2017 Louisiana Laws
Revised Statutes
TITLE 47 - Revenue and Taxation
RS 47:321.1 - Imposition of Tax

§321.1. Imposition of tax

            A. In addition to the tax levied by R.S. 47:302(A), 321(A), and 331(A) and collected under the provisions of Chapter 2 of this Subtitle, there is hereby levied an additional tax upon the sale at retail, the use, the consumption, the distribution, and the storage for use or consumption in this state of each item or article of tangible personal property as defined in Chapter 2 of this Subtitle. The levy of said tax shall be as follows:

            (1) At the rate of one percent of the sales price of each item or article of tangible personal property when sold at retail in this state, the tax to be computed on gross sales for the purpose of remitting the amount of tax to the state, and to include each and every retail sale.

            (2) At the rate of one percent of the cost price of each item or article of tangible personal property when the same is not sold but is used, consumed, distributed, or stored for use or consumption in this state, provided that there shall be no duplication of the tax.

            B. In addition to the tax levied by R.S. 47:302(B), 321(B), and 331(B) and collected under the provisions of Chapter 2 of this Subtitle, there is hereby levied a tax upon the lease or rental within this state of each item or article of tangible personal property, as defined by Chapter 2 of this Subtitle; the levy of the tax to be as follows:

            (1) At the rate of one percent of the gross proceeds derived from the lease or rental of tangible personal property, as defined in Chapter 2 of this Subtitle, where the lease or rental of such property is in an established business, or part of an established business, or the same is incidental or germane to the business.

            (2) At the rate of one percent of the monthly lease or rental price paid by a lessee or rentee, or contracted or agreed to be paid by a lessee or rentee to the owner of the tangible personal property.

            C. In addition to the tax levied on sales of services by R.S. 47:302(C), 321(C), and 331(C) and collected under the provisions of Chapter 2 of this Subtitle, there is hereby levied a tax upon all sales of services in this state, as those services are defined by Chapter 2 of this Subtitle, at the rate of one percent of the amounts paid or charged for the services.

            D. The tax levied herein shall be collected from the dealer or wholesaler as provided for and as defined by Chapter 2 of this Subtitle; shall be paid at the time and in the manner provided therein; shall be in addition to all other taxes, whether levied in the form of sales, excise, license, or privilege taxes; and shall be in addition to taxes levied under the provisions of Chapter 2 of this Subtitle.

            E. The provisions of this Section shall be inapplicable, inoperative, and of no effect after June 30, 2018.

            F. Notwithstanding any other provision of law to the contrary, including but not limited to any contrary provision of this Chapter, there shall be no exemptions or exclusions as defined in R.S. 47:301 to the tax levied pursuant to the provisions of this Section, except for the sales or purchases of the following items:

            (1) Food for home consumption, as defined in R.S. 47:305(D)(1)(n) through (r) on January 1, 2003, as provided in Article VII, Section 2.2 of the Constitution of Louisiana.

            (2) Natural gas, as provided in Article VII, Section 2.2 of the Constitution of Louisiana.

            (3) Electricity, as provided in Article VII, Section 2.2 of the Constitution of Louisiana.

            (4) Water, as provided in Article VII, Section 2.2 of the Constitution of Louisiana.

            (5) Prescription drugs, as provided in Article VII, Section 2.2 of the Constitution of Louisiana.

            (6) Gasoline and other motor fuels subject to the state excise tax on fuel.

            (7) Sales to the United States government and its agencies, as provided in R.S. 301(10)(g).

            (8) Other constructions permanently attached to the ground, as provided in R.S. 47:301(16)(l).

            (9) Installation charges on tangible personal property, as provided in R.S. 47:301(3)(a).

            (10) Installation of oil field board roads, as provided in R.S. 47:301(13)(c).

            (11) Transactions involving the construction or overhaul of United States Navy vessels, as provided in R.S. 47:301(7)(c) and (14)(h).

