House Bill No. 714, introduced by Representative Emerson, seeks to amend various sections of the Louisiana Revised Statutes concerning state and local sales and use taxes. The bill proposes a reduction of the state sales tax rate from 5% to 4.75% under certain conditions, with a further reduction to 0.75% beginning January 1, 2027. It introduces new exemptions for services and products, including educational materials, nonprofit activities, and digital products, while repealing certain existing provisions related to sales tax exemptions. Additionally, the bill establishes a Local Revenue Fund to offset losses from business inventory exemptions and modifies the allocation of tax revenues, increasing the percentage dedicated to tourism promotion.

The bill also includes significant amendments to definitions related to sales and use tax, expanding the scope to encompass digital products and services. It clarifies terms such as "cost price," "dealer," and "sales price," and introduces new tax rates for services starting in 2025. Furthermore, it outlines a process for taxpayers to claim refunds for sales tax paid on exempt transactions and emphasizes the need for exemption certificates for certain organizations. Overall, the bill aims to modernize Louisiana's tax framework, streamline tax rates, and enhance revenue allocation for tourism and local government support.

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)