provided in R.S. 47:305.79.
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1 (130) Sales for re-sale of specialty Mardi Gras items as provided in R.S.
2 47:305.80.
3 (131) Sale or use of any cellular or mobile telephone as provided by R.S.
4 305.81.
5 * * *
6 §331. Imposition of tax
7 * * *
8 V. Notwithstanding any other provision of law to the contrary, including but
9 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
10 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
11 levied pursuant to the provisions of this Section, except for the retail sale, use,
12 consumption, distribution, or storage for use or consumption of the following:
13 * * *
14 (111) Sales of off-road vehicles purchased by buyers domiciled in another
15 state as provided in R.S.47:303(E)(1) and 305.56.
16 (112) New trucks, automobiles, aircraft, and boats, vessels, or other water
17 craft withdrawn from stock or kept in dealer inventory and used as demonstrators as
18 provided in R.S. 47:305(D)(1)(i).
19 (113) Purchases or rentals by private individuals of machines and materials
20 for home renal dialysis as provided in R.S. 47:305(G).
21 (114) Purchases of tangible personal property or taxable services by
22 nonprofit literacy organizations as provided in R.S. 47:305.14(A)(5).
23 (115) Sales, purchases, or rentals of property by Ducks Unlimited or Bass
24 Life as provided in R.S. 47:305.41.
25 (116) Sales by nonprofit organizations dedicated to the conservation of fish
26 or migratory waterfowl or wetlands as provided in R.S. 47:305.43.
27 (117) Value of catalogs distributed, in this state as provided in R.S.
28 47:305.49.
29 (118) Contract carrier buses as provided in R.S. 47:305.50(B).
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1 (119) Sales, purchases or taxable services by a nonprofit organization which
2 conducts a program on sickle cell disease as provided in R.S. 47:305.53.
3 (120) Sales of original, one-of-a-kind works of art as provided in R.S.
4 47:305.57.
5 (121) Purchases by the Fore!Kids Foundation as provided in R.S. 47:305.68.
6 (122) Consumption, distribution, or storage of refinery gas as provided in
7 R.S. 47:305.72.
8 (123) Sales by mass communication industries as provided in R.S. 47:305.73.
9 (124) Sales of anthropogenic carbon dioxide for use in qualified tertiary
10 recovery projects as provided in R.S. 47:305.74.
11 (125) Sales of admission to or sale of tangible personal property at Louisiana
12 heritage and cultural events as provided in R.S. 47:305.75.
13 (126) Sales of admission to museums as provided in R.S. 47:305.76.
14 (127) Sales, leases, or rentals to a commuter airline domiciled in Louisiana
15 as provided in R.S. 47:305.77.
16 (128) Sales of pelletized paper waste as provided in R.S. 47:305.78.
17 (129) Sales or use of construction materials purchased by a nonprofit
18 organization as provided in R.S. 47:305.79.
19 (130) Sales for re-sale of specialty Mardi Gras items as provided in R.S.
20 47:305.80.
21 (131) Sale or use of any cellular or mobile telephone as provided by R.S.
22 305.81.
23 * * *
24 Section 2. R.S. 4:168 and 227, R.S. 47:301(3)(g), 301(7)(d) and (l), (8)(d) and (e),
25(10)(i), (k), (n), (t), (v), (w), (gg), and (hh), (13)(e), (g), (h), (j) and (l), (14)(b)(ii) and (iii)
26and (k), (16)(n) and (p), (18)(d)(ii), (h), and (i), 305(F), 305.9, 305.14(A)(1)(b), 305.40,
27305.44, 305.51, 305.59, 305.60, 305.61, 305.65, 305.70, 305.71, 337.9(D)(28) and (29) and
286001 are hereby repealed in their entirety.
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HB NO. 609
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 609 Original 2019 Regular Session Stokes
Abstract: Provides for exclusions and exemptions applicable to sales and use taxes
imposed by the state and other taxing authorities.
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 establishes a wide variety of exclusions and exemptions from the sales and use
taxes imposed by the state and other taxing authorities.
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.
