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2021 Regular Session
HOUSE BILL NO. 612
BY REPRESENTATIVE NELSON
TAX: Provides relative state and local taxes
1 AN ACT
2To amend and reenact R.S. 33:4169(D) and R.S. 47:301(14)(b)(i)(aa), 302(A)(introductory
3 paragraph) and (1), (B), and (D), 305.14(A)(1)(a), 305.20(A) and (C),
4 321(A)(introductory paragraph) and (1) and (B), 331(A)(introductory paragraph) and
5 (1) and (B), 337.9(C)(7) through (9), (12), and (13), and 2303(introductory
6 paragraph) and (A), to enact R.S. 47:301(14)(l) and (31), 305.54(H), 305.58(G),
7 305.62(G), 305.75, and 331.1, and to repeal R.S. 38:2212.4(C) and R.S.
8 47:301(3)(b), (g), and (j), (4)(i), (7)(d), (j), and (l), (8)(d) and (e), (10)(a)(iv), (b)(ii),
9 (i), (k), (l), (n), (s), (t), (v) through (y), (bb), and (ee) through (hh), (13)(e) through
10 (j), (l), and (m), (14)(b)(ii) through (iv) and (k), (16)(b)(iii), (c), (h), (i), (m), (n), and
11 (p), (18)(a)(iv), (d), (f) through (k), (o), and (p), 302(F) through (J) and (L) through
12 (CC), 305(D)(1)(b) through (d), (g), (h), (j), and (m), (3) through (5), and (F), 305.2,
13 305.9, 305.11, 305.14(A)(1)(b) and (5), 305.16, 305.17, 305.26, 305.33, 305.36,
14 305.40 through 305.44, 305.50(B), 305.51 through 305.53, 305.57, 305.59 through
15 305.61, 305.63, 305.65, 305.67, 305.68, 305.70, 305.71, 305.74, 321(E) through (Q),
16 321.1, 331(F) through (W), 337.9(C)(23) and (D)(6), (8), (10), (12), (13), (18)
17 through (20), and (26) through (34), 337.10(E), (G), and (M), 337.11(4) and (8),
18 6001, 6003, and 6040, relative to state and local taxation; to provide with respect to
19 sales and use taxes on sales of tangible personal property; to provide with respect to
20 sales and use taxes on sales of certain services; to provide with respect to sales and
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1 use taxes on purchases, services, and rentals for private companies working for local
2 authorities on construction of sewerage and waste water treatment facilities; to
3 provide with respect to sales and use taxes on certain labor charges; to provide with
4 respect to certain cigarette taxes; to provide with respect to sales and use taxes on
5 rentals or purchases of certain airplanes; to provide with respect to sales and use
6 taxes on certain manufacturing and machinery equipment; to provide with respect
7 to sales and use taxes on pallets; to provide with respect to the sales and use taxes on
8 certain bibles, song books, or literature; to provide with respect to sales and use taxes
9 on certain school buses; to provide with respect to sales and use taxes on certain
10 pollution control devices; to provide with respect to sales and use taxes on pelletized
11 paper waste; to provide with respect sales and use taxes on sales of telephone
12 directories; to provide with respect to sales and use taxes of telecommunication
13 services; to provide with respect to sales and use taxes on natural gas; to provide
14 with respect to sales and use taxes on storm shutter devices; to provide with respect
15 to sales and use taxes at certain Louisiana heritage and culture events; to provide
16 with respect to sales and use taxes at festivals; to provide with respect to sales and
17 use taxes on specialty items sold to members by non profit carnival organizations;
18 to provide with respect to sales and use taxes on admissions to certain athletic and
19 entertainment events; to provide with respect to sales and use taxes on admissions
20 to certain places of amusement; to provide with respect to sales and use taxes on
21 computer software; to provide with respect to sales and use taxes on purchases by
22 motor vehicle manufacturers; to provide with respect to sales and use taxes on sales
23 of newspapers; to provide with respect to sales and use taxes on certain medical
24 devices and equipment; to provide with respect to sales and use taxes on sales to
25 nonprofit literacy organizations; to provide with respect to sales and use taxes on
26 certain installation services; to provide with respect to sales and use taxes on motor
27 vehicles; to provide with respect to sales and use taxes on purchases of certain
28 construction materials by charitable or nonprofit organizations; to provide with
29 respect to sales and use taxes on specialty Mardi Gras items; to provide with respect
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1 to sales and use taxes on sales by Ducks Unlimited and Bass Life; to provide with
