This bill amends Louisiana's sales and use tax laws to incorporate digital products alongside tangible personal property, establishing a comprehensive framework for their taxation. Key changes include the introduction of new definitions for "digital product" and "dealer," which explicitly encompass various forms of digital media and services. The legislation clarifies that the sale of digital products does not include their consumption in producing new products or services, and making digital products available for free is not considered a taxable sale. Additionally, it sets a uniform tax rate of two percent for retail sales and use, with an additional four percent tax on these items, and outlines the responsibilities of the Department of Revenue in tax collection and enforcement.

The bill also introduces provisions for Direct Payment Numbers (DP Numbers) for certain taxpayers, allowing them to remit sales and use taxes directly to the state. It establishes exemptions for specific uses of digital products, such as those utilized in healthcare or by financial institutions, and clarifies that no sales or use tax will be imposed on digital products purchased for first use outside of Louisiana. Furthermore, it mandates annual reporting requirements for transactions involving exempt items, including digital products, and allows charitable institutions to deduct state sales tax collected on qualifying exempt sales of digital products. The provisions of this Act will take effect for taxable periods beginning on or after January 1, 2025.

Statutes affected:
HB8 Original: 47:301(3), 47:302(A), 47:303(A)(2), 47:1(A), 47:304(B), 47:305(E), 47:10(A), 47:14(A)(1), 47:53(A), 47:54(B), 47:5(A)(1), 47:307(A), 47:309(A)(1), 47:1(B)(1), 47:310(A), 47:315(A), 47:3(A), 47:5(A), 47:321(A), 47:331(A), 47:1(A)(3), 51:1286(B), 47:301(16)
HB8 Engrossed: 47:301(3), 47:302(A), 47:303(A)(2), 47:1(A), 47:304(B), 47:305(E), 47:10(A), 47:14(A)(1), 47:53(A), 47:54(B), 47:5(A)(1), 47:307(A), 47:309(A)(1), 47:1(B)(1), 47:310(A), 47:315(A), 47:3(A), 47:5(A), 47:321(A), 47:331(A), 47:1(A)(3), 51:1286(B), 47:301(16)
HB8 Reengrossed: 47:301(3), 47:302(A), 47:303(A)(2), 47:1(A), 47:304(B), 47:305(E), 47:10(A), 47:14(A)(1), 47:53(A), 47:54(B), 47:5(A)(1), 47:307(A), 47:309(A)(1), 47:1(B)(1), 47:310(A), 47:315(A), 47:3(A), 47:5(A), 47:321(A), 47:331(A), 47:1(A)(3), 51:1286(B), 47:301(16)
HB8 Enrolled: 51:1286(B), 47:301(16)
HB8 Act 10: 51:1286(B), 47:301(16)