Present law establishes that from July 1, 2018, through June 30, 2025, only the following
exemptions shall be applicable to all state sales and use tax levies:
(1)Food for home consumption as defined in R.S. 47:305(D)(1)(n) through (r) on Jan.
1, 2003. (Const. Art. VII, §2.2)
(2)Natural gas. (Const. Art. VII, §2.2)
(3)Electricity. (Const. Art. VII, §2.2)
(4)Water. (Const. Art. VII, §2.2)
(5)Prescription drugs. (Const. Art. VII, §2.2)
(6)Gasoline and other motor fuels subject to the state excise tax on fuel. (Const. Art.
VII, §27)
(7)Sales to the U.S. government and its agencies. (R.S. 47:301(10)(g))
(8)Other constructions permanently attached to the ground. (R.S. 47:301(16)(l))
(9)Installation charges on tangible personal property. (R.S. 47:301(3)(a))
(10)Installation of oil field board roads. (R.S. 47:301(3)(c))
(11)Transactions involving the construction or overhaul of U.S. Navy vessels. (R.S.
47:301(7)(c) and (14)(h))
(12)Property purchased for exclusive use outside the state. (R.S. 47:305.10)
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(13)Sales, leases, or rentals of tangible personal property paid by or under the provisions
of Medicare. (R.S. 47:315.3)
(14)Sales of human tissue transplants. (R.S. 47:301(10)(d))
(15)Sales of raw agricultural commodities. (R.S. 47:301(10)(e))
(16)Sales of food by a youth-serving organization chartered by the U.S. Congress. (R.S.
47:301(10)(h))
(17)Tangible personal property sold or donated to a food bank. (R.S. 47:301(10)(j) and
(18)(a)(i))
(18)Materials used in the collection of blood. (R.S. 47:301(16)(j))
(19)Aphaeresis kits and leuko reduction filters. (R.S. 47:301(16)(k))
(20)Donations to schools and food banks from resale inventory. (R.S. 47:301(18)(a))
(21)Manufacturer's rebates on a new motor vehicle. (R.S. 47:301(3)(e) and (13)(b))
(22)Sales, leases or rentals of railroad rolling stock in La., and sales of parts and services
used in the fabrication, modification, or repair of rail rolling stock. (R.S.
47:301(4)(k) and 305.50(E))
(23)Sales, purchases and leases of tangible personal property by free hospitals. (R.S.
47:301(7)(e), (10)(p), and (18)(c))
(24)Purchases by a nonprofit entity that sells donated goods. (R.S. 47:301(8)(f))
(25)Tangible personal property for resale. (R.S. 47:301(10)(a)(i))
(26)Purchases of property for lease or rental. (R.S. 47:301(10)(a)(iii) and (18)(a)(iii))
(27)Isolated or occasional sales of tangible personal property by a person not engaged
in such business. (R.S. 47:301(1) and (10)(c)(ii)(bb))
(28)Use of a motor vehicle in La. by a member of the active duty military. (R.S.
47:303(A) and 305.48)
(29)Purchases made under the Supplemental Nutrition Assistance Program through WIC
Program Vouchers. (R.S. 47:305.46)
(30)An article traded in on the purchase of tangible personal property. (R.S.
47:301(13)(a))
(31)Donation of toys. (R.S. 47:301(10)(aa)(i) and (18)(m))
(32)Stocks, bonds, notes, and other obligations or securities. (R.S. 47:301(16)(b)(i)
(33)Credit for sales and use taxes paid to another state on tangible personal property
imported in La. (R.S. 47:303(A)(3)(a))
(34)Work product of certain professionals. (R.S. 47:301(16)(e))
(35)Purchases by a regionally accredited independent educational institution. (R.S.
47:301(8)(b))
(36)Sales through a coin-operated vending machine. (R.S.47:301(10)(b)(i))
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(37)Purchases by a private postsecondary academic degree-granting institution. (R.S.