2 respect to sales and use taxes on tickets to dances, dramas, or performing arts
3 presentations or events; to provide with respect to sales and use taxes on materials
4 used in the printing process; to provide with respect to sales and use taxes on certain
5 carrier buses; to provide with respect to sales and use taxes on purchases of breast-
6 feeding items; to provide with respect to sales and use taxes on certain materials for
7 Louisiana commercial fishermen; to provide with respect to sales and use taxes on
8 certain antique motor vehicle and airplanes; to provide with respect to sales and use
9 taxes on rentals of motion-picture film; to provide with respect to sales and use taxes
10 on purchases by and sales by certain nonprofit organizations dedicated to the
11 conservation of fish and migratory waterfowl; to provide with respect to sales and
12 use taxes of certain one-of-a-kind works of art; to provide with respect to sales and
13 use tax holidays; to levy a sales and use tax on certain advertising services; to levy
14 a sales and use tax on certain digital goods; to provide for definitions related to the
15 taxation of digital goods; to levy an additional state sales and use tax; to provide for
16 a sales and use tax exemption from certain residential utilities; to provide for certain
17 local sales and use tax exemptions; to provide for eligibility for use value assessment
18 for ad valorem property taxation; to provide for effectiveness; to provide for certain
19 requirements and limitations; and to provide for related matters.
20Be it enacted by the Legislature of Louisiana:
21 Section 1. R.S. 33:4169(D) is hereby amended and reenacted to read as follows:
22 §4169. Collection contracts for sewerage service charges; access charges;
23 enforcement procedures for delinquent charges
24 * * *
25 D. Any municipal corporation, parish, or sewerage or water district shall
26 have the power to execute and enter into a contract with any private company for the
27 construction of sewerage or wastewater treatment facilities and for the operation of
28 such facilities. Any such private company shall have in its construction and
29 operation of such facilities the same ad valorem and sales tax liability exemption as
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1 the municipal corporation, parish, or sewerage or water district with which it
2 contracts for such purpose.
3 * * *
4 Section 2. R.S. 47:301(14)(b)(i)(aa), 302(A)(introductory paragraph) and (1), (B),
5and (D), 305.14(A)(1)(a), 305.20(A) and (C), 321(A)(introductory paragraph) and (1) and
6(B), 331(A)(introductory paragraph) and (1) and (B), 337.9(C)(7) through (9), (12), and (13),
7and 2303(introductory paragraph) and (A) are hereby amended and reenacted and R.S.
847:301(14)(l) and (31), 305.54(H), 305.58(G), 305.62(G), 305.75, and 331.1 are hereby
9enacted to read as follows:
10 §301. Definitions
11 As used in this Chapter the following words, terms, and phrases have the
12 meanings ascribed to them in this Section, unless the context clearly indicates a
13 different meaning:
14 * * *
15 (14) "Sales of services" means and includes the following:
16 * * *
17 (b)(i)(aa) The sale of admissions to places of amusement, to an athletic and
18 entertainment other than that of schools, colleges, and universities, and recreational
19 events, and the furnishing, for dues, fees, or other consideration of the privilege of
20 access to clubs or the privilege of having access to or the use of amusement,
21 entertainment, athletic, or recreational facilities event held for or by an elementary
22 or secondary school.
23 * * *
24 (l) The sales of digital advertising services rendered by an advertising
25 business, including but not limited to advertising agencies, design firms, or broadcast
26 media businesses or any member, agent, or employee thereof, to any person or entity
27 regardless of the service involving a transfer tangible personal property to the client
28 when the digital advertising service is delivered into Louisiana.
29 * * *
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1 (31)(a) Digital goods shall mean:
2 (i) Digital products or prewritten computer software delivered electronically
3 to an end user, regardless of whether the end user receives permanent or temporary
4 rights to access or utilize the product or software or whether the end user is required
5 to make continued payments for the rights or access.
