LouisianaHB 5782025 Regular SessionHouseWALLET

TAX/SALES & USE: Provides with respect to state and local sales and use taxes and exemptions to those taxes (EN DECREASE GF RV See Note)

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Bill Overview

Analyzed Economic Effects

24 provisions identified: 18 benefits, 5 costs, 1 mixed.

Boat buyers get a tax cap

Combined state and local sales and use taxes on a Louisiana-registered boat are capped at $20,000 after specified credits. You must pay the tax within 90 days of purchase. When the cap reduces the tax, collections are split equally between the applicable state and local taxing authorities. Starting July 1, 2030, the cap is adjusted every five years using the specified consumer inflation measure.

Families avoid diaper and hygiene taxes

You do not pay state or local sales and use taxes on diapers or feminine hygiene products bought for personal use. Savings depend on your purchases and the taxes that otherwise apply.

Families get tax-free school event admissions

Admissions to athletic and entertainment events held for or by public elementary and secondary schools are exempt from sales and use taxes. The exemption also covers qualifying events for or by parochial and private schools.

Tax breaks at qualifying nonprofit events

Eligible nonprofit events receive state and local tax exemptions for covered goods sales, outside-gate admissions, and associated parking. Sponsors need annual state certificates, must genuinely sponsor events, and must use proceeds for approved purposes after allowed expenses. Political organizations, regular commercial ventures, sponsor purchases, and events intended to profit promoters or contracted providers are excluded. A separate state-only exemption covers sponsor sales, admissions, and parking at qualifying cultural events run by domestic 501(c)(3) nonprofits. Those events must last 7–12 days and average at least 300,000 attendees annually over the five most recent years.

Tax relief for repairs shipped away

Repair charges are exempt from state sales and use taxes when repaired property is shipped or delivered outside Louisiana. Delivery must use a common carrier, the Postal Service, the repair dealer, or an independent trucker. Aircraft can use the best available delivery method, but offshore areas do not count as another state. Local taxes remain unless local authorities extend the exemption.

Tax-free replacement cars for warranty customers

Replacement vehicle leases or rentals are exempt from state and local sales and use taxes when provided under a warranty obligation. The provider must be a licensed vehicle dealer or manufacturer. The exemption also covers vehicles provided free after the warranty ends.

Habitat pays less for homebuilding materials

Habitat for Humanity affiliates do not pay state or local sales and use taxes on qualifying construction materials. The materials must build new residential homes in Louisiana. The law does not set household savings or require a specific change in home prices.

Businesses get taxable service resale relief

The retail-sale definition now applies to sales and use taxes imposed by all taxing authorities, including local governments. It excludes resales of covered services when the final retail sale is subject to Louisiana sales tax. Businesses must follow applicable resale rules. The definition also removes former language about arm's-length automobile leases.

District tax funding and baselines change

The tourism promotion district's share of specified state sales tax receipts rises from 0.01% to 0.03%. The transfer follows the constitutionally required allocation to the Bond Security and Redemption Fund. For the medical and bioscience district established in 2005, the initial annual sales-tax collection baseline is $1.272394 million. That baseline is used to calculate sales tax increment financing, not individual household tax bills.

Healthcare providers get digital tax relief

Licensed healthcare facilities and providers receive tax exemptions for qualifying software, software access services, information services, and digital products. They must use them to store or transmit healthcare information or to diagnose or treat medical conditions. The Department of Revenue must begin implementation rulemaking before December 31, 2025. Providers are not required to pass savings to patients.

Local fund offsets inventory tax losses

The law creates a Local Revenue Fund to offset local property-tax revenue lost through parish business-inventory exemptions. Only local property-tax recipient bodies within the parish receive distributions for those losses. After required bond-fund transfers, the fund receives designated telecommunications tax receipts, other dedicated revenue, and additional appropriations; investment interest stays in the fund. No funding amount is specified. Local sales and use tax ordinances must also state how their tax proceeds will be used.

Local governments can offer tax exemptions

Local governments can exempt qualifying manufacturing machinery and equipment from local sales and use taxes. The local measure sets the exemption's timing and duration. Exemptions in effect on December 31, 2024, remain valid even without adopting every state definition or limit. For optional exemptions under R.S. 47:305.2(A), local ordinances or resolutions must adopt that section's full definitions and limits. The law does not require local governments to adopt these optional exemptions.

Public project contractors get tax relief

General contractors and subcontractors receive a sales and use tax exemption for purchases tied to state or local public construction. They must first submit the contract and obtain a state certificate identifying the project, government entity, and project dates. State relief excludes purchases for public property privately leased under post-effective-date payment-in-lieu-of-taxes or similar agreements unless designated state secretaries approve. Private nonprofit companies building or operating wastewater facilities under contracts with listed local public entities also receive the public entity's exemption.

