HLS 202ES-105 ORIGINAL
2020 Second Extraordinary Session
HOUSE BILL NO. 26
BY REPRESENTATIVE SCHEXNAYDER
TAX/SALES-USE-EXEMPT: Establishes a sales tax holiday to provide relief for recovery
as a result of Hurricane Laura and the COVID-19 pandemic (Item #26)
1 AN ACT
2To enact R.S. 47:302(BB)(113), 305.74, 321(P)(114), 321.1(I)(114), and 331(V)(114),
3 relative to sales and use tax; to establish a sales and use tax holiday for certain
4 purchases; to provide for requirements and limitations; to provide for the
5 effectiveness of the sales and use tax holiday; to provide for an effective date; and
6 to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:302(BB)(113), 305.74, 321(P)(114), 321.1(I)(114), and
9331(V)(114) are hereby enacted to read as follows:
10 §302. Imposition of tax
11 * * *
12 BB. Notwithstanding any other provision of law to the contrary, including
13 but not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
14 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
15 levied pursuant to the provisions of this Section, except for the retail sale, use,
16 consumption, distribution, or storage for use or consumption of the following:
17 * * *
18 (113) Purchases of tangible personal property pursuant to the sales tax
19 holiday as provided for in R.S. 47:305.74.
20 * * *
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1 §305.74. Exemption; sales tax holiday; November 20th and 21st, 2020; Hurricane
2 Laura and the COVID-19 pandemic
3 A.(1)(a) Notwithstanding any other provision of law to the contrary, the sales
4 and use tax levied by the state of Louisiana shall not apply to the first two thousand
5 five hundred dollars of the sales price or cost price of any consumer purchases of
6 tangible personal property that occur on Friday, November 20, 2020, and Saturday,
7 November 21, 2020, in order to provide tax relief for citizens recovering from
8 Hurricane Laura and the COVID-19 pandemic.
9 (b) The governing authority of a political subdivision may establish, by
10 ordinance or resolution adopted no later than November 6, 2020, an exemption for
11 the sales and use taxes levied by the political subdivision on the first two thousand
12 five hundred dollars of the sales price or cost price of any consumer purchases of
13 tangible personal property that occur on Friday, November 20, 2020, and Saturday,
14 November 21, 2020, in order to provide relief for citizens recovering from Hurricane
15 Laura and the COVID-19 pandemic.
16 (2) For purposes of this Section, "consumer purchases" shall mean purchases
17 of items of tangible personal property other than vehicles subject to license and title.
18 Consumer purchases shall not include the purchase of meals furnished for
19 consumption on the premises where purchased, including to-go orders.
20 B. This Section shall apply if and only if during the eligible tax exemption
21 period one of the following occurs:
22 (1) Title to or possession of an item of tangible personal property is
23 transferred from a selling dealer to a purchaser.
24 (2) A customer selects an eligible item from the selling dealer's inventory for
25 layaway that is physically set aside in the selling dealer's inventory for future
26 delivery to that customer.
27 (3) The customer makes final payment and withdraws an item from layaway
28 that might have been placed in layaway before the eligible tax exemption period.
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HB NO. 26
1 (4) The customer orders and pays for an eligible item and the selling dealer
2 accepts the order for immediate shipment, even if delivery is made after the eligible
3 tax exemption period, provided that the customer has not requested delayed
4 shipment.
5 C. Eligible items that customers purchase during the eligible tax exemption
6 period with "rain checks" shall qualify for exemption, regardless of when the "rain
7 checks" are issued. However, issuance of "rain checks" during the exemption period
8 shall not qualify items for exemption if the otherwise eligible items are actually
9 purchased after conclusion of the eligible tax exemption period.
10 D.(1) When a customer purchases an eligible item during the eligible tax
11 exemption period and exchanges the item without additional cash consideration after
12 conclusion of the eligible tax exemption period for an essentially identical item of
13 different size, color, or other failure, no additional tax is due.
14 (2) When a customer, after conclusion of the eligible tax exemption period
15 returns an eligible item that was purchased during the eligible tax exemption period
16 and receives credit on the purchase of a different item, the appropriate sales tax is
17 due on the purchase of the new item.
18 E. For a sixty-day period after conclusion of the eligible tax exemption
19 period, when a customer returns an item that would qualify for an exemption, no
20 credit or refunds of sales tax shall be given unless the customer provides a receipt or
21 invoice that shows that the state sales tax was paid or the retailer has sufficient
22 documentation that shows that the tax was paid on the specific item. This sixty-day
23 period is not intended to change a dealer's policy concerning the time period during
24 which returns will be accepted.
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 (114) Purchases of tangible personal property pursuant to the sales tax
6 holiday as provided for in R.S. 47:305.74.
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 (114) Purchases of tangible personal property pursuant to the sales tax
17 holiday as provided for in R.S. 47:305.74.
18 * * *
19 §331. Imposition of tax
20 * * *
21 V. 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 (114) Purchases of tangible personal property pursuant to the sales tax
28 holiday as provided for in R.S. 47:305.74.
29 * * *
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1 Section 2. This Act shall become effective upon signature by the governor or, if not
2signed by the governor, upon expiration of the time for bills to become law without signature
3by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
4vetoed by the governor and subsequently approved by the legislature, this Act shall become
5effective 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 26 Original 2020 Second Extraordinary Session Schexnayder
Abstract: Provides for a state sales tax holiday on the first $2,500 of the sales price of
consumer purchases of tangible personal property that occur on Friday, Nov. 20,
2020, and Saturday, Nov. 21, 2020, in order to provide tax relief from Hurricane
Laura and the COVID-19 pandemic, and authorizes political subdivisions to
establish a sales tax holiday during the same time period.
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%
Proposed law authorizes a state sales and use tax exemption (sales tax holiday) on the first
$2,500 of the sales price of any consumer purchases of tangible personal property that occur
on Friday, Nov. 20, 2020, and Saturday, Nov. 21, 2020, in order to provide tax relief for
citizens recovering from Hurricane Laura and the COVID-19 pandemic.
Proposed law authorizes the governing authority of a political subdivision to establish, by
ordinance or resolution adopted prior to Nov. 6, 2020, a sales tax holiday for sales and use
taxes levied by the political subdivision during the same time period as the state sales tax
holiday.
Proposed law defines "consumer purchases" as purchases of items of tangible personal
property other than vehicles subject to license and title but excludes purchases of meals
furnished for consumption on the premises where purchased, including to-go orders.
Proposed law sets forth requirements for sales in order for the exemption to apply and terms
and conditions for "rain checks", items bought on "layaway", and returns.
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; however, some exemptions are
specifically given effectiveness.
Proposed law changes present law by adding the sales and use tax holiday in proposed law
to the list of exemptions that are effective through June 30, 2025.
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Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 47:302(BB)(113), 305.74, 321(P)(114), 321.1(I)(114), and 331(V)(114))
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