47:301(10)(cc) and(18)(n))
(38)Purchases of food items for school lunch and breakfast programs by a nonpublic
elementary or secondary school. (R.S. 47:301(10)(dd))
(39)Funeral directing services. (R.S. 47:301(14)(j))
(40)Feed and feed additives for animals held for business purposes. (R.S. 47:305(A)(4))
(41)Farm products produced and used by farmers. (R.S. 47:305(B))
(42)Sale of fertilizer and containers to farmers. (R.S. 47:305(D)(1)(f))
(43)Sales of seeds for planting crops. (R.S. 47:305.3)
(44)Sales of pesticides for agricultural purposes. (R.S. 47:305.8)
(45)The cost price for the printing of a news publication. (R.S. 47:301(3)(h))
(46)Vehicle rentals to a warranty customer. (R.S. 47:301(7)(h))
(47)Leases or rentals of a crane and related equipment with an operator. (R.S.
47:301(7)(k))
(48)Sales by and to the state and its political subdivisions. (R.S. 47:301(8)(c))
(49)Sales of materials for further processing. (R.S. 47:301(10)(c)(i)(aa)
(50)The sales price for new farm equipment used in poultry production. (R.S.
47:301(13)(c))
(51)A factory built home. (R.S. 47:301(16)(g))
(52)Any advertising service rendered by an advertising business. (R.S. 47:302(D))
(53)Sales of livestock, poultry, and other farm products direct from a farm. (R.S.
47:305(A)(1))
(54)Sales of livestock at a public sale sponsored by a breeders' or registry association or
at a livestock auction market. (R.S. 47:305(A)(2))
(55)Sales of agricultural commodities by a person other than the producer, for use in
further processing. (R.S. 47:305(A)(3))
(56)Transactions in interstate commerce and tangible personal property imported into
this state, or produced or manufactured in this state for export. (R.S. 47:305(E))
(57)Ships, vessels, barges, and related supplies. (R.S. 47:305.1)
(58)The sales price of new farm equipment, including polyroll tubing. (R.S. 47:305.25)
(59)A truck and trailer if used at least 80% of the time in interstate commerce. (R.S.
47:305.50(A))
(60)Freight cars, piggyback trailers, and rail rolling stock, and railroad ties. (R.S.
47:305.45 and 305.50(F))
(61)Sales or purchases by a council on aging. (R.S. 47:305.66)
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(62)Sales of pharmaceuticals administered to livestock for agricultural purposes. (R.S.
47:301(16)(f))
(63)Materials used in the production of crawfish and catfish. (R.S. 47:305(A)(5) and (6))
(64)Sales of room rentals by a camp or retreat facility owned by a nonprofit organization.
(R.S.47:301(6)(b))
(65)Sales of room rentals by a homeless shelter. (R.S. 47:301(6)(c))
(66)Sales, leases, and rentals of tangible personal property to Boys State of La., Inc. and
Girls State of La., Inc. (R.S. 47:301(7)(g) and (10)(r))
(67)Sales or purchases of fire-fighting equipment by a volunteer fire department. (R.S.
47:301(10)(o))
(68)Sales to, and leases, rentals, and use of educational materials and equipment used for
classroom instruction by a parochial and private elementary and secondary school
that complies with the court order from the Dodd Brumfield decision and federal
law. (R.S. 47:301(7)(f), (10)(q)(ii), and (18)(e)(ii))
(69)Sales by a parochial and private elementary and secondary school that complies with
the court order from the Dodd Brumfield decision and federal law. (R.S.
47:301(10)(q)(i) and (18)(e)(i))
(70)Sales, (R.S. 47:301(14)(b)(i)), but only of admissions to an athletic and
entertainment event held for or by an elementary or secondary school and
membership fees or dues of a nonprofit, civic association.
(71)Sales or use of orthotic devices, prosthetic devices, hearing aids, eyeglasses, contact
lenses, and wheelchairs prescribed by a physician, optometrist, or licensed
chiropractor used exclusively by the patient for personal use. (R.S. 47:305(D)(1)(k))
(72)Sales or use of ostomy, colostomy, and ileostomy devices and equipment. (R.S.
