HLS 21RS-738 ENGROSSED
2021 Regular Session
HOUSE BILL NO. 693
BY REPRESENTATIVES DAVIS AND FREIBERG AND SENATOR WARD
TAX/SALES-USE, STATE: Dedicates a portion of the avails of state sales and use tax to
the Construction Subfund of the Transportation Trust Fund and extends .4% of
current state sales and use tax
1 AN ACT
2To amend and reenact R.S. 47:321.1(D) and to enact R.S. 47:331.1, relative to state sales
3 and use tax; to dedicate the avails of state sales and use taxes; to levy a state sales
4 and use tax; to provide for the use of certain tax proceeds; to provide for
5 effectiveness; to provide for certain requirements and limitations; and to provide for
6 related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:321.1(D) is hereby amended and reenacted to read as follows:
9 §321.1. Imposition of tax
10 * * *
11 D.(1) The tax levied herein shall be collected from the dealer or wholesaler
12 as provided for and as defined by Chapter 2 of this Subtitle; shall be paid at the time
13 and in the manner provided therein; shall be in addition to all other taxes, whether
14 levied in the form of sales, excise, license, or privilege taxes; and shall be in addition
15 to taxes levied under the provisions of Chapter 2 Chapters 2, 2-B, and 3 of this
16 Subtitle.
17 (2) The avails of the tax levied in this Section shall be deposited into the
18 Construction Subfund of the Transportation Trust Fund provided for in Article VII,
19 Section 27(B)(2) of the Constitution of Louisiana, referred to in this Paragraph as the
20 "subfund", as follows:
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HB NO. 693
1 (a) For Fiscal Year 2021-2022, ten percent of the avails shall be deposited
2 into the subfund.
3 (b) For Fiscal Year 2022-2023, twenty percent of the avails shall be
4 deposited into the subfund.
5 (c) For Fiscal Year 2023-2024, thirty percent of the avails shall be deposited
6 into the subfund.
7 (d) For Fiscal Year 2024-2025, forty percent of the avails shall be deposited
8 into the subfund.
9 (3) The Department of Transportation and Development shall utilize the
10 monies deposited into the Construction Subfund pursuant to the provisions of this
11 Subsection as follows:
12 (a) Eighty percent of the monies shall be utilized on highway and bridge
13 preservation projects included in the Highway Priority Program in accordance with
14 the Department of Transportation and Development's definitions of such projects.
15 (b) Twenty percent of the monies shall be utilized on Highway Priority
16 Program projects classified as capacity projects in accordance with the Department
17 of Transportation and Development's definitions of such projects. The following
18 mega projects shall be prioritized by the secretary of the Department of
19 Transportation and Development and constructed based on the completion of each
20 project's federally mandated environmental process and requirements:
21 (i) Replacement of the I-10 Calcasieu River bridge and I-10 improvements
22 from the I-210 interchange west of the river to the I-210 interchange east of the river.
23 (ii) A new Mississippi River Bridge at Baton Rouge with freeway-level
24 connections from the interstate west of Baton Rouge to the interstate east of Baton
25 Rouge.
26 (iii) Upgrades to US 90 to interstate standards from the I-10 and I-49
27 interchange at Lafayette to New Orleans.
28 (iv) Widening of I-12 to six lanes and associated improvements where this
29 interstate is not yet upgraded from Baton Rouge to the Mississippi state line.
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HB NO. 693
1 (v) A new, four lane Jimmie Davis Bridge on LA 511 across the Red River
2 in Shreveport-Bossier.
3 (vi) Widening to six lanes and associated improvements to I-20 at Monroe
4 from LA 546 to LA 594.
5 (vii) US 90, Port of New Orleans access improvements with improved and
6 maintained interstate lighting in New Orleans.
7 (viii) Alexandria-Pineville Beltway, Segments E, F, G, H, and I from LA 28
8 East to LA 28 West.
9 * * *
10 Section 2. R.S. 47:331.1 is hereby enacted to read as follows:
11 §331.1. Imposition of tax
12 A. In addition to the tax levied by R.S. 47:302(A), 321(A), and 331(A) and
13 collected under the provisions of Chapter 2 of this Subtitle, there is hereby levied an
14 additional tax upon the sale at retail, the use, the consumption, the distribution, and
15 the storage for use or consumption in this state of each item or article of tangible
16 personal property as defined in Chapter 2 of this Subtitle. The levy of the tax shall
17 be as follows:
18 (1) At the rate of four tenths of one percent of the sales price of each item or
19 article of tangible personal property when sold at retail in this state, the tax to be
20 computed on gross sales for the purpose of remitting the amount of tax to the state,
21 and to include each and every retail sale.
22 (2) At the rate of four tenths of one percent of the cost price of each item or
23 article of tangible personal property when the same is not sold but is used, consumed,
24 distributed, or stored for use or consumption in this state, provided that there shall
25 be no duplication of the tax.
26 B. In addition to the tax levied by R.S. 47:302(B), 321(B), and 331(B) and
27 collected under the provisions of Chapter 2 of this Subtitle, there is hereby levied a
28 tax upon the lease or rental within this state of each item or article of tangible
29 personal property, as defined by Chapter 2 of this Subtitle. The levy of the tax shall
30 be as follows:
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1 (1) At the rate of four tenths of one percent of the gross proceeds derived
2 from the lease or rental of tangible personal property, as defined in Chapter 2 of this
3 Subtitle, where the lease or rental of such property is in an established business, or
4 part of an established business, or the same is incidental or germane to the business.
