The bill CCRHB578 proposes significant amendments to Louisiana's sales and use tax laws, introducing new provisions for sales tax increment financing, exemptions for certain ships and supplies, and specific government purchases. It establishes an annual baseline collection rate for medical and bioscience districts and allows for local optional exemptions. The bill clarifies sourcing rules for sales transactions and includes exemptions for general contractors on public contracts. Additionally, it repeals outdated provisions and introduces new definitions and exemptions for boats and digital products used in vessel operations, emphasizing the Department of Revenue's role in implementing these changes.

Moreover, the legislation aims to enhance tourism funding by increasing the dedication for tourism promotion from 0.3% to 3% of state sales tax avails. It expands the definition of "dealer" to include digital products and removes flooring from taxable repair services. New exemptions are introduced for educational materials, nonprofit event admission fees, and construction materials for Habitat for Humanity. The bill also establishes the Local Revenue Fund to mitigate losses from business inventory exemptions and modifies existing healthcare-related software and equipment exemptions. Various provisions will take effect starting January 1, 2025, and July 1, 2025, depending on the specific measures.

Statutes affected:
HB578 Original: 47:301(3), 47:1(F), 47:3(7), 47:2(A)(5), 47:6(1), 47:7(A)(2), 47:36(A), 47:75(A), 47:321(A), 47:1(A), 47:331(A), 51:1286(A), 47:6(B), 47:36(E)
HB578 Engrossed: 47:301(3), 47:1(F), 47:3(7), 47:2(A)(5), 47:6(1), 47:7(A)(2), 47:12(D), 47:36(A), 47:75(A), 47:321(A), 47:1(A), 47:331(A), 51:1286(A), 47:6(B)
HB578 Reengrossed: 47:301(3), 47:1(F), 47:3(7), 47:2(A)(5), 47:6(1), 47:7(A)(2), 47:12(D), 47:36(A), 47:75(A), 47:321(A), 47:1(A), 47:331(A), 51:1286(A), 47:6(B), 47:1(E)
HB578 Re-Reengrossed: 47:301(3), 47:1(F), 47:3(7), 47:2(A)(5), 47:6(1), 47:7(A)(2), 47:12(D), 47:36(A), 47:75(A), 47:321(A), 47:1(A), 47:331(A), 51:1286(A), 47:6(B), 47:1(E)
HB578 Enrolled: 47:301(3), 47:1(F), 47:3(7), 47:2(A)(5), 47:6(1), 47:7(A)(2), 47:12(D), 47:36(A), 47:50(A)(2), 47:75(A), 47:321(A), 47:1(A), 47:331(A), 47:10(A), 47:6(6), 47:7(A)(1), 51:1286(A), 47:6(B), 47:2(A)(4), 47:36(E)
HB578 Act : 47:301(3), 47:1(F), 47:3(7), 47:2(A)(5), 47:6(1), 47:7(A)(2), 47:12(D), 47:36(A), 47:50(A)(2), 47:75(A), 47:321(A), 47:1(A), 47:331(A), 47:10(A), 47:6(6), 47:7(A)(1), 51:1286(A), 47:6(B), 47:2(A)(4), 47:36(E)
Conference Committee Report, #4411, House Adopted, Senate Adopted: 47:1(A), 47:6(6), 47:7(A)(1), 47:6(B), 47:2(A)(4), 47:36(E)