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 578 Original 2025 Regular Session Emerson
Abstract: Provides for state and local sales and use tax.
Present law imposes state sales and use taxes on the sale, use, lease, or rental of tangible personal
property and digital products pursuant to the following levies in the following amounts:
(1)R.S. 47:302 - 2%
(2)R.S. 47:321 - 1%
(3)R.S. 47:321.1 - 1%
(4)R.S. 47:331 - 1%
Proposed law retains present law.
Present law requires the treasurer to deposit in and credit 0.3% of the avails of the 1% state sales tax
levied pursuant to R.S. 47:331 for purposes of assisting the state in the promotion of tourism.
Proposed law changes the amount of the dedication to the promotion of tourism from 0.3% of the
avails of the 1% state sales tax levied pursuant to R.S. 47:331 to 3% of the avails of the 1% state
sales and use tax levied pursuant to R.S. 47:331.
Present law defines a "dealer" as every person who manufactures or produces tangible personal
property or digital products for sale at retail, for use, or consumption, or distribution, or for storage
to be used or consumed in a taxing jurisdiction. "Dealer" also includes any person who sells for
delivery into La. tangible personal property, products transferred electronically, or services, and who
does not have a physical presence in La., if during the previous or current calendar year the person's
gross revenue for sales delivered into this state exceeded $100,000 from sales of tangible personal
property, products transferred electronically, or services.
Proposed law retains present law but adds digital products to the items that a person sells or delivers
into this state by persons who do not have a presence in La. and adds digital products to the sales or
transfers that are used in calculating the $100,000 sales threshold.
Present law provides that state and local sales taxes apply to repairs and maintenance of tangible
personal property including the repair and servicing of items such as automobiles, vehicles, boats
and vessels, electrical and mechanical appliances and equipment, furniture, rugs, flooring, watches,
clocks, jewelry, and refrigerators. Proposed law retains present law but removes flooring from the list of services subject to state and
local sales and use tax.
Present law provides that sales taxes of any taxing authority shall apply to the providing of
information services including cable television services, direct-to-home satellite services, video
programming services, and satellite digital audio radio services, and global positioning system
services including driving directions and sports, news, and similar information provided through
satellite audio programming services.
Proposed law changes present law by providing that cable television services, direct-to-home satellite
services, video programming services provided by cable television and satellite service providers,
and satellite digital audio radio services shall only be subject to state sales tax.
Proposed law exempts charges for repairs to tangible personal property when the repaired property
is delivered to a common carrier or to the U.S. Postal Service for transportation outside the state or
delivered outside the state by use of the repair dealer's own vehicle or by use of an independent
trucker from sales taxes from any taxing authority. Proposed law further provides that the delivery
of aircraft may be made by the best available means and offshore areas shall not be considered
another state for the purposes of this exemption.
Proposed law exempts the lease or rental of motor vehicles by licensed motor vehicle dealers or
vehicle manufacturers for their use in furnishing leased or rented motor vehicles to their customers
in performance of their obligations under warranty agreements associated with the purchase of a
motor vehicle or when the applicable warranty has lapsed and the leased or rented motor vehicle is
provided to the customer at no charge from sales taxes of any taxing authority.
Present law exempts educational materials or equipment used for classroom instruction by approved
parochial and private elementary and secondary schools from the sales and use tax imposed by taxing
authorities. Further exempts the sale of admissions to athletic and entertainment events held for or
by parochial, and private elementary and secondary schools.
Proposed law retains present law but adds the purchase, lease, or rental of educational materials to
the items exempted from sales and use tax. Further extends the exemption for admissions to athletic
and entertainment events held at schools to include public schools.
Present law provides that any municipal corporation, parish, sewerage, or water district that enters
into a contract with a private nonprofit company to construct or operate a sewerage or wastewater
treatment facility shall be exempt from the same sales tax as the municipal corporation, parish,
sewerage, or water district.
Proposed law changes present law to provide that any private nonprofit company that enters into a
contract with a municipal corporation, parish, sewerage, or water district to construct or operate a
sewerage or wastewater treatment facility shall be exempt from the same sales tax as the municipal
corporation, parish, sewerage, or water district. Proposed law adds exemptions from sales taxes imposed by taxing authorities for the following:
(1)Admission charges for, outside gate admissions to, or parking fees associated with, events
sponsored by domestic, civic, educational, historical, charitable, fraternal, or religious
organizations, which are nonprofit, when the entire proceeds, except for necessary expenses
are used for educational, charitable, religious, or historical restoration purposes. (R.S.
47:305.14)
(2)Purchases by a nonprofit organization which conducts a comprehensive program on sickle
cell disease which includes free education, free testing, free counseling, and free
prescriptions, transportation, and food packages for sickle cell patients.
(R.S. 47:305.21)
(3)Sales of construction materials for Habitat for Humanity. (R.S. 47:305.22)
(4)Purchases by qualifying radiation therapy treatment centers for or software used to operate
capital equipment. (R.S. 47:305.64)
Proposed law prohibits fees or tax from being imposed or levied on nongaming incentives or
inducements granted by a licensee to a patron on a complimentary basis, or solely through the
redemption of rewards from a loyalty rewards program, including room stays. If nongaming
incentives or inducements are granted to a patron by a licensee on a discounted basis, or partially
through the redemption of rewards from a loyalty rewards program, any fee or taxes levied shall be
limited to the actual cash portion, if any, paid by the patron and no tax shall be applied to the extent
of the discount or rewards.
Present law provides for a state sales and use tax exemption for the sale, purchase, lease, or the
importation of motor vehicles, trailers, or semitrailers as defined in present law stored, used, or
consumed in this state exclusively for lease or rental, provided that the gross proceeds derived from
the lease or rental of the property not previously taxed shall be at reasonable market rates.
Proposed law retains present law but extends the exemption to local sales and use taxes thereby
making the exemption applicable to taxes levied by all taxing authorities
Proposed law authorizes a taxpayer to claim a refund of sales tax paid on sales transactions which
occurred between Jan. 1, 2025, and the effective date of proposed law that are exempted pursuant
to proposed law. In these cases, the taxpayer shall first request a refund from the vendor who
charged and collected the sales tax. Vendors may then claim a refund from the secretary upon
evidence that the sales tax has been refunded to the taxpayer. If a taxpayer is unable to obtain a
refund from the vendor, the taxpayer may then claim a refund from the secretary. No interest on
refunds shall accrue or be paid by the secretary on transactions exempted pursuant to proposed law.
This Section shall only apply to.
Proposed law shall be applicable to taxable periods beginning on or after January 1, 2025. Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:301(3)(a), (4)(k)(i), (10), (13)(a), (16)(d), (18)(a) and (c)(i), and (27)(x)(xi),
301.1(F), 301.3(7)(a) and (10)(a), 305.2(A)(5), 305.6(1) and (5), 305.7(A)(2), 305.33, 305.36(A),
(B), and (C)(1), 305.75(A), 321(A), 321.1(A), (B), and (C)(2), and 331(A) and (B) and R.S.
51:1286(A); Adds R.S. 47:301.3(11), 305(E)(4) and (L), 305.14, 305.18, 305.21, 305.22, and
305.64; Repeals R.S. 47:301.6(B) and (C), 305.36(E), and 337.11.4)