Tax & Accounting Blog

Louisiana Legislature Reinstates Suspended Sales Tax Exemptions

Blog, Indirect Tax, ONESOURCE, Sales and Use Tax June 24, 2016

Earlier this year, the Louisiana State Legislature held an extraordinary session to address their state’s looming budget shortfall. To produce badly needed revenue, the state suspended its complicated array of sales tax exclusions and exemptions, temporarily replacing them with a much shorter list of products and services not subject to tax.

However, Gov. John Bel Edwards and many legislators said after the session ended that they hadn’t intended to eliminate certain exemptions. So, in a second extraordinary session that ended at midnight last night, the Legislature passed HB 51, which reinstates many of the previously suspended exemptions and exclusions, including such items as:

  • Sales and rentals by certain non-profit organizations
  • Isolated and occasional sales by a person not engaged in business
  • Sales of specified medical devices and equipment

The bill was sent to the governor today for his approval, and he is likely to sign it sometime in the next few days. Once signed, the reinstated exemptions and exclusions will take effect July 1st.