            (12) Property purchased for exclusive use outside the state, as provided in R.S. 47:305.10.

            (13) Sale, lease or rental of tangible personal property paid by or under the provisions of Medicare, as provided in R.S. 47:315.3.

            (14) Sales of human tissue transplants, as provided in R.S. 47:301(10)(d).

            (15) Sales of raw agricultural products, as provided in R.S. 47:301(10)(e) and 305(A)(3).

            (16) Sales of food by youth serving organizations chartered by congress, as provided in R.S. 47:301(10)(h).

            (17) Tangible personal property sold to food banks as provided in R.S. 47:301(10)(j).

            (18) Materials used in the collection of blood as provided in R.S. 47:301(16)(j).

            (19) Aphaeresis kits and leuko reduction filters as provided in R.S. 47:301(16)(k).

            (20) Donation to schools and food banks from resale inventory as provided in R.S. 47:301(18)(a).

            (21) Manufacturers rebates on new motor vehicles as provided in R.S. 47:301(3)(e) and (13)(b).

            (22) Lease or rentals of railroad rolling stock as provided in R.S. 47:301(4)(k).

            (23) Purchases and leases by free hospitals as provided in R.S. 47:301(7)(e), (10)(p) and (18)(c).

            (24) Purchases by nonprofit entities that sell donated goods as provided in R.S. 47:301(8)(f).

            (25) Tangible personal property for resale as provided in R.S. 47:301(10)(a)(i).

            (26) Purchases of property for lease or rental as provided in La. R.S. 47:301(10)(a)(iii) and (18)(a)(iii).

            (27) Isolated or occasional sales of tangible personal property as provided in R.S. 47:301(1) and (10)(c)(ii)(bb).

            (28) Use of motor vehicles in Louisiana by active duty military as provided in La. R.S. 47:303(A) and 305.48.

            (29) Purchases made with food stamps and WIC as provided in R.S. 47:305.46.

            (30) Articles traded in on purchases of tangible personal property as provided in R.S. 47:301(13)(a).

            (31) Donations of toys as provided in R.S. 47:301(10)(z)(aa)(i) and (18)(m).

            (32) Stocks, bonds, notes or other obligations or securities as provided in R.S. 47:301(16)(b)(i).

            (33) Credit for sales and use taxes paid to other states on tangible personal property imported in Louisiana as provided in R.S. 47:303(A)(3)(a).

            (34) Work product of certain professionals as provided in R.S. 47:301(16)(e).

            (35) Purchases by regionally accredited independent educational institutions as provided in R.S. 47:301(8)(b).

            (36) Sales through coin-operated vending machines as provided in R.S. 47:301(10)(b)(i).

            (37) Purchases by a private postsecondary academic degree-granting institution as provided in R.S. 47:301(10)(cc) and as provided in R.S. 47:301(18)(n).

            (38) Purchases of food items for school lunch or breakfast programs by nonpublic elementary or secondary schools as provided in R.S. 47:301(10)(dd).

            (39) Repair services performed in Louisiana when the repaired property is exported as provided in R.S. 47:301(14)(g)(i)(bb).

            (40) Funeral directing services as provided in R.S. 47:301(14)(j).

            (41) Feed and feed additives for animals held for business purposes as provided in R.S. 47:305(A)(4).

            (42) Farm products produced and used by farmers as provided in R.S. 47:305(B).

            (43) Sales of fertilizers and containers to farmers as provided in R.S. 47:305(D)(1)(f).

            (44) Sales of seeds for planting crops as provided in R.S. 47:305.3.

            (45) Sales of pesticides for agricultural purposes as provided in R.S. 47:305.8.

            (46) The cost price for the printing of a news publication as provided in R.S. 47:301(3)(h).

            (47) Vehicle rentals to warranty customers as provided in R.S. 47:301(7)(h).

            (48) Lease or rental of a crane and related equipment with an operator as provided in R.S. 47:301(7)(k).