5 (2) At the rate of four tenths of one percent of the monthly lease or rental
6 price paid by a lessee or rentee, or contracted or agreed to be paid by a lessee or
7 rentee to the owner of the tangible personal property.
8 C. In addition to the tax levied on sales of services by R.S. 47:302(C),
9 321(C), and 331(C) and collected under the provisions of Chapter 2 of this Subtitle,
10 there is hereby levied a tax upon all sales of services in this state, as those services
11 are defined by Chapter 2 of this Subtitle, at the rate of four tenths of one percent of
12 the amounts paid or charged for the services.
13 D. The tax levied herein shall be collected from the dealer or wholesaler as
14 provided for and as defined by Chapter 2 of this Subtitle. The tax shall be paid at the
15 time and in the manner provided in this Subtitle. The tax shall be in addition to all
16 other taxes, whether levied in the form of sales, excise, license, or privilege taxes and
17 shall be in addition to taxes levied under the provisions of Chapters 2, 2-A, and 3 of
18 this Subtitle.
19 E. The avails of the tax levied in this Section shall be deposited into the
20 Construction Subfund of the Transportation Trust Fund provided for in Article VII,
21 Section 27(B)(2) of the Constitution of Louisiana, hereinafter referred to in this
22 Subsection as the "subfund", as follows:
23 (1) For Fiscal Year 2025-2026, fifty percent of the avails shall be deposited
24 into the subfund.
25 (2) For Fiscal Year 2026-2027, sixty percent of the avails shall be deposited
26 into the subfund.
27 (3) For Fiscal Year 2027-2028, seventy percent of the avails shall be
28 deposited into the subfund.
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1 (4) For Fiscal Year 2028-2029, eighty percent of the avails shall be deposited
2 into the subfund.
3 (5) For Fiscal Year 2029-2030, ninety percent of the avails shall be deposited
4 into the subfund.
5 (6) For Fiscal Year 2030-2031, one hundred percent of the avails shall be
6 deposited into the subfund.
7 F. The provisions of this Section shall be inapplicable, inoperative, and of
8 no effect after June 30, 2031.
9 * * *
10 Section 3. (A) The provisions of this Section and Section 1 of this Act shall become
11effective on July 1, 2021.
12 (B) The provisions of Section 2 of this Act shall become effective on July 1, 2025.
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 693 Engrossed 2021 Regular Session Davis
Abstract: Annually dedicates a percentage of the avails of the .45% state sales and use tax
to the Construction Subfund, specifies the use of the monies, and levies and
dedicates the avails of a .4% states sales and use tax.
Present law levies a .45% state sales and use tax. Further provides the levy will expire June
30, 2025.
Present law provides the collections from the .45% sales and use tax are deposited into the
state general fund.
Proposed law annually dedicates a percentage of the tax levied in present law to the
Construction Subfund of the Transportation Trust Fund (subfund) provided for in present
constitution (Art. VII, Sec. 27(B)(2)), as follows:
(1)For FY 2021-2022, 10% of the avails shall be deposited into the subfund.
(2)For FY 2022-2023, 20% of the avails shall be deposited into the subfund.
(3)For FY 2023-2024, 30% of the avails shall be deposited into the subfund.
(4)For FY 2024-2025, 40% of the avails shall be deposited into the subfund.
Proposed law requires the Dept. of Transportation and Development (DOTD) to utilize the
monies which are deposited into the Construction Subfund pursuant to present law as
follows:
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(1)80% of the monies to be utilized on highway and bridge preservation projects
included in the Highway Priority Program.
(2)20% of the monies to be utilized on Highway Priority Program projects classified as
capacity projects.
Proposed law, with respect to capacity projects, requires the secretary to prioritize and
construct the following mega projects based on the completion of each project's federally
mandated environmental process and requirements:
(1)Replacement of the I-10 Calcasieu River bridge and I-10 improvements from the I-
210 interchange west of the river to the I-210 interchange east of the river.
(2)A new Mississippi River Bridge at Baton Rouge with freeway-level connections
from the interstate west of Baton Rouge to the interstate east of Baton Rouge.
(3)Upgrades to US 90 to interstate standards from the I-10 and I-49 interchange at
Lafayette to New Orleans.
(4)Widening of I-12 to six lanes and associated improvements where this interstate is
not yet upgraded from Baton Rouge to the Mississippi state line.
(5)A new, four lane Jimmie Davis Bridge on LA 511 across the Red River in
Shreveport-Bossier.
(6)Widening to six lanes and associated improvements to I-20 at Monroe from LA 546
to LA 594.
(7)US 90, Port of New Orleans access improvements with improved and maintained
interstate lighting in New Orleans.
(8)Alexandria-Pineville Beltway, Segments E, F, G, H, and I from LA 28 East to LA
28 West.
Proposed law levies a state sales and use tax at a rate of .4% beginning July 1, 2025. Further
provides that the levy will terminate after June 30, 2031.
Proposed law provides that a percentage of the new levy will be dedicated annually to the
subfund as follows:
(1)For FY 2025-2026, 50% of the avails shall be deposited into the subfund.
(2)For FY 2026-2027, 60% of the avails shall be deposited into the subfund.
(3)For FY 2027-2028, 70% of the avails shall be deposited into the subfund.
(4)For FY 2028-2029, 80% of the avails shall be deposited into the subfund.
(5)For FY 2029-2030, 90% of the avails shall be deposited into the subfund.
(6)For FY 2030-2031, 100% of the avails shall be deposited into the subfund.
Effective July 1, 2021, except that levy of new tax is effective July 1, 2025.
(Amends R.S. 47:321.1(D); Adds R.S. 47:331.1)
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