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.
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))