            (49) Sales by and to the state and its political subdivisions as provided in R.S. 47:301(8)(c).

            (50) Sales of materials for further processing as provided in R.S. 47:301(10)(c)(i)(aa).

            (51) The sales price for new farm equipment used in poultry production as provided in R.S. 47:301(13)(c).

            (52) A factory built home as provided in R.S. 47:301(16)(g).

            (53) Any advertising service rendered by an advertising business as provided in R.S. 47:302(D).

            (54) The sale of livestock, poultry, and other farm products direct from a farm as provided in R.S. 47:305(A)(1).

            (55) The sale of livestock at public sales sponsored by breeders' or registry associations or livestock auction markets as provided in R.S. 47:305(A)(2).

            (56) The sale of agricultural products by a person other than the producer, for use in further processing as provided in R.S. 47:305(A)(3).

            (57) Transactions in interstate commerce and tangible personal property imported into this state, or produced or manufactured in this state, for export as provided in R.S. 47:305(E).

            (58) Ships, vessels, barges, and related supplies as provided in R.S. 47:305.1.

            (59) The sales price for new farm equipment as provided in R.S. 47:305.25.

            (60) Trucks and trailers if used at least eighty percent of the time in interstate commerce as provided in R.S. 47:305.50(A).

            (61) Freight cars, piggy-back cars and rolling stock, and railroad ties as provided in R.S. 47:305.45 and 305.50(F).

            (62) Councils on Aging as provided in R.S. 47:305.66.

            (63) Sales of pharmaceuticals administered to livestock for agricultural purposes as provided in R.S. 47:301(16)(f).

            (64) Materials used in the production of crawfish and catfish as provided in R.S. 47:305(A)(5) and (6).

            (65) Manufacturing machinery and equipment as provided in R.S. 47:301(3)(i), (13)(k), and (28)(a). The provisions of this Paragraph shall be operative and in effect beginning July 1, 2016.

            (66) Beginning July 1, 2016, in addition to those exclusions and exemptions provided for in Paragraphs (1) through (65) of this Subsection, the following exclusions and exemptions shall be allowable for purposes of the tax levied pursuant to the provisions of this Section:

            (a) Sales of room rentals by a camp or retreat facility owned by a nonprofit organization as provided in R.S. 47:301(6)(b).

            (b) Sales of room rentals by homeless shelter as provided in R.S. 47:301(6)(c).

            (c) Sales, leases, or rentals of tangible personal property to Boys State of Louisiana, Inc. and Girls State of Louisiana, Inc. as provided in R.S. 47:301(7)(g) and (10)(r).

            (d) Sales or purchases of fire-fighting equipment by volunteer fire departments as provided in R.S. 47:301(10)(o).

            (e) Sales to, and leases, rentals, and use of educational materials and equipment used for classroom instruction by parochial and private elementary and secondary schools that comply with the court order from the Dodd Brumfield decision and Section 501(c)(3) of the Internal Revenue Code as provided in R.S. 47:301(7)(f), (10)(q)(ii), and (18)(e)(ii).

            (f) Sales by parochial and private elementary and secondary schools that comply with the court order from the Dodd Brumfield decision and Section 501(c)(3) of the Internal Revenue Code as provided in R.S. 47:301(10)(q)(i) and (18)(e)(i).

            (g) Sales, as provided in R.S. 47:301(14)(b)(i), but only of admissions to athletic and entertainment events held for or by an elementary or secondary school and membership fees or dues of nonprofit, civic associations.

            (h) Sales or use of orthotic devices, prosthetic devices, hearing aids, eyeglasses, contact lenses, and wheelchairs prescribed by physicians, optometrists, or licensed chiropractors used exclusively by the patient for personal use as provided in R.S. 47:305(D)(1)(k).

            (i) Sales or use of ostomy, colostomy, and ileostomy devices and equipment as provided in R.S. 47:305(D)(1)(l).

            (j) Sales or use of adaptive driving equipment and motor vehicle modifications prescribed for personal use as provided in R.S. 47:305(D)(1)(u).