6 (ii) Digital products or prewritten computer software in which a person may
7 be permitted rights for access or use and possession is maintained by the seller or a
8 third party, regardless of whether charges for access or utilization are per use, per
9 user, per license, or by subscription.
10 (iii) Digital codes.
11 (iv) Rights, licenses, or benefits delivered electronically to enhance,
12 maintain, update, renew, upgrade, or expand benefits for digital products or
13 prewritten computer software.
14 (b) For purposes of this Subparagraph the following words have the
15 following meanings:
16 (i) Digital code shall mean a key, activation, or enabling code that provides
17 the purchaser with a right or access to obtain one or more digital products that may
18 be obtained by any means including electronic delivery or any tangible means.
19 Digital code shall not include a code that represents stored monetary value that is
20 deducted from a total as it is used by the purchaser, or a redeemable card, gift card,
21 or gift certificate that entitles the holder of the instrument to select specified digital
22 products of an indicated cash value.
23 (ii) Digital product shall include the following:
24 (aa) Digital audiovisual works.
25 (bb) Digital audio works.
26 (cc) Digital books.
27 (dd) Digital artwork.
28 (ee) Digital photographs.
29 (ff) Digital periodicals.
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1 (gg) Digital newspapers.
2 (hh) Digital magazines.
3 (ii) Digital video greeting cards.
4 (jj) Audio greeting cards.
5 (kk) Digital greeting cards or invitations.
6 (ll) Video games.
7 §302. Imposition of tax
8 A. There is hereby levied a tax upon the sale at retail, the use, the
9 consumption, the distribution, and the storage for use or consumption in this state,
10 of each item or article of tangible personal property and upon the sale of each digital
11 good delivered into this state, as defined herein, the levy of said tax to be as follows:
12 (1) At the rate of two per centum (2%) of the sales price of each item or
13 article of tangible personal property when sold at retail in this state and of the sales
14 price of each digital good delivered into this state; the tax to be computed on gross
15 sales for the purpose of remitting the amount of tax due the state, and to include each
16 and every retail sale.
17 * * *
18 B. There is hereby levied a tax upon the lease or rental within this state of
19 each item or article of tangible personal property and upon the lease or rental of each
20 digital good delivered into this state, as defined herein; the levy of said tax to be as
21 follows:
22 (1) At the rate of two per centum (2%) of the gross proceeds derived from
23 the lease or rental of tangible personal property or digital good, as defined herein,
24 where the lease or rental of such property or digital good is an established business,
25 or part of an established business, or the same is incidental or germane to the said
26 business.
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1 (2) At the rate of two per centum (2%) of the monthly lease or rental price
2 paid by lessee or rentee, or contracted or agreed to be paid by lessee or rentee to the
3 owner of the tangible personal property or digital good.
4 * * *
5 D.(1) Notwithstanding any other provision of law to the contrary, except as
6 provided by Paragraph (2) of this Subsection, no sales or use tax of any taxing
7 authority shall be levied on any advertising service rendered by an advertising
8 business, including but not limited to advertising agencies, design firms, and print
9 and broadcast media, or any member, agent, or employee thereof, to any client
10 whether or not such service also involves a transfer to the client of tangible personal
11 property. However, a transfer of mass-produced advertising items by an advertising
12 business which manufactures the items itself to a client for the client's use, which
13 transfer involves the furnishing of minimal services other than manufacturing
14 services by the advertising business shall be a taxable sale or use of tangible personal
15 property; provided that in no event shall tax be levied on charges for creative
16 services which are separately invoiced.
17 (2) The sales of digital advertising services rendered by an advertising
18 business shall be subject to all state sales and use tax levies provided for in this
19 Chapter pursuant to R.S. 47:301(14)(l).
20 * * *
21 §305.14. Exclusions and exemptions; nonprofit organizations; nature of exemption;
22 limitations; qualifications; newspapers; determination of tax exempt status
23 A.(1)(a) The sales and use taxes imposed by taxing authorities shall not
24 apply to sales of tangible personal property at, or admission charges for, outside gate
25 admissions to, or parking fees associated with, events sponsored by domestic, civic,
26 educational, historical, charitable, fraternal, or religious organizations, which are
27 nonprofit, when the entire proceeds, except for necessary expenses such as fees paid
28 for guest speakers, chair and table rentals, and food and beverage utility related items
29 connected therewith, are used for educational, charitable, religious, or historical
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1 restoration purposes, including the furtherance of the civic, educational, historical,
2 charitable, fraternal, or religious purpose of the organization. In addition,
3 newspapers published in this state by religious organizations shall also be exempt
4 from such taxes, provided that the price paid for the newspaper or a subscription to
5 the newspaper does not exceed the cost to publish such newspaper.
