RÉSUMÉ DIGEST
ACT 16 (HB 26) 2020 Second Extraordinary Session Schexnayder
Existing 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%
New 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, Hurricane Delta, and the COVID-19 pandemic.
New 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.
New 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.
Existing 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.
New law adds the Nov. 20, 2020, and Nov. 21, 2020, sales and use tax holidays to the list
of exemptions that are currently effective.
Effective upon signature of the governor (Oct. 28, 2020).
(Adds R.S. 47:302(BB)(113), 305.74, 321(P)(114), 321.1(I)(114), and 331(V)(114))