47:305(D)(1)(l))
(73)Sales of medical devices. (R.S. 47:305(D)(1)(s))
(74)Sales of dental devices and materials. (R.S. 47:305(D)(1)(t))
(75)Sales or use of adaptive driving equipment and motor vehicle modification
prescribed for personal use. (R.S. 47:305(D)(1)(u))
(76)Sales or use of a meal by an educational institution, medical facility, mental
institution, and an occasional meal furnished by an educational, religious, or medical
organization. (R.S. 47:305(D)(2))
(77)Purchases or rentals of renal dialysis machines, parts, materials, and supplies for
home use under a physician's prescription. (R.S. 47:305(G))
(78)Sales of admission to entertainment events by a Little Theater organization. (R.S.
47:305.6)
(79)Sales of admission to musical performances sponsored by a nonprofit organization.
(R.S. 47:305.7)
(80)Sales of admissions to entertainment events sponsored by domestic nonprofit
charitable, religious, and educational organizations. (R.S. 47:305.13)
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(81)Sales of admissions, parking fees, and sales of tangible personal property at events
sponsored by domestic, civic, educational, historical, charitable, fraternal, or
religious nonprofit organizations. (R.S. 47:305.14(A)(1))
(82)Sales of admissions and parking fees at fairs and festivals sponsored by nonprofit
organizations. (R.S. 47:305.18)
(83)Purchases of fishing vessels, supplies, fuels, lubricants, and repairs for the vessels
of licensed commercial fishermen. (R.S. 47:305.20)
(84)Sales of butane, propane, or other liquified petroleum gases for private, residential
consumption. (R.S. 47:305.39)
(85)Sales and purchases by certain organizations that provide training for blind persons.
(R.S.47:305.15)
(86)Purchases and lease by qualified radiation therapy treatment centers. (R.S.
47:305.64)
(87)Sales of electricity for chlor-alkali manufacturing. (R.S. 47:301(10)(c)(ii)(aa))
(88)Rentals or leases of certain oilfield property for re-lease or re-rental.(R.S.
47:301(7)(b))
(89)Sales of aircraft manufactured in La. with a capacity in excess of eight persons.(R.S.
47:301(10)(m))
(90)Labor, materials, services, and supplies used for the repair, renovation, or conversion
of drilling rig machinery and equipment which become component parts of a drilling
rig used exclusively for exploration or development of minerals. (R.S.
47:301(14)(g)(iii))
(91)Repairs and materials used on drilling rigs and equipment used exclusively for
exploration of development of minerals. (R.S. 47:305(I))
(92)Sales by thrift shops located on military installations. (R.S. 47:305.14(A)(4))
(93)Leases or rentals of vessels for use in offshore mineral production, or the provision
of services to those engaged in mineral production. (R.S. 47:305.19)
(94)Sales of gasohol. (R.S. 47:305.28)
(95)Sales or purchases by sheltered workshops. (R.S. 47:305.38)
(96)Pharmaceutical samples manufactured or imported into the state free of charge.(R.S.
47:305.47)
(97)The exclusion for surface preparation, painting, and coating fixed or rotarywing
aircraft and certified transport category aircraft registered outside of this state. (R.S.
47:301(14)(g)(iv))
(98)Sales of platinum, gold, and silver bullion, that is valued solely upon its precious
metal content, whether in coin or ingot form. (R.S. 47:301(16)(b)(ii)(aa))
(99)Sales of certain numismatic coins. (R.S. 47:301(16)(b)(ii)(bb) and (cc))
(100)Purchases, use, and lease of manufacturing machinery and equipment. (R.S.
47:301(3)(i), (13)(k) and (28)(a))
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(101)Purchase of consumables by paper and wood manufacturers and loggers assigned an
industry designation of 3211 - 3222 or 113310 pursuant to the NAICS Code of 2007.
