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.