6 * * *
7 §305.20. Exclusions and exemptions; Louisiana commercial fishermen
8 A. A Louisiana resident, domiciled in Louisiana, who possesses such valid
9 Louisiana commercial fishing license(s) as may be necessary for commercial fishing
10 ventures, including but not limited to a vessel license issued pursuant to R.S. 56:304,
11 and who is an owner of a vessel operated primarily for the conduct of commercial
12 fishing as a trade or business and which the Louisiana Department of Wildlife and
13 Fisheries determines will be predominantly and principally used for commercial
14 fishing ventures and whose catch is for human consumption shall be exempt from
15 state sales, use, lease, and services taxes as set forth in Subsection C of this Section.
16 Possession of a commercial fishing license issued by the Department of Wildlife and
17 Fisheries shall not be used as the sole determination that a vessel will be used
18 predominantly and principally for commercial fishing ventures. This exemption
19 shall also apply to facilities which process the catch from owners of commercial
20 fishing vessels for which this exemption is granted when such vessels are owned by,
21 or leased or contracted exclusively to, the seafood processing facility.
22 * * *
23 C. An owner who has obtained a certificate of exemption shall, with respect
24 to the vessel identified in the certificate for the harvesting or production of fish and
25 other aquatic life, including shrimp, oysters, and clams, and certain seafood
26 processing facilities described in Subsection A, be exempt from the taxes described
27 in Subsection A, as follows:
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1 (1) Taxes applied to the materials and supplies necessary for repairs to the
2 vessel or facility if they are purchased by the owner and later become a component
3 part of the vessel or facility.
4 (2) Taxes applied to materials and supplies purchased by the owner of the
5 vessel or facility where such materials and supplies are loaded upon the vessel or
6 delivered to the facility for use or consumption in the maintenance and operation
7 thereof for commercial fishing and processing ventures. For purposes of this
8 Paragraph, it shall make no difference whether the vessel is engaged in interstate,
9 foreign, or intrastate commerce.
10 (3) Taxes applied to repair services performed upon the vessel or facility.
11 For the purposes of this Paragraph, it shall make no difference whether the vessel is
12 engaged in intrastate, interstate, or foreign commerce.
13 (4) Taxes applied to the purchase of gasoline, diesel fuel, and lubricants for
14 the vessel and to sources of energy and fuels for the facility.
15 * * *
16 §305.54. Exemption; Annual Louisiana Sales Tax Holidays Act
17 * * *
18 H. Notwithstanding any other provision of law, the exemption provided for
19 in this Section shall not apply to state sales and use taxes.
20 * * *
21 §305.58. Exemption; annual sales tax holiday; hurricane-preparedness items or
22 supplies; dates; restrictions
23 * * *
24 G. Notwithstanding any other provision of law, the exemption provided for
25 in this Section shall not apply to state sales and use taxes.
26 * * *
27 §305.62. Exemption; Annual Louisiana Second Amendment Weekend Holiday
28 * * *
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1 G. Notwithstanding any other provision of law, the exemption provided for
2 in this Section shall not apply to state sales and use taxes.
3 * * *
4 §305.75. Exemption; utilities
5 The sale at retail, the use, the consumption, the distribution, and the storage
6 to be used or consumed within the applicable taxing authority of the following
7 utilities shall be exempt from the sales and use taxes levied in R.S. 47:302.1, 321,
8 and 331:
9 (a) Steam.
10 (b) Water, not including mineral water, carbonated water, or any water put
11 in bottles, jugs, or containers.
12 (c) Electric power or energy and any materials or energy sources used to fuel
13 the generation of electric power for resale or use by an industrial manufacturing plant
14 for self-consumption or congeneration.