(R.S.47:301(3)(k))
(102)Sale and purchase of electricity as provided in R.S. 47:305(D)(1)(d) for use in
production activity subject to the payment of state severance tax on production from
a stripper well. (R.S. 47:633(7)(c)(i) and (ii)(aa) and (bb))
(103)Purchase of machinery and equipment by a utility regulated by the Public Service
Commission and the city of New Orleans. (R.S. 47:301(16)(o))
(104)Repair services performed in La. when the repaired property is delivered outside of
La. (R.S.47:301(14)(g)(i)(bb))
(105)Any transaction by a nonprofit electric cooperative that is exempt from tax. (R.S.
12:425)
(106)Diesel fuel, butane, propane, or other gases used or consumed for farm purposes.
(R.S. 47:305.37(A))
(107)Refunds for purchases of tangible personal property by international travelers as part
of the Louisiana Tax Free Shopping Program. (R.S. 51:1301, et seq.)
(108)Sales of tangible personal property and services at certain public facilities. (R.S.
39:467 and 468)
(109)The use of steam produced through the processing of a raw agricultural product used
in a facility predominately and directly engaged in the processing of an agricultural
product by a manufacturer as defined in R.S.47:301(3)(i)(ii)(bb) based on being
assigned a NAICS Code within the agricultural, forestry, fishing, and hunting Sector
11.
Present law provides that the exemptions for the sales and use of steam, water, electric
power or energy, natural gas, or other energy sources as provided in R.S. 47:305(D)(1)(b),
(c), (d), (g), and (h) with respect to all taxpayers shall be applicable to the taxes levied under
R.S. 47:321, 321.1.1, and 331.
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.
Proposed law changes the following present law sales and use tax exclusions to exemptions:
(1)Use, consumption, storage for use or consumption of refinery gas.
(2)Sales of anthropogenic carbon dioxide for a tertiary recovery project.
(3)Sales of admission to certain Louisiana heritage and cultural events.
(4)Sales of admission to museums.
(5)Sales, lease, or rental of air planes or equipment to La. commuter airlines.
(6)Sales of pelletized paper waster used for boiler fuel.
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(7)Sales of specialty Mardi Gras items.
(8)Sales and use of cellular or mobile telephones and electronic accessories.
Present law establishes an exemption from taxes imposed by all taxing authorities for raw
materials used in a printing process, to include a variety of types of equipment and chemical
supplies. Proposed law retains present law but consolidates the exemption into a new
exemption for "mass communication industries".
Proposed law regarding a commercial printer, limits the exemption to sale or use of materials
purchased for the purpose of inclusion into tangible personal property to be sold at retail by
the printer and extends applicability to all state sales and use tax levies.
Proposed law regarding a printer of a news publication, retains present law but consolidates
the exemption into a new exemption for "mass communication industries".
Present law establishes an exclusion from sales and use taxes imposed by any taxing
authority for the sale of newspapers.
Proposed law changes present law by converting the exclusion for newspapers to an
exemption and includes the exemption in the new consolidated exemption for "mass
communication industries".
Present law establishes a state sales and use tax exemption for the purchase of machinery
and equipment by a radio station based in La.
Proposed law changes present law by limiting the exemption to only that machinery or
equipment necessary to comply with licensing requirements of the Federal Communication
Commission, by extending the exemption to purchases by television stations, by extending
applicability of the exemption to the taxes imposed by any taxing authority, and by moving
the exemption to the newly established "mass communications industries" exemption.
Present law provides for the following exemptions for purposes of specific providers of
charitable residential housing construction:
(1)St. Bernard Project, Inc.
(2)Hands on New Orleans and Rebuilding Together New Orleans.
(3)Make it Right Foundation.
(4)Habitat for Humanity.
(5)Fuller Center for Housing.
Proposed law repeals present law and in favor of establishes a new sales and use tax
exemption applicable to all taxing authorities for sales or use of construction materials
purchased by a nonprofit organization intended for the construction of new residential
dwellings to be donated or sold at below market rates or rehabilitation and renovation of
residential dwellings damaged in a natural disaster which will be donated or sold at below
market rates.
Present law provides that for purposes of sales and use taxes imposed by all taxing
authorities, any cellular, PCS, or wireless telephone used in connection with the sale or use
of mobile telecommunications services,"sales price" as the greater of the amount of money
actually received by the dealer from the purchaser for each telephone, or 25% of the dealer's
cost for the telephone.
