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 514 Reengrossed 2021 Regular Session Magee
Abstract: Levies a state sales and use tax on raw or crude marijuana recommended for therapeutic
use and provides for the disposition of the collections of the 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 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%
Present law provides a state and local sales and use tax exclusion for sales of marijuana
recommended for therapeutic use.
Proposed law retains present law but excludes raw or crude marijuana recommended for therapeutic
use from the exclusion in present law.
Proposed law levies a state sales and use tax on raw or crude marijuana recommended for therapeutic
use.
Present law provides that of the collections of state sales and use taxes levied in present law (R.S.
47:302, 321, 321.1, and 331), .4% of the taxes are deposited into the LED Marketing fund and the
remainder of the collections are deposited into the state general fund.
Proposed law provides instead that the collections of state sales and use taxes levied on sales of raw
or crude marijuana recommended for therapeutic use shall be deposited into the Construction
Subfund of the Transportation Trust Fund (subfund).
Present law levies a .03% state sales and use tax (R.S. 51:1286), the collections of which are pledged
to pay for the levy and collection of the sales tax and to pay for media advertisements for the
promotion of the state's tourism industry.
Proposed law provides that all proceeds of the .03% tax levied in present law from sales of raw or
crude marijuana recommended for therapeutic use shall be deposited into the subfund. Otherwise
retains present law. Effective upon the enactment of HB No. 391 of the 2021 Regular Session.
(Amends R.S. 47:301(10)(ii); Adds R.S. 47:301.3 and R.S. 51:1286(E))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Specify that proposed law provides an exception to the current state sales and use tax
exclusion for raw and crude marijuana recommended for therapeutic use.
2. Provide that proposed law will be effective if and when House Bill No. 391 of the 2021
Regular Session is enacted and becomes effective.