15 (d) Natural gas.
16 (e) All energy sources used for boiler fuel, not including refinery gas.
17 * * *
18 §321. Imposition of tax
19 A. In addition to the tax levied by R.S. 47:302(A) and 331(A) and collected
20 under the provisions of Chapter 2 of Subtitle II of this Title, there is hereby levied
21 an additional tax upon the sale at retail, the use, the consumption, the distribution,
22 and the storage for use or consumption in this state of each item or article of tangible
23 personal property and upon the sale of each digital good delivered into this state, as
24 defined in Chapter 2 of Subtitle II of this Title. The levy of said tax shall be as
25 follows:
26 (1) At the rate of one percent of the sales price of each item or article of
27 tangible personal property when sold at retail in this state except for prepaid calling
28 service and prepaid wireless calling service and of the sales price of each digital
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1 good delivered into this state, the tax to be computed on gross sales for the purpose
2 of remitting the amount of tax to the state, and to include each and every retail sale.
3 * * *
4 B. In addition to the tax levied by R.S. 47:302(B) and 331(B) and collected
5 under the provisions of Chapter 2 of Subtitle II of Title 47 of the Louisiana Revised
6 Statutes of 1950, there is hereby levied a tax upon the lease or rental within this state
7 of each item or article of tangible personal property and upon the lease or rental of
8 each digital good delivered into this state, as defined by said Chapter 2 of Subtitle
9 II of Title 47 of the Louisiana Revised Statutes of 1950; the levy of said tax to be as
10 follows:
11 (1) At the rate of one percent of the gross proceeds derived from the lease
12 or rental of tangible personal property or digital good, as defined in Chapter 2 of
13 Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950, where the lease or
14 rental of such property or digital good is in an established business, or part of an
15 established business, or the same is incidental or germane to the business.
16 (2) At the rate of one percent of the monthly lease or rental price paid by a
17 lessee or rentee, or contracted or agreed to be paid by a lessee or rentee to the owner
18 of the tangible personal property or digital good.
19 * * *
20 §331. Imposition of tax
21 A. In addition to the tax levied by R.S. 47:302(A) and collected under the
22 provisions of Chapter 2 of Subtitle II of Title 47 of the Louisiana Revised Statutes
23 of 1950, there is hereby levied an additional tax upon the sale at retail, the use, the
24 consumption, the distribution, and the storage for use or consumption in this state of
25 each item or article of tangible personal property and upon the sale of each digital
26 good delivered into this state, as defined in Chapter 2 of Subtitle II of Title 47 of the
27 Louisiana Revised Statutes of 1950; the levy of said tax to be as follows:
28 (1) At the rate of ninety-seven one hundredths of one percentum of the sales
29 price of each item or article of tangible personal property when sold at retail in this
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1 state and of the sales price of each digital good delivered into this state, the tax to be
2 computed on gross sales for the purpose of remitting the amount of tax to the state,
3 and to include each and every retail sale.
4 * * *
5 B. In addition to the tax levied by R.S. 47:302(B) and collected under the
6 provisions of Chapter 2 of Subtitle II of Title 47 of the Louisiana Revised Statutes
7 of 1950, there is hereby levied a tax upon the lease or rental within this state of each
8 item or article of tangible personal property and upon the lease or rental of each
9 digital good delivered into the state, as defined by said Chapter 2 of Subtitle II of
10 Title 47 of the Louisiana Revised Statutes of 1950; the levy of said tax to be as
11 follows:
12 (1) At the rate of ninety-seven one hundredths of one percentum of the gross
13 proceeds derived from the lease or rental of tangible personal property or digital
14 good, as defined in Chapter 2 of Subtitle II of Title 47 of the Louisiana Revised
15 Statutes of 1950, where the lease or rental of such property or digital good is in an
16 established business, or part of an established business, or the same is incidental or
17 germane to the business.
18 (2) At the rate of ninety-seven one hundredths of one percentum of the
19 monthly lease or rental price paid by a lessee or rentee, or contracted or agreed to be
20 paid by a lessee or rentee to the owner of the tangible personal property or digital
21 good.
