House Bill No. by Representative Wright seeks to amend the existing sales and use tax exemptions related to ships and their supplies by extending these exemptions to certain digital products. The bill modifies R.S. 47:305.1(A), (B), and (C)(3) to include "digital products" and "any other tangible personal property" as exempt from state and local sales and use taxes when they are used in the construction or repair of vessels, including commercial fishing vessels and drilling ships. Additionally, it broadens the definition of "component part" to encompass digital products and items received on a vessel during construction or repair.

The proposed law retains the current exemptions for materials, equipment, and machinery that become part of vessels built in Louisiana, as well as for supplies used by operators of vessels engaged in foreign or interstate commerce. It also includes prewritten computer software access services and information services as exempt when used in the maintenance or operation of these vessels. The changes will take effect on July 1, 2025.

Statutes affected:
HB626 Original: 47:1(A)