HLS 21RS-960 ORIGINAL
2021 Regular Session
HOUSE BILL NO. 540
BY REPRESENTATIVE HILFERTY
TAX/SALES & USE: Provides a sales and use tax exemption for purchases of construction
materials by certain charitable organizations
1 AN ACT
2To amend and reenact R.S. 47:305.65(A) and to enact R.S. 47:302(BB)(114), 321(P)(115),
3 321.1(I)(115), and 331(V)(115), relative to sales and use tax exemptions; to provide
4 for a sales and use tax exemption for construction materials sold to certain charitable
5 organizations for the purpose of constructing, rehabilitating, or renovating certain
6 residential dwellings; to provide for effectiveness; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:305.65(A) is hereby amended and reenacted and R.S.
947:302(BB)(114), 321(P)(115), 321.1(I)(115), and 331(V)(115) are hereby enacted to read
10as follows:
11 §302. Imposition of tax
12 * * *
13 BB. Notwithstanding any other provision of law to the contrary, including
14 but not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
15 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
16 levied pursuant to the provisions of this Section, except for the retail sale, use,
17 consumption, distribution, or storage for use or consumption of the following:
18 * * *
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HB NO. 540
1 (114) Construction materials sold to certain charitable groups used for
2 constructing, rehabilitating, or renovating certain residential dwellings pursuant to
3 R.S. 47:305.65.
4 * * *
5 §305.65. Exemption; charitable residential construction, rehabilitation, and
6 renovation; limitation
7 A. The sales and use tax imposed by the state of Louisiana and all of its tax
8 authorities shall not apply to the sale of construction materials to Hands on New
9 Orleans and Rebuilding Together New Orleans covenant partners located in this state
10 when such materials are intended for use in either constructing, rehabilitating, or
11 renovating residential dwellings in this state which were destroyed or damaged by
12 Hurricane Katrina or Hurricane Rita.
13 * * *
14 §321. Imposition of tax
15 * * *
16 P. Notwithstanding any other provision of law to the contrary, including but
17 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
18 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
19 levied pursuant to the provisions of this Section, except for the retail sale, use,
20 consumption, distribution, or storage for use or consumption of the following:
21 * * *
22 (115) Construction materials sold to certain charitable groups used for
23 constructing, rehabilitating, or renovating certain residential dwellings pursuant to
24 R.S. 47:305.65.
25 * * *
26 §321.1. Imposition of tax
27 * * *
28 I. Notwithstanding any other provision of law to the contrary, including but
29 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
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are additions. HLS 21RS-960 ORIGINAL
HB NO. 540
1 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
2 levied pursuant to the provisions of this Section, except for the retail sale, use,
3 consumption, distribution, or storage for use or consumption of the following:
4 * * *
5 (115) Construction materials sold to certain charitable groups used for
6 constructing, rehabilitating, or renovating certain residential dwellings pursuant to
7 R.S. 47:305.65.
8 * * *
9 §331. Imposition of tax
10 * * *
11 V. Notwithstanding any other provision of law to the contrary, including but
12 not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
13 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
14 levied pursuant to the provisions of this Section, except for the retail sale, use,
15 consumption, distribution, or storage for use or consumption of the following:
16 * * *
17 (115) Construction materials sold to certain charitable groups used for
18 constructing, rehabilitating, or renovating certain residential dwellings pursuant to
19 R.S. 47:305.65.
20 * * *
21 Section 2. This Act shall become effective upon signature by the governor or, if not
22signed by the governor, upon expiration of the time for bills to become law without signature
23by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
24vetoed by the governor and subsequently approved by the legislature, this Act shall become
25effective on the day following such approval.
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HB NO. 540
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 540 Original 2021 Regular Session Hilferty
Abstract: Provides for a sales and use tax exemption for sales of construction materials to
certain charitable organizations if the materials are used for constructing,
rehabilitating, or renovating certain residential dwellings.
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 suspends numerous exemptions from the four levies of state sales and use tax
(R.S. 47:302, 321, 321.1, and 331) through June 30, 2025, and provides a list of exemptions
that are currently effective.
Present law authorizes a sales and use tax exemption on the sales of construction materials
to Hands on New Orleans and Rebuilding Together New Orleans if the materials are used
to construct, rehabilitate, or renovate residential dwellings in La. which were destroyed or
damaged by Hurricane Katrina or Hurricane Rita.
Proposed law removes the requirement that the residential dwellings were destroyed or
damaged by Hurricane Katrina or Hurricane Rita.
Present law suspends effectiveness of the charitable residential construction, rehabilitation,
and renovation sales and use tax exemption, through June 30, 2025, thereby making these
items subject to state sales and use tax.
Proposed law adds the charitable residential construction, rehabilitation, and renovation sales
and use tax exemption to the list of exemptions currently effective through June 30, 2025.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 47:305.65(A); Adds R.S. 47:302(BB)(114), 321(P)(115), 321.1(I)(115), and
331(V)(115))
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are additions.