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 retains 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 sales and use tax exemption will apply to purchases made by contractors working on public projects, thereby facilitating cost savings for these entities. This change aims to streamline the procurement process for public construction projects and ensure that contractors can benefit from the same tax exemptions as the governmental entities they serve.

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