The bill CCRHB578 proposes significant amendments to Louisiana's sales and use tax laws, introducing new exemptions and clarifying existing regulations. Key provisions include sales tax exemptions for certain ships and supplies, as well as for contractor purchases related to public contracts. The bill establishes a baseline collection rate for a medical and bioscience district and allows for local optional exemptions. It also clarifies sourcing rules for sales transactions, particularly in real estate services, and introduces new definitions and exemptions for educational institutions and government entities. Notably, the bill specifies that state and local sales taxes on boats registered in Louisiana shall not exceed $20,000 under certain conditions, with adjustments based on the Consumer Price Index starting in 2030.

Additionally, the bill enhances funding for tourism promotion by increasing the dedication from 0.3% to 3% of the avails of the 1% state sales tax and expands the definition of "dealer" to include digital products. It removes flooring from taxable services and specifies that certain cable and satellite services will only be subject to state sales tax. The legislation also outlines exemptions for nonprofit organizations, educational materials, and specific healthcare and construction purchases, while establishing a Local Revenue Fund to offset losses from business inventory exemptions. The effective dates for these changes vary, with most provisions applicable to taxable periods beginning on or after January 1, 2025.

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)