HLS 21RS-52 ENGROSSED
2021 Regular Session
HOUSE BILL NO. 50
BY REPRESENTATIVE STEFANSKI
TAX/SALES & USE: Provides a state and local sales and use tax exclusion for certain re-
leases or re-rentals of items of tangible personal property
1 AN ACT
2To enact R.S. 47:301(7)(m), 302(BB)(114), 321(P)(115), 321.1(I)(115), and 331(V)(115),
3 relative to state sales and use tax; to provide for a state sales and use tax exclusion
4 for certain leases or rentals of items of tangible personal property; to provide for
5 definitions; to provide for an effective date; and to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:301(7)(m), 302(BB)(114), 321(P)(115), 321.1(I)(115), and
8331(V)(115) are hereby enacted to read as follows:
9 §301. Definitions
10 As used in this Chapter the following words, terms, and phrases have the
11 meanings ascribed to them in this Section, unless the context clearly indicates a
12 different meaning:
13 * * *
14 (7)
15 * * *
16 (m)(i) For purposes of any sales, use, lease, or rental tax, the term "lease or
17 rental" shall not mean or include the lease or rental of any item of tangible personal
18 property by a short-term equipment rental dealer for the purpose of re-lease or re-
19 rental.
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1 (ii) For purposes of this Subparagraph, "short-term equipment rental dealer"
2 shall mean a person or entity whose principal business is the short-term rental of
3 tangible personal property classified under the code numbers 532412 and 532310 of
4 the North American Industry Classification System published by the United States
5 Bureau of the Census.
6 (iii) For purposes of this Subparagraph, "short-term rental" shall mean the
7 rental of an item of tangible personal property for a period of less than three hundred
8 sixty-five days, for an undefined period, or under an open-ended agreement.
9 * * *
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 (114) Leases or rentals by a short-term equipment rental dealer for the
19 purpose of re-lease or re-rental as provided in R.S. 47:301(7)(m).
20 * * *
21 §321. Imposition of tax
22 * * *
23 P. Notwithstanding any other provision of law to the contrary, including but
24 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
25 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
26 levied pursuant to the provisions of this Section, except for the retail sale, use,
27 consumption, distribution, or storage for use or consumption of the following:
28 * * *
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1 (115) Leases or rentals by a short-term equipment rental dealer for the
2 purpose of re-lease or re-rental as provided in R.S. 47:301(7)(m).
3 * * *
4 §321.1. Imposition of tax
5 * * *
6 I. Notwithstanding any other provision of law to the contrary, including but
7 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
8 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
9 levied pursuant to the provisions of this Section, except for the retail sale, use,
10 consumption, distribution, or storage for use or consumption of the following:
11 * * *
12 (115) Leases or rentals by a short-term equipment rental dealer for the
13 purpose of re-lease or re-rental as provided in R.S. 47:301(7)(m).
14 * * *
15 §331. Imposition of tax
16 * * *
17 V. Notwithstanding any other provision of law to the contrary, including but
18 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
19 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
20 levied pursuant to the provisions of this Section, except for the retail sale, use,
21 consumption, distribution, or storage for use or consumption of the following:
22 * * *
23 (115) Leases or rentals by a short-term equipment rental dealer for the
24 purpose of re-lease or re-rental as provided in R.S. 47:301(7)(m).
25 * * *
26 Section 2. This Act shall become effective October 1, 2021.
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HB NO. 50
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 50 Engrossed 2021 Regular Session Stefanski
Abstract: Establishes a state and local sales and use tax exclusion for the lease or rental of
items of tangible personal property by a short-term equipment rental dealer for the
purpose of re-lease or re-rental.
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%
Present law imposes a statewide sales and use tax on the sale, use, lease, or rental of tangible
personal property at a rate of .03%.
Proposed law establishes an exclusion from state and local sales and use tax for the lease or
rental of any item of tangible personal property by a short-term equipment rental dealer for
the purpose of re-lease or re-rental.
Proposed law defines, for purposes of the exclusion in proposed law, "short-term equipment
rental dealer" as a person or entity whose principal business is the short-term rental of
tangible personal property classified under code numbers 532412 and 532310 of the North
American Industry Classification System, published by the U. S. Bureau of Census.
Proposed law further defines "short-term rental" as the rental of tangible personal property
for a period of less than 365 days, for an undefined period, or under an open-ended
agreement.
Effective Oct. 1, 2021.
(Adds R.S. 47:301(7)(m), 302(BB)(114), 321(P)(115), 321.1(I)(115), and 331(V)(115))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Change the type of transactions the exclusion applies to from re-leases or re-
rentals made by a short-term equipment rental dealer to leases or rentals by a
short-term equipment rental dealer for the purpose of re-lease or re-rental.
2. Change effectiveness from signature of the governor to Oct. 1, 2021.
3. Make technical changes.
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