HLS 23RS-1362 ORIGINAL
2023 Regular Session
HOUSE BILL NO. 625
BY REPRESENTATIVE BOURRIAQUE
TAX/SALES & USE: Exempts from a state sales and use tax levy business utilities used in
electricity generation
1 AN ACT
2To enact R.S. 47:302(BB)(119), relative to state sales and use tax exemptions; to exempt
3 certain utilities from a sales and use tax levy; to provide for limitations; to require
4 promulgation of administrative rules; to provide for an effective date; and to provide
5 for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:302(BB)(119) is hereby enacted to read as follows:
8 ยง302. Imposition of tax
9 * * *
10 BB. Notwithstanding any other provision of law to the contrary, including
11 but not limited to any contrary provisions of this Chapter, beginning July 1, 2018,
12 through June 30, 2025, there shall be no exemptions and no exclusions to the tax
13 levied pursuant to the provisions of this Section, except for the retail sale, use,
14 consumption, distribution, or storage for use or consumption of the following:
15 * * *
16 (119) Steam, water, electric power or energy, natural gas, or other energy
17 sources as provided in R.S. 47:305(D)(1)(b), (c), (d), (g), and (h) which are used
18 predominately and directly in the generation of electricity by a utility regulated by
19 the Public Service Commission or the council of the city of New Orleans that is
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 23RS-1362 ORIGINAL
HB NO. 625
1 assigned an industry group code within Sector 22 (utilities) of the North American
2 Industry Classification System published by the United States Bureau of the Census.
3 * * *
4 Section 2. The secretary of the Department of Revenue shall promulgate rules in
5accordance with the Administrative Procedure Act to implement the exemption provided for
6in Section 1 of this Act.
7 Section 3. This Act shall become effective on July 1, 2023; if vetoed by the governor
8and subsequently approved by the legislature, this Act shall become effective on July 1,
92023, or on the day following such approval by the legislature, whichever is later.
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 625 Original 2023 Regular Session Bourriaque
Abstract: Exempts steam, water, electric power or energy, natural gas, and other energy
sources used in the generation of electricity by certain regulated utilities from the 2%
levy of the state's composite sales and use tax.
Present law imposes a state sales and use tax on the sale, use, lease, or rental of tangible
personal property, which tax is composed of the following provisions of present law
imposing levies in the following amounts:
R.S. 47:302.......2.00%
R.S. 47:321.......1.00%
R.S. 47:321.1.......0.45%
R.S. 47:331.......0.97%
R.S. 51:1286.......0.03%
Present law provides for numerous exclusions and exemptions from the state sales and use
tax levies.
Present law (R.S. 47:305(D)(1)(b), (c), (d), (g), and (h)) creates an exemption from state
sales and use taxes for steam, water, electric power or energy, natural gas, and other energy
sources, referred to hereafter as "business utilities".
Notwithstanding the exclusions and exemptions established in present law, each provision
of present law that levies a state sales and use tax includes or references an exclusive list of
exclusions and exemptions that apply during the period of July 1, 2018, through June 30,
2025. For this same time period, present law effectively suspends all other exclusions and
exemptions not appearing in the exclusive list.
Present law exempts business utilities from 2.45% of the state's 4.45% composite sales and
use tax during the period of July 1, 2018, through June 30, 2025.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 23RS-1362 ORIGINAL
HB NO. 625
Proposed law adds an exemption from the remaining 2% state sales and use tax levy (R.S.
47:302) for business utilities used predominately and directly in the generation of electricity
by a utility regulated by the Public Service Commission or the New Orleans City Council
that is assigned an industry group code within Sector 22 (utilities) of the federal
government's North American Industry Classification System.
Effective July 1, 2023.
(Adds R.S. 47:302(BB)(119))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.