22 * * *
23 §331.1. Imposition of tax
24 A. In addition to the taxes levied in R.S. 47:302(A), 321(A), and 331(A) and
25 collected under the provisions of Chapter 2 of Subtitle II of Title 47 of the Louisiana
26 Revised Statutes of 1950, there is hereby levied an additional tax upon the sale at
27 retail, the use, the consumption, the distribution, and the storage for use or
28 consumption in this state of each item or article of tangible personal property and
29 upon the sale of each digital good delivered into the state, as defined in Chapter 2 of
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1 Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950. The levy of the tax
2 shall be as follows:
3 (1) At the rate of two and six hundredths percent of the sales price of each
4 item or article of tangible personal property when sold at retail in this state and of
5 each digital good delivered into this state, the tax to be computed on gross sales for
6 the purpose of remitting the amount of tax to the state, and to include each and every
7 retail sale.
8 (2) At the rate of two and six hundredths percent of the cost price of each
9 item or article of tangible personal property when the same is not sold but is used,
10 consumed, distributed, or stored for use or consumption in this state, provided that
11 there shall be no duplication of the tax.
12 B. In addition to the tax levied by R.S. 47:302(B), 321(B), and 331(B) and
13 collected under the provisions of Chapter 2 of Subtitle II of Title 47 of the Louisiana
14 Revised Statutes of 1950, there is hereby levied a tax upon the lease or rental within
15 this state of each item or article of tangible personal property and upon the lease or
16 rental of each digital good delivered into this state, as defined by Chapter 2 of
17 Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950. The levy of the tax
18 shall be as follows:
19 (1) At the rate of two and six hundredths percent of the gross proceeds
20 derived from the lease or rental of tangible personal property or digital good, as
21 defined in Chapter 2 of Subtitle II of Title 47 of the Louisiana Revised Statutes of
22 1950, where the lease or rental of such property or digital good is in an established
23 business, or part of an established business, or the same is incidental or germane to
24 the business.
25 (2) At the rate of two and six hundredths percent of the monthly lease or
26 rental price paid by a lessee or rentee, or contracted or agreed to be paid by a lessee
27 or rentee to the owner of the tangible personal property or digital good.
28 C. In addition to the tax levied on sales of services by R.S. 47:302(C),
29 321(C), and 331(C) and collected under the provisions of Chapter 2 of Subtitle II of
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1 Title 47 of the Louisiana Revised Statutes of 1950, there is hereby levied a tax upon
2 all sales of services in this state, as those services are defined by Chapter 2 of
3 Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950, at the rate of two
4 and six hundredths percent of the amounts paid or charged for the services.
5 D. The tax levied herein shall be collected from the dealer or wholesaler as
6 provided for and as defined by Chapter 2 of Subtitle II of Title 47 of the Louisiana
7 Revised Statutes of 1950. The tax shall be paid at the time and in the manner
8 provided therein, shall be in addition to all other taxes, whether levied in the form
9 of sales, excise, license, or privilege taxes, and shall be in addition to taxes levied
10 under the provisions of Chapter 2 of Subtitle II of Title 47 of the Louisiana Revised
11 Statutes of 1950.
12 * * *
13 §337.9. Exemptions applicable to local tax in Chapters 2, 2-A, and 2-B; other
14 exemptions applicable
15 * * *
16 C.(1)
17 * * *
18 (7) R.S. 47:305(D)(1)(b), R.S. 47:305.75(a), "key words": steam.
19 (8) R.S. 47:305(D)(1)(c), R.S. 47:305.75(b),"key words": water.
20 (9) R.S. 47:305(D)(1)(d), R.S. 47:305.75(c), "key words": electric power or
21 energy and fuel.
22 * * *
23 (12) R.S. 47:305(D)(1)(g), R.S. 47:305.75(d),"key words": natural gas.
24 (13) R.S. 47:305(D)(1)(h), R.S. 47:305.75(e),"key words": boiler fuel except
25 refinery gas.