Radiation centers get equipment tax relief

Qualifying radiation treatment centers avoid state and local sales and use taxes on capital equipment purchases, leases, and repairs. Related software must operate eligible equipment, and centers need a state exemption certificate. Eligible centers include specified nonprofit university-linked medical physics programs and facilities meeting the law's medical-physicist staffing requirement. The law also names Shreveport's Biomedical Research Foundation and Willis-Knighton Health System. Equipment must meet the law's treatment and qualification requirements, including a separate definition for the Biomedical Research Foundation.

Rental businesses get vehicle tax exemptions

Covered sales, purchases, leases, and imports of vehicles, trailers, and semitrailers held in Louisiana only for rental receive tax exemptions. The exemption covers state and local sales and use taxes and requires a state exemption number or certificate. Rental proceeds from property not previously taxed must reflect reasonable market rates. Later below-market rentals between related parties can lead taxing authorities to presume the exemption was improper.

Schools and medical college pay less

Approved private and parochial K–12 schools receive tax exemptions for purchases, leases, and rentals of listed classroom materials and equipment. Covered items include books, workbooks, computers, software, films, videos, and audio tapes. Schools must comply with the Dodd Brumfield court order and federal 501(c)(3) requirements. Edward Via College of Osteopathic Medicine also receives an exemption for purchases, leases, and rentals directly supporting its educational mission.

Sickle cell nonprofits get tax relief

A nonprofit established before 1975 receives sales and use tax exemptions for covered goods, digital products, and taxable services. It must run a comprehensive sickle cell program providing free education, testing, counseling, prescriptions, transportation, and food packages. The organization needs a state exemption certificate and can appeal a denial to the Board of Tax Appeals.

Vessel builders and operators pay less

Tax exemptions cover component materials, equipment, machinery, and software for Louisiana-built vessels with load displacement of at least 50 tons. They also cover the builder's proceeds from selling those vessels. Vessels operating exclusively in foreign or interstate coastwise commerce receive expanded relief for operating and repair software and related digital services. Digital tools must support vessel maintenance or operation and required navigation, commercial operation, certification, or regulatory approval. Routine business tools and personal entertainment are excluded.

Higher taxes on purchases and services

The law brings digital products into additional sales and use taxes, including covered purchases, leases, and rentals. It also updates how digital products are valued and used for state and local taxes, while excluding them from telecommunications services. One additional tax rises from 0.45% to 1% from January 1, 2025, through December 31, 2029. That rate becomes 0.75% on January 1, 2030; these are not total sales tax rates. Covered service purchases also carry an extra 0.55% tax from January 1, 2025, through December 31, 2029.

Prepaid phone customers pay extra tax

Prepaid calling and prepaid wireless calling services lose their exception from an additional 1% state tax. Covered purchases and taxable uses in Louisiana now carry that tax. The added charge is $1 for each $100 of taxable services.

Fewer tax exclusions for leases, donations

The law removes use-tax definition exclusions for automobiles leased in arm's-length transactions. It also removes exclusions for certain donations to schools, colleges, and food banks. These transactions enter the broader tax definitions, though this provision does not state a separate rate or tax amount.

Remote sellers must collect digital taxes

Covered digital-product sales count toward Louisiana's remote-seller tax collection threshold. Sellers without a Louisiana physical presence must collect tax when covered Louisiana sales exceed $100,000 in the previous or current calendar year. The threshold counts covered goods, digital products, and services delivered into Louisiana.

Truck owners face tighter tax exemptions

Trucks claiming the described interstate-commerce tax exemption must be registered in Louisiana as Class 1 vehicles. Their registered gross weight must be at least 80,000 pounds. Trucks that fail either requirement do not qualify for this exemption.

New tax location for property listings

A real estate licensee's or broker's qualifying multiple listing service purchase is sourced to their Louisiana regional real estate association office. The service must be a property-listing platform or database available only to licensees and brokers. The rule sets the tax location, not a tax rate or dollar amount.

Sponsors & Cosponsors

Sponsor

Julie Emerson
Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 368 • No: 26

House vote • 6/12/2025

Conference Committee Report read, roll called, yeas 85, nays 11. The Conference Committee Report was adopted.

Yes: 85 • No: 11

Senate vote • 6/12/2025

Conference Committee Report read; adopted by a vote of 32 yeas and 3 nays.

Yes: 32 • No: 3

House vote • 6/10/2025

Read by title, roll called, yeas 98, nays 0, Senate amendments rejected, conference committee appointment pending.

Yes: 98 • No: 0

Senate vote • 6/9/2025

Senate floor amendments read and adopted. Read by title, passed by a vote of 38 yeas and 0 nays, and ordered returned to the House. Motion to reconsider tabled.

Yes: 38 • No: 0

House vote • 5/7/2025

Read third time by title, amended, roll called on final passage, yeas 82, nays 12. Finally passed, title adopted, ordered to the Senate.

Yes: 82 • No: 12

House vote • 4/28/2025

Reported with amendments

Yes: 21 • No: 0

House vote • 4/22/2025