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 43 Original 2021 Regular Session DeVillier
Abstract: Exempts steam, water, electric power or energy, and natural gas used directly in the
manufacturing process from the 2% levy of the state sales and use tax.
Present law imposes state sales and use taxes on the sale, use, lease, or rental of tangible personal
property pursuant to the following levies for 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 for a number of exclusions and exemptions that apply generally to state sales
and use taxes. Includes an exemption for steam, certain water, electric power or energy, natural gas,
and certain energy sources (R.S. 47:305(D)(1)(b), (c), (d), (g), and (h)—hereinafter "business
utilities").
Notwithstanding the general exclusions and exemptions in present law, each provision of present law
that levies a state sales and use tax includes or references an exclusive list of exclusions and
exemptions that apply during the period beginning July 1, 2018, through June 30, 2025. Present law
exempts business utilities from 2.45% of the state's 4.45% sales and use tax during this period.
Proposed law adds an exemption from the remaining 2% of state sales and use tax for business
utilities used predominately and directly in the actual manufacturing process by a manufacturer
which has been assigned a NAICS Code within manufacturing Sector 31-33. The exemption applies
through June 30, 2025.
Proposed law requires the Dept. of Revenue to promulgate rules in accordance with present law
(Administrative Procedure Act) to implement the provisions of proposed law.
Effective July 1, 2021.
(Adds R.S. 47:302(BB)(114))