26 * * *
27 §2303. Eligibility for use value assessment
28 In order to be classified as bona fide agricultural, horticultural, marsh or
29 timber land and assessed at its use value under the provisions of Article VII, Section
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1 18(C) of the Louisiana Constitution of 1974, it must meet the definition of bona fide
2 agricultural, horticultural, marsh or timber land as described in R.S. 47:2302 and, in
3 the case of bona fide agricultural, horticultural, or timber land:
4 A. Be at least three ten acres in size, or have produced an average gross
5 annual income of at least two thousand dollars in one or more of the designated
6 classifications for the four preceding years, and
7 * * *
8 Section 3. R.S. 38:2212.4(C) and R.S. 47:301(3)(b), (g), and (j), (4)(i), (7)(d), (j), and
9(l), (8)(d) and (e), (10)(a)(iv), (b)(ii), (i), (k), (l), (n), (s), (t), (v) through (y), (bb), and (ee)
10through (hh), (13)(e) through (j), (l), and (m), (14)(b)(ii) through (iv) and (k), (16)(b)(iii),
11(c), (h), (i), (m), (n), and (p), (18)(a)(iv), (d), (f) through (k), (o), and (p), 302(F) through (J)
12and (L) through (CC), 305(D)(1)(b) through (d), (g), (h), (j), and (m), (3) through (5), and
13(F), 305.2, 305.9, 305.11, 305.14(A)(1)(b) and (5), 305.16, 305.17, 305.26, 305.33, 305.36,
14305.40 through 305.44, 305.50(B), 305.51 through 305.53, 305.57, 305.59 through 305.61,
15305.63, 305.65, 305.67, 305.68, 305.70, 305.71, 305.74, 321(E) through (Q), 321.1, 331(F)
16through (W), 337.9(C)(23) and (D)(6), (8), (10), (12), (13), (18) through (20), and (26)
17through (34), 337.10(E), (G), and (M), 337.11(4) and (8), 6001, 6003, and 6040 are hereby
18repealed in their entirety.
19 Section 4. This Act shall take effect and become operative if and when the proposed
20amendment of Articles VI, VII, and VIII of the Constitution of Louisiana contained in the
21Act which originated as House Bill No. 526 of this 2021 Regular Session of the Legislature
22is adopted at a statewide election and becomes effective.
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are additions. HLS 21RS-604 ENGROSSED
HB NO. 612
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 612 Engrossed 2021 Regular Session Nelson
Abstract: Provides for state and local sales and use taxes.
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 authorizes numerous sales and use tax exemptions and exclusions.
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 an exclusive list of
exemptions that are currently effective.
Proposed law repeals the exemptions and exclusions currently suspended including
exemptions and exclusions for:
(1) Purchases, services and rentals for private companies working for local
authorities on construction of sewerage and waste water treatment facilities.
(2) Certain labor charges.
(3) Purchases of certain utilities,
(4) Rentals or purchases of certain airplanes.
(5) Certain manufacturing and machinery equipment.
(6) Certain pallets.
(7) Certain bibles, song books, or literature.
(8) Certain school buses.
(9) Certain pollution control devices.
(10) Pelletized paper waste.
(11) Sales of telephone directories.
(12) Certain telecommunication services.
(13) Natural gas.
(14) Storm shutter devices.
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HB NO. 612
(15) Certain Louisiana heritage and culture events.
(16) Festivals.
(17) Specialty items sold to members by nonprofit carnival organizations.
(18) Admissions to certain athletic and entertainment events.
(19) Admissions to certain places of amusement.
(20) Computer software.
(21) Purchases by motor vehicle manufacturers.
(22) Sales of newspapers.
(23) Medical devices and equipment.
(24) Sales to nonprofit literacy organizations.
(25) Certain installation services.
(26) Motor vehicles.
(27) Purchases of certain construction materials by certain charitable or nonprofit
organizations.
(28) Specialty Mardi Gras items.
(29) Sales by Ducks Unlimited and Bass Life.
(30) Tickets to dances, dramas, or performing arts presentations or events.
(31) Materials used in the printing process.
(32) Certain carrier buses.
(33) Purchases of breast-feeding items.
(34) Certain materials for La. commercial fishermen.
(35) Certain antique motor vehicles and airplanes.
(36) Certain rentals of motion-picture film.
(37) Purchases by and sales by certain nonprofit organizations dedicated to the
conservation of fish and migratory waterfowl.
(38) Certain one-of-a-kind works of art.
