HLS 21RS-423 ORIGINAL
2021 Regular Session
HOUSE BILL NO. 43
BY REPRESENTATIVE DEVILLIER
TAX/SALES-USE-EXEMPT: Exempts certain business utilities from state sales and use
taxes
1 AN ACT
2To enact R.S. 47:302(BB)(114), relative to state sales and use tax exemptions; to exempt
3 certain utilities from sales and use taxes; to provide for certain limitations; to require
4 the promulgation of rules; to provide for an effective date; and to provide for related
5 matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:302(BB)(114) is hereby enacted to read as follows:
8 §302. Imposition of tax
9 * * *
10 BB. Notwithstanding any other provision of law to the contrary, including
11 but 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)(a) Steam, water, electric power or energy, natural gas, or energy
17 sources as provided in R.S. 47:305(D)(1)(b), (c), (d), (g), and (h), which are used
18 predominately and directly in the actual manufacturing process by a manufacturer
19 which has been assigned a North American Industry Classification System Code
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 21RS-423 ORIGINAL
HB NO. 43
1 within manufacturing Sector 31-33 as published by the United States Bureau of the
2 Census.
3 * * *
4 Section 2. The secretary of the Department of Revenue shall promulgate rules in
5accordance with the Administrative Procedure Act to implement the exemption provided for
6in Section 1 of this Act.
7 Section 3. This Act shall become effective on July 1, 2021; if vetoed by the governor
8and subsequently approved by the legislature, this Act shall become effective on July 1,
92021, or on the day following such approval by the legislature, whichever is later.
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.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 21RS-423 ORIGINAL
HB NO. 43
Effective July 1, 2021.
(Adds R.S. 47:302(BB)(114))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.