House Bill No. by Representative McFarland amends R.S. 47:305.7(A)(1) to expand the sales and use tax exemption currently available to various governmental entities. The bill maintains the existing exemption for the state, parishes, municipalities, and other political subdivisions, as well as their agencies, boards, and commissions. However, it introduces new provisions that extend this exemption to purchases made by general contractors and their subcontractors for work performed under construction contracts related to public projects for state and local governments.

Specifically, the new legal language inserted into the bill clarifies that the exemption applies to purchases made by contractors working on public projects, thereby allowing these contractors to benefit from the same tax relief as the governmental entities themselves. This change aims to facilitate public construction projects by reducing the overall costs associated with sales and use taxes for contractors engaged in such work.

Statutes affected:
HB490 Original: 47:7(A)(1)