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Proposed law repeals present law but provides a sales and use tax exemption on the sale or
any other disposition of any cellular or mobile telephone, PCS telephone, or wireless
telephone used in connection with the sale or use of mobile telecommunications services,
or any electronic accessory physically connected with any cellular or mobile telephone or
personal communication device from sales and use tax levied by the state or any taxing
authority.
Proposed law adds the following exemptions to the exclusive list of effective exclusions and
exemptions in present law:
(1)Sales of off-road vehicles purchased by buyers domiciled in another state as provided
in R.S.47:303(E)(1) and 305.56.
(2)New trucks, automobiles, aircraft, and boats, vessels, or other water craft withdrawn
from stock or kept in dealer inventory and used as demonstrators as provided in R.S.
47:305(D)(1)(i).
(3)Purchases or rentals by private individuals of machines and materials for home renal
dialysis as provided in R.S. 47:305(G).
(4)Purchases of tangible personal property or taxable services by nonprofit literacy
organizations as provided in R.S. 47:305.14(A)(5).
(5)Sales, purchases, or rentals of property by Ducks Unlimited or Bass Life as provided
in R.S. 47:305.41.
(6)Sales by nonprofit organizations dedicated to the conservation of fish or migratory
waterfowl or wetlands as provided in R.S. 47:305.43.
(7)Value of catalogs distributed, in this state as provided in R.S. 47:305.49.
(8)Contract carrier buses as provided in R.S. 47:305.50(B).
(9)Sales, purchases or taxable services by a nonprofit organization which conducts a
program on sickle cell disease as provided in R.S. 47:305.53.
(10)Sales of original, one-of-a-kind works of art as provided in R.S. 47:305.57.
(11)Purchases by the Fore!Kids Foundation as provided in R.S. 47:305.68.
(12)Consumption, distribution, or storage of refinery gas as provided in R.S. 47:305.72.
(13)Sales by mass communication industries as provided in R.S. 47:305.73.
(14)Sales of anthropogenic carbon dioxide for use in qualified tertiary recovery projects
as provided in R.S. 47:305.74.
(15)Sales of admission to or sale of tangible personal property at Louisiana heritage and
cultural events as provided in R.S. 47:305.75.
(16)Sales of admission to museums as provided in R.S. 47:305.76.
(17)Sales, leases, or rentals to a commuter airline domiciled in Louisiana as provided in
R.S. 47:305.77.
(18)Sales of pelletized paper waste as provided in R.S. 47:305.78.
(19)Sales or use of construction materials purchased by a nonprofit organization as
provided in R.S. 47:305.79.
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(20)Sales for re-sale of specialty Mardi Gras items as provided in R.S. 47:305.80.
(21)Sale or use of any cellular or mobile telephone as provided by R.S. 305.81.
Proposed law changes present law by repealing various sales and use tax exclusions in favor
of enacting new consolidated exemptions covering the same subject matters.
Proposed law repeals the sales and use tax exclusions for purchases by parimutuel racetracks
and off-track wagering facilities.
(Amends R.S. 47:305(D)(1)(i) and 305.14(A)(1)(a); Adds R.S. 47:302(BB)(110) through
(130), 305.72 through 305.81, 321(P)(111) through (131), 321.1(I)(111) through (131), and
331(V)(111) through (131); Repeals R.S. 4:168 and 227, R.S. 47:301(3)(g), 301(7)(d) and
(l), (8)(d) and (e), (10)(i), (k), (n), (t), (v), (w), (gg), and (hh), (13)(e), (g), (h), (j), and (l),
(14)(b)(ii) and (iii) and (k), (16)(n) and (p), (18)(d)(ii), (h), and (i), 305(F), 305.9,
305.14(A)(1)(b), 305.40, 305.44, 305.51, 305.59, 305.60, 305.61, 305.65, 305.70, 305.71,
337.9(D)(28) and (29) and 6001)
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