Proposed law levies a sales and use tax on digital goods delivered into La.
Proposed law defines digital goods as:
(1)Digital products or prewritten computer software delivered electronically to an end
user, regardless of whether the end user receives permanent or temporary rights to
access or utilize the product or software or whether the end user is required to make
continued payments for the rights or access.
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HB NO. 612
(2)Digital products or prewritten computer software in which a person may be permitted
rights for access or use and possession is maintained by the seller or a third party,
regardless of whether charges for access or utilization are per use, per user, per
license, or by subscription.
(3)Digital codes.
(4)Rights, licenses, or benefits delivered electronically to enhance, maintain, update,
renew, upgrade, or expand benefits for digital products or prewritten computer
software.
Proposed law defines digital code as a key, activation, or enabling code that provides the
purchaser with a right or access to obtain one or more digital products that may be obtained
by any means including electronic or tangible means. Digital code shall not include a code
that represents stored monetary value that is deducted from a total as it is used by the
purchaser or a redeemable card, gift card, or gift certificate that entitles the holder of the
instrument to select specified digital products of an indicated cash value.
Proposed law provides digital product shall include the following:
(1)Digital audiovisual works.
(2)Digital audio works.
(3)Digital books.
(4)Digital artwork.
(5)Digital photographs.
(6)Digital periodicals.
(7)Digital newspapers.
(8)Digital magazines.
(9)Digital video greeting cards.
(10)Audio greeting cards.
(11)Digital greeting cards or invitations.
(12)Video games.
Present law exempts sales of advertising services from sales and use tax.
Proposed law levies a tax on the sales of digital advertising services rendered by an
advertising business when the advertisement service is delivered into La.
Present law provides that land, in order to be classified as bonafide agricultural,
horticultural, marsh or timberland and assessed at its use value, must be at least three acres
in size or have produced an average gross annual income of at least $2,000 in one or more
of the designated classifications for the previous four years.
Proposed law retains present law but changes the minimum acreage from three acres to ten
acres.
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HB NO. 612
Effective if and when the proposed amendment of Articles VI, VII, and VIII of the
Constitution of La. contained in the Act which originated as House Bill No. 526 of this 2021
R.S. of the Legislature is adopted at a statewide election and becomes effective.
(Amends R.S. 33:4169(D) and R.S. 47:301(14)(b)(i)(aa), 302(A)(intro. para.) and (1), (B),
and (D), 305.14(A)(1)(a), 305.20(A) and (C), 321(A)(intro. para.) and (1) and (B),
331(A)(intro. para.) and (1) and (B), 337.9(C)(7)-(9), (12), and (13), and 2303(A); Adds R.S.
47:301(14)(l) and (31), 305.54(H), 305.58(G), 305.62(G), 305.75, and 331.1; Repeals R.S.
38:2212.4(C) and R.S. 47:301(3)(b), (g), and (j), (4)(i), (7)(d), (j), and (l), (8)(d) and (e),
(10)(a)(iv), (b)(ii), (i), (k), (l), (n), (s), (t), (v)-(y), (bb), and (ee)-(hh), (13)(e)-(j), (l), and (m),
(14)(b)(ii)-(iv) and (k), (16)(b)(iii), (c), (h), (i), (m), (n), and (p), (18)(a)(iv), (d), (f)-(k), (o),
and (p), 302(F)-(J) and (L)-(CC), 305(D)(1)(b)-(d), (g), (h), (j), and (m), (3)-(5), and (F),
305.2, 305.9, 305.11, 305.14(A)(1)(b) and (5), 305.16, 305.17, 305.26, 305.33, 305.36,
305.40-305.44, 305.50(B), 305.51-305.53, 305.57, 305.59-305.61, 305.63, 305.65, 305.67,
305.68, 305.70, 305.71, 305.74, 321(E)-(Q), 321.1, 331(F)-(W), 337.9(C)(23) and (D)(6),
(8), (10), (12), (13), (18)-(20) and (26)-(34), 337.10(E), (G), and (M), 337.11(4) and (8),
6001, 6003, and 6040)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Specify the House Bill No. of the proposed constitutional amendment to which
the effectiveness of proposed law is tied.
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