HLS 25RS-965 ORIGINAL
2025 Regular Session
HOUSE BILL NO. 490
BY REPRESENTATIVE MCFARLAND
TAX/SALES & USE: Provides for the sales and use tax exemption for certain public
entities
1 AN ACT
2To amend and reenact R.S. 47:305.7(A)(1), relative to sales and use tax; to provide for sales
3 and use tax exemptions for certain governments; to authorize purchases made by
4 certain contractors on public contracts to qualify for the exemption; to provide for
5 an effective date; and to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:305.7(A)(1) is hereby amended and reenacted to read as follows:
8 ยง305.7. Exclusions and exemptions; intergovernmental; government
9 A.(1)(a) This state, any parish, city and parish, municipality, district, or other
10 political subdivision thereof, or any agency, board, commission, or instrumentality
11 of this state or its political subdivisions shall be exempt from sales and use taxes
12 imposed by any taxing authority. Upon request by any political subdivision for an
13 exemption identification number, the Department of Revenue shall issue such
14 number.
15 (b) The exemption provided for in Subparagraph (a) of this Paragraph shall
16 extend to purchases made by general contractors or their subcontractors related to
17 work performed by such contractors pursuant to construction contracts for public
18 projects for state and local governments or to any agency, board, commission or
19 instrumentality of the state or its political subdivisions.
20 * * *
Page 1 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 25RS-965 ORIGINAL
HB NO. 490
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 490 Original 2025 Regular Session McFarland
Abstract: Extends the state and local sales tax exemption to purchases made by general
contractors or their subcontractors related to work performed by such contractors
pursuant to construction contracts on public projects for state and local governments
or to state or local government agencies, boards, or commissions.
Present law exempts the state, parishes, cities, municipalities, and other political
subdivisions, and agencies, boards, and commissions, from sales and use taxes imposed by
any taxing authority.
Proposed law retains present law but extends the state and local sales tax exemption to
purchases made by general contractors or their subcontractors related to work performed by
such contractors pursuant to construction contracts for public projects for state and local
governments or to any agency, board, commission or instrumentality of the state or its
political subdivisions.
(Amends R.S. 47:305.7(A)(1))
Page 2 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.