            (k) Sales or use of meals by education institutions, medical facilities, mental institutions, and occasional meals furnished by educational, religious, or medical organizations as provided in R.S. 47:305(D)(2).

            (l) Purchases or rentals of kidney dialysis machines, parts, materials, and supplies for home use under a physician's prescription as provided in R.S. 47:305(G).

            (m) Sales of admissions to entertainment events by Little Theater organizations as provided in R.S. 47:305.6.

            (n) Sales of admissions to musical performances sponsored by nonprofit organizations as provided in R.S. 47:305.7.

            (o) Sales of admissions to entertainment events sponsored by domestic nonprofit charitable, religious, and educational organizations as provided in R.S. 47:305.13.

            (p) Sales of admissions, parking fees, and sales of tangible personal property at events sponsored by domestic, civic, educational, historical, charitable, fraternal, or religious nonprofit organizations as provided in R.S. 47:305.14(A)(1).

            (q) Sales of admissions and parking fees at fairs and festivals sponsored by nonprofit organizations as provided in R.S. 47:305.18.

            (r) Purchases of fishing vessels, supplies, fuels, lubricants, and repairs for the vessels of licensed commercial fishermen as provided in R.S. 47:305.20.

            (s) Sales of butane, propane, or other liquified petroleum gases for private, residential consumption as provided in R.S. 47:305.39.

            (t) Sales and purchases by certain organizations that provide training for blind persons as provided in R.S. 47:305.15.

            (67) Beginning July 1, 2017, in addition to those exclusions and exemptions provided for in Paragraphs (1) through (66) of this Subsection, the exclusion for surface preparation, painting, and coating fixed or rotary wing aircraft and certified transport category aircraft registered outside of this state, as provided in R.S. 47:301(14)(g)(iv).

            (68) Beginning July 1, 2017, purchases and leases by qualifying radiation therapy treatment centers, as provided in R.S. 47:305.64.

            (69) Beginning July 1, 2017, sales and purchases of medical devices used by patients under the supervision of a physician, as provided in R.S. 47:305(D)(1)(s).

            (70) Beginning October 1, 2017:

            (a) Sales of platinum, gold, and silver bullion, that is valued solely upon its precious metal content, whether in coin or ingot form as provided in R.S. 47:301(16)(b)(ii)(aa).

            (b) Numismatic coins that have a sales price of no more than one thousand dollars as provided in R.S. 47:301(16)(b)(ii)(bb).

            (c) Numismatic coins sold at a national, statewide, or multi-parish numismatic trade show as provided in R.S. 47:301(16)(b)(ii)(cc).

NOTE: Paragraph (F)(71) as enacted by Acts 2017, No. 395, §1, eff. July 1, 2018.

            (71) Beginning October 1, 2017, sales and purchases of orthotic devices, prosthetic devices, prostheses, restorative materials, and other dental devices as provided in R.S. 47:305(D)(1)(t).

            G. The avails of the tax collected under this Section shall be deposited immediately into the state treasury, and, after compliance with the requirements of Article VII, Section 9(B) of the Constitution of Louisiana, the state treasurer shall pay the remainder of the monies into the state general fund.

            H. No amount of additional revenue collected as a result of this Section shall be remitted to any tax increment financing district or economic development project.

            Acts 2016, 1st Ex. Sess., No. 26, §1, eff. April 1, 2016; Acts 2016, 2nd Ex. Sess., No. 12, §1, eff. June 28, 2016; Acts 2017, No. 279, §1, eff. July 1, 2017; Acts 2017, No. 340, §1, eff. June 22, 2017; Acts 2017, No. 395, §1, eff. July 1, 2018; Acts 2017, No. 424, §1, eff. June 26, 2017; Acts 2017, No. 426, §1, eff. June 23, 2017.

            NOTE: See Acts 2016, 1st Ex. Sess., No. 